Weekly Buzz: What the latest US-China tariff talk means for your portfolio

5 minute read

Just when markets were getting comfortable, those old US-China trade tensions flared up again. Last week, the US president threatened to slap a 100% tariff on Chinese imports.

What’s the background here?

The threat came hot on the heels of a series of moves from Beijing: tighter customs checks on Nvidia chips, higher port fees for American ships, and export curbs on rare earth minerals. These measures were likely a show of strength ahead of trade talks at the APEC summit later this month.

The US president didn’t wait until then to retaliate, and countered by floating a 100% tariff rate on Chinese goods. That tit-for-tat sparked a selloff on Friday last week, sending the S&P 500 down about 2.8%, although the index steadied on Monday after the US president struck a softer tone. 

Meanwhile, Chinese exporters have been adapting by rerouting goods through countries like Vietnam. According to Reuters, total Chinese exports rose an annual 8% last month – the biggest increase in six months – even as shipments to the US fell 27%.

What this means for you as an investor

History suggests that these 100% tariffs won't fully materialise. While a major breakthrough between the world's two largest economies will be tough to achieve – China wants access to high-end American tech while US national security concerns make that a hard sell – a partial climbdown is likely.

These headline-driven swings show why trying to time markets around announcements rarely works. By the time threats become news, markets have already moved. For investors focused on the long term, a better response to uncertainty is to stay invested with a portfolio that’s diversified across regions, so your returns don’t depend on any single trade relationship.

Investor’s Corner: Why everyone’s talking about the “debasement trade”

The debasement trade is all about swapping money for hard assets – gold and other commodities like silver. The world’s biggest economies are pushing for more spending, and that’s keeping deficits high and putting pressure on central banks to step in with lower interest rates and increased liquidity. It’s no surprise then that investors are turning to assets that can’t be printed on demand.

Gold’s been a trusted store of value for thousands of years and tends to hold its value even when inflation and government deficits rise, and central banks have been consistent buyers of it throughout 2025. Its precious metal cousin, silver, has similarly seen a spike in interest among retail investors. 

The markets are sending a signal about debt, liquidity, and geopolitics, but it’s likely also being charged by factors like a fear of missing out. In narrative-driven environments like this, big market moves – up or down – can happen quickly. It’s important to focus on an approach that works for your goals, and a diversified portfolio that includes gold and other asset classes like equities and bonds can be a good way to prepare for multiple scenarios over the long term.

(For a portfolio that’s built with a diversified mix of assets, check out General Investing. If you’re just looking to invest in gold or silver yourself, our Flexible Portfolios are an easy way to do so.)

This article was written in collaboration with Finimize.

Simply Finance: Store of value

A store of value is any asset that maintains its worth over time without significant depreciation. Think of it as a financial time capsule: you put your purchasing power in today, and you expect to get roughly the same purchasing power out tomorrow, next year, or even decades later.