What are tarriffs? Gold takes the Lead

Gregory S. Davis | April 6, 2025

Reviewed by etfready.com staff

Tariffs, reciprocal tariffs, and March Madness have been grabbing the headlines along with steep declines in the Dow Jones Industrial Average, Nasdaq and S&P 500 Index.  With the Dow Jones Industrial Average closing down -2,231.04 or -5.50% at 38,314 on Friday, April 4, 2025, it has returned to levels last seen almost exactly one year ago when the average closed at 38,904 on April 5, 2024.

What is a tariff and who pays it?

A tariff is a tax imposed by a government typically as a source of revenue and to influence foreign trade.  For example, if Kojo Thompson is buying a flatscreen television from Best Buy (BBY) (down -29.56% year to date) the cost may be $500.00.  If the flatscreen is purchased by Best Buy from a manufacturer in China or Vietnam a tariff imposed by the U.S. Government on the imported manufactured goods will increase Best Buy’s cost by let’s say $50.  Now Best Buy must decide.  Will Best Buy absorb the $50 increase, or pass the $50 increase in price on to customers, purchase less flatscreen televisions from foreign manufacturers or a combination of all three?

YTD 2025: Top 6 ETF Sectors of 2024

What happened to the Top 6 Sectors of 2024?

A select group of highest returning ETFs of 2024 have fallen the most during the first quarter of 2025.  Technology, Consumer Discretionary and Cryptocurrency as measured by the Vanguard Information Technology Index Fund ETF Shares (VGT), the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Grayscale Bitcoin Trust (GBTC) have declined the most falling over 23%, 18% and 11% respectively.

YTD 2025: Trailing 6 ETF Sectors of 2024

Should Investors be Buyer or Selling at these Levels?

In my opinion it’s arguably an exceptional time to consider buying into names or ETFs on your wish list.  Howard Marks of Oak Tree Capital Management often emphasizes that “it’s not what you buy, it’s the price you pay,” which says to me if prices are falling on valuable assets investors should be buying.