Once again, US president Donald Trump’s trade tariffs have affected investment markets throughout April 2025 and could have far-reaching implications over the coming months.

Indeed, UN Trade and Development now predicts that global growth will slow to 2.3% in 2025, compared to 2.8% last year.

While experiencing volatility can be daunting as an investor, remember to take a long-term view. Historically, markets have recovered from periods of downturn. However, it’s important to note that investment returns cannot be guaranteed.

Trade tariffs and their effect on the market in April 2025

Since Trump took office in January, uncertainty around trade policies has affected global markets, and these announcements continued to have an effect in April. 

On 2 April, markets prepared for key tariff announcements from the US, dubbed “Liberation Day” by the White House.

The speculation led to a European stock sell-off gathering pace, with pharmaceutical shares being particularly affected. The Stoxx 600 healthcare index, which is composed of European businesses in the healthcare sector, fell by around 2.5%.

On “Liberation Day”, Trump announced sweeping two-tier tariffs. A baseline 10% tariff was applied universally to imports from all countries (except Mexico and Canada) and then additional country-specific “reciprocal” tariffs were also applied.

As a result, on 3 April, markets around the world plummeted when they opened – from Tokyo’s Nikkei (-3.4%) to London’s FTSE 100 (-1.4%). In fact, Wall Street recorded its worst day since 2020 as the S&P 500, which tracks 500 leading companies in the US, closed 4.9% lower.

On 4 April, Beijing retaliated and announced 34% tariffs on the US.

As the market continued to fall, it didn’t stop there, with both the US and China increasing their tariffs several times. By 11 April, China’s tariff had reached 125% and the US’s was 145%.

Amid this tit-for-tat trade war, Trump announced a 90-day pause on reciprocal tariffs for most countries, which led to markets rallying.

Despite the uncertainty experienced throughout April, the market began to settle towards the end of the month. On 24 April, the FTSE 100 closed 0.65% higher than it opened and was back to the level it was on 3 April before the tariff volatility. It was a similarly positive day for the main indices in Germany and France.

UK

Headline data was mixed for the UK in April.

Figures from the Office for National Statistics show the economy unexpectedly grew by 0.5% in February. While this will certainly be welcome news for chancellor Rachel Reeves, experts predict a downturn in March due to the tariffs. 

Inflation also fell in line with expectations to 2.6% in the 12 months to March 2025, compared to 2.8% a month earlier. The Bank of England hinted it could cut the base interest rate at the next Monetary Policy Committee meeting in May.

However, readings from S&P Global’s Purchasing Managers Index (PMI), which provides an insight into the health of businesses, aren’t optimistic. 

The PMI indicated manufacturing production fell at a faster pace in March as new orders declined at the sharpest rate in 19 months.

In addition, the private sector went into decline for the first time since October 2023 due to exports falling at the fastest pace in almost five years.

Europe

Eurostat data shows inflation was down across the eurozone to 2.2% in the 12 months to March. There was a significant variance between countries, from France (0.9%) to Romania (5.1%).

The figures paved the way for the European Central Bank to make its seventh cut to interest rates in the last 12 months. The main interest rate fell from 2.5% to 2.25%.

PMI data was more positive for the eurozone than the UK.

Factory output increased for the third consecutive month and crossed the threshold that indicates growth for the first time in two years. This boost is linked to orders rising as businesses tried to beat incoming tariffs.

Perhaps unsurprisingly given market volatility, a survey from the ZEW Economic Research Institute found German investor morale plunged to the lowest level since the start of the war in Ukraine. The president of the institute pointed to the “erratic change in US trade policy” as a reason.  

US

There could be difficult months ahead for the US. The International Monetary Fund increased the probability of a US recession occurring in 2025 from 25% to 37%.

Tariffs affected more than the markets too. Uncertainty around trade policy led to factory production stalling, according to S&P Global’s PMI. However, at 50.2, the reading remained just above the 50 mark that indicates growth.

Similarly, the PMI showed US business activity fell to a 16-month low.

Some of the largest businesses in the US have suffered a setback due to the tariffs.

On 3 April, Apple shares were down by 9%, wiping $300 billion (£225 billion) from the company’s value. The business relies on imports from Asia and is likely to face higher costs as a result.

Tesla’s quarterly sales also indicated challenges as they slumped 13% in the first three months of the year. The fall was linked to strong competition from rivals and owner Elon Musk’s involvement with Trump’s presidential campaign.

Asia

Exports from China climbed by 12.4% year-on-year in March – a five-month high. The jump was caused by factories rushing to get shipments out before tariffs took effect.

