The negative impact of tariffs can lead us to a better future, writes Peter Watson.
History will look back on 2025 as a pivotal year for Canada.
Most years see change, but the change resulting from this past year will go down as very important to the evolution of our country.
A year-in-review should be evaluated based on the good and bad that happened to Canadians.
Let’s start with the bad.
Regrettably, the U.S. ignored past trade agreements and the spirit of co-operation and imposed tariffs on Canada. That is a real risk to the financial stability of Canadian businesses and, therefore, their employees.
We had become reliant on our neighbour because of our proximity. In hindsight, that was a mistake. Optimistically, the potential benefits of tariffs far outweigh the costs.
Canada has many things to be proud of: a strong workforce of well-trained, productive people. We are rich in natural resources, and we have a strong international reputation.
The potential crisis caused by tariffs encouraged us to think big and act faster. A good example was the initial acceptance of Canadian internal free trade between the provinces.
What we know is there will be change, and with change comes opportunity. What we do not know, however, is how our future will evolve.
Now, Canada is trying to develop trade agreements with other countries. That will lead to potential for business expansion and new businesses.
Our future is bright. My year-end wishes to you all are that I hope you enjoy future success and prosperity.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com.
