- One in three (32%) high net worth individuals (HNWIs) view geopolitical risks as a direct threat to their wealth
- One in four (25%) say global trade policies, such as President Trump’s tariffs announced on ‘Liberation Day’, are among the biggest barriers to UK economic growth
- Fears amongst HNWIs about the impact of Trump’s presidency were already rife before his inauguration and are likely to intensify over the coming weeks and months
Concerns around global trade and geopolitical instability are rising among high net worth individuals (HNWIs), amid renewed uncertainty following Donald Trump’s return to the White House, according to data from wealth manager Saltus.
The Saltus Wealth Index Report surveyed 2,000 people in the UK with assets of £250,000 or more after President Trump’s election win, but prior to his inauguration, and the findings suggest many HNWs were already bracing for heightened tensions around global trade.
A quarter (25%) of respondents identified trade policies, including tariffs and international disputes, as one of the biggest barriers to UK economic growth. This was matched by concerns around the regulatory burden on businesses (25%) and ranked ahead of issues such as infrastructure (19%) and climate change (19%).
A further third (32%) of respondents said they see geopolitical risks as a key threat to their personal wealth, the third most-cited risk after inflation (52%) and changes to the UK tax system (47%).
Now that President Trump has taken office those concerns around geopolitical risks are likely to intensify, with investors increasingly focused on how his approach to trade and foreign policy are impacting their portfolios, businesses and long-term financial planning.
When asked to identify their single biggest concern for the year ahead, economic decline ranked first (22%), well ahead of personal health (15%) and the wellbeing of their children (11%), with geopolitical risk ranked fourth (also at 11%).
Michael Stimpson Partner at Wealth Manager Saltus, commented: “High net worth individuals were already acutely aware of the global forces shaping their financial future, even before the latest developments in global politics and the impact on the markets. Trade tensions and geopolitical risk were front of mind at the start of the year, so with Trump back in office, mounting concerns over tariffs and the impact on global economies, those fears are likely to grow.
“Clients are increasingly looking to us for help creating financial plans to manage these uncertainties, whether that’s adjusting portfolios, diversifying investments or planning for longer-term economic shifts.
“During any period of volatility, it’s important to take a step back from the noise and focus on what you can control, and no one can control the stock market. Often, the most powerful action you can take in unsettling times is to do nothing at all.
“When we look to recent history, there have been many moments when the geopolitical picture looked deeply worrying, yet markets have continued to rise over time. That perspective matters. Uncertainty can also be a good time to pause and take stock of your finances, and to consider speaking to a financial adviser to help put a long-term plan in place.”