There was a blow to China when Fitch downgraded its credit rating from A+ to A. The organisation said the decision was made before tariffs were considered and is due to China’s rising debt and deteriorating public finances.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

If an unexpected lump sum lands in your bank account, you might be tempted to splash out and treat yourself. However, using a windfall effectively could create long-term prosperity.

There are plenty of reasons why you might suddenly receive a cash injection. Perhaps you’ve received a bonus from work or inherited assets. Whatever the reason, before you start making plans, read on to find out how you might use it to improve your long-term financial security.

Favouring savings could mean UK adults miss out on long-term growth

A February 2025 study from Aegon asked UK adults how they’d use an unexpected £5,000 bonus. Encouragingly, 70% would prefer to save for the future or pay off existing debt than spend it on themselves.

However, many would miss out on long-term growth opportunities as they favoured holding the money in cash – 27% would deposit it in a savings account and 16% would use a Cash ISA. In contrast, just 9% would invest in stocks and shares and 5% would invest through their pension.

While cash can seem like the “safe” option, the interest rate is likely to be lower than potential investment returns. So, while intentions might be good, they could be missing out on an opportunity for long-term growth.

Investing isn’t always the right option if you’ve received a windfall but it’s important to weigh up the pros and cons. Here are six useful steps that could help you identify how to use an unexpected cash injection in a way that reflects your goals.

1. Set out your financial goals

You can’t make a decision that reflects your goals if you haven’t defined what they are.

So, before you start thinking about how to use the money, answer these questions: What are your main financial goals, and when do you want to achieve them?

Your answer can provide direction for the decisions you make next. For example, if you said you wanted “to create a nest egg to give my child in five years”, the most effective way to use the money would be different than if your answer was “to retire in 20 years”.

2. Assess your current finances

A windfall might seem separate from your day-to-day finances. Yet, taking the time to understand your current financial position and how the additional money could be used to support your existing financial plan is likely to be valuable.

For instance, the Aegon research found 12% of people would opt to pay off debt.

Paying off debt may make financial sense and have a positive effect on your overall wellbeing – many people feel relief and a sense of achievement when their mortgage is paid off.

In addition, lowering your regular outgoings might provide you with greater freedom. Perhaps you could reduce your working hours or change your role as a result.

3. Review your financial safety net

While part of your wider financial plan, it’s worth paying particular attention to your financial safety net when reviewing your current position.

You may hope to never need your emergency fund, but, should something unexpected happen, a financial safety net is invaluable.

A common rule of thumb is to have six months of expenses in an easily accessible account that you could use in an emergency, from a roof repair to needing to take time off work due to an illness. Going through your financial commitments could help you set an emergency fund target that’s right for you.

You may also want to consider financial protection. Several types of protection would pay out either a lump sum or regular income when the conditions are met. For example, income protection would normally provide you with a portion of your salary if you need to take time off work because you’re ill or injured.

4. Consider if investing is right for your goals

When you’ve received a windfall, one important decision is whether to save or invest the money.

Usually, a savings account makes sense if you’re goal is within the next five years or you might need access to the money at short notice, such as your emergency fund.

On the other hand, if you want to build long-term prosperity, investing might be the right option for you.

It’s not possible to guarantee investment returns. However, markets have, historically, delivered returns over a long-term time frame. So, if you aim to turn a windfall into wealth that could support long-term goals, investing may help you get more out of your money.

5. Add money to your pension

If you decide investing is right for you, don’t overlook your pension.

A pension provides a tax-efficient way to invest for your retirement. Tax relief provides an instant boost to your contributions, and the potential to benefit from decades of compound returns might turn an initial lump sum into a way to create a comfortable retirement.

However, you can’t usually access the money in your pension until you turn 55 (rising to 57 in 2028). So, it’s important to understand your goals and time frame before you boost your retirement pot.

6. Seek professional advice

Working with a regulated financial planner gives you a chance to really consider what you want to get out of the windfall, and how you might achieve that. As well as creating an initial blueprint, ongoing financial advice could help ensure you remain on track and that your plan is updated to reflect changes in your goals or circumstances.

Please get in touch to arrange a meeting with one of our team.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate NS&I products.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

Creating a financial plan can seem complicated, especially if you need to take into account your partner’s views, assets, and goals. At times, you might have conflicting ideas about what is “right” and it can be a difficult situation to navigate.

Working with a financial planner as a couple could help you overcome some of the key challenges you might encounter when building a financial plan with a partner.

Challenge 1: Starting money conversations

Talking about money is sometimes seen as a taboo subject. So much so that even talking to your partner about shared finances can feel awkward.

Indeed, according to a March 2024 survey from Aqua, just 24% of Brits discuss finances with their partner frequently. In fact, far more (39%) admitted they don’t talk about money with their partner regularly.

