Trump’s Tariffs, and the gentleman’s financial compass in 2025

Photo illustration: Madeline Marshall

On February 10, 2025, President Trump declared a fresh round of 25% tariffs on steel and aluminum imports, expanding upon the protectionist measures first introduced in 2018. Dubbed the “Trump 2.0 tariffs,” these duties make no exception for allied nations, a strategic move intended to invigorate U.S. manufacturing, reduce foreign dependency, and, as the administration asserts, stabilize domestic prices in the long run.

In characteristic bravado, Trump proclaimed that Canada should be treated as the “51st state,” hinting at potential exemptions for Australia while making no such concessions for others. His economic advisor, Peter Navarro, framed the policy as a necessary counterstrike against years of unchecked trade manipulation. Future levies on copper, pharmaceuticals, and semiconductors loom on the horizon, and with the product exclusion process now scrapped, tighter oversight on tariff evasions is expected.

Newton’s Third Law in Trade: A Predictable Retaliation

Photo credit: Hulton Archive (Getty Images)

Sir Isaac Newton’s Third Law of Motion states: For every action, there is an equal and opposite reaction. This principle governs not only the movement of celestial bodies but also the geopolitical responses of nation-states. True to form, the world did not stand idle.

Canada, led by Prime Minister Justin Trudeau, swiftly imposed a retaliatory 25% tariff on C$155 billion worth of American goods, targeting everything from beer and wine to fresh produce. In a fervent display of economic nationalism, Trudeau urged Canadians to boycott American products entirely. Meanwhile, China—never one to be outmaneuvered—issued its own response of the tariffs, by imposing new tariffs on certain imports from the United States.

This tit-for-tat escalation underscores a timeless reality: actions beget consequences. And for the modern gentleman—especially one who keenly observes global markets—the ability to anticipate these reactions is paramount.

Investment Implications: The Gentleman’s Playbook

Trade wars create turbulence, disrupting supply chains, inflating costs, and sending markets into unpredictable flux, whether the stock market or crypto universe. However, for the astute investor, uncertainty breeds opportunity. Here’s how the gentleman should position himself:

1. Diversify Across Borders

As trade tensions rise, reliance on any single economy becomes a liability. Allocating investments across diverse geographies mitigates risk. Emerging markets, particularly in Southeast Asia, may benefit as companies seek alternatives to China-centric supply chains.

2. Favor Domestic Producers

Industries insulated from global trade disruptions—such as American steelmakers and local manufacturing firms—stand to gain from protectionist policies. Investing in these sectors could prove strategic.

3. Monitor Commodity Markets

Tariffs on raw materials have cascading effects on commodities. Keep a watchful eye on energy, agriculture, and metals, as price swings create opportunities for tactical entries and exits.

4. Stay Liquid

Market volatility demands agility. Keeping a portion of your portfolio in liquid assets allows for rapid repositioning when opportunities arise or when defensive moves become necessary.

5. Seek Expert Counsel

The complexities of global trade require a well-informed approach. Regular discussions with financial advisors ensure that one’s strategy remains both elegant and effective in a shifting landscape.

Elegance Amidst Economic Storms

Count Edoardo Mapelli Mozzi and Her Royal Highness Princess Beatrice.

Photo credit: Getty Images

In moments of uncertainty, the pursuit of elegance takes on new meaning. It is not merely a matter of taste, but of composure, discernment, and strategic foresight. By understanding the cause-and-effect mechanisms governing global trade, the modern gentleman can not only preserve his financial standing but elevate it—an embodiment of true sophistication in an era of economic upheaval.

As Newton and history remind us: those who act must expect a reaction. The question is not whether forces will push back, but rather how gracefully one can maneuver through them.