Trading Tariffs
A week after U.S. President Donald Trump announced a broad regime of tariffs, China and the U.S. continue to exchange escalating tariff announcements. The White House insists the tariffs will result in new trade deals with many countries, but early indications are that China is digging in for a more adversarial approach. The escalating situation caused global investing markets to sell off, with all major indices moving significantly lower. President Trump acknowledged the financial turbulence, but insisted it is necessary to achieve a more competitive world economy for the U.S.
Analysis and eternal perspective: First and foremost, put your trust in that which the winds and volatility of this world cannot touch. There is significant disagreement around the long-term strategy of deploying tariffs, but there is near-universal agreement that the immediate-term effect is a disruptive and painful one. Investors and consumers alike face increasingly negative news while waiting to understand the longer-term impact of the tariffs.
As a Jesus follower, financial turmoil—especially that caused by outside forces largely beyond your control—is akin to the wind and rain of Jesus’ parable in Matthew 7. If your trust is based on something as flimsy and fleeting as your 401k or your bank account, this week and the days ahead are cause for concern. To the contrary, if your hope and trust is built on the rock of Jesus Christ, the financial storms that are swirling are of no significance to you, because your foundation is secure!
As an added bonus, Jesus followers should be able to thoughtfully engage the current civic debate with a level head, even as so many (of all varying opinions on the underlying tariffs) are responding out of panic and fear.
The financial winds are howling, but you can rest easy. Your house is built on the Rock.
The following article originally appeared in Thann’s “The Equipped” Weekly Newsletter. For more information on Thann’s weekly email, click here.