In recent months, tariffs have made headlines across the world, stirring concern and confusion for individuals and families alike. While they may seem like abstract government policy decisions, tariffs can have very real and immediate consequences on your cost of living, your investments, and your long-term financial goals.
Understanding how tariffs impact personal finances in Canada is crucial in today’s economic climate. With shifting trade policies between Canada, the United States, and other global partners, it’s more important than ever to have a clear financial strategy—and a trusted planner by your side.
What Are Tariffs and Why Do They Matter?
Put simply, tariffs are taxes applied to goods imported from other countries. Governments often use them to protect domestic industries or to retaliate during trade disputes. Although they may be introduced for strategic or political reasons, their ripple effects often hit the average consumer the hardest.
Recently, the U.S. government implemented sweeping new tariffs as part of what has been dubbed “Liberation Day.” These new measures target nearly all of America’s trading partners, with average tariff rates reaching approximately 20%. This bold move introduces a significant amount of uncertainty into the economic environment—and unfortunately, that uncertainty doesn’t stay at the policy level. It trickles down to consumers and investors in ways that can directly impact their personal finances.
How Tariffs Impact Personal Finances in Canada
To grasp how tariffs impact personal finances in Canada, we need to look at how increased trade barriers can influence everyday life and long-term financial stability.
1. Higher Costs on Goods and Services
One of the most immediate and visible effects of tariffs is a rise in prices. When foreign goods become more expensive due to import taxes, businesses often pass those costs along to consumers. That could mean higher grocery bills, pricier electronics, or increased costs for vehicles and building materials.
For example, a 25% tariff on Canadian cars entering the U.S. could drastically reduce Canadian auto exports, hurting the industry and impacting jobs. In return, retaliatory tariffs from Canada may raise prices on U.S.-made goods imported into our country, further tightening household budgets.
2. Market Volatility and Investment Risk
In addition to affecting the cost of living, tariffs also rattle financial markets. Investors become cautious when there’s no clear path forward, especially if they’re unsure whether trade disputes will escalate or resolve. This unpredictability leads to volatility, which can negatively affect portfolios—particularly those heavily invested in international markets or trade-dependent sectors like manufacturing or agriculture.
If you’ve noticed fluctuations in your retirement account or mutual funds lately, tariffs may be part of the reason why.
3. Business and Employment Uncertainty
Beyond individual spending and investing, tariffs can slow down the broader economy. Companies may hesitate to hire, expand, or invest in new projects due to the unpredictability of international trade. For Canadians employed in sectors like export manufacturing, logistics, or supply chain management, this can lead to job insecurity and fewer growth opportunities.
How a Financial Planner Helps You Navigate Tariff-Driven Uncertainty
While the effects of tariffs can feel overwhelming, you don’t have to face them alone. Partnering with a financial planner provides clarity, control, and confidence in uncertain times.
1. Customized Investment Strategies
One of the most effective ways to respond to market volatility is by reviewing your investment portfolio. A financial planner can help you identify where your assets may be exposed to high-risk sectors and recommend shifts to more stable or diversified investments. This doesn’t mean overhauling your strategy—it means refining it with expert guidance tailored to your goals and risk tolerance.
There’s no silver bullet. But if you’re working with a good financial planner, you’ll know what path you need to be on.
2. Professional Fund Management
Another benefit of working with a planner is access to skilled fund managers. These professionals have the expertise and insight to monitor affected industries, adjust allocations, and capitalize on market shifts—sometimes even identifying companies that might benefit from disruptions.
For instance, while some automakers may struggle under new tariffs, others might find opportunity in changing supply chains or increased domestic demand. A good fund manager knows where to look—and what to avoid.
3. Holistic Risk Planning
Tariffs aren’t the only challenge Canadians face. Rising interest rates, inflation, and global conflict also contribute to financial uncertainty. A planner will consider all these variables when designing a comprehensive strategy for you—whether you’re saving for retirement, planning to buy a home, or just trying to stretch your monthly budget further.
Staying Informed and Focused
In the age of 24/7 news and rapid policy shifts, it’s easy to feel overwhelmed. But chasing headlines or trying to time the market can lead to emotional decisions and costly mistakes. Your financial planner acts as a stabilizing force, helping you focus on the long-term while staying nimble enough to adapt when necessary.
Above all, your planner helps you stick to a plan that reflects your values, priorities, and vision for the future.
Final Thoughts: Planning Is Power
Understanding how tariffs impact personal finances in Canada is only the first step. The next—and more important—step is to respond proactively. With the support of a financial planner, you can turn uncertainty into opportunity and stay grounded in your financial journey, no matter how turbulent the global economy may seem.
If you’re feeling unsure about what all this means for your financial future, you’re not alone. We’re here to help. You can watch me elaborate on how tariffs impact personal finances in this video:
And, we can talk. Schedule a conversation with one of our financial planners today, and work together to build a plan that keeps you steady—even when the world is shifting.
Colton Wiegers, CFA, B.Comm.
CEO, Wiegers Financial and Insurance Planning Services Ltd.
The opinions expressed are those of the author and may not necessarily reflect those of Manulife Wealth Inc.
This blog and video were published on April 8, 2025.