How are Trump's tariffs derailing client market confidence?

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President Donald Trump's whipsawing tariff plays have investors and advisors alike struggling to remain confident about the immediate and long-term economic future. New insights from Financial Planning shed some light on how wealth management professionals are coping.

This month's Financial Advisor Confidence Outlook saw 218 wealth management professionals weigh in on the top issues clients have brought to them in recent weeks, what types of clients are worried about economic uncertainty the most and more insight about the tariff environment.

This iteration of the survey recorded a record low for advisor confidence at minus-24, falling eight points from last month's score at minus-16. The all-time high for the confidence metric was in December 2024 at 24 points, just one month after Trump's return to the White House.

Scores range from minus-100 to 100, with minus-100 being the most pessimistic outlook possible, 0 being a neutral outlook and 100 being the most optimistic outlook possible.

The overall economy and global economic system outlooks among advisors also posted record numbers, also in the negative at minus-30 and minus-74 respectively.

"The chaos in Washington, D.C., is causing the greatest impact on the emotional health of my clients at this time," one respondent said.

READ MORE: We've been here before: Advisors share lessons from past financial crises

When asked specifically about the factors behind the pessimistic outlook from clients, here is what advisors had to say. 

The information at the fingertips of advisors is vast and varied, leaving many unsure if they were well equipped to pivot with market shifts. Below is a sample of verbatim responses from respondents.

Firms like Morgan Stanley and Wells Fargo have seen consistent growth in assets under management over the last two years, but the recent turmoil in the stock markets have executives skeptical that AUM growth will continue over the next three months and beyond.

"Though we have heard a great deal from our clients as they work through this transitionary environment, we have not seen an impact on their condition yet," Wells Fargo CEO Charlie Scharf said during an earnings call. "This is a complicated issue, and as our current expectation [is] that we will face continued volatility and uncertainty and are prepared for a slower economic environment in 2025."