'Ernst & Young employees should consider that while tariffs may influence market volatility, strategic diversification across various industries and geographies can provide resilience and help protect retirement savings from potential disruptions.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.
New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
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How Tariffs May Impact Ernst & Young Employees and Retirees
April 24, 2025
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How Oil Volatility Affects Your Ernst & Young Retirement
Energy market instability persists, with crude prices fluctuating between $50 and $120 per barrel and annualized volatility running around 80%. The effects reach well beyond the energy sector. Client demand uncertainty during volatile economic periods and consultant travel costs connect professional services firms to broader oil-driven macro conditions. For Ernst & Young employees building retirement savings, oil-driven inflation and market volatility make disciplined saving and diversified allocation more important, as energy cycles can disrupt both portfolio values and purchasing power. Working with a financial advisor helps ensure that energy market uncertainty does not undermine your long-term retirement and financial goals.
Energy market instability persists, with crude prices fluctuating between $50 and $120 per barrel and annualized volatility running around 80%. The effects reach well beyond the energy sector. Client demand uncertainty during volatile economic periods and consultant travel costs connect professional services firms to broader oil-driven macro conditions. For Ernst & Young employees building retirement savings, oil-driven inflation and market volatility make disciplined saving and diversified allocation more important, as energy cycles can disrupt both portfolio values and purchasing power. Working with a financial advisor helps ensure that energy market uncertainty does not undermine your long-term retirement and financial goals.
'Ernst & Young employees should recognize that while U.S. tariffs may cause short-term market fluctuations, maintaining a diversified investment portfolio remains essential to managing long-term risks and ensuring financial stability amidst economic uncertainty.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
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The impact of U.S. tariffs on international trade and economic policy—how tariffs affect trade relations with China, Mexico, and Canada and their implications for border policies and industry regulation.
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Market volatility and investment strategies—the influence of tariffs on financial markets, economic growth, and strategies investors can use to manage risk.
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Historical and future implications of tariffs—a look at past tariff policies, their effectiveness, and the potential long-term consequences for businesses and retirement planning.
Imports from China have been subject to tariffs imposed by the United States and they are considering extending those measures to imports from Mexico and Canada as well. This move targets trade, border policies, and drug trafficking policy conflicts. Essentially taxes on imported goods and services, these tariffs are designed to force other countries to change their policies. China responded with tariffs on some American imports and a 30-day moratorium on duties for Mexico and Canada, which was announced on February 3 as talks continue.
The maze of international trade laws and tariffs might affect economic growth, the stock market, and industries such as energy. Whether exemptions will be granted or how long the tariffs will remain is unclear. Also, fluctuations in currency exchange rates might affect import prices in the United States.
Market Volatility & Economic Considerations
Financial markets have historically been more sensitive to business profitability and the health of the U.S. economy than to short-term government policies. Uncertainties about tariffs temporarily affect the markets but fundamental economic factors remain critical. A diversified investment portfolio is prudent during such periods, institutional portfolio manager Naveen Malwal said. A balanced strategy should contain investments across geographies and industries and exposure to global equities and bonds.
Historical Perspective & Tariff Implications
Governments have historically used tariffs to advance national interests, adjust foreign government policies, and support domestic industries. Following World War II, the General Agreement on Tariffs and Trade (GATT) cut world tariffs dramatically to promote international commerce. But in the past decade, some governments have rethought the benefits of free trade, raising tariffs to help domestic industries. The International Monetary Fund says that since , there have been 2,845 additional tariffs placed on the world.
Tariffs do a number of strategic things, such as drive consumers to domestic alternatives if they pay more for imported goods. Anti-dumping tariffs create fair competition by addressing foreign trade practices that disadvantage domestic industries.
The US Tariff Policy & Its Impact
US tariffs have often influenced trade - beginning with duties on imported sugar in 1789, and growing over time. In , the U.S. placed tariffs on USD 360 billion of Chinese imports over trade policy and intellectual property concerns. Many of those tariffs remain and additional levies on another USD 18 billion in Chinese imports are expected in subsequent years.
