On the weekend, U.S. President Donald Trump imposed 25% tariffs on all Canadian goods, with a lesser tariff of 10% on energy. While the tariffs have now been delayed by 30 days, the threat is still there. Understandably, this kind of news can cause uncertainty, especially when it comes to your investments and long-term financial plans. I wanted to take a moment to address these developments and provide some reassurance.

WHAT DO TARIFFS MEAN?
Trade policy shifts can create short-term volatility in markets, particularly in industries directly affected by tariffs. However, Canada has weathered similar economic challenges in the past, and our economy remains resilient. Key sectors, including natural resources and financial services, continue to be well-positioned for long-term growth.

HOW DOES THIS IMPACT YOUR INVESTMENT?
Your portfolio is built with diversification in mind, helping to mitigate risks from geopolitical events, market fluctuations, and policy changes. While tariffs may affect specific industries, we continue to focus on a well-balanced approach that considers both risks and opportunities. Historically, markets adjust as businesses adapt to new conditions, and we are keeping a close eye on how these changes unfold. Over the past two days we have heard from most of the fund companies that we invest with, and the general consensus is to stay the course. It is generally felt, though anything is possible with the current U.S. President, that the tariff announcement is just the beginning of a negotiation process and that the final outcome will be potentially be severe.

HOW DOES THE CURRENCY IMPACT YOUR INVESTMENT?
On Monday, North American markets were down modestly, likely reflecting that tariff fears were already somewhat priced in. The Canadian dollar was also down, which benefits the portion of your investments that are in US dollars. If a trade war continues, it is quite likely that further weakness in the loonie will cushion the drop somewhat.  

STAYING THE COURSE WITH A LONG-TERM PERSPECTIVE
Short-term market noise can sometimes feel unsettling, but successful investors know that staying disciplined and avoiding emotional reactions is key. The investment strategies we’ve put in place are designed for long-term growth, and we will continue to monitor developments to ensure your financial plan remains aligned with your goals.

NEXT STEPS
If you have any concerns or would like to review your portfolio in light of these developments, I’d be happy to schedule a time to chat. As always, my priority is to provide you with clarity and confidence in your financial future.