Another Headline About Trump’s Tariffs — It’s Not Without Reason
US surtaxes of up to 145% on Chinese products: what the trade escalation could mean — including for Canada.
We’re still talking about it, but if you see another headline about Trump’s tariffs, it’s not without reason.
Since the announcement of new surtaxes of up to 145% on Chinese products, the world is holding its breath. The trade war between the United States and China is no longer a threat: it is a reality.
But in this escalation… could Canada come out ahead?
What’s happening
China is overproducing. And with the American door closing, it will have to offload its inventory elsewhere.
The result? Some manufactured products (such as steel, batteries, electric vehicles or even toys) could arrive in Canada at much lower prices. Canadian consumers, and even some businesses, could benefit.
For example:
- Dollarama, which imports many products from China, could benefit from these price drops.
- The toy sector, almost entirely produced in China, could turn to Canada to offload its surplus.
- Industrial parts left behind by American manufacturers could cost Canadian businesses less.
But it’s not without risks
This phenomenon could also put pressure on some local producers. Dumping (selling below cost to liquidate) is a real danger — although Canada can respond with anti-dumping measures. And meanwhile, nearly half of Canadian businesses are already considering moving their investments to the United States to reduce the impact of the tariffs.
Uncertainty hurts. Confidence. Investment. Growth.
Even among our neighbours to the south, 62% of Americans believe these tariffs will harm their own economy.
What does this mean for you?
In an environment like this, we can’t predict what governments will do…
But we can control our financial decisions.
- Making sure your portfolio is well positioned (e.g., diversification outside the USA)
- Assessing opportunities in certain undervalued sectors
- Staying cautious in the face of the market’s emotional reactions
As always: it is not the noise that should guide your decisions, but your long-term goals.
If you would like to discuss your situation or review your portfolio together, don’t hesitate to book an appointment.
Have a good week!
What history reminds us
Trade tensions have happened before — and there will likely be more. With every episode, the headlines make it feel like everything is about to tip over. Then businesses adjust, supply chains reorganize, and the economy eventually finds a new balance.
That does not mean these episodes are without consequences: some sectors can be hit harder than others. But historically, markets have ended up pricing in this kind of news, often well before the situation is officially resolved.
Why we don’t react to every headline
No one knows how these negotiations will evolve — not even the people leading them. Building your investment strategy on political assumptions is a bit like changing lanes on the highway with every traffic report: a lot of movement, without necessarily getting there any faster.
A portfolio built around your goals already accounts for the fact that surprises will happen. So the real question is not “what will the next government do?” but “is my plan still aligned with my situation?”
What you can do, concretely
- Check that your asset allocation still matches your risk tolerance and your investment horizon.
- Make sure you have enough cash on hand for your short-term needs, so you are never forced to sell at the wrong time.
- Lean on simple, proven strategies, such as regular contributions, which let you invest at different prices rather than trying to guess the right moment.
- Cut back on financial news if it feeds your anxiety — your plan does not change every morning.
And if a headline makes you doubt your strategy, that may be exactly the right time to talk it through. The Pérennité team is here to put things in perspective, based on your situation. Contact us any time.
