From McKinley to MAGA: What Tariff Politics Teaches Us About Market Narrative Risk
Volatility is back—and so are tariffs.
In recent weeks, markets have surged, dropped, and surged again in response to breaking news about trade tensions, especially between the U.S. and China. If it feels like we’ve seen this movie before, we have.
More than a century ago, President William McKinley made tariffs the cornerstone of his economic strategy. Back then, America faced rising European manufacturing, job anxiety, and fears about losing ground globally. McKinley’s answer? Raise tariffs. Protect American workers. Frame it as patriotism—not policy.
Fast forward to the modern “America First” trade agenda. Different time, same playbook. Today’s tariff moves aim to defend American industries—but they also reflect something deeper: a shift in how people feel about the economy.
Why This Matters to You
When the story people believe about the economy begins to break down, markets start to reflect that uncertainty. Tariffs often appear when voters—and investors—start losing confidence in the current system. And in the age of social media and 24/7 headlines, emotion travels fast. It’s not just about economics. It’s about narrative. What we think is happening becomes just as powerful as what is happening. History tells us something important: tariffs may win political points, but they rarely solve long-term economic challenges. McKinley’s trade policies sparked global retaliation, higher prices, and market disruption. More recently, the same pattern played out with trade wars that shook supply chains, confused pricing, and rattled markets. And when one of those trade partners is China—the world’s second-largest economy—the stakes get even higher.
What You Can Do as an Investor
You may not be able to control what’s happening in Washington or Beijing, but you can stay grounded in a strategy that looks beyond the noise. Here are three smart mindsets to keep in today’s market:
✅ Don’t let headlines drive your decisions. Tariffs make headlines, but long-term trends matter more.
✅ Focus on flexibility. Asset classes like private credit, real assets, or strategies not tied to global trade may offer resilience.
✅ Put volatility in context. We’ve been here before. This cycle of protectionism isn’t new—it’s part of a broader economic shift. Our goal is to help you stay focused on what matters most: your long-term goals, not short-term politics. When markets start to react more to emotion than fundamentals, staying disciplined makes all the difference.
1. Investopedia – How Tariffs Affect the Economy
Provides a clear, investor-friendly overview of what tariffs are, how they work, and their impact on markets.
🔗 https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp
2. Council on Foreign Relations – The Return of U.S. Industrial Policy
Gives historical and current context around protectionism, trade wars, and policy shifts—great for readers wanting to dig deeper into the political narrative.
🔗 https://www.cfr.org/backgrounder/return-us-industrial-policy
From McKinley to MAGA: Tariffs, Markets & Investor Risk
From McKinley to MAGA: What Tariff Politics Teaches Us About Market Narrative Risk
Volatility is back—and so are tariffs.
In recent weeks, markets have surged, dropped, and surged again in response to breaking news about trade tensions, especially between the U.S. and China. If it feels like we’ve seen this movie before, we have.
More than a century ago, President William McKinley made tariffs the cornerstone of his economic strategy. Back then, America faced rising European manufacturing, job anxiety, and fears about losing ground globally. McKinley’s answer? Raise tariffs. Protect American workers. Frame it as patriotism—not policy.
Fast forward to the modern “America First” trade agenda. Different time, same playbook. Today’s tariff moves aim to defend American industries—but they also reflect something deeper: a shift in how people feel about the economy.
Why This Matters to You
When the story people believe about the economy begins to break down, markets start to reflect that uncertainty. Tariffs often appear when voters—and investors—start losing confidence in the current system. And in the age of social media and 24/7 headlines, emotion travels fast. It’s not just about economics. It’s about narrative. What we think is happening becomes just as powerful as what is happening. History tells us something important: tariffs may win political points, but they rarely solve long-term economic challenges. McKinley’s trade policies sparked global retaliation, higher prices, and market disruption. More recently, the same pattern played out with trade wars that shook supply chains, confused pricing, and rattled markets. And when one of those trade partners is China—the world’s second-largest economy—the stakes get even higher.
What You Can Do as an Investor
You may not be able to control what’s happening in Washington or Beijing, but you can stay grounded in a strategy that looks beyond the noise. Here are three smart mindsets to keep in today’s market:
✅ Don’t let headlines drive your decisions. Tariffs make headlines, but long-term trends matter more.
✅ Focus on flexibility. Asset classes like private credit, real assets, or strategies not tied to global trade may offer resilience.
✅ Put volatility in context. We’ve been here before. This cycle of protectionism isn’t new—it’s part of a broader economic shift. Our goal is to help you stay focused on what matters most: your long-term goals, not short-term politics. When markets start to react more to emotion than fundamentals, staying disciplined makes all the difference.
1. Investopedia – How Tariffs Affect the Economy
Provides a clear, investor-friendly overview of what tariffs are, how they work, and their impact on markets.
🔗 https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp
2. Council on Foreign Relations – The Return of U.S. Industrial Policy
Gives historical and current context around protectionism, trade wars, and policy shifts—great for readers wanting to dig deeper into the political narrative.
🔗 https://www.cfr.org/backgrounder/return-us-industrial-policy