Prediction: Trump's New Tariffs Won't Stand Up in Court. Consider Buying These 2 International ETFs.
2026-08-10 02:30
•Ben Gran •The Motley Fool
•••• •• Axe Cap view
Trump’s Tariffs Won’t Last—Look Beyond US Markets
US tariffs targeting dozens of countries are unlikely to survive court battles, making global diversification more crucial for South African investors.
The new US tariffs hitting 60 countries are facing serious legal hurdles and seem destined for the scrap heap, much like earlier attempts that judges rejected. Yet, markets have shrugged off the news, with the S&P 500 climbing 5% since the announcement. For South African investors, reliance on US markets alone looks riskier as trade tensions flare intermittently. Instead, spreading exposure globally, including developed and emerging markets, reduces single-country risk. Two ETFs worth watching are Vanguard’s FTSE All-World ex-US (VEU) and their Total World Stock ETF (VT). VT is particularly appealing because it blends US and international stocks in one product, making diversification effortless even from South Africa. Local currency fluctuations versus the dollar (USD/ZAR) will still feed through portfolio returns, but owning global equities offers ballast against rand volatility. That said, if US tariffs unexpectedly stick or escalate, equities globally, including JSE stalwarts like Naspers and MTN, could face headwinds. this is just our opinion and not financial advice
Buy Vanguard Total World Stock ETF (VT) through an international broker for global equity exposure while keeping an eye on rand-dollar moves. Avoid overconcentration in South African exporters sensitive to US trade policy until tariffs clear.
- VT
- USD/ZAR
- US tariffs unexpectedly upheld
- rand volatility impacting foreign returns
6/10
Trump's new tariffs on 60 countries face legal challenges from 25 states and are expected to be struck down by courts, similar to previous tariff rulings. Despite tariff concerns, the S&P 500 has risen 5% since the announcement. The article recommends two international ETFs for investors seeking global diversification: the Vanguard FTSE All-World ex-US ETF and the Vanguard Total World Stock ETF, with the latter being the author's preferred choice due to its broader diversification across 10,000+ stocks.
Our take is based on reporting first published by The Motley Fool.