Trump tariifs🧐

Trump's tariffs could significantly impact the market, particularly in Canada. Here's what you need to know:

Economic Impact

- *Inflationary pressures*: Tariffs may lead to increased inflation, reducing the purchasing power of the Canadian dollar.

- *Recessionary pressures*: Higher tariffs could result in a growing current account deficit and GDP contraction.

- *Stagflation*: A combination of inflation and economic growth problems, which Canada is already experiencing.¹

Affected Industries

- *Automotive industry*: Tariffs may impact the automotive sector, as the US aims to onshore production and manufacturing.

- *Aviation and heavy machinery manufacturing*: These sectors may also be affected due to Trump's goal of boosting domestic production.

- *Other sectors*: Uncertainty surrounding tariffs may impact all market sectors, even if not directly targeted.

Resilient Sectors

- *Farmland*: Investing in farmland could hedge against inflation and recession, as food demand remains inelastic.

- *Automotive maintenance*: This sector may see growth due to increased demand for maintenance services.

- *Environmental services*: Regulation-driven growth could make this sector more resilient to market volatility.

- *Building products distribution*: The housing shortage in Canada may drive demand for building products.

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