Key takeways

• New U.S. tariffs on Canada, Mexico, and China deepen a new era of global policy by tariffs, and they likely portend an ongoing noisy and confusing backdrop for investors.

• Through the noise, we remember that any global policy success through tariffs is likely to come with a domestic economic and inflation cost that should keep the process gradual and transactional.

What is may mean for investors

• As a less predictable policy environment creates volatility across capital markets, we favor looking for buying opportunities based on our 2025 Outlook, which anticipated new rounds of tariffs as policy.

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WELLS FARGO Investment Institute

Charting the economy's next chapter

We view postelection clarity, economic policy, and early-year disinflation as catalysts for stronger and more balanced growth across U.S. economic segments in 2025. Business and consumer confidence are reviving while election-related uncertainties fade. Business inventories are likely to build ahead of expected new tariffs, which should bolster manufacturing. The extended rally in equity prices has helped upper-income households drive consumer spending. Looking ahead, wages are still outpacing inflation and should support improved spending growth among lower-income households.

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