Art Of Boring

In this episode, we discuss the escalation of U.S./Canada tariff tensions with Mark Rutherford, co-manager of Mawer’s Canadian equity strategy. Mark provides historical context of how we got here; highlights the potential economic impact tariffs may have on the Canadian economy; provides specific portfolio holding examples of how businesses and industries may be affected; and mentions several potential benefits for Canada. Ultimately, he stresses that adhering to a disciplined, long-term investment approach is vital amid uncertainty. Key Takeaways: In the U.S., manufacturing’s decline has driven trade and financial deficits, exacerbated by a strong dollar. Tariffs aim to correct these imbalances. Being diversified and adjusting portfolio positioning from a bottom-up and scenario planning lens is key amidst uncertainty. Tariffs could cause a potential Canadian recession, a weaker dollar, and lower interest rates. The team is monitoring U.S. dollar strength, risk havens, and possible global currency intervent