Political rhetoric has now translated into policy. On Saturday, President Donald Trump enacted tariffs on imports from Canada, Mexico, and China. For Canadians, this includes a 10% tariff on energy to the U.S. and a 25% tariff on all other exports. In response, Prime Minister Justin Trudeau, along with Premiers across the country, announced retaliatory measures. These actions will have economic ramifications for Canada, the U.S., and the global market.

For decades, free trade has been a cornerstone of the economic relationship between Canada and the United States, with bilateral agreements in place for over a century. However, the return of Donald Trump to the White House has renewed focus on shifting U.S. economic policy toward reducing the trade deficit, revitalizing domestic manufacturing, and enhancing border security. This protectionist agenda is now reshaping global economic dynamics.

At Burgundy, a key attribute we seek in companies is adaptability. Whether facing a financial crisis, a pandemic, or now, a trade dispute, companies with strong management teams and solid fundamentals are better positioned to navigate uncertainty. Our disciplined investment approach centres on resilient businesses that can navigate—and potentially thrive amid—economic shifts.

We recognize the significant uncertainty and fluid nature of this situation, impacting everything from oil production and automotive supply chains to a weakening loonie and recession concerns. This is a situation that we have not seen before. With that said, the impact of these tariffs will vary across industries. While some companies may benefit from protectionist policies, others—particularly those reliant on already stretched consumer budgets—could encounter significant challenges. When it comes to investing in Canadian businesses, at Burgundy, we have little-to-no exposure to the most affected industries, such as automotive, energy, and commodities. Furthermore, we maintain well-diversified global exposure within our model equity portfolio for private clients. Diversification serves as a hedge—or defence—against uncertainty.

As proud Canadians, we recognize the importance of supporting our workers, business owners, and economy. While these changes present challenges, they also provide an opportunity to highlight the resilience and adaptability of the businesses we invest in—and our nation as a whole.


This post is presented for illustrative and discussion purposes only. It is not intended to provide investment advice and does not consider unique objectives, constraints or financial needs. Under no circumstances does this post suggest that you should time the market in any way or make investment decisions based on the content. Select securities may be used as examples to illustrate Burgundy’s investment philosophy. Burgundy funds or portfolios may or may not hold such securities for the whole demonstrated period. Investors are advised that their investments are not guaranteed, their values change frequently and past performance may not be repeated. This post is not intended as an offer to invest in any investment strategy presented by Burgundy. The information contained in this post is the opinion of Burgundy Asset Management and/or its employees as of the date of the post and is subject to change without notice. Please refer to the Legal section of this website for additional information.