Latest news Trump’s tariffs see markets tumble

Updated 9 April 2025

You will have noticed your PSS account balance has fallen in recent weeks, especially if you are invested in an option with a significant allocation to shares. At the time of writing, the S&P 500 index, which tracks the performance of the 500 largest US companies, has fallen almost 19% from its all-time high on 19 February. The sell-off has been triggered by a changed US trade policy as President Trump imposed tariffs initially against its three largest trading partners – Canada, Mexico and China – and subsequently on imports from most other countries. Investors are concerned about possible economic consequences such as an uptick in inflation, a slowdown in the expected pace of interest rate cuts and even the prospect of the US economy being tipped into a recession. Market sentiment shifts quickly, which means any comment about the current state of play is soon outdated. For this reason, you might be interested to follow the weekly market updates provided by our investment consultant Russell Investments.

  • Read Russell Investments’ blog

Think carefully before switching investment options

Remember, volatility is to be expected with growth assets like shares. Options like High Growth and Growth have performed well over the past 18 months, but with the potential for higher longer-term returns comes a greater risk of occasional shorter-term losses in value. Sometimes the magnitude of those losses in value is significant, as they are now. However, history tells us markets generally recover – eventually. Think back to the beginning of the coronavirus pandemic in 2020 where share prices plunged and then recovered in a little over a month. Or the dramatic drop in share prices during the 2008 global financial crisis when the recovery took much longer. When markets fall sharply as they have now, it’s natural to want to take action by moving to a more conservative option. The danger with that approach is that you ‘lock in’ the losses and miss out on the market recovery when it comes. Short-term events shouldn’t change your long-term approach. 

All investment involves an element of risk and none of us knows what is around the corner. That’s why we recommend you stick to an investment strategy based on your personal circumstances. 

Mercer’s financial advice team is here to help

If you’re thinking about making a change, we suggest you make a time to talk with someone from Mercer’s financial advice team. Talking to a professional adviser can help you identify your investment ‘personality’ and what level of risk you are truly comfortable with. They can give you advice based on your specific circumstances. Talking through your situation might reassure you that your current strategy is the right one – or identify that a change in strategy would be appropriate at some point. To arrange a time to talk with Mercer, simply complete a call-back request form. There is no individual charge to you for this service.