Tariffs scare people. Yet tariffs are in the news and they impact your plan. Let me start by stating, this is not about our president. You may love him, you may hate him, or you may just not care. The same is true for his policies.
This is about your estate plan. This is about your legacy. This is about how to find opportunity in government policy. This is what we do, no matter who is in office or in control of the government, federal or state.
With that out of the way, I hope you will read to the end.
On April 2, 2025—now branded by President Trump as “Liberation Day”—a bold new trade doctrine was announced: the U.S. will impose reciprocal tariffs on imported goods. This means foreign countries will now face the same import taxes they place on American products—starting at 10% across the board, but rising to 34% for China, 24% for Japan, and 20% for the European Union.
This new trade doctrine might feel like foreign policy, but the ripple effects are domestic—and personal. At first glance, this might sound like the kind of news that only affects politicians or Wall Street analysts. But here’s the surprising truth: this policy shift could actually work in favor of your family—especially if you’ve already taken steps to protect your wealth through a comprehensive Wealth Protection Plan™. For families with trusts, LLCs, and generational plans in motion, the landscape just shifted in your favor.
Let’s unpack what’s happening—and why it matters to your family’s financial future.
Why Tariffs Matter for Your Estate Plan
Before I became an attorney, I studied economics with a focus on the intersection of law and economic behavior. My studies focused on how law shapes incentives and how incentives shape behavior. That foundation taught me something I use with every client: a good estate plan isn’t just legal. It’s economic. It’s strategic. It should anticipate change, not just survive it. Planning is not just a legal tool but a long-term economic strategy.
In fact, my family has personal experience that was impacted by trade policy. Many of you have heard me tell the story about how our firm started. Prior to opening his firm as a sole practitioner in the mid-1970s, my dad had worked with his father in the shoe manufacturing industry in Marlborough, Massachusetts. In the late 1960s and early 1970s, most shoe manufacturing moved overseas. Part of the reason for that was the fact that US goods faced tariffs in those overseas markets, but those same markets did not face tariffs on their goods in the US. Consequently, the US shoe industry, including my grandfather’s and father’s company, faced stiff competition – some of it unfair competition from overseas resulting from one-way tariffs. After overseeing the sale of his father’s company, the local factory was closed, and some jobs were transferred to the Carolinas (many jobs were lost). My dad had the opportunity to move south, but instead he chose to open the law firm that has become Boyd & Boyd, P.C.
These experiences help me to recognize that your plan doesn’t exist in a vacuum. It lives and breathes in the real world—impacted by markets, government policies, and global events. Reciprocal tariffs are one of those events that may quietly boost your family’s future financial position.
What Are Reciprocal Tariffs, in Plain English?
Here’s the concept in plain English: other countries will now be treated the way they’ve treated us for years. If China imposes a 34% tariff on American goods, we’ll match that when their products enter our markets.
This isn’t about isolationism. It’s about leverage. And for the first time in decades, it puts the U.S. in a position to reset unfair trade dynamics that have quietly undermined American industries.
The result? A rebalancing of power—and potentially, a resurgence of domestic growth.
How This Policy Could Strengthen Your Wealth Protection Plan™
If you’ve worked with us on a Wealth Protection Plan™, you already know its core mission: to protect, preserve, and pass on your wealth.
That includes shielding it from lawsuits, long-term care costs, and estate taxes—but it also means being ready to seize opportunities. Right now, one of those opportunities may be emerging from an unexpected place: the global trade arena.
A Wealth Protection PlanTM differs than a traditional estate plan. It includes components that do more than pass wealth at death, avoid probate and minimize estate taxes. While it will do all of those things, a Wealth Protection PlanTM also addresses minimizing income taxes while providing long term asset protection for you and for your heirs. It is a multi-generational plan that will leave a lasting legacy. While traditional estate plans include documents like wills, powers of attorney and simple trusts, a Wealth Protection PlanTM uses multigenerational trusts like the Personal Asset TrustSM and the IRA Inheritance TrustTM, Limited Liability Companies (LLCs), Legacy LettersTM, Values VideosSM , and a Contract to Plan.
If you’ve worked with us to put a Wealth Protection Plan™ in place, you already understand the “why”: to protect what you’ve earned, preserve it for the long haul, and pass it on efficiently and securely.
But that plan isn’t static. It’s built to respond to change. And right now, change is knocking.
Here are four ways this trade policy shift could work to your family’s advantage:
- A Lift for American Industries = A Lift for Your Portfolio
Tariffs make foreign goods more expensive, pushing demand toward U.S.-made products. When domestic companies grow, markets follow. And if your family’s trusts or LLCs are holding assets in those sectors, you could see increased value without lifting a finger.
- A Stronger Dollar Means More Purchasing Power
When capital flows back to the U.S., the dollar strengthens. That means more value per dollar in retirement income, lifetime gifts, and legacy distributions. Your money goes further—whether you’re investing, spending, or giving.
- Tariff Revenue May Open Doors for Future Tax Relief
Tariffs generate revenue, plain and simple. And while we can’t predict every move Congress will make, more revenue can mean more room for reform. Think: incentives for domestic investment, or expanded exemptions for estate transfers. In short: good planning could get even better.
- A More Predictable Environment for Long-Term Planning
An estate plan isn’t just about today—it’s about where things will be in ten, twenty, or even fifty years. A strengthened domestic economy provides the kind of stability and predictability that allow families to plan boldly and act with confidence.
What To Do Next: Three Smart Moves
No estate plan should ever be frozen in time. The strongest families aren’t just prepared; they’re nimble. If this policy direction holds—and domestic markets gain steam—here are three smart adjustments worth considering:
- Revisit Your Investment Allocations
Trusts and family LLCs should reflect where the opportunity is. If domestic sectors are poised to grow, don’t miss the wave. Remember: Today may represent a buying opportunity. - Review Asset Valuations
A rising tide lifts many boats—but that can also raise tax exposure. Make sure your valuations are current so your plan stays efficient. - Accelerate Strategic Gifting
If values are increasing, gifting now locks in today’s lower valuation. That’s a tax-savvy move, especially while discounting and exemption levels remain favorable. - Consider ROTH Conversion
Market jitters and downturns create a tremendous opportunity to make Roth conversions of your traditional IRA. Traditional IRAs trap unpaid income taxes trapped inside them. By converting to a Roth IRA you can prepay taxes when market declines occur. Be sure to consult your accountant, financial advisor and estate planning attorney to develop a strategy that will get the most “bang for your buck.” Be warned: Roth conversions will increase your income and the taxes due for the year. You may wish to avoid bumping yourself into a higher tax bracket. Conversions can also increase your Medicare premiums. So it is best look at all the costs before converting. But generally, a Roth conversion will create more wealth than remaining in a traditional retirement account.
Your Shield Is Already in Place
Tariff battles can lead to retaliation—that’s true. But this is exactly why we design Wealth Protection Plans™: to weather volatility, to create options, and to protect against the unexpected.
When markets move, your plan doesn’t panic. It pivots.
The Takeaway: Legacy Favors the Prepared
President Trump’s trade policy is drawing lines in the global sand. That may cause tension abroad—but it may also create unique domestic opportunity. For families who’ve done the hard work of planning—who’ve built legal and financial infrastructure designed to adapt and endure—the next few years could offer real, measurable gains.
If you’ve already built your Wealth Protection Plan™, now’s the time to review and refine. If you haven’t yet started, this is your signal.
As always, we’re here to help you think long-term, act strategically, and protect what matters most.
