Subject: Market Volatility & Trump Tariffs – The Impact of Uncertainty

Markets hate uncertainty, and right now, uncertainty is exactly what the unwarranted Trump tariff strategy is creating. The latest round of U.S. tariffs on Canadian goods has rattled investors, not because of their economic justification—there is none—but because they add instability to an already fragile global trade environment.

This uncertainty is driving global market volatility, and while short-term disruptions are frustrating, history shows that Trump reacts to market weakness. The weaker the markets perform, the more likely these tariffs will be paused, reduced, or eliminated—Trump hates negative numbers.

The Three-Phase U.S. Tariff Strategy & Its Impact on Canada

1) China Tariffs – A Long-Term U.S.-China Strategy

• The U.S. has maintained and expanded tariffs on Chinese imports, reinforcing its long-term geopolitical and economic strategy.

• These tariffs are designed to counter China’s dominance in key industries, such as technology and manufacturing.

• While they create global trade disruptions, they are unlikely to be reversed in the near future as they align with U.S. interests in reducing reliance on Chinese supply chains.

 2️) Canada & Mexico Tariffs – A Political Ploy Creating Market Uncertainty

• The Trump government’s tariffs on Canada and Mexico are not about economic fairness but are likely a temporary and aggressive negotiation tactic.

• This unpredictability is causing global markets to react negatively, with volatility increasing across all sectors.

• Trump’s decision-making is heavily influenced by economic and stock market performance, and if markets continue to decline, history suggests that these tariffs may be paused, reduced, or eliminated sooner rather than later.

3️) Reciprocal Tariffs – A Global Expansion That Will Take Time

• The U.S. has signaled its intent in April, to expand tariffs globally, applying them across multiple industries and trading partners.

• While framed as an “economic fairness” initiative, implementing broad tariffs on all countries and all imports is complex and will take considerable time.

• Unlike the Canada-Mexico tariffs, which seem politically driven, this phase appears to be more economically motivated, but it remains uncertain how far it will go.

What This Means for Canadian Investors

✔ Volatility creates opportunity. Markets will always experience periods of instability, but history has shown that investors who stay disciplined come out stronger.

✔ We invest where we have to, not where we want to. Like Wayne Gretzky, we skate to where the puck is going, not where it has been. Our investment strategy is built for resilience, adaptability, and long-term success.

✔ This is an unnecessary and unprecedented period for all Canadians, but we are positioned optimally. Our portfolios are structured to weather these uncertainties, and we will emerge from this better and stronger.

What’s Next?

The Trump administration’s treatment of Canada is unjustified, and these tariffs are causing unnecessary instability in the markets. However, uncertainty cannot last forever—markets will stabilize once there is a clear resolution or reversal of these policies. Until then, we remain focused on minimizing risk, seizing opportunities, and ensuring your long-term financial success.

If you have any questions or concerns, we would be happy to connect.

Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This update was prepared by Steve Arial who is an Investment Funds Advisor at QSA Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this presentation comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.