Donald Trump has once again escalated trade tensions by announcing plans for a sweeping 35% tariff on imported goods. The move, aimed at restoring American manufacturing, could take effect as early as August 1st—a timeline that has both markets and Canadian investors watching closely.

So what does a policy like this mean for high-net-worth Canadians with cross-border exposure, U.S. investments, or businesses tied to American trade? At the Allan Bush Investment Team, we’re monitoring developments closely to help safeguard and strengthen our clients’ portfolios.

The Proposal: A Tariff with Teeth
Trump’s proposed 35% tariff would apply broadly to imports from countries he deems “unfair trading partners”—potentially including China, Mexico, and even allied nations like Canada, depending on future negotiations. It’s designed to protect U.S. jobs and production but may trigger retaliatory measures.

 

Key Impacts for our Clients

1. Inflation + Supply Chain Disruption
A sharp rise in tariffs could drive up the cost of goods and materials. Canadian companies sourcing from or exporting to the U.S. may feel the squeeze—especially in manufacturing, agriculture, and auto sectors.

2. Equity Market Volatility
U.S. and global markets typically react poorly to trade barriers. Investors should brace for increased volatility, particularly in sectors sensitive to global trade.

3. Currency Implications
Tariffs could weaken global confidence in U.S. trade policy, affecting the U.S. dollar. Canadian investors may need to re-evaluate their FX exposure depending on whether USD strengthens (onshore production) or weakens (risk-off sentiment).

4. Risk to U.S.-Focused Portfolios
If you’re heavily invested in U.S. equities or companies with global supply chains, your portfolio could be at greater risk. Diversification and active management become more important.

5. Cross-Border Business Headwinds
Entrepreneurs and business owners with U.S. operations may face new compliance, tax, and pricing challenges. Strategic structure planning will be crucial.

 

What We’re Doing for our Clients

• Review sector exposure: Are you over-indexed in trade-sensitive industries?
• Reassess your global allocation: Diversify beyond U.S.-centric strategies.
• Evaluate your corporate structure: Especially if you own a business with cross-border logistics or clients.
• Plan for volatility: Speak with your advisor about risk management and hedging tools.

 

Why This Matters More Than Ever
At Allan Bush Investment Team, CIBC Private Wealth, we know that if implemented, this tariff could redefine the cost of doing business with the U.S. and upend decades of trade assumptions. For high-net-worth Canadians, it’s not just about politics—it’s about proactively protecting and positioning your wealth in a shifting landscape.

Want to know how this might affect your portfolio, trust structure, or corporate plan? At Allan Bush Investment Team, we’re here to help.