128. Short-Term Pain, Long-Term Gain. The Truth About Tariffs

Welcome back to The Fit Financial Podcast!

Today, I have Chief Investment Officer Brandon VanLandingham, CFA, CMT, CFP here to help me dive into a topic that’s making waves in the economy—tariffs. What are they, how do they impact your wallet, and what should you be doing to prepare? You’ve probably heard about tariffs in the news, but most of the time, they’re talked about in political or economic terms that don’t really explain how they affect your everyday life.

We’re breaking it all down in a way that makes sense—real talk on what’s happening, what it means for you, and how you can make more informed financial decisions moving forward. We’re looking at both the positives and the potential concerns—because no matter what’s happening in the economy, there are always ways to be prepared. So, grab your coffee, settle in, and let’s talk about how tariffs could be hitting your wallet!

In this episode, Brandon VanLandingham breaks down the implications of the newly implemented U.S. blanket tariffs—25% on Canada and Mexico, and 20% on China. Designed to shrink the $2 trillion U.S. trade deficit, these tariffs could create short-term economic pain but are intended to deliver long-term economic sustainability. 

Blanket tariffs have been introduced as a strategic move to rebalance trade agreements. Canada and Mexico received a short-term postponement until April 2nd, largely due to their economic dependence on U.S. exports.

While the short-term outlook is rocky, the goal is to reduce the deficit without raising taxes. The Fed may step in to lower interest rates to combat potential deflation. The structure of the global economy today makes this a high-stakes play.

What about Consumer Spending? Expect essential goods like avocados and tomatoes to rise in price. Luxury goods may absorb the cost to maintain demand. Services and broader consumer prices will shift more gradually.

Supply Chain Shifts, Companies may scramble to diversify suppliers, sourcing from a broader range of countries. Domestic production could increase, but raw materials pose a sourcing challenge. Global Ripple Effect: If the tariffs stick, Canada and Mexico could face recessions. The U.S. is banking on its position as a reserve currency holder and dominant trade partner.

Investors may want to prioritize high free cash flow businesses. Be mindful of currency fluctuations and prepare for slower global growth.

Check out The Book- The Economic Weapon, by Nicholas Mulder 

April 2nd marks a critical deadline for Canada/Mexico tariffs. Monitor trade negotiations and portfolio allocation as economic responses unfold.

Thanks for tuning in to The Fit Financial Podcast! If you enjoyed this episode, be sure to subscribe and leave a review— if you’re ready to take the next step in your financial journey, visit fitwealthadvisors.com to learn how we can work together. Until next time—stay financially fit!

The Fit Wealth Show is brought to you by Fit wealth advisors. Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation.