The recent blitz of tariffs, deregulatory actions, and erratic policy shifts requires private banks to develop new strategies for protecting and growing client assets.
The Trump administration's second-term economic agenda has created a specific set of challenges and opportunities for private banking that are worth examining with clarity rather than political framing.
The broad tariff program, including the 10% baseline on imports from most countries and sector-specific levies exceeding 100% on some categories, has created direct portfolio consequences that private banking clients are actively navigating.
For clients with significant equity exposure to US-listed companies, the immediate effect has been volatility followed by partial recovery as markets assessed the actual implementation. The net effect on corporate earnings depends heavily on sector and supply chain structure: companies with purely domestic operations are relatively insulated, while those dependent on global supply chains face meaningful margin pressure.
For clients with international business interests, particularly those operating across supply chains that span tariffed jurisdictions, the strategic questions are more complex. Investment in domestic US manufacturing, supply chain restructuring, and the economics of different geographic production configurations have become active advisory conversations.
Rather than the dollar strengthening as import taxes raised domestic prices, the currency has experienced periods of weakness as global investors reassessed the dollar's reserve currency status in the context of unpredictable trade policy. For Swiss private banking clients with dollar exposure, this creates both a hedging conversation and a strategic asset allocation question. The franc's appreciation against the dollar has reinforced the case for active currency management.
The administration's deregulatory stance has created specific opportunities in financial services, energy, and technology. Private equity and private credit have benefited from reduced regulatory burden. Private banking clients with allocation capacity for alternative investments have had genuine opportunities in sectors directly benefiting from the deregulatory agenda. The advisor who can identify these opportunities specifically and credibly is providing value that generic market commentary does not deliver.
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