What the Recently Imposed Tariffs Mean for Investors

The U.S. has introduced new tariffs on imports from Canada, Mexico, and China, and as expected, markets are reacting. But here’s the reality: market fluctuations are a natural part of investing. We don’t always know what will trigger them, but we do know they will happen. And more importantly, we plan for them

Now, my personal belief is that these tariffs are not just about trade. The only logical explanation that makes sense to me is that the U.S. government is deliberately trying to push inflation up in the short term to put downward pressure on bond yields. Why? Because the U.S. has $9 trillion in debt maturing this year, and they need to refinance it at a lower rate. Lower bond yields would reduce borrowing costs, aligning with their broader goals of managing the deficit.

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If this is the real reason behind the tariffs, it means this move is more about fiscal strategy than trade policy. Regardless of the motive, our investment strategy remains focused on building wealth and preserving capital through all market conditions.

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Predictable Events Still Lead to Unpredictable Outcomes

It’s easy to assume that because these tariffs have been talked about for months, the market reaction was predictable. But the truth is, no one ever knows exactly how these situations will play out in the short term.

History shows that even when major events—like interest rate changes, elections, or trade disputes—are widely expected, the market’s response can still surprise investors. That’s why trying to time these events is a losing strategy.

• Investors who try to jump in and out of the market based on short-term predictions almost always end up worse off.
• The biggest risk? Missing the best days in the market. Some of the strongest returns happen during periods of volatility when sentiment is uncertain.
• According to Hartford Funds, missing just the 10 best days in the market over a 30-year period could cut returns in half. Missing the best 30 days? That could reduce returns by an astonishing 83%. (Source)

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Rather than trying to guess short-term market moves, the best strategy is to stay invested, stay diversified, and stay focused on the long-term plan.

What’s Actually Happening?

Before we get into how this affects investors, let’s break down what’s going on:

What tariffs are being introduced?

The U.S. has increased tariffs on certain imports from Canada, Mexico, and China. Businesses that rely on those imports are now facing higher costs, which could lead to price adjustments down the line.

Who actually pays for tariffs?

Despite how it may seem, foreign countries aren’t the ones paying these tariffs. The cost falls on U.S. companies that import these goods, and in most cases, they pass those costs onto consumers.

What’s the goal?

The official reason given is to encourage domestic production and bring more manufacturing back to the U.S. But as I mentioned earlier, I believe the bigger focus is on reducing bond yields to make it easier to refinance government debt.

What does this mean for businesses?‍

Some industries will feel pressure, especially those that depend on global supply chains. Others, like domestic manufacturers, could benefit from less foreign competition. Markets are adjusting in real-time as investors assess the implications.

Markets React, But We Stay Steady

Every time a major policy shift like this occurs, markets adjust as they absorb new information. That’s expected. But what matters is how we respond.

Our approach isn’t built on reacting to headlines—it’s designed for long-term success. That means staying disciplined, managing risk, and ensuring portfolios remain well-balanced. Short-term movements don’t dictate long-term outcomes, and history has shown that well-diversified investors who stay patient tend to see the best results over time.

Short-Term Uncertainty, Long-Term Opportunity

Businesses are already adjusting to these trade changes, which could create some short-term volatility. However, over time, these shifts often lead to new opportunities.

For Canada, this could actually be a net positive. If companies start diversifying their supply chains and reducing reliance on U.S. trade, it could strengthen domestic industries and drive long-term investment. While adjustments take time, they also open doors for investors who focus on strategic positioning rather than short-term reactions.

Why a Diversified Portfolio Matters

This is exactly why we emphasize diversification—across industries, regions, and asset classes. No single event, whether it’s a trade policy change, an economic slowdown, or a market shift, should derail a well-structured portfolio.

Our strategy is designed to do two things: grow capital and protect it. That means ensuring the right balance between risk and opportunity, so that no single event can jeopardize long-term success.

The Bottom Line

Tariffs and trade disputes will continue to surface. Markets will move. But none of this changes the core principles of smart investing.

We don’t make decisions based on headlines. We focus on staying diversified, protecting capital, and positioning for long-term success. While the market adjusts, we stay on track—because that’s how real wealth is built.

Take Control of Your Financial Future

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Uncertainty in the markets is nothing new—but having a strategy that stands the test of time is what sets successful investors apart. Our team at Endeavour Wealth Management is here to help you navigate volatility with confidence, ensuring your portfolio remains resilient through all market conditions.

Let’s build your investment strategy together.

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Stay focused, stay diversified, and let’s plan for long-term success—because real wealth is built with strategy, not speculation.

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