Surprising ways Trump’s tariffs might impact you as stock market shares fall

The new tariffs announced by US President Donald Trump have been widely criticized, and while you might think it’s going to be companies taking the hit, you’re likely going to be impacted to.

People recently watched in horror as Trump’s tariffs caused the stock market to dive $2 trillion in just 25 seconds, with investors taking ‘safer’ investment options such as gold in light of his latest announcement.

With the US dollar taking a hit too, it’s understandable that people would be worrying about their future.

The new major tariffs include rates that will now be inflicted on goods across the world, and the European Union has even said they plan to retaliate against them.

Donald Trump's tariffs could impact everyone (Andrew Harnik/Getty Images)

Trump spoke at White House on April 2, and called it 'Liberation Day’, then went on to share that not only will the tariffs be inflicted upon the country's trading partners, but also on global nations in a bid to free the US from depending on foreign goods from other countries.

So far, the sweeping new tariffs have triggered rows across financial markets, with companies seeing their stocks and shares fall.

Most companies that reach a certain size begin to sell their shares off, and then those shares will be sold on the stock market for whoever wants to invest in them.

While you might initially think about tech companies being the ones to sell shares, it’s also companies we rely on.

Such as pension companies.

Our pensions are invested by pension schemes and the value of the savings pot is heavily influenced by the performance of those investments

So, you could be impacted by stocks falling as your pension pot will fall along with it and decrease in value.

Pensions are long-term bets, and typically, you choose to open your pension with the company that seems to have more bang for its buck.

However, if there a long-term fall in the market, you could see your pension decrease along with it.

Your pensions and savings might change (Getty Stock Image)

But that’s not to say that Trump’s tirade against international companies will definitively cause problems with your pension, as experts have claimed that investors are used to riding the waves of economic uncertainty, and they tend to think with a long-term strategy outlook in mind.

Now, if you’re someone who is about to retire and have a pension pot invested and are taking an income from it, you’ll see your investment go up and down with the stock markets.

So, you could end up getting less than you expect if you cash in too much after stock markets dive.

Another thing that could affect you should Trump’s tariffs turn on the common folk, is job security.

If share prices fall for an extended period of time, you could lose your job due to budget cuts if a company’s shares decrease and they need to pull money from elsewhere.

Interest rates will also be impacted too, which could either go in your favor or not, depending on how the banks believe the tides will turn.

So, you could get a cheaper mortgate, bring a better return on your savings, or it could go the opposite way instead.

All we can do is watch the FTSE 100 and make smart investments from now on.