From discussing everyday spending to investing for your future, it’s important to be on the same page, and that’s impossible if you’re not talking about money.

Having a regular meeting as a couple with a financial planner gives you dedicated time to talk about money and get those important conversations started – you might find they come more naturally over time.

Challenge 2: Balancing different priorities 

Even if you’re working towards the same overall goal, there might be times when you and your partner have different priorities.

Perhaps you want to put extra money into your pensions so you can retire early, but your partner would rather focus on building a nest egg for your children. Balancing these competing priorities can be challenging and lead to arguments, even though managing your finances well is important to both of you.

A financial plan that’s tailored to you can help you understand the effect of your decisions so you can balance different priorities.

For example, in the above instance, you might calculate if you could still reach your retirement goals if you delayed increasing pension contributions for five years. The outcome may mean you feel more comfortable adding contributions to your child’s savings, knowing that your long-term future is still on track. 

Challenge 3: Managing conflicting money habits

Conflicting views on how to use money and spending habits are a major cause of arguments in relationships.

Indeed, an Independent report from March 2025 suggests that 30% of people in relationships are worried that discussing savings or investments will cause arguments. Working with a financial planner could minimise conflicts and ensure you’re both on the same page.

Having a shared goal could reduce conflicting spending habits. Imagine you’re in a relationship where one of you is a “spender” and the other a “saver”.

Having a defined amount that needs to be added to savings or investments each month to reach a defined goal may mean the spender is less likely to overspend. Similarly, the saver may feel more comfortable spending disposable income if they know long-term goals are on track.

Sometimes your financial planner acting as a neutral third party can be useful when you’re discussing differing money habits too. They may be able to highlight where a compromise could be made or demonstrate why one option better supports your lifestyle goals.

The good news is that when you’re working together, you could get more out of your money.

Challenge 4: Bringing together different assets

Understanding how assets may be used to reach your goals can be complicated and when you’re planning with a partner, bringing them together may be a challenge.

For example, you may both be paying into a pension – what income could each provide and is it enough to deliver the lifestyle you want? Should you have individual savings accounts or combine them?

A financial plan can help you get to grips with your assets, understand your options, and make decisions based on your goals.

Equally, many tax allowances and reliefs are individual. So, you might need to consider how to use both your ISA allowance, pension Annual Allowance and more in a way that reflects your circumstances and provides both of you with financial security.

We can work with you and your partner to create a bespoke financial plan

A plan that’s tailored to you and your partner could help both of you feel more confident about the future and ensure you are working towards goals together.

Please get in touch to talk to us about your aspirations and build a financial plan.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

2025 has already been eventful for investors. Many factors are influencing market volatility, and one cause you might have overlooked is the emotions of investors. Read on to find out why fear and anxiety might lead to the value of investments falling.

US president Donald Trump entered the White House for a second term in January. Since then, his policies have caused global uncertainty, particularly the introduction of tariffs on goods imported into the US.

Indeed, Forbes reported in April 2025 that during the first 90 days of the new administration, the S&P 500 (an index of 500 leading companies) had tumbled 15% from its peak. The Nasdaq, a technology-focused index, had fallen 20%.

It’s not just US markets that have been affected. Markets around the world have experienced volatility.  

While the overall trend has been a downward one, there have been points where the market has picked up.

For example, on 10 April, Trump paused his tariffs against most nations except China. The Guardian reported markets surged following the news – the S&P 500 was up 5.6% and the Nasdaq jumped more than 8% – as investors hoped there would be a renewed focus on trade deals.

So, over the last few months, investors have experienced larger swings in the value of their investments than they might usually.

It’s easy to look at the news and think that volatility is something that happens to investors. Yet, how investors react to news drives volatility, too.

Emotional investment decisions may result in market declines

At times, investor emotions, like fear and anxiety, may play a major role in market volatility.

When investors are worried, they’re more likely to react based on emotions, even if they usually make logical decisions. Listening to the news about geopolitical tensions could spark large numbers of investors to sell their assets because they’re worried the value could fall.

If enough investors panic sell, it can lead to a downturn that creates yet more uncertainty, which, in turn, might lead to the value of assets falling even further. So, sometimes, short-term market swings are due to investor fear, rather than economic data.

It’s not just negative news that might lead to investors making knee-jerk decisions either.

If the government indicated it might make an investment in Artificial Intelligence (AI), you could see technology stocks benefit from a rise due to excitement about the potential boost, even if the investment doesn’t materialise.

Data from interactive investor highlights how announcements might prompt investors to act.

On 7 April, Trump announced so-called reciprocal tariffs on many nations. This led to market volatility and a record number of people buying and selling assets through the investment platform. In fact, trading volumes were 36% higher than the former record, which was set just a week earlier during a similar period of volatility.

