Tariff announcements by the Trump administration, including on and off implementations, continue to unsettle stock markets. The S&P/TSX Composite Index remains in negative territory year-to-date (-2.2%) but is doing better than the S&P 500 Index (-10.3%) on Wall Street.
On April 16, 2025, the Bank of Canada paused its rate-cutting cycle and held its policy rate at 2.8%. In a press conference, BOC governor Tiff Macklem said, “The dramatic protectionist shift in U.S. trade policy and the chaotic delivery have increased uncertainty, roiled financial markets, diminished global growth prospects and raised inflation expectations.”
“We still do not know what tariffs will be imposed, whether they’ll be reduced or escalated, or how long all of this will last,” Macklem added. Meanwhile, investors must react but avoid panic selling. If you’re an income-focused investor, stick to an established, time-tested sector like banking.
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