{"id":13880,"date":"2025-08-13T14:08:15","date_gmt":"2025-08-13T14:08:15","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13880"},"modified":"2025-08-13T14:08:16","modified_gmt":"2025-08-13T14:08:16","slug":"why-are-markets-shrugging-off-high-tariffs","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/why-are-markets-shrugging-off-high-tariffs\/","title":{"rendered":"Why Are Markets Shrugging Off High Tariffs?"},"content":{"rendered":"\n<p><em>Michael A. from Frederick, MD asks: <\/em>Hello Mitch, I\u2019ve been growing increasingly concerned\/wary about how investors seem to be totally shrugging off any new tariff announcement. The tariffs keep on coming, but the market does not seem to care at all. Are you getting this sense as well? Your thoughts are appreciated, thanks.<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response: <\/strong>&nbsp;<\/p>\n\n\n\n<p>I take your point and think you\u2019re largely correct. Markets have been mostly unbothered by recent tariff headlines, with the latest example arriving last week in the form of a 100% tariff on semiconductor imports. Despite this very punitive tariff on a critical industry, chip stocks and the broader market showed little reaction.<\/p>\n\n\n\n<p>I think there are a few reasons for the muted market move. First, what we have so far is an announcement with few policy details. The market has seen this movie before, so to speak. In the weeks and months that follow, we\u2019ll learn how chips embedded in finished products like cars or smartphones would be treated, and which companies land exemptions based on \u2018deals\u2019 like an agreement to invest in U.S. manufacturing. In past trade actions, high-profile exemptions have often followed high headline rates, softening the ultimate impact.<sup>1<\/sup><\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\">Tariff News, Market Calms. What Does This Mean for Your Portfolio?<\/a><\/u><\/strong><\/p>\n\n\n\n<p>Recent tariff announcements haven\u2019t shaken the market as much as you might expect. But that doesn\u2019t mean it\u2019s time to sit back. Policy shifts like these can set off quieter changes beneath the surface, and for investors who know where to look, that can open the door to opportunity.<\/p>\n\n\n\n<p>Download our free guide, <strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\">Using Market Volatility to Your Advantage<sup>2<\/sup><\/a><\/u><\/em><\/strong>, to see how policy changes, global trade disputes, and other headline risks can open the door to strategic moves. Inside, you\u2019ll learn:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How market volatility can \u201cshake up\u201d complacent investors<\/li>\n\n\n\n<li>Potential bargains that may be uncovered through turbulence<\/li>\n\n\n\n<li>Why volatility may help prevent overheating and market \u201cbubbles\u201d<\/li>\n\n\n\n<li>What history shows us about opportunities for steady investors in turbulent markets<\/li>\n\n\n\n<li>Plus, more ways you may be able to benefit from a volatile market<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, download your copy today!<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\">Download Our Guide, \u201cUsing Market Volatility to Your Advantage\u201d<sup>2<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\n<p>While these factors may help explain the market calm, I think you\u2019re right not to treat the tariffs as though they\u2019re harmless. Even a smaller-than-feared final policy could disrupt certain supply chains, raise costs for some companies, or lead to incremental price increases for end products. And in the case of advanced semiconductors, where switching suppliers can take years, the ripple effects of new trade rules can be long-lived. In a sense, the effect resembles what we\u2019d expect from too much regulation, where costs are higher than they could be.<\/p>\n\n\n\n<p>Even still, the current lack of market reaction likely reflects expectations that the final policy will be more limited than the initial announcement. That doesn\u2019t mean there\u2019s no risk, only that investors may be discounting the most extreme scenarios.<\/p>\n\n\n\n<p>From my perspective, this is a development worth watching closely. Tariff policy can shift quickly, and exemptions or details that look likely today can change in negotiation. If the final rules come in broader than expected, I would expect to see a sharp pullback, much like we saw in early April.<\/p>\n\n\n\n<p>That said, the pattern we\u2019ve seen throughout this tariff cycle is that enacted rates have generally come in lower than the headline figures first announced. In many cases, once the full fact sheets are released, exemptions for key products, suppliers, or trade partners have reduced the scope considerably. This has been true in other industries\u2014Canadian metals under the US-Mexico-Canada Agreement, copper in recent trade measures, and now appears to be playing out in semiconductors.<\/p>\n\n\n\n<p>When that happens, markets often respond positively. A tariff that lands at, say, 15% instead of 100% isn\u2019t necessarily good news for the targeted sector, but it\u2019s <em>better than feared<\/em>. That shift from worst-case to more moderate reality can lift sentiment, even if some companies still face higher costs.<\/p>\n\n\n\n<p>Market uncertainty can feel overwhelming, but it doesn\u2019t have to be. I recommend taking a look at our free guide, <strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2025_08_14&amp;content=volatility_can_be_good_guide\">Using Market Volatility to Your Advantage<sup>3<\/sup><\/a><\/u><\/em><\/strong>, which shows how moments of unpredictability can actually reveal new paths forward for your investments.<\/p>\n\n\n\n<p><strong>Inside, you\u2019ll also find insights on:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How market volatility can \u201cshake up\u201d complacent investors<\/li>\n\n\n\n<li>Potential bargains that may be uncovered through turbulence<\/li>\n\n\n\n<li>Why volatility may help prevent overheating and market \u201cbubbles\u201d<\/li>\n\n\n\n<li>What history shows us about opportunities for steady investors in turbulent markets<\/li>\n\n\n\n<li>Plus, more ways you may be able to benefit from a volatile market<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, download this free guide today by clicking on the link below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recent announcements of high tariffs in critical industries don&#8217;t seem to be fazing investors. Mitch offers his insights on this seeming complacency.<\/p>\n","protected":false},"author":3,"featured_media":13575,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13880"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13880\/revisions"}],"predecessor-version":[{"id":13881,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13880\/revisions\/13881"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media\/13575"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}