Markets have turned volatile following the announcement of sweeping new tariffs. While sharp selloffs can feel unsettling, especially when headlines dominate the narrative, it’s important to zoom out. Here are a few points to help put the tariff selloff into perspective.
1. Trump signals willingness to negotiate
Tariff announcements are often confusing—and this time is no different. Despite multiple White House aides insisting the new tariffs were not meant as a negotiating tactic, Trump has now said he’s open to tariff talks with other countries—if they offer “something phenomenal”. This suggests tariffs are being used as a negotiation tool rather than a fixed policy outcome.
2. Markets have seen this before
The 2018–2019 trade war with China caused sharp market volatility—but once uncertainty settled, markets rebounded. Over the long term, corporate earnings remain the key driver of equity performance, not short-term headlines. 
