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Global stock markets have been highly volatile for several weeks, and many investors are selling off shares across the board due to the uncertainty-fueled panic. The arrival of Donald Trump and subsequent tariffs against virtually every country the U.S. trades with have sparked trade tensions. Identifying and investing in defensive stocks might be the smartest move right now.
What is happening?
The U.S. president announced tariffs after taking on his role. The resulting trade tensions culminated in a week of pullbacks for stocks across the board in Canada. Between April 2 and April 8, the S&P/TSX Composite Index declined by 11.07%. A sudden announcement of a three-month pause on tariffs resulted in a 5.42% uptick between April 8 and April 9. However, that announcement also included a 125% increase in tariffs on all Chinese imports to the U.S. after it announced retaliatory tariff hikes.
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