US tariffs threaten UK pension fund stability

US President Trump's tariffs on Canada, the EU, China, and the UK are raising concerns for pension savers. A major banker warned that these tariffs could put pension funds at risk, as they heavily rely on investments in US companies. Karen Ward, a leading strategist at J.P. Morgan Asset Management, expressed her worries at a recent investment conference. She highlighted that US companies have been performing well, but the US economy is in significant debt. This situation threatens pension funds, especially as demographics shift and more people reach retirement age. Ward pointed out that the UK and EU are in a stronger economic position compared to the US. She noted that British savers still have pandemic-related savings, while many in the US have depleted theirs. She urged pension fund managers to consider reducing their reliance on US investments. She indicated that many funds might not realize their exposure to risky assets, using Tesla's high valuation as an example. Ward cautioned that investing heavily in US stocks and tech-focused portfolios could be dangerous. Moreover, Ward warned that investing in US government bonds could also be riskier than before. With the government facing pressures to balance its budget while satisfying voters, bond investments may not be as safe as they once seemed. Lastly, she expressed her fears about the tech sector. A major drop in the value of one tech company could severely affect others and impact vast amounts of wealth for investors. Ward emphasized the need for careful investment strategies moving forward.