Recent market volatility has raised concerns for many investors, particularly in light of new tariffs introduced by U.S. President Donald Trump on imports from Canada, Mexico, and China. Some of these tariffs have already taken effect, while others have been delayed or modified — creating uncertainty that has contributed to short-term fluctuations in the stock market.

How the Markets Have Responded

Over the past month (as of March 24, 2025), major indices have experienced notable pullbacks:

• S&P 500 – down 8%
• TSX – down 2.2%.
• NASDAQ – down 10%

What This Means for Investors

The full impact of the trade war remains uncertain and will depend on the scope and duration of these tariffs. Other key factors like potential interest rate cuts, business and consumer confidence, government spending, and inflation will also influence market performance in the coming months.

While market pullbacks during trade conflicts are not unusual, it’s important to avoid making impulsive decisions that could be detrimental to your long-term plan. A well-constructed portfolio is designed to manage volatility and protect against concentrated risks. This makes it critical to review your portfolio to ensure it aligns with your financial objectives and is positioned to weather market fluctuations.

A key concern moving forward will be whether tariffs drive inflation higher as costs are passed on to consumers. As 2022 showed us, we typically see a broad sell-off in companies that are over-valued during periods of inflation.

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In times like these, the smartest move you can make is to lean on expert guidance and a solid game plan. Whether you’re looking to protect what you’ve built, identify new opportunities, or simply feel more confident in your approach — we’ll walk you through it, step by step.

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