U.S. Tariffs are back in the headlines

Tariffs, rulings, and markets: what happened — and why diversification matters

Over the weekend, U.S. trade policy moved quickly — and markets are responding to a familiar theme: uncertainty is rising.

On Friday 20 Feb 2026, the Supreme Court of the United States ruled that broad tariffs imposed under an emergency powers law (International Emergency Economic Powers Act) were not legally authorised.

Following that ruling, U.S. Customs and Border Protection said it will stop collecting those specific IEEPA tariff codes from 12:01am ET Tuesday (24 Feb 2026). Details on administration, process and potential refunds are still evolving.
Meanwhile, Donald Trump has indicated a new approach: a temporary 15% global tariff under a different legal authority — which keeps trade policy in motion, even if the legal “label” changes.

One additional market-relevant wrinkle: economists at the Penn Wharton Budget Model estimate the ruling could imply up to $175bn of refunds tied to the now-invalidated tariffs (subject to the final mechanics).

Why markets react — and why “value/defensives” can lead

When policy becomes less predictable, markets often do three things:

• They favour resilience.
  Investors tend to lean toward steadier earnings and dependable cashflows when headlines dominate. That’s one reason defensives (including utilities) can outperform at the margin during these periods.
• They re-price margin risk.
  Tariffs can raise costs directly. But uncertainty can also raise costs indirectly as firms adjust supply chains, hold buffers, and delay investment.
• They broaden leadership.
  If returns have been concentrated in a small group of companies, new uncertainty can accelerate rotation — toward value characteristics and ex-U.S. exposure where expectations and valuations can be less stretched.

What this means for MGTS Qualis Growth 

There are two plausible paths from here:

• Ex-U.S. and value/defensive leadership continues  if trade policy remains noisy and investors keep paying for cashflow resilience and diversification.
• Mega-cap U.S. remains dominant  if earnings delivery overwhelms the headlines and investors continue to crowd into the most liquid global franchises.

Because both outcomes are possible, we think investors are best served by avoiding a portfolio that relies on only one storyline.

MGTS Qualis Growth is built to stay invested through regime shifts, with a bias toward ex-U.S. and global value exposure.  In practical terms, that aims to keep participation in global growth opportunities while improving balance across regions and styles — particularly relevant when policy can change quickly.

Tariff headlines can move fast. The market impact tends to come through uncertainty: discount rates, margins, and leadership. In environments like this, staying diversified and staying invested matters.

Past performance is not a guide to future returns. The value of investments can fall as well as rise, and investors may not get back the amount invested.

Disclaimer –

This article does not constitute investment advice or an offer to sell or a solicitation of an offer to buy the products described within. You should consult your financial adviser before making any decisions.

Please note that any performance figures are provided for information purposes only and are not to a guide to future returns. The performance of your own investments may deviate due to a number of factors, including product charges, the timing of contributions & withdrawals and portfolio rebalancing.

Important information –

As always with investments, your capital is at risk. The value of investments is not guaranteed and the income from them can fall as well as rise. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole consideration when selecting a product. The basis of taxation may also change from time to time. We have not considered the suitability of these investments against your individual objectives and risk tolerance. This article is intended for information purposes only.

The MGTS Qualis funds are operated by Margetts Fund Management Ltd (MGTS) the Authorised Corporate Director. GWA Asset Management Ltd (GWAAM) has been appointed as the Investment Manager, a wholly owned Greaves West & Ayre Group business. GWAAM is authorised and regulated by the Financial Conduct authority and is entered on the Financial Services Register https://register.fca.org.uk/ under FRN 960226

Margetts have full responsibility for the management and operation of the funds as the Authorised Corporate Director.

Margetts Fund Management Ltd is authorised and regulated by the Financial Conduct Authority no. 208565. More information about MGTS can be found by visiting their website – MGTS (mgtsfunds.com).