How Tariff Policies Could Shape the Economy and Your Portfolio

The buzz around tariff policies has been inescapable lately, with the Trump administration doubling down on its campaign promises to use tariffs as a tool to advance both economic and national security goals. From threats of hefty taxes on goods from Colombia, Mexico, and Canada to hints of further measures targeting the European Union, these policies are sending ripples through global markets.  At Omni 360 Advisors and Omni Wealth, we’re here to break down what this means for the economy—and, more importantly, for your portfolio.

What Are Tariffs, and How Do They Work?

A tariff is simply a tax slapped on goods imported into the U.S. When American companies buy from overseas—think retailers stocking shelves or manufacturers sourcing parts—they pay this duty to the federal government. On paper, the buyer foots the bill. But as Jason Blackwell, CFA, notes in his recent analysis for Focus Partners, the impact doesn’t stop there. Foreign sellers might slash prices to stay competitive, weakening their own currencies and making U.S. exports pricier abroad. More often, though, buyers pass the added cost onto consumers, nudging up prices at the checkout line.