This is part of our monthly pension update series. Catch up on last month’s summary here: What happened to pensions in March 2025?
April was a significant month of news around tariffs and trade and associated volatility in the global stock markets, as President Donald Trump completed the first 100 days of his second term.
President Trump’s decision to introduce sweeping tariffs on imported goods, affecting key trading partners, triggered an initial downturn in global stock markets. Although a temporary 90-day pause was later announced, with tariffs reduced for most countries to a baseline 10%. High tariffs of up to 145% remained in place for goods from China.
Whilst this pause offered some relief, tensions quickly resurfaced. China responded by introducing its own tariffs of 125% on US goods, while warning other nations against making trade agreements that might disadvantage Chinese interests.
Despite President Trump later suggesting that the highest tariffs could be reduced and expressing hope for negotiations with China, no formal trade agreements have been reached. Uncertainty in the direction of long-term trade policy and the associated economic impact across the globe remains.
Keep reading to find out how the stock market performed in April, and how the tariffs have affected pension savings.
What happened to stock markets?
In the UK, the FTSE 250 Index rose by 2% in April. This brings its 2025 performance close to -4%.
Source: Google Market Data
In Europe (excluding the UK), the EuroStoxx 50 Index fell by almost 2% in April. This brings its 2025 performance close to +5%.
Source: Google Market Data
In North America, the S&P 500 Index fell by almost 1% in April. This brings its 2025 performance close to -5%.
Source: Google Market Data
In Japan, the Nikkei 225 Index rose by 1% in April. This brings its 2025 performance close to -10%.
Source: Google Market Data
In the Asia Pacific (excluding Japan), the Hang Seng Index fell by 4% in April. This brings its 2025 performance close to +10%.
Source: Google Market Data
The impact of tariffs on markets and pensions
Tariffs create challenges for global trade, making it harder and more expensive for businesses to operate. This can affect their growth and profits and in turn, their share prices. That’s why the stock market saw a sharp drop after the first tariff announcements. It’s seen a partial recovery since, driven by optimism that the worst tariff escalation may be over.
Technology companies in the US, often referred to as the ‘Magnificent Seven‘, were hit particularly hard as a large number of their suppliers are based overseas. Companies like Apple and Amazon rely heavily on Chinese suppliers, making them vulnerable to higher import costs. Some tech products, like smartphones and computers, were later temporarily exempted from tariffs, which helped ease market tensions slightly. But there’s still a risk that these exemptions could be removed in future.
Tension between President Trump and the US Federal Reserve heightened in April with his criticism of the central bank’s policies, particularly on interest rates. President Trump has argued that keeping rates too high is potentially slowing economic growth. The Federal Reserve maintains that elevated rates are necessary to control inflation, especially at a time where tariffs are already having an inflationary impact. This push-and-pull is creating uncertainty in US markets, which can ripple across global financial systems.
When will the markets and my pension balance recover?
Markets remain sensitive and unpredictable due to ongoing trade negotiations and geopolitical tensions - both of which are causing uncertainty for investors. This can lead to short-term swings in the value of investments, including pensions. It’s also important to remember that your pension balance isn’t shown in real-time as it often takes several days to reflect market movements.
We’re likely to see continued volatility, especially when the 90 day pause on tariffs comes to an end, but these things are very difficult to predict. The recovery of pension balances depends on how quickly global markets stabilise. This should start to happen once there’s more certainty around future tariffs, trade policy and a greater understanding of the implications for inflation, interest rates and the economy globally.
Remember, pensions are long-term investments that are designed to grow steadily over time. So while day-to-day fluctuations might feel unsettling, it’s important to keep in mind that this is a normal part of investing. History shows that when markets fall, they do recover, and often go on to reach new highs. While past performance isn’t a guarantee of future returns, it’s a helpful reminder that volatility is temporary.
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
