For those standing at the doorstep of retirement, market volatility isn’t just noise—it’s a potential threat to years of hard-earned savings. But while uncertainty can feel unsettling, financial experts agree: there are smart, strategic ways to help protect your portfolio and preserve your retirement goals.
As retirement nears, one of the biggest concerns for high-net-worth individuals is ensuring that their carefully built nest egg remains secure and resilient—regardless of market or economic disruptions. One emerging risk that’s becoming harder to ignore in today’s global economy? Tariff volatility.
With tariff-driven market swings once again making headlines, many near-retirees are feeling the pressure. And they’re not alone—an estimated 4.18 million Americans will turn 65 in 2025, more than in any previous year, according to the Alliance for Lifetime Income.
Even if you’re not well-versed in international trade policy, tariffs can have a real impact on inflation, consumer prices, and investment performance—three factors that directly influence retirement planning.
In this blog, we’ll explore what tariff volatility means, how it could affect your retirement outlook, and what educational strategies you can consider to help safeguard your portfolio.
What Are Tariffs, and Why Do They Matter?
A tariff is a tax imposed by a government on imported goods and services. Governments use tariffs to protect domestic industries, retaliate in trade disputes, or generate revenue. However, these policy tools often come with unintended consequences that extend far beyond international trade.
When tariffs are implemented, they can trigger a chain reaction:
While the goal may be economic protectionism, the result can be broad economic instability, especially for individuals with exposure to global markets through their investment portfolios.
As we move through 2025, tariff policies continue to be a significant factor in shaping the global economic landscape. In the wake of previous trade conflicts, including the U.S.-China trade war of 2018-2019, the focus has now shifted to more specific sectors that are central to the ongoing technological and environmental transitions happening worldwide.
In particular, new tariffs are being discussed or implemented in the following key areas:
These evolving tariff policies are contributing to continued market volatility, as they impact global supply chains and cost structures for a wide range of industries. As of mid-2025, many analysts are keeping a close watch on how these tariffs will affect sectors like technology, automotive, and energy, with the potential to create ripple effects across the broader economy.
For investors, these ongoing tariff adjustments represent both challenges and opportunities. It's more important than ever to stay informed about the latest developments and how they might affect the performance of specific assets or industries.
As someone nearing retirement, understanding the connection between tariffs and your wealth preservation strategy is essential. While tariffs may seem like an abstract geopolitical concept, their effects often trickle down into core components of your financial life:
Tariffs can create instability in equity markets. Sectors such as manufacturing, agriculture, and technology, which are heavily integrated with global supply chains, may experience disproportionate impacts. For individuals with exposure to these sectors, this volatility can introduce significant stress as retirement draws near.
Tariffs often lead to price increases for both raw materials and consumer goods. This inflation can reduce purchasing power over time, affecting your retirement budget. For example, if a 5% tariff is placed on imported electronics or food, those increased prices are likely to be passed on to you, the consumer. Over a 20- to 30-year retirement, this inflation can erode the real value of your income.
To combat tariff-related inflation or economic slowdown, central banks may alter interest rates. Lower rates can affect bond yields and the performance of other interest-sensitive assets. Conversely, rising interest rates can increase borrowing costs and impact real estate holdings or other leveraged investments.
While it's impossible to control tariff policy, there are steps you can take to be better prepared for its potential impact on your retirement assets.
Please note that the following suggestions are meant to serve as educational guidance only and are not intended as specific investment advice. Always consult a financial advisor before making any decisions about your portfolio.
Diversification is a common strategy to help manage risks and reduce exposure to individual sectors or assets. As you approach retirement, it’s a good idea to discuss with your advisor how your portfolio might be affected by tariff-induced market fluctuations. A comprehensive review of your asset allocation may help ensure it remains balanced according to your financial goals and risk tolerance.
Having sufficient liquid assets may help provide flexibility during periods of market volatility. This can help reduce the likelihood of having to sell long-term investments at a loss during a downturn caused by unexpected tariff news. Having a reserve of liquid funds may also give you the flexibility to capitalize on investment opportunities when markets stabilize.
Some individuals choose to hold assets that are more resilient to inflationary pressures. While not a guaranteed hedge, certain types of assets are often included in a balanced portfolio designed to help mitigate the risks associated with rising prices. It’s important to speak with your advisor about how inflation might affect your retirement savings and how to help manage those risks within your overall asset mix.
Staying informed about global economic policies, particularly trade-related developments, may help you proactively discuss potential adjustments with your financial team. While it's impossible to predict policy changes, being informed about global economic trends and their potential effects on markets can help enable you to make more educated decisions about your wealth preservation strategy.
Tariff volatility can indirectly affect your tax strategy. For example, portfolio adjustments in response to market movements may create unexpected capital gains. Working with a tax advisor can help align your investment and tax strategies, especially as you approach the required minimum distribution (RMD) age. Understanding how taxes and tariffs intersect can help ensure you're optimizing your wealth in a way that allows you to preserve more over the long term.
At NJM Wealth Preservation Strategies, we’re experienced in helping affluent Americans nearing retirement better understand the risks and opportunities they may face. Our team is here to provide educational resources and support so you can make better informed decisions.
We understand that market uncertainty—driven by tariffs or otherwise—can be unnerving, especially when your retirement is on the horizon. But by staying informed and proactive, you can position yourself to weather economic fluctuations with confidence.
If you’re concerned about your retirement, schedule a complimentary consultation with us today.
Tariff volatility is just one of many modern risks that can impact your retirement nest egg. Understanding how these global policies influence markets, inflation, and interest rates can empower you to take educated steps toward long-term financial stability.
Remember: the best defense is preparation. A well-structured and flexible approach to wealth preservation is key in helping protect your assets during uncertain times.
In 2025, several significant tariff changes are affecting global trade. These include:
These changes are designed to boost domestic industries but may lead to higher costs for consumers and industries relying on these imports.
Tariffs disrupt global supply chains by increasing the cost of goods imported between countries. As tariffs are implemented on key industries like semiconductors, electric vehicles, and raw materials, businesses may face higher production costs, which could lead to price hikes for consumers. Additionally, companies that rely on global supply chains for manufacturing may experience delays or difficulties in sourcing materials, impacting overall production timelines.
Yes, tariffs can contribute to inflation, especially if the cost of goods imported into the U.S. rises due to new tariffs. This could lead to increased prices for consumers on items like electronics, electric vehicles, and renewable energy products. The U.S. government may also face increased pressure to manage inflation if these tariffs cause widespread cost increases across various industries, leading to a potential reduction in purchasing power for consumers.
Tariff volatility can influence the performance of certain industries, especially those reliant on global supply chains, like the technology and automotive sectors. If you're nearing retirement, it's crucial to assess your portfolio’s exposure to these industries and how sensitive your investments are to tariff-related fluctuations. Diversification and regular portfolio reviews with your financial advisor can help ensure you're prepared for any tariff-induced market instability.
Tariffs have the potential to slow economic growth, especially if they significantly increase production costs or disrupt global trade. In extreme cases, sustained tariff escalation could contribute to a global recession, particularly if it triggers retaliatory measures or widespread disruptions in industries that rely on global supply chains. However, the full extent of this impact will depend on how tariffs evolve throughout 2025 and how governments respond to the challenges.
Disclaimer:
This blog is intended for educational purposes only and does not constitute investment, legal, or tax advice. NJM Wealth Preservation Strategies does not offer specific financial or investment advice.