If there is a definitive word for the first quarter of 2025, it is tariffs. Everybody is talking about it. That is because nobody really knows what the implications of the rapidly changing, on-today, off-tomorrow tariffs from the United States government will be.
An interesting offshoot of this scenario is the sudden interest in economics, or finance in particular, by virtually everybody. Defined by Cambridge Dictionary as ‘a charge or list of charges either for services or good entering a country', this much specialised term has become part of everyday vocabulary around the world.
The Financial Times just recommended five essential books for those who want to understand tariffs and their role in global trade. Their list includes Dmitry Grozoubinksi’s ‘Why politicians lie about trade... and what you need to know about it', considered a layman’s guide to the basics of trade today. They also include Ha-Hoon Chang’s ‘Kicking away the ladder: Development strategy in historical perspective', a book that outlines the forces that make non-western countries comply with western policies and standards, not all of which are appropriate in other contexts.
But more than traditional books, the information on tariffs and its potential implications are best found on social media. Even traditional media has created its own online channels where they post important snippets of conversations and parts of debates which have found more traction among the audience.
The media, for instance, is exploring examples of how people are already being effected by not knowing how much products will cost. Some are stocking up while others are keeping an eye on everyday products that may see prices peak without warning.
For those invested in the stock market, the only certainty is uncertainty. As the markets fall and rise at a moment’s notice, it is impacting small investors’ retirement corpus, as well as their savings for their children education and other incidental expenses. This has been true across the world, from the stock market in South Korea, Japan and India to Europe and Canada.
This is where a number of financial influencers, commonly referred to as finfluencers have entered. They offer advice on the changing situation, what stocks to buy and what to redeem. But their veracity is mostly suspect. It is, after all, almost impossible to make a 1-minute Instagram reel to reflect such a complicated situation.
If the present moment has achieved anything, it is the upsurge of interest in finance education. This has the ripple effect of making people focus on finance literacy, learning the basics about investment, long term planning and playing the market. On the flipside, it has created a whole lot of ‘experts’ who are giving out unsolicited advice to increase the number of their followers.
But in the long run, a fundamental knowledge of the economy, particularly at the personal level is important. It provides focus, patience and discipline for those investing in the market, and it also creates opportunities for younger professionals to prepare for an uncertain future.
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