Tariffs, Tractors, and a Shoelace: What Footloose Teaches Us About Trade Policy and Financial Strategy

There's a moment in Footloose—yes, the 1984 dance-fueled drama packed with teenage rebellion and a full-throttle Kenny Loggins soundtrack—that accidentally nails U.S. trade policy.

Kevin Bacon's character, Ren, plays chicken with the town bully, Chuck. The showdown? It's a slow-moving game on tractors. Whoever swerves first loses. Ren, ever the rational one, tries to bail—only to discover his shoelace is caught on the gas pedal. So, he keeps going—not by choice, but because he's stuck.

Is the U.S. Government Ren, Chuck, the shoelace, or the ditch…

Tariffs: Still Rolling

In 2018, the U.S. government used tariffs as a tool, especially to put pressure on China, get them back to the negotiating table, and give U.S. manufacturers a fighting chance.

There appeared to be a short-term lift in the domestic metal processing industry, but this came at a cost to companies that had increased input costs.

Here we are in 2025, and things have heated up again. Recently, the U.S. Government announced a sweeping increase—tariffs on Chinese imports are jumping to 125%. At the same time, planned tariffs for other countries were paused, sending a clear message: China was still in the crosshairs.

Beijing didn't wait long to respond. In response, China imposed an 84% tariff on U.S. exports.

It feels familiar for a reason. Research from Stanford found that many Chinese exporters couldn't adjust fast enough during the last round of tariffs. They struggled to lower prices or find new markets, and as a result, they lost sales and profitability. We're seeing echoes of that now. Some Chinese sellers on Amazon are raising prices or pulling out of the U.S. market altogether.

The impact is being felt on both sides of the trade relationship. Tariffs are rising, and companies are already adjusting—or struggling to. The broader policy remains in motion, and like Ren's shoelace in Footloose, there doesn't seem to be an easy way to stop without consequences.

The bigger question now is about intent. Is this a calculated move, pressing forward to force a shift? Or has the situation become harder to unwind than expected?

For now, the outcome is unclear—and the standoff continues.

Unlike the movie, the credits haven't rolled yet. The tractors are still inching forward.

Meanwhile, Back in the Real World...

As this trade showdown drags on, consumers, business owners, and investors feel the ripple effects: higher prices, delays, and market whiplash.

Take control: you don't have to sit on the sidelines. You can still take action and make strategic financial moves that exploit the recent market volatility.

5 Financial Moves That Don't Involve Heavy Machinery

1. Tax-Loss Harvesting

If any investments have suffered a setback, consider harvesting losses for tax benefits. It's one way to make market dips work in your favor.

2. Roth Conversions

Lower portfolio values could mean lower taxes on Roth conversions. Moving money now might set you up for more tax-free growth later.

3. Rebalance with Purpose

If your portfolio drifted off course, this could be a good moment to reset. Rebalancing lets you take advantage of volatility without trying to time the market.

4. Revisit Contributions and Cash Flow

Are you saving enough? Allocating smartly? Market dips are a great time to review your cash flow and make small changes that pay off big over time.

5. Reevaluate Your Risk Tolerance

Theory is one thing. Living through a volatile market is another. If you've found yourself more anxious than expected, it may be time to realign your investments with your comfort level.

Final Word: Be Strategic—Not Stuck

Trade policy is messy. Tariffs aren't inherently good or bad—but once they're locked in, they're tough to unwind without political fallout. That's how the global economy ends up in a slow-motion showdown: foot on the gas, no easy off-ramp.

In Footloose, Ren wins the tractor duel—barely. But he didn't choose to stay in the game. He simply couldn't jump.

When it comes to your finances, you're not stuck. You have options. You can adjust, stay nimble, and make intentional choices while the big policy battles play out in the background.

Good financial planning isn't about picking winners; it's about ensuring your shoelace isn't caught when it matters most.

Paul Jarvis, CFP®

Helping clients untangle their financial shoelaces since 2003