Trump Announces Sweeping Tariffs and Steps Into the World of ETFs

Donald Trump is making headlines once again, this time with a double whammy of economic policy and financial ventures. From imposing new tariffs to launching investment funds, the former president is keeping the world on its toes. Here’s the latest:

Trump Announces 25% Tariffs on Steel and Aluminium

In a move that could significantly impact global trade, Trump has announced a 25% tariffs on all steel and aluminum entering the U.S. This decision is expected to have the biggest impact on Canada, the largest supplier of aluminium to the U.S. and one of its top steel trading partners.

Trump also hinted at reciprocal tariffs on countries that tax U.S. imports, stating, “If they charge us, we charge them.” While he didn’t specify which nations would be targeted or if there would be exemptions, the announcement marks a major escalation in his trade policy.

This isn’t the first time Trump has used tariffs as a tool to protect U.S. industries. During his first term, he imposed a 25% tariff on steel and a 10% tariff on aluminium from Canada, Mexico, and the European Union. Although those tariffs were later lifted for Canada and Mexico, the EU faced them until 2021.

Critics, like Ontario Premier Doug Ford, have accused Trump of “shifting goalposts and constant chaos, putting our economy at risk.” However, Trump sees tariffs as a way to grow the U.S. economy, protect jobs, and raise tax revenue.

Trump Wants Your Money

While tariffs dominate the trade conversation, Trump is also making waves in the investment world. Trump Media & Technology Group (DJT) has announced plans to launch a series of exchange-traded funds (ETFs) and separately managed accounts. These funds, with names like Made in America and Energy Independence, aim to tap into the growing demand for investment products that align with traditional American values.

Also, DJT announced plans for a Bitcoin Plus ETF, hinting at its future strategies involving bitcoin. Could this be a lead up to the US Bitcoin Strategic Reserve? Only time will tell.

ETFs are one of the most popular investment vehicles today, offering lower fees, tax advantages, and the flexibility of trading like individual stocks. For DJT, this could be a game-changer, especially as its social media platform, Truth Social, continues to struggle with revenue generation. Trump’s popularity could also draw in huge demand during the launch of these financial products.

Trump’s dual announcements—imposing tariffs and launching investment funds—could send ripples through the stock market, creating both challenges and opportunities for investors. Here’s a breakdown of the potential impacts and how you can prepare:

The Impact of Tariffs on the Stock Market

Tariffs, while aimed at protecting domestic industries, often lead to increased costs for businesses that rely on imported materials. For example, a 25% tariff on steel and aluminium could hurt U.S. manufacturers in industries like automotive, construction, and appliances, as their production costs rise. This could lead to lower profit margins and potentially weigh on their stock prices.

On the flip side, domestic steel and aluminium producers could benefit from reduced competition, potentially boosting their stock performance. However, the broader market may face volatility as investors react to the uncertainty surrounding trade wars and retaliatory tariffs from other countries. Sectors heavily reliant on global trade, such as technology and consumer goods, could be particularly vulnerable.

The Potential of Trump’s ETFs

Trump’s foray into ETFs introduces a new dynamic to the market. Funds like the Made in America ETF and Energy Independence ETF could attract investors looking to align their portfolios with patriotic or thematic strategies. If successful, these funds could drive capital toward U.S.-based companies in manufacturing, energy, and other targeted sectors, potentially boosting their stock prices.

However, the lack of clarity around the funds’ investment strategies and fee structures raises questions. Investors should approach these funds with caution until more details are revealed and regulatory approvals are secured.

How Investors Should Respond

1. Diversify Your Portfolio: In times of market uncertainty, diversification is key. Spread your investments across sectors and asset classes to mitigate risks associated with tariffs or sector-specific volatility.

2. Monitor Trade Developments: Keep a close eye on trade negotiations and tariff announcements. Companies that rely heavily on imports or exports could see significant stock price swings, so staying informed will help you make timely decisions.

3. Consider Thematic Investing: If Trump’s ETFs gain traction, they could create opportunities in sectors like energy, manufacturing, and infrastructure. Research these themes and consider how they fit into your long-term investment strategy.

   For example, I am bullish on banks and infrastructure stocks and have been investing in them for my investors at Truffle Portfolio since start of 2025. Check out the 3Q2024 investor letter.

4. Stay Cautious with New Funds: While Trump’s ETFs may generate buzz, it’s important to wait for more details and regulatory approvals before investing. Evaluate the funds’ strategies, fees, and performance metrics once they launch.

5. Focus on Quality: In volatile markets, prioritize companies with strong fundamentals, such as solid earnings, low debt, and competitive advantages. These businesses are better positioned to weather economic headwinds.

   Check out the latest livestream where I shared one of my TOP PICK for the Stock Market Genius community.

What’s Next?

Trump’s latest moves are bold, controversial, and undeniably impactful. Whether it’s reshaping global trade with tariffs or stepping into the competitive world of ETFs, one thing is clear: Trump is once again pushing boundaries and challenging the status quo.

Want to stay ahead of the curve and explore how these developments could impact your investments? Join me and a community of savvy investors in the InvestwithPete Telegram Group. Let’s break down the latest trends, explore new opportunities, and navigate the ever-changing financial landscape together. Click here to join now!

P.S. What do you think about Trump’s tariffs and his foray into ETFs? Share your thoughts in the Telegram group—I’d love to hear your perspective!

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.