Sharp Daily
No Result
View All Result
Friday, July 11, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

The dual effect of tariffs: Challenges and opportunities for investors

Hezron Mwangi by Hezron Mwangi
January 2, 2025
in Opinion
Reading Time: 2 mins read

Tariffs, designed to protect domestic industries by increasing the cost of imported goods, have significant consequences on investment decisions, both locally and globally. While they aim to encourage consumers to purchase locally, they also create a ripple effect that can reshape markets, sometimes in unexpected ways.

On a local level, tariffs can discourage foreign investment. When the cost of exporting goods increases due to tariffs, foreign companies may reconsider entering or expanding in that market. This is particularly true for industries reliant on global supply chains, where tariffs disrupt cost efficiencies. As a result, foreign direct investment (FDI) can decline, and investors may turn their attention elsewhere, seeking markets with fewer trade barriers.

However, tariffs can also benefit domestic businesses by making imported goods more expensive, giving local producers a competitive edge. This can drive investment in local manufacturing and infrastructure as businesses expand to meet increased demand for homegrown products. Entrepreneurs may seize the opportunity to fill gaps in the market left by foreign competitors, fostering innovation and local job creation.

Globally, tariffs complicate supply chains, forcing businesses to reconsider where and how they source materials. As companies seek to mitigate the costs of tariffs, they may shift production or supply sources, redirecting investment to new regions or domestic facilities. These adjustments can lead to new investment flows as businesses adapt to the changing trade environment.

RELATEDPOSTS

Economic tariffs and government taxation or punative tariff trade policy or duties imposed on imports and exports by a government on imported or exported goods as Protectionism as a 3D illustration.

How tariffs work

February 5, 2025
[Photo/Courtesy]

Kenya Power Managing Director Defends Increased Tariffs

March 29, 2023

For investors, tariffs introduce uncertainty and volatility. Stock markets often react negatively to the unpredictability tariffs bring, especially in sectors heavily reliant on international trade, like technology and agriculture. Investors must navigate this risk, potentially finding opportunities in markets or industries that benefit from the shifting economic dynamics.

While tariffs may protect certain sectors, they also create new investment challenges and opportunities. Investors must carefully assess how these changes affect both local and global markets to make informed, strategic decisions.

Previous Post

Long-term gains or quick wins? Comparing value investing and speculation

Next Post

Mastering credit management: Tips for strengthening your credit score in Kenya

Hezron Mwangi

Hezron Mwangi

Related Posts

Business and Finance Concept - Coin, Currency, Financial Item, Graph,
Opinion

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025
Opinion

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025
Economy

What happened to president Ruto’s economic dream?

June 27, 2025
Opinion

Opinion: Populism feeds votes, not growth

June 27, 2025
Opinion

Unlocking the power of REITs: A path for retail investors

June 26, 2025
Opinion

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024