Well, it happened. The tariffs went into effect at 12:01am on March 4^th, 2025. So what does this mean to Canadian investors? At Allan Bush Investment Team, we’ve been watching this very closely and know the recent implementation of 25% U.S. tariffs on Canadian goods introduces significant considerations when looking at your financial snapshot. Here's an overview of the potential impacts and strategies we’re navigating through this evolving landscape:

Economic Implications:

• Gross Domestic Product (GDP): The Bank of Canada estimates that such tariffs could reduce Canada's GDP growth by approximately 2.5 percentage points in the first year, potentially leading to a recession.
• Currency Fluctuations: The Canadian dollar has experienced volatility, initially declining but showing signs of recovery as investors assess the longevity and impact of the tariffs.

Sector-Specific Effects:

• Export-Dependent Industries: Sectors heavily reliant on U.S. markets, such as automotive, lumber, agriculture, and manufacturing, may face immediate challenges due to increased costs and potential reductions in demand.
• Energy Sector: While a 10% tariff is applied to Canadian energy products, the sector could still experience reduced competitiveness in the U.S. market.

Our Investment Strategies:

1. We Diversify Portfolios: We mitigate risks by investing across various sectors and geographic regions to reduce exposure to any single market or industry.
2. We Put Focus on Domestic Opportunities: We consider investments in companies with a strong domestic presence or those less affected by international trade tensions.
3. We Closely Monitor Currency Trends: Our team stays informed about currency movements, as fluctuations can impact the value of foreign investments and export-oriented businesses.

At Allan Bush Investment Team, it’s our job to stay informed and adapt to evolving market conditions. While the tariffs introduce uncertainty, our strategic process and proactive investment planning helps mitigate risks and uncover new opportunities in Canada’s shifting economic environment. We’re always here to help.