Financial markets tumbled worldwide on Thursday due to worries about the damage U.S. President Donald Trump’s newest set of tariffs could do to economies across continents, including his own.
In Canada, the S&P/TSX composite index closed down 971 points, or 3.8 per cent, as markets worried the latest round of U.S. tariffs could sink the global economy into a recession. Canadian apparel brands, including Aritzia and Lululemon, were among companies that saw their stock prices slide.
The instability in the markets has left many wondering about their retirement investments.
“What happened was we had a risk-off trade because markets don’t like unpredictability,” Ron Aloni, a portfolio manager at Leede Financial, told Global News.
“So money moved from higher risk asset classes to asset classes that are more predictable, like consumer staples, things like grocery, utilities, things your power company, and health care.”
Aloni said they have not seen a massive sell-off in the markets yet and for most people it is not time to panic.
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“Most of the clients that we have, the older clients that are sitting in retirement savings plans, they’re sitting in more predictable asset classes,” he added.
“We’re telling clients right now that the portfolios that they have are the right portfolios for them. And so as long as you’re invested in asset classes and assets that suit your long-term needs and you’ve done your asset allocation correctly, you have nothing to worry about.
“Now, if you’ve taken more risk than you should, then you do have something to be concerned about. And those people are probably making a lot of calls to their advisers right now, asking themselves, ‘What’s happening to my money?’”
Aloni said it is important that people don’t have all their eggs in one basket — put your investments in multiple baskets.
“I think the most important thing again is asset allocation and making sure that the assets that you’re invested in match your needs, your time horizon, and if you do those things properly, then you don’t have to make shifts and changes when these things happen because you’re invested properly and you can ride through these storms.”
On Thursday, Prime Minister Mark Carney said Canada will respond by matching the U.S. approach, with 25 per cent tariffs on all vehicles imported from the United States that are not compliant with the CