Have Trump tariffs affected willingness to invest in the stock market?

Donald Trump’s decision to impose steep tariffs on a range of countries on April 2 had an immediate and dramatic effect on the global stock market. The US president has since announced a 90-day pause on some of these “reciprocal” trade measures – while imposing higher tariffs on China – but the effects of the policy are still being felt. 

Looking at YouGov BrandIndex data, which asks consumers questions about a range of companies every day, we can see that – at this tumultuous time – investment firms seem to be acquitting themselves well in the eyes of the public. Since Trump introduced the tariffs on April 2, scores tracking the perceived quality of service across all the wealth management companies we track rose from 4.2 to 6.9 on average (+2.7).

But this is a case where public opinion may only say so much. So have recent events affected willingness to invest? We asked members of the public who hold stocks and shares about whether they plan to increase or decrease their holdings in the next year. Half say they expect to make no change (52%), one in ten say they expect to reduce their holdings (10%), and three in ten say they actually plan to increase their investment in the stock market over the next 12 months. We can’t say whether this is business as usual or an opportunistic desire to “buy the dip”.

We can say that they aren’t overly keen on US stocks and shares at the moment. We asked Britons if they found a range of investment types appealing or not, and 58% said they found them unappealing. On the list we provided, only cryptocurrency (83%) was less popular. UK stocks and shares (50%) and precious metals, including gold, (46%) had the most appeal.

Still, the Trump tariff story is ever-shifting. Since we ran this poll, an exemption for smartphones and other consumer electronics emerged then faded and subsequently similar measures for the auto industry.

What will the picture look like for British investors at the end of the pause? 

This article originally appeared in City AM.