The current global trade disputes might seem like distant political manoeuvring, but they have a very real impact on your everyday finances. From rising prices at the supermarket to fluctuations in your superannuation balance, international trade tensions trickle down in ways many Australians do not expect.

Preparing for uncertainty is always about having the right financial strategies. Whether it’s protecting your investments, reviewing your personal insurance and business insurance policies, or ensuring your business has the right risk management in place, our team is here to help you ride out economic turbulence with confidence.

The Impact of Trade Tensions

Global trade disputes – such as tariff wars between major economies – create instability in markets, affecting the cost of goods, investment performance, and even travel expenses. Understanding these impacts can help you make smarter financial decisions and stay ahead of potential challenges.

Rising Costs of Everyday Goods

When governments impose tariffs or restrictions on imports, businesses face higher costs to bring goods into the country. These extra costs are often passed on to consumers, meaning you end up paying more.

  • Imported food, electronics, and household goods may become more expensive.
  • Petrol prices can rise, making transport and logistics more costly.
  • Construction materials like timber and steel can see price increases, affecting home renovations and the property market.

We work with our clients to review budgets, investment allocations, and insurance cover, ensuring they’re financially prepared for cost-of-living increases. Financial planning that accounts for inflation and economic shifts can make a big difference in maintaining financial security.

Market Volatility & Your Investments

Trade disputes create uncertainty in financial markets. This directly impacts superannuation balances, personal investments, and business finances. Stock markets often fluctuate in response to global instability, meaning your super balance or investment portfolio may take a hit.

It’s also worth remembering that by the time the media headlines are full of news about markets dropping and super balances falling, we’re often already at or near the bottom of the cycle. Making a sudden move into cash at that point means you could be locking in losses — not avoiding them. That’s why we take your full financial picture into account when we build your investment strategy, and why we revisit this during your annual On Track Review. Our approach to risk profiling considers both the ups and the downs, helping you stay the course with confidence through times of volatility.

Interest rates can also shift, affecting home loans, business financing, and investment returns. Australian businesses that are reliant on exports or imported materials may struggle with changing costs, impacting jobs and wages.

IAS Insight: Whether you’re an investor, a retiree watching your super, or a business owner managing cash flow, IAS can help you review your financial strategy to ensure its resilient to market ups and downs. Our approach to diversified investments and long-term financial security means our clients can weather short-term volatility with confidence.

Travel Costs & Currency Fluctuations

Thinking of an overseas holiday? Trade tensions can cause currency shifts and rising travel expenses, making it more expensive to head abroad. The Australian dollar may weaken, reducing your spending power overseas, and accommodation and travel-related expenses could rise in response to global economic pressures. Airlines may also increase their fares due to higher fuel and operating costs.

IAS Insight: If travel is on your horizon, we help clients plan ahead financially — from securing travel insurance to strategising foreign currency purchases when rates are more favourable. Small adjustments can make a big difference in keeping travel affordable.

How IAS Can Help You Ride Out Economic Uncertainty

Economic uncertainty doesn’t mean you have to be caught off guard. We help clients build financial strategies that can withstand global market shifts. Whether you’re worried about rising costs, investment performance, or protecting your business, we can help by:

Take control of your financial future — talk to us today about how IAS can help you navigate uncertainty with confidence.Call us anytime on (02) 8268 2900 for an obligation-free chat.

Disclaimer: The information contained in this article is general in nature and does not consider your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.