🧠 Trump’s Tariffs: Why They Matter If You’re Serious About a Finance Career

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It’s fair to say, it’s been a minute. Hope you’re doing well on this lovely Saturday evening. See below for some commercial awareness info and implications re. Trumps recent move on tariffs.

For those of you serious about getting application ready ahead of application season and serious about breaking into banking and finance, I’d highly recommend you to check out Finance Fast Track. This year I’m looking to personally help at least 100 of you break in and secure offers for spring weeks, internships and grad-schemes.

The next 5 people to join and DM me their CV (after joining), I’ll personally provide feedback on how to improve your CV, and I’ll help you create a career action plan/roadmap for the next few months.

Trump recently pushed through a sweeping new set of tariffs, raising effective U.S. tariff rates to over 22%—the highest since 1910. On the surface, this might feel like just another political headline. But if you're serious about a career in investment banking, markets, asset management, or private equity, you need to go deeper.

Tariffs are not just about trade—they have knock-on effects across every part of the financial system. Understanding those effects is what will help you stand out in interviews, navigate conversations intelligently, and develop your commercial awareness.

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Here’s what you need to know—and why it matters.

As soon as the tariff announcement dropped, the S&P 500 fell over 15% from its February peak. Why? Because investors immediately began pricing in slower global growth, supply chain disruption, and higher input costs for companies.

Tariffs essentially act like a tax on imports. That means goods become more expensive, inflation ticks up, and profit margins get squeezed. Companies with exposure to international trade (think: auto manufacturers, consumer electronics, industrials) are suddenly facing rising costs and softer demand.

From an investor’s perspective, that shifts everything—from how equities are valued, to which sectors are favoured, to how portfolios are rebalanced.

If you’re applying to asset management or S&T roles, this is the kind of macro shift you’ll be expected to interpret:

Markets run on confidence and expectations. Tariffs inject both cost and uncertainty into the system—which is why markets sold off.

The knock-on effect for dealmaking is immediate. Klarna, Chime, and other firms have delayed IPOs or investor presentations. Executives are hesitant to move forward with deals in a volatile market environment—especially when valuations are swinging wildly and financing costs are going up.

For investment banks, that means:

If you're targeting an internship or graduate role in Investment Banking, you need to show an understanding of this:

Why do macroeconomic shocks affect M&A activity? How do tariffs affect deal confidence, buyer appetite, and access to financing?

Expect questions like “How would a 20% import tariff affect a cross-border acquisition?” or “Would you advise a client to delay a planned IPO in this environment?”

Short Answer:
Macroeconomic shocks like tariffs create uncertainty around costs, revenues, and growth, which lowers buyer confidence, complicates valuations, and tightens financing conditions—often leading to delayed or cancelled M&A and IPO plans.

Firms like Robinhood, Charles Schwab, and Morgan Stanley are all down significantly—because they make money when markets are up and clients are actively investing.

Their business model is mostly based on:

When markets fall:

If you’re applying to private banking or wealth management, you’ll need to understand how macro headwinds like this create commercial challenges:

You could be asked, “What would you say to a high-net-worth client concerned about the impact of tariffs on their portfolio?”

Short Answer:
I’d explain that tariffs may increase market volatility and inflation risk, so we’d review their portfolio’s sector and geographic exposure, diversify where needed, and consider reallocating to more defensive or inflation-protected assets.

Fed Chair Jerome Powell has already acknowledged the inflationary impact of the tariffs. The logic is straightforward: when import costs rise, prices go up. That forces central banks to respond—typically by holding interest rates higher for longer, or even hiking.

The impact across the economy is broad:

This becomes a key talking point in buy-side interviews—especially when discussing investment theses or macro views.

You should be comfortable answering:

This is what commercial awareness really looks like. Not just reading headlines, but connecting dots:

It’s one thing to know that Trump imposed tariffs.

It’s another to explain how those tariffs:

The best candidates can move between these layers with ease. That’s what will make you stand out in interviews and assessment centres.

Whether you’re applying to banking, markets, asset management, or consulting, this is the kind of real-time macro event that’s worth paying attention to. It affects clients, firms, and investors in different ways—and being able to break that down confidently shows you understand the industry you're trying to join.

Start building that habit now.

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Ps. If you’re serious about breaking into the industry I’d love to personally help you inside Finance Fast Track. If you join today, DM me your CV and I’ll review it. Then we can work on a career roadmap/plan for your moving forward.

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