Navigating Tariffs and Economic Uncertainty with Bob Doll

FaithFi: Faith & Finance | Feb 19, 2025

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Show Notes

"And my God will supply every need of yours according to His riches in glory in Christ Jesus." — Philippians 4:19

This verse is a powerful reminder that God is our ultimate provider, no matter the economic uncertainties we face. Recently, we have seen that many have been concerned about trade tariffs and their potential impact on the economy. Today, Bob Doll joins us to explain what this means and what we can expect moving forward.

Bob Doll is the CEO and CIO of Crossmark Global Investments. He regularly contributes to Faith and Finance and other media outlets like Bloomberg TV, Fox Business, and CNBC.

What Are Tariffs and How Do They Affect Us?

Tariffs are essentially taxes. If a 10% tariff is placed on imported goods, the price of those goods increases. That means consumers pay more for the products they need, which can slow down economic activity.

However, tariffs are not just about taxation; they are often used as a bargaining tool in international trade negotiations. Sometimes, it depends on the day of the week because tariffs are on one day and then off the next. This back-and-forth can create uncertainty in the market and impact businesses, investors, and consumers alike.

Why Do Markets React Negatively to Tariffs?

The stock market tends to respond negatively whenever there's talk of tariffs. Why?

Tariffs can slow economic growth. If companies and consumers have to pay more for goods, they either buy fewer products or cut back on spending in other areas. This dampens growth, and the market doesn’t like it.

Could tariffs alone push the economy into a recession? If they are significant enough, last too long, and trigger retaliation from other countries, it could certainly lead to what economists call a trade war. A trade war is not healthy for economic growth, but cooler minds will likely prevent it from escalating too far.

The Strategy Behind Tariffs: Negotiation or Necessity?

So, is the push for tariffs simply a negotiation tactic, or is there a deeper economic issue at play?

There’s no question that the U.S. has a trade imbalance with many countries. Addressing this imbalance is part of the reasoning behind tariffs. However, political leaders understand the risks and use tariffs more as a bargaining tool than a long-term strategy. They don’t want to sink the economy because these leaders have a vested interest in economic stability.

Finding Peace in Economic Uncertainty

Discussions about tariffs, markets, and recessions can easily lead to fear. Economic uncertainty often leaves people feeling anxious about their financial future. But as believers, we have a greater source of security.

Here are three key reminders:

Leaders Care About Economic Stability—Regardless of their approach, political leaders generally want a strong economy.
The Economy is Resilient—Whether we have tariffs or not, the economy is doing well, and its economic fundamentals are still strong.
God is in Control—Most importantly, our hope is not in governments, markets, or policies but in God. God knows the end from the beginning, including tariffs. Psalm 91 reminds us that God is our refuge and fortress—we can rest securely in His protection.

Focus on What You Can Control: Faithful Stewardship

While we can’t control global trade policies, tax laws, or the stock market, we can control how we manage our own finances. We can control our own little economies—what passes through our hands. That means practicing faithful stewardship.

We need to take care of everything God has given us—not just money, but all aspects of life: our minds, our bodies, our time. Being wise stewards of our finances means making thoughtful financial decisions, saving wisely, and giving generously. After all, it’s not ours; it’s all God’s.

When we recognize that everything we have belongs to God, it transforms the way we handle money. Rather than holding onto it tightly, we can give joyfully and generously.

Economic uncertainty will always exist, whether through tariffs, inflation, or market fluctuations. But believers are called to a higher perspective. Instead of being driven by fear, we can rest in the truth that God is sovereign over all things—even global trade policies.

The key is to focus on what we can control: managing our finances wisely, practicing faithful stewardship, and embracing the joy of generosity. And through it all, we can trust that God is our refuge and provider, no matter what challenges come our way.

On Today’s Program, Rob Answers Listener Questions:

I recently received a sizable inheritance. I have some ideas about what to do with it, but I wanted to get your thoughts first.
I would like to know where and how to invest. My husband and I are both retired. I have $200,000 left in my TSP and approximately $270,000 in IRA CDs, a small portion of which is Roth IRAs.

Resources Mentioned:

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