Canada may have a tariff reprieve for 30 days. Still, the damage has been done in many ways, and Canadians consider this an opportunity to become more self-sufficient and reduce our reliance on the U.S.
US Tariffs on Canada
A potential trade war with the U.S. has been a huge wake-up call. The time has come to reduce our vulnerability and invest today for a better tomorrow.
Meanwhile, Canadians are angry, frustrated, and vulnerable. Trust and respect can take years to build and a heartbeat to destroy. This feels like a violation of trust and a significant breakdown of over 200 years of trading partnership.
Canada’s Swift Response
How can Canada make itself more resilient moving forward? It comes down to one word: investment. Investment in our infrastructure, manufacturing, energy, supply chains, and, most importantly, ourselves.
It has long been discussed the importance of manufacturing, investment in technologies, and providing incentives to keep production in Canada. Expanding our energy independence and diversification is key, emphasizing export opportunities to markets outside the U.S. Boosting our agricultural resilience by supporting local food production, better storage, and sustainable farming practices to deal with our climate in Canada, enhancing trade diversification, and strengthening our tech sector by encouraging venture capital and improving cybersecurity.
This list sounds exhausting, incomplete, and idealistic because it takes time, money and effort. These are not new initiatives. Our investment and productivity have been woefully low, but if we don’t invest now in Canada, when?
How Will Tariffs Affect Canada: Impact on Consumers and the Economy
As we look for ways to improve Canada’s balance sheet, here are a few ways to improve your personal balance sheet.
Behavioural changes can go a long way.
- Breakdown of provincial barriers for trade to allow for buying domestic products
- Purchase in bulk to reduce time and money
- Drop the name-brand products and focus on generic and store brands
- Coupons, discounts, loyalty programs and cash-back apps are coming back into vogue
- Cut unnecessary spending and delay significant purchases and household projects – for now, not forever.
- Continue to ramp up and participate in second-hand markets such as farmer’s markets, thrift stores and wholesale clubs.
- Invest in energy-saving appliances and practices.
We can’t control the outcome of the tariff conflict with the U.S. However, we can control how we respond. The Canada—U.S. trade uncertainty has just begun. In today’s environment, it is about controlling what you can.
Finding Financial Security in Challenging Times
If you find yourself struggling to make ends meet, own your own home, and are over the age of 55, you may want to consider a CHIP Reverse Mortgage. To find out more, reach out to Chip.ca to explore using some of the equity built up in your home to give yourself the financial cushion you have earned.
Canada will be challenged economically, households will be hurt financially, and the landscape will likely change forever. However, while we can’t change what has happened, we can change how we respond. Coming together as a country, shopping locally, vacationing locally and building locally puts a whole new meaning to, as the Prime Minister said, “Team Canada.”
Pattie – plr@heb.ca
