Clean Yield in Conversation: Market Update April 2025 (The Tariff Edition)

Clean Yield in Conversation features team members in dialogue with timely updates and analysis of the financial markets. Listen to this episode with insights from managing director of research and portfolio manager Kofi Kodua: 

In recent weeks, markets have reacted to growing uncertainty around the new U.S. tariff policy and retaliatory measures from other countries. While most economists and market participants were initially worried about the impact on inflation, following the announcement of excessive tariffs by the Trump administration, “it has become clear that the effects could be far worse, pushing the economy into a recession,” says Kofi. “Tariffs introduce new costs and disrupt global supply chains, which makes it harder for businesses to plan and for consumers to predict prices.” 

Earnings reports have shown a clear shift in tone from companies that originally indicated tariffs would be manageable. Following the so-called “Liberation Day” on April 2nd, “the expectation is that management teams will delay investments or hiring decisions until there’s more clarity around the exact impact on their businesses,” says Kofi.

For the short term, market volatility should be expected. “As investors, we should be prepared for more ups and downs, particularly in sectors tied to consumer spending, global trade, and manufacturing.” Clean Yield is keeping an eye on all these sectors as we make investments for our clients — proactively adjusting portfolios to remain balanced as well as defensively tilted.

Even while uncertainty dominates the headlines, there is reason to be optimistic as markets are always forward looking. “Periods like these often create opportunities to invest in strong businesses at more attractive valuations,” says Kofi. “We at Clean Yield continue to seek long term resilience from companies aligned with sustainability, innovation, and customer first values that are critical and central to our investment approach.”

Listen to the full conversation above.