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The Trump Administration’s decision to impose tariffs on 57 countries – currently on a 90-day pause – has set individual investors, small businesses, corporations and Wall Street looking for ways to tariff-proof their situations as much as they can.
A case in point is Brooklyn-based Re: Design, Natalie Rebuck Architecture PLLC, which recently sent out an email detailing the ways the firm – with an office in Southhold, New York as well – is responding to the challenge.
“We’ve seen rising costs, particularly in categories like mechanical equipment, lumber, copper for wiring/ plumbing, drywall, concrete, some metals and imported furnishings,” said Natalie Rebuck, principal designer. “These changes are understandably raising concerns for our clients around budgets and timelines. To address these concerns, we’ve expanded our network of U.S.-based manufacturers and vetted domestic suppliers to reduce lead times and avoid costly delays. We’re also trying to specify more American-made materials whenever possible, supporting local businesses while minimizing tariff exposure.”
Not everyone is able to do this, or to do this immediately. Jennifer Mines Kamen, owner of Iscream — a Cortlandt Manor-based wholesale supplier of pillows, bags, toys, apparel and beauty products for tween girls, which are made in China – told Westfair Eye on Small Business columnist Jeremy Wayne that pricing and production schedules have made domestic manufacturing a no-go. While she is working with her Chinese partners as well as looking to partner with other countries, to reduce costs, she added, ““We will have no choice but to increase our prices.”
This kind of effect has left investors on edge, driving an 80% spike in searches for “protect my investment.” Amid this uncertainty, brokerage and forex experts BrokerChooser offer these tips to protect your portfolios:
1.Stick to risk management discipline by saying “no” to emotionally-led moves — Emotions are powerful market forces. Fear, greed and overconfidence can derail even the most carefully laid strategies. Enter every position with a clear risk threshold and a planned exit strategy, BrokerChooser said. Don’t deviate from that based on headlines or social media noise. Avoid revenge trading after a loss or overreacting to sudden swings. In volatile markets, those who stay calm and consistent are the ones who come out ahead.
“Volatility is now the new normal, with geopolitics, inflation and shifting monetary policy making sharp market swings a permanent feature, not a temporary shock,” said BrokerChooser’s Krisztián Gátonyi. “However, periods of extreme volatility are what separate professionals from beginners. This is a time for skill, prudence and discipline, not panic.”
Remember that volatility is a double-edged sword. Yes, it can open the door to outsized gains – but it can also wipe out positions in minutes if risk isn’t carefully managed. Volatility can lead to rapid losses, so make sure your broker offers negative balance protection (NBP) to ensure you don’t lose more than your initial deposit. The key is to approach volatile markets with precision.Use smaller position sizes and dial back leverage to avoid forced liquidation. In uncertain times, your goal isn’t just to chase upside; it’s to stay in control long enough to seize it when it comes.
2. Look beyond the panic by spotting and exploiting overreactions — In volatile markets, asset prices can often overshoot their fundamentals due to market rumors or news events, creating opportunities for investors who are quick to spot these discrepancies. If a well-known stock like Apple (AAPL) drops sharply after a minor-earnings miss or negative headline, yet its long-term outlook remains solid, that dip could be an opportunity to buy at a discount. When the panic fades and rationality returns, such stocks often rebound toward their intrinsic value.
These opportunities can be rewarding if you’re able to separate short-term noise from genuine shifts in fundamentals. Not every dip deserves a buy, and not every surge is a reason to sell. Acting on them requires patience, a deep understanding of the business and careful risk controls. Reacting without research turns opportunity into risk.
3. Diversify smarter and monitor correlations – Diversification isn’t just about holding a wide range of stocks; it’s about holding assets that behave differently. In markets rattled by trade tensions or tariff shocks, traditional relationships between asset classes can break down. What once served as a hedge might suddenly move in the same direction as your other holdings, increasing the risk of correlated losses across your portfolio.
In addition, avoid illiquid assets: Thinly traded stocks, exotic FX pairs and niche ETFs can be prone to extreme moves during turbulent times. That’s why it’s critical to diversify across uncorrelated assets such as commodities, currencies, real estate and alternatives like gold or crypto, depending on your risk appetite. These assets can act as shock absorbers when equities falter. Regularly review how they move in relation to one another and adjust your mix accordingly. Effective diversification is not a “set and forget” approach. It requires active oversight to ensure your portfolio remains resilient throughout uncertainty.
“Volatility can be a friend or foe,” Gátonyi added. “It all comes down to how well you prepare. The global ripple effects of U.S. trade policy mean certain sectors may face prolonged headwinds, while others could become defensive havens. Monitor cross-asset correlation and stress-test your portfolio across different scenarios. It’s not about reacting to every headline. It’s about building a resilient strategy that can withstand uncertainty.”
4. Stay long-term focused but steer with intention — Market turmoil is a chance to zoom out and reassess your broader investment objectives. If current chaos isn’t likely to affect your portfolio over the next six to 12 months, stick to your long-term strategy. Use this dislocation as an opportunity to reassess holdings and look for chances to buy high-quality assets at more favorable prices.
However, staying long-term focused doesn’t mean staying static. Tariff-driven volatility can dramatically shift sector dynamics. Industries like manufacturing, technology and agriculture may face sharp swings, depending on tariff scope and potential retaliatory measures. Shifting some weight into defensive areas like health care, utilities and dividend-paying stocks can help protect capital without stalling growth.
5. Fight the gap by preparing for sudden market moves — Sudden jumps or dips in asset prices between trading sessions – sometimes as much as 20% to 30% — are especially common during periods of extreme uncertainty. These “gaps” pose serious risks, particularly when markets are driven by unpredictable policy announcements. This is where risk controls like Guaranteed Stop-Loss Orders (GSLOs)become essential to protect positions from slippage during these jumps.
They ensure that your trades close at predetermined levels, even if the market gaps past them. While they carry a small premium, the protection they offer in chaotic conditions can far outweigh the cost. If you’re trading near major announcements – such as a speech by President Donald J. Trump, a G7 summit or a tariff deadline – consider scaling back your position size or reducing leverage. In volatile periods, adjusting position size according to volatility allows for smaller positions when market swings are large and larger positions when volatility is low.
6. Stay informed without getting lost in the noise — In today’s hyperconnected world, access to information is critical, but it can quickly become overwhelming. Endless headlines and conflicting opinions can trigger knee-jerk decisions. Instead of reacting to every alert, focus on quality over quantity. Prioritize credible sources, such as central bank updates, economic indicators and official trade policy announcements.
AI-driven noise, such as AI-based trading strategies, amplifies volatility and triggers flash events, especially in short-term trades. Markets can swing wildly on speculation alone, even before policies are confirmed. Stay focused on facts and use information strategically. Stress-test your portfolio for potential scenarios such as new tariffs, retaliatory actions or supply chain disruptions. This also helps you anticipate how different outcomes might affect your holdings and positions you to respond thoughtfully, not emotionally.
