Trump Tariffs Trigger Turmoil: International Mutual Funds See Weekly Drop of Up to 11%

The announcement of fresh tariffs by former US President Donald Trump on multiple countries has sent ripples across global equity markets. International mutual funds, many of which invest in global equities or track major international indices, witnessed sharp weekly declines—some falling up to 11%. The announcement disrupted investor sentiment and triggered a wave of outflows from funds exposed to sensitive sectors and geographies.

Top Decliners Among International Mutual Funds

Amid heightened volatility, several well-known international mutual funds posted significant losses during the week ending April 4, 2025. The following were the most impacted:

Mirae Asset Global X Artificial Intelligence & Technology ETF FoF

Mirae Asset Global X Artificial Intelligence & Technology ETF FoF was hit the hardest, registering a weekly decline of 11.31%. The fund’s focus on AI and tech stocks, particularly in markets vulnerable to trade policy, likely contributed to the steep fall.

SBI International Access – US Equity FoF

SBI International Access – US Equity FoF recorded a 10.37% drop.

Motilal Oswal S&P 500 Index Fund & Franklin India Feeder – Franklin U.S. Opportunities Fund

Motilal Oswal S&P 500 Index Fund and Franklin India Feeder- Franklin U.S. Opportunities Fund, both funds suffered 9.60% weekly losses.

Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF

Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF declined by 9.05%.

Resilient Funds Buck the Downtrend

Despite the market-wide gloom, not all funds closed the week in the red. A total of 16 international mutual funds managed to post positive returns, highlighting the varied impact of the news across regions and sectors.

Conclusion

While the Trump tariff effect has caused sharp losses in several international mutual funds, especially those with tech-heavy US exposure, the performance disparity across funds indicates that geography, sector allocation, and investment style continue to play pivotal roles in determining short-term returns.

Investors are reminded that geopolitical developments can have swift and far-reaching effects on global portfolios. As international markets react to evolving trade dynamics, fund performance may continue to remain volatile in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.