In this episode of the Victory Private Wealth podcast, Aggie takes you on a dive into the world of Tariffs and Tradewars!

You’ve seen the headlines—tariffs, trade tensions, and supply chain shocks. But what does that mean for your money?

Tariffs 101 – What Are They?

• Definition: A tariff is a tax imposed by a country on imported goods.
• Purpose: Protect domestic industries, retaliate against unfair trade, or raise revenue.
• How do they affect your everyday life?
  Imagine paying extra to buy sneakers made overseas—those costs don’t just disappear. They ripple through the economy and hit where it hurts: margins, prices, and ultimately your wallet.

What’s a Trade War?

• A trade war happens when countries retaliate against each other’s tariffs, often escalating tensions.
• Recent examples: U.S.–China trade war, tariffs on steel/aluminum, and supply chain disruptions during COVID.
• Impact across industries: tech, agriculture, manufacturing—especially global brands and luxury goods.

How This Impacts Business Owners and Investors

• Higher Costs: Tariffs can increase production costs and reduce profit margins.
• Market Volatility: Trade wars spook investors. Markets react quickly to uncertainty.
• Global Supply Chains: Disruptions can delay inventory or reduce product availability.
• Currency Risk: Trade tensions often impact currency valuations—affecting international earnings.
• Opportunity or Threat?
  
  • Some domestic businesses may benefit from less foreign competition while others may struggle with increased costs or retaliation from foreign markets.

What about athletes and High Net Worth families?

• For Athletes:
  
  • Endorsements and sponsorship deals tied to international brands may be impacted.
• Investment portfolios with exposure to international or emerging markets are vulnerable to tariff policy changes.
• For HNW Individuals:
  
  • Alternative investments (private equity, real estate, commodities) can help hedge against geopolitical risk.
• Use of international diversification vs. a more U.S.-centric asset strategy during volatile trade periods.

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