5 ways to insulate against tariff impact

Early in 2025, when the US announced tariffs on imports from countries across the world, consumers expected to feel their impact. Research has shown that consumers globally started to spend less on discretionary goods in response to this uncertainty. In the UAE, a May 2025 survey showed that more than 3 out of 4 Emirati respondents (77%) indicated strong confidence in the UAE’s ability to benefit from global trade disruptions. Experts say that consumers in the UAE are shielded from any direct impact of tariffs with a baseline of 10%. However, given the interconnectedness of the global economy, here are some ways in which you can be tariff-aware.

1. Gold prices:

Prices for the precious metal have witnessed unprecedented volatility in 2025 in response to global geopolitical uncertainty, driven by unpredictable policy decisions in the US.
Protect yourself: Don’t invest with #FOMO. Don’t believe the hype that says that prices may only go higher. Look at trend charts to see how gold has behaved in the past.

2. Financial and equity markets:

The UAE stock markets are responsive to global sentiment and indexes of the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) declined after the announcement.
Be cautious: Globally, investors are remaining cautious keeping in mind concerns over rising trade costs, slower global growth, and reduced demand for exports. Play the long game on stock markets.

3. Online shopping:

Consumers are now more global than ever in shopping across borders. However, tariffs are already affecting US products. Surveys show that consumers have reduced spending due to higher costs.
Read the fine print: Many sellers have revised their delivery and return policies in response to increased costs. Check if products are shipped locally or from another country.

4. Jobs and businesses:

Reduced dependence on the vast US market has resulted in market changes for several sectors including gems, automobiles, pharma, apparel, and electronics, among others. Businesses are recalibrating their strategies to stay on top of these changes.
Be updated: Whether applying for a job, getting ready to study abroad, or starting your new venture reliant on exports or re-exports, update your information about how the sector operates and the specific impact of tariffs.

5. Travel and hospitality:

Disrupted supply chains, inhospitable destinations, and other disruptions affect consumer choices for international travel. Airlines and hospitality majors, particularly those based in the US or reliant on the market, will adjust their prices and expansion plans, creating a new normal.
Explore the neighborhood: Recalibrate your bucket list to reflect destinations that continue to be welcoming and affordable.
The best hedge against volatility is focusing on wealth preservation.

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