While some of these investors may have made decisions based on worries about the future, others might have been excited at the prospect of being able to buy when the market is low. These decisions made by individual investors will have played a small role in the volatility the market experienced.

3 quick tips for keeping your emotions in check during volatility

While investment returns cannot be guaranteed, reviewing the historical data suggests markets deliver a return over a long-term time frame. Remembering this during periods of volatility could help ease your nerves.

Here are three quick tips that might enable you to keep your emotions in check when investing.

1. Turn off the noise. If hearing about what’s happening in the markets puts you on edge, simply turning off the noise and not checking the performance of your investments outside of regular reviews can be hugely helpful.

2. Recognise that news headlines aren’t your portfolio. Headlines shouting about markets “plummeting” can be scary, but they often don’t represent what’s happening in your portfolio. Diversified investments may mean that when one area experiences a dip, gains in another balance it out. For instance, you might read that technology stocks have lost 10%, but they are likely to represent only a small portion of your entire portfolio. 

3. Review the long-term performance of your investments. Nobody wants to look at their investment portfolio and find the value is lower today than it was yesterday. However, you should invest with a long-term goal. So, rather than comparing the value to last week, look at the performance over years or even decades.

Get in touch to talk about your investment portfolio

If you have any questions about what the current market volatility means for your investments and financial plan, please get in touch. We’re here to help you tune out emotions like fear and focus on how to achieve your long-term goals.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

This guest blog was written by Chris Budd who wrote the original Financial Wellbeing Book, and also the Four Cornerstones of Financial Wellbeing. He has written more than 115 episodes of the Financial Wellbeing Podcast and founded the Institute for Financial Wellbeing.

Whether money makes someone happy is a question that provokes many different opinions. Some will say yes; just look at people who have nothing and compare their happiness with people who have lots.

Others will say no; some of the poorest areas of the world show the greatest happiness, and some of the richest people are unhappy.

Research tells us that, as with most things in life, the answer is a bit of both. Understanding this interaction between increasing wealth and wellbeing is an important part of financial planning.

Maslow’s hierarchy of needs

There is a psychological theory about motivations called “Maslow’s hierarchy of needs”.

This theory states that our basic needs must be met (food, shelter) before we can think about our psychological needs (love and belonging). Those psychological needs must then be met before we can find self-esteem and be creative (Maslow describes this final stage as “self-actualisation”).

This has been a very popular model but it is, of course, flawed (as Maslow himself admitted). Life does not present itself in a series of stages, each of which is only accessible when the previous stage has been completed. For example, it is possible to be creative without feeling 100% secure.

Instead of seeing these needs as a hierarchy that we pass through, we could view the development of wellbeing as similar to building a house. We don’t build one side at a time; rather, we work on all aspects simultaneously.

Money and Maslow

So, how does money link with the hierarchy of needs? Maslow himself did not see money as a need, but a tool to be used to satisfy some of the lower needs on the hierarchy.

Although money can help feed us and make us feel secure, it doesn’t have much to do with love and a sense of belonging.

As we travel up the hierarchy, we find that money can actually work against self-esteem. If we judge ourselves by how wealthy we are, then this requires a judgment based on how wealthy other people are. As Theodore Roosevelt is reported to have said: “Comparison is the thief of joy”.

Finally, money has little to do with self-actualisation and creativity. Having more money can create more options around how we spend our time, it is true, but this is often a case of priorities.

Money and happiness

So, do we need more money to be happier? The evidence is clear: not really.

In his book The Antidote, Oliver Berkman describes the second-largest slum in Africa – Kibera in Nairobi. One would imagine it to be a place of great misery – but research shows it to actually be a place of great happiness.

We could point to a homeless person on the street in comparison with that same person with a roof, a job and some income. Of course, they will be happier.

And yet, give that same person lots of money, and they may become less happy again (there are examples of lottery winners who became miserable after their windfall).

We could also point to relative happiness. A person living in a two-bedroom semi-detached house with wonderful neighbours and a strong sense of community might be extremely happy. Until they hear that an old school friend is living in a four-bedroom detached house in an expensive area of town!

My happy challenge

The question you might wish to ask yourself is this: what are the sources of joy in your life? And how does money affect those sources – positively, negatively, or not at all? How might these change in the future?

The next step is to consider the answers to these questions in the context of your financial plan. What objectives does your financial plan aim to fulfil? Will achieving these objectives increase your wellbeing? In what ways? Are there any other objectives that you would like to include?

Perhaps you could discuss these questions with your financial adviser. The answers could help you to create a financial plan that will make you happier, not just wealthier.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.