2025 has been the Year of the Tariff. Since he took office, President Trump has unveiled aggressive tariffs on imports from foreign countries, reshaping U.S. trade policy, sending the markets on a roller-coaster ride, and causing uncertainty for companies of all types. Now a new deadline of August 1 looms that could bring higher tariffs on imports from dozens of countries. On this episode, host Mike Townsend is joined by Michelle Gibley, director of international research at the Schwab Center for Financial Research, for a timely discussion of tariffs—what's in place now, what's coming next, how they are being used to secure trade deals, and what the potential impact is on inflation, the economy, and the markets. Michelle shares her perspective on why markets reacted so sharply to the "Liberation Day" tariff announcements in April but have mostly ignored the tariff noise since then. They also discuss the ramifications for international stocks, why emerging markets have been outperforming U.S. markets, and where investors looking to expand their international allocation can find opportunities.

Mike also provides updates from Washington on the Fed's decision to keep the federal funds rate steady, the latest on cryptocurrency legislation, and why a recent fight on Capitol Hill to claw back foreign aid funding could be a worrisome signal for this fall's effort to fund government operations and avert a disruptive government shutdown.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.

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Check out Michelle's recent articles: "Tariffs: Is the Worst Behind Us?" and "Benefits of Emerging Markets Diversification."

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