'Make America Wealthy again': Latest news on US tariffs

Bovest • April 4, 2025

The widely anticipated tariffs were announced last night via executive order, on America’s so-called ‘Liberation Day’ and in discussions with our partners at Morningstar, the following should be noted.

The sweeping announcement is intended to ‘make America wealthy again’ as tariffs effectively tax foreign producers on their imported goods, as a percentage of their value. The US is currently the largest goods importer in the world and is currently running a trade deficit (imports more than it exports). President Trump has said that he will not negotiate, however, if countries are willing to lower their charges on US goods, the White House will reduce the rate in effect.

 

Market impact

 

US Equities have sold off sharply, particularly those reliant on imported goods, as well as foreign companies that have significant exposure to the US market. At the time of writing, the FTSE 100 was down 1.4% to below 8,500, whilst sterling had appreciated to 1.32 against the dollar. Bond prices have broadly risen as investors have sought perceived safer assets.

 

SA equities and bonds responded negatively after markets opened. The All-Share was down around -3,5% by end of-day with the decline being led by Financials at -4.3%, while both Resources and Industrials were down approximately -2.4%. The yield on the SA 10-year government bond spiked sharply to 11.3%, a move of 0.8% off the previous day's close. The rand remains relatively range-bound between R18.60 – R18.80 despite general US dollar weakness against most major currencies.

 

What we know about the Tariffs:

 

The tariffs that were imposed last night are of a reciprocal nature, meaning that countries are free to retaliate with their own tariffs on the US.

 

Below are some of the standout tariffs that Trump has imposed across the globe:

· China 34%

· India 26%

· Japan 24%

· EU 20%

· UK 10%

 

South Africa, which currently applies 60% tariffs on the US, was handed a 30% reciprocal tariff. The effective rate is likely to be lower given that key commodity exports, including gold and platinum, are currently exempted.

 

What we don’t know

 

President Trump has not made it clear whether the tariffs will remain in place indefinitely and whether indeed they will remain at the initial level. There are many factors that could impact their longevity, including legal ramifications and future election implications. It is also yet to be seen how and when other countries will react to these changes.

 

Countries may look to increase their current tariffs on the US or indeed may consider reducing them. Additionally, President Trump has stated that the only way to gain exemption from the tariffs is to set up factories and build products in the U.S., so we await to see how countries and companies react to this proposition.

 

What’s next?

 

While volatility and policy uncertainty will likely persist in the short term, we recommend investors keep a cool head. The challenge is to avoid overreacting to the elevated day-to-day volatility and remain focused on your financial plan.

 

Central Banks have been in a holding pattern in anticipation of actions taken by President Trump, and therefore this announcement may have an impact on future Central Bank policy and interest rates. From a longer-term perspective, we may see implications for economic growth across various regions, however, it is too early to tell at this stage.

 

From an investment standpoint, we continue to focus on the fundamentals, maintaining a long-term mindset, whilst paying attention to valuations. Market volatility can provide investors an opportunity to rethink their portfolios and find some better-valued investments with more attractive returns, however, it’s important to note that while selloffs will produce bargains, investors shouldn’t buy simply because stocks look less overvalued.

 

Investment is always full of uncertainty, and therefore the Bovest solutions are constructed with this in mind. Valuations are key in our decision-making process, whereby our research process identifies return drivers from oversold assets, offering investors a high margin of safety. Against that, we also hold defensive assets that can add ballast to portfolios during periods of turbulence, including high quality government bonds and defensive equities such as consumer staples.

 

Diversification continues to be a strong portfolio strategy in these times of uncertainty.

 

Regards,

 

The Bovest Team

Hedge funds are not only for high-risk investors

By Bovest Admin • October 19, 2026
Discover how regulated retail hedge funds in South Africa may act as portfolio shock absorbers, helping to manage downside risk and market volatility.

Protecting wealth is as important as building it

By Bovest • October 15, 2026
Most of us spend years working out how to grow our wealth, and far less time asking what could put it at risk. We plan as though good health, stable markets and steady momentum will always hold. But wealth can look secure right up until the thing you never planned for happens. Think of how quickly things can change. A pandemic upends your industry. Technology makes your role obsolete. A market slump tempts you into an emotional decision that undoes years of discipline. Each of these begs a simple question: what happens to your wealth-building machine if one of its assumptions fails? Wealth protection vs income protection The two are closely linked, but they are not the same thing. Cover such as disability or severe illness insurance protects your earning power. Wealth protection looks at what that income has built, and what happens to it if you’re no longer around to manage it. "The financial history of the world shows that families have always played a central role in wealth creation." — Riaan Botha, author of Welvaartskeppers The wealth you build, and hope to leave to your children, rests on two things: your ability to earn, and your ability to protect the assets you’ve built. Illness, disability, a market downturn or an unexpected death can threaten both at once. Making money builds wealth. Protecting it helps you keep it for the people you built it for. What are the key forms of wealth protection? Here’s a look at four key forms of wealth protection, what they do and the role they can play: Insurance Replaces your income if something happens to you, so your family can meet their obligations and maintain their lifestyle. Your will Stipulates who receives what. A will only works if it is valid and can be found when it’s needed. Trusts Holds and manages assets for beneficiaries who can’t legally (or otherwise) manage them yet. Trusts can help structure your assets during your lifetime and beneficiaries may typically include minor children. It is important to note that trusts come with their owns costs, tax treatment and administration, so they work best when set up for a clear purpose, guided by professional advice. Estate planning Ensures that your estate has enough cash to settle what it owes without forcing a sale of your assets. Four questions to test your wealth protection plan Use the following questions as an initial reality check to see where your wealth protection plan stands, and where the gaps might be: Would your family have adequate financial support if something happened to you? Bond repayments, school fees and medical aid contributions keep coming whatever happens to your income. Check that your life, disability and severe illness cover is measured against your actual debts, your dependents and how long they would need support, and that it hasn’t gone stale since your circumstances changed. Are your beneficiaries up to date? Marriages, divorces, births and deaths all change who should benefit. Still, often nominations on policies and retirement funds are often set once and forgotten. When nominations and your will contradict each other, the result can be delays, disputes and money reaching the wrong person. Retirement fund trustees must also consider all your dependents, so your nomination guides them rather than binding them. Is your will valid, accessible, and structured correctly? A will must meet certain formalities, including the signatures of the testator and two competent witnesses. If the requirements aren't met, the will may not be accepted as valid, which could affect how the estate is distributed. It is also important that the executor can locate the original will. Where minor children are beneficiaries, a will can provide for a testamentary trust to hold their inheritance rather than it being paid into the Guardian's Fund. Will your estate have enough cash when you pass away? Before anything is distributed, an estate must pay executor's and Master's Office fees, debts, funeral costs, capital gains tax and, where applicable, estate duty. When wealth is tied up in property or a business, the executor may have to sell at the wrong time and the wrong price. Compare your liquid assets against likely costs and plan for any shortfall. Protecting your wealth: What’s next? If the four questions above exposed a gap, that’s a great place to start. Gaps are far easier to close while life is calm than having to rely on someone to sort things out on your behalf. Of course, you don’t need to fix everything at once. Start with the question that made you hesitate. Think of it as the foundation under everything else you’re building. Nobody admires it from the outside, but every decision about growing your wealth rests on it. "The key to successful wealth creation is knowledge. Only those who first learn to increase their income and then invest their surplus effectively as capital achieve long-term financial success.” — Riaan Botha, author of Welvaartskeppers There is no single miracle solution that guarantees success, but the principles behind it can be learned. Meet the South Africans who did it on Welvaartskeppers. One conversation has the power to change a life At Bovest, we believe money is ultimately a tool for buying something far more valuable: time. A sound financial plan gives you the structure, clarity and peace of mind to spend that time on the life you are building rather than worrying about it. Ready to build your life vision? Share your details and we’ll be in touch , no obligation. This article is general information and does not constitute financial, legal or tax advice. Speak to a qualified adviser about your own circumstances.