How will Trump’s tariffs affect your personal finances? We answer your questions

The tariffs announced by U.S. President Donald Trump have upended decades of free trade in North America, causing chaos on both sides of the border.

The swinging pendulum of the President’s off-again, on-again threats has also stirred confusion.

We asked Globe readers what questions they had about tariffs.

Personal finance columnist Rob Carrick and consumer affairs reporter Mariya Postelnyak answered questions, such as how tariffs could affect retirement savings, mortgages and interprovincial trade barriers.

This Q+A is part of a series that tackles the far-reaching impacts of the trade war.

In the political instalment, reporters Nathan VanderKlippe and Steven Chase answer questions about the earnestness of Trump’s threat to make Canada the 51st state and what happens to tariff negotiations in the midst of an election.

In the industry instalment, our business reporters parse how tariffs could hit various sections of the economy and businesses, from autos to oil.

This Q+A has been edited for clarity and length.

What will the impact on retirement savings be in the short, medium and long-term? What are the opportunities that a tariff environment provides?

Personal finance columnist Rob Carrick: In the short term, expect some choppiness in the stock market. Declines when the news suggests tariffs will hurt the economy, and rebounds when the nervousness eases. We’re down from peak levels now and more declines seem likely in the weeks and months ahead. That’s especially true if there is a tariff-driven recession.

In the long-term, stocks will continue to deliver strong returns that justify the higher risk level.

Opportunities? Every big market decline is a chance to buy stocks at beaten down prices. This is a proven strategy for patient investors who don’t expect or depend on a quick market rebound.

How will the tariffs impact my mortgage renewal in the next few months?

Carrick: Tariffs could very well help you get a lower mortgage rate than you would have in normal times. Economic uncertainty caused by tariffs puts downward pressure on borrowing costs. The Bank of Canada cut its overnight rate on March 12, and further cuts are possible if the economy staggers. The overnight rate directly influences variable-rate mortgages. As for fixed-rate mortgages, they’re more influenced by what’s happening in the bond market. Here, we see rates mostly stable at current levels. Declines are possible, but for now things are unsettled.

My wife and I have a joint account that is two-thirds composed of U.S. stocks, including our individual TFSA. We are thinking of shifting all into Canadian stocks. Are we foolish to do so?

Carrick: Foolish is not the word at all. Lots of Canadian investors are considering this kind of move to be a demonstration of their anger at how the U.S. is targeting Canada. There is certainly some moral satisfaction to be had in selling U.S. stocks, and there could even be a short-term financial benefit. The U.S. stock market has been spectacular in recent years, and it will pull back sharply at some point. Maybe worse than Canada’s stock market, and markets around the world. In the long term, not owning U.S. stocks will cost you in foregone returns. There are a lot of globally dominant companies in the U.S., some in sectors like tech and health care where Canada is weak.

What happens to products, such as clothing, for example, that have already been paid for before tariffs kick in, but will arrive after the tariffs are implemented?

Consumer affairs reporter Mariya Postelnyak: Rules around this are changing quickly but, generally speaking, goods ordered before March 13 may be exempt from the new surtaxes if they are considered “in transit.” What that means is, if they were already with a carrier before the tariff took effect, you’re in the clear. If not, then there may be a cost. Experts told me some suppliers may absorb that cost, at least initially. That said, buyers should confirm with suppliers whether their items qualify to avoid any surprises.

Should we boycott American multinationals that operate as Canadian versions here – and do their profits flow back to the U.S.?

Postelnyak: If your goal is to support Canadian jobs and producers, boycotting all American multinationals operating in Canada probably won’t have the desired effect.

As my colleague Meera Raman reported, 2.67 million people in Canada were employed by foreign multinationals in 2023. Of those, 62 per cent worked for U.S.-controlled companies. If boycotts continue long-term, American companies would likely scale back their Canadian operations and put thousands more jobs at risk.

Consider this: When Kraft Heinz sold its tomato processing plant in Leamington, Ont., in 2014 (before later returning to Canada), more than 1,000 Canadian jobs were lost.

Yes, U.S. subsidiaries often have a chunk of their profits going back to the U.S. But they’re also paying rent, property taxes, salaries and benefits to Canadian employees.

The conflict around how consumers should act in such a bind played out for me when I spent three whole minutes choosing between two packs of oats recently: one from President’s Choice (a Canadian brand manufacturing their instant oats in the U.S.) and one from Quaker Oats (an American brand employing thousands of workers in two massive plants across Ontario and using Canadian oats). I chose Quaker.