What to do when US tariffs impact your super
Recently I spoke about superannuation at two different events on the same day. After each one, people sidled up to me with panicked looks on their faces to ask this very question.
What's the relationship between the tariffs and my super?
Donald Trump's implementation of tariffs has caused havoc globally. Sharemarkets, both international and local have been in freefall; the ASX initially lost over 7% - a whopping $160bn - before recovering over 4.5% as at 14 April 2025.
We need to remember company shares are priced according to available information and confidence levels. The sharemarket does not like unexpected bad news.
Which is exactly what The Don and his team gave us on Liberation Wednesday. The speed and weight of the tariff implementations caught everyone offguard, hence the sharemarket falls.
To use a metaphor: the US has always been at the centre of global finance - the hub of a wheel, with the spokes reliant on it for stability. Now, the hub has decided to hit the road on its own.
Every time I check my super balance, it's less!
With the recent super cyber attacks, you'd be forgiven for thinking you'd been hacked when you logged in and saw your lower super balance.
Once you've established your super account is safe, remember this. Your superannuation is invested in local, and international, sharemarkets. The volatility in sharemarkets - reflecting the newsflow from the US - translates into your super balance dropping.
Ongoing uncertainty means your super balance may be doing an impersonation of a yo-yo for a while.
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3 things you should do at volatile times like this
1. Don't panic. It's tempting to switch your super and other investments wholly into cash but that can just lock in losses. It can also leave you out of the market when the market rebounds. And, while past performance is no predictor of the future, we can take comfort in the fact that the ASX100 has recovered from this kind of volatility before.
2. Stop checking your balance daily. Are you able to control how the markets - and therefore your super - behave? No. So why cause yourself more anguish?
A more useful strategy is to check your mix of assets within your fund. If retirement is only a few years away, you may want to consider a higher weighting of cash or lower-risk assets such as bonds or gold. If you've got a decade or more until retirement, then growth assets such as shares should be able to weather any future volatility.
3. Remember this is an endurance race. It's time in the market, not timing the market.
And for the contrarians… now is a great buying opportunity!
Disclaimer: This information is general and does not take into account your individual objectives, financial situation or needs. Before making any financial decision, consider your own situation and seek independent expert advice.
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