Economic Effects of Tariffs
Though importing companies pay tariffs directly to government agencies, the financial burden often is passed on to consumers in higher prices. But in the past decade, rising inflation has not been a consistent result of U.S. tariffs. For instance, when Trump imposed tariffs on China in January , U.S. inflation hit 2.9% before settling at about 2.5% prior to the pandemic.
Future Challenges and Considerations
The efficacy of tariffs is still debated. Tariff supporters point to jobs and growth of domestic industries. Criticism is that tariffs would eventually lead to higher production costs and consumer prices - and possibly lower employment levels.
Economic projections show proposed and existing tariffs could trim U.S. GDP by 1%. In addition, economists still weigh whether tariffs drive inflation.
Investment Strategies Amid Uncertainty
When constructing portfolios, investors should consider their time horizon, risk tolerance, and financial objectives. An investment portfolio of equities, bonds, and short-term investments geared toward individual financial goals may help you remain resilient in times of economic uncertainty.
Tariffs on Retirement Planning
For Ernst & Young employees approaching retirement, tariffs could affect investment portfolios - especially those with foreign assets - significantly. Tariffs could affect foreign investment return through impacting profitability and adding to market fluctuation. A March Brookings Institution report advises retirees to assess their retirement portfolio exposure to foreign markets and consider how to hedge against trade disputes risks. Diversifying investments across asset classes and geographic regions with differing trade policy exposure may hedge against risks of tariff-driven economic shifts.
How U.S. tariffs impact trade with Canada, Mexico, and China is important for evaluating their effect on investment portfolios, economic stability, and stock market performance. The history of tariffs, their use strategically to aid domestic industries, and their potential effects on world pricing and commerce are examined. For Ernst & Young employees seeking financial consistency amid tariff-related economic shifts, diversified investment strategies remain a good strategy.
The advantages of a Roth IRA multiply when you also leverage the full benefit package Ernst & Young provides. Ernst & Young maintains an active defined benefit pension plan, meaning eligible employees continue to accrue benefits based on years of service and compensation. If you are eligible for a lump sum payout, IRS Section 417(e) segment rates determine how the future annuity stream converts to a present-value payment - rising rates compress the lump sum, so monitoring the plan's stability period and lookback month is critical before you lock in your election date. The choice between a single-life annuity, a joint-and-survivor option, or a lump sum (where available) is generally irrevocable once made, and timing that decision relative to interest rate conditions can meaningfully affect your retirement income picture.
For healthcare planning purposes, Ernst & Young does not offer continued medical coverage to retirees, which means coverage through the company ends when employment does. Planning for the cost of health insurance during any gap between your retirement date and Medicare eligibility at age 65 is a critical step - marketplace coverage, COBRA continuation, or a spouse's employer plan are common options. Building an accurate estimate of bridge-coverage costs into your retirement income projection prevents underestimating one of the largest variable expenses retirees face. A retirement plan that fully integrates your Ernst & Young benefits gives you the most accurate projection of your future financial picture.
Source:
1. Gertz, Geoffrey. 'Trump's 25% Tariffs on Canada and Mexico Will Be a Blow to All 3 Economies.' Brookings Institution , 4 Feb. , brookings.edu.
4. Invesco. 'Tariffs Rattle Stock Markets, but What's the Long-Term Impact?' Invesco , 7 Feb. , invesco.com.
5. Peterson Institute for International Economics. 'Trump's Tariffs on Canada, Mexico, and China Would Cost the Typical US Household Over $1,200 a Year.' Peterson Institute for International Economics , 3 Feb. , piie.com.
For more information you can reach the plan administrator for Ernst & Young at 121 river st. Hoboken, NJ 7030; or by calling them at 1-212-773-3000.
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