ILIM Quarter in Review: Q1 2025
by Irish Life Financial Services
Written by Irish Life staff
Market News • 11 April 2025 • 3 min read
ILIM Quarter in Review: tariff fears
This blog was written by Irish Life staff based on content produced by Irish Life's investment managers (ILIM).
Key takeaways from Q1 2025
Global equities diverged in Q1 - US stocks fell, but Europe and emerging markets rallied.
Trump's indecision over tariff policy created uncertainty among consumers and businesses.
Government bond prices sank while yields rose, especially in Germany.
US economic developments
Trade tensions dominated the narrative, sparking fears of a growth slowdown and reigniting inflation concerns. The proposed tariffs raised the effective US import tax rate from 2.7% to 22%—the highest in over a century.
The S&P 500 dropped over 20% from its peak before partially recovering in April.
Bond markets rallied initially, anticipating interest rate cuts, but reversed as inflation risks came into focus.
A 90-day delay in implementing certain tariffs helped restore some market confidence.
Global market reaction
The impact was felt globally, with financial markets quickly pricing in a potential economic shock. Growth-sensitive assets like credit and oil saw sharp declines, while the US dollar weakened as its safe-haven status was questioned.
China and other trading partners retaliated with their own tariffs, further fuelling concerns about a prolonged trade dispute. While negotiations are ongoing, the short-term outlook remains fragile.
Tariffs had a big impact.
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