How Tariffs Could Impact Your Personal Wealth

Shifting U.S. trade policies and ongoing international tariff negotiations continue to send ripples through the global economy, creating market uncertainty that affects everything from investment portfolios to the cost of running a business.

As tariff rates fluctuate and trade relationships evolve, you may face new challenges in protecting and growing your assets. For investors and business owners, understanding how tariff policies affect personal wealth is essential — and not just for daily financial decisions.

But that knowledge is also critical for long-term strategies in portfolio management, business operations and wealth preservation. Below are aspects of your financial situation that may require attention.

Trade Policy Volatility May Impact Business Income and Compensation

Ongoing tariff pressure can hit business owners and executives particularly hard — especially when their personal wealth is tied to how well their company performs. Tariffs hit small businesses harder than their corporate counterparts, lowing their profits and forcing them to raise prices when they inevitably pass those costs on to their customers.1

The permanent elimination of duty-free treatment for packages under $800 has the potential to worsen these business conditions.2 The Universal Postal Union, in a statement, claims supply chain disruptions have triggered an 80% drop in international postal shipments to the U.S., with 88 postal operators, confused about how to apply the new U.S. tariff rules, suspending services.3

Small and mid-sized businesses must now switch to costlier commercial shipping services or face tariffs ranging from 10% to 50% on previously duty-free purchases to get the materials, supplies or inventory they need to run their businesses.3 Industry sources estimate these changes could cost small- and medium-sized businesses more than $71 billion annually, as the winners and losers of this change are being sorted out.4 Many smaller firms are struggling to absorb new costs1 and are scaling back spending or delaying growth plans as a result. 

If you’ve invested in these types of companies — whether directly or through private funds — you may also see delayed returns or smaller distributions, especially when businesses can’t easily raise prices to offset these pressures.

Ask whether the businesses you’ve invested in are raising prices, switching suppliers, or cutting lower-margin product lines. This can give you a better sense of how well they’re navigating today’s trade environment.

Property investors may also see rental income decline if business tenants fall behind on rent. And professionals who work with these companies — like consultants, accountants, or legal advisors — may find contracts paused or canceled as businesses try to manage uncertainty.

These challenges can also affect highly compensated employees. If part of your income comes from bonuses, profit-sharing, or stock options, tariff-driven market pressure may reduce or delay those earnings. Lower profits often mean tighter budgets and weaker stock performance, which can shrink your compensation package even if your base salary stays the same.

Global Trade Shifts Reshape Investment Returns

For investors in their prime wealth-building years — particularly those in their 40s through 60s who've followed traditional advice to diversify internationally — market reactions to trade policy changes can significantly impact portfolio performance.5 If you’re in this age group, you probably have deliberately increased your portfolio exposure to international markets, making your investments more vulnerable to global trade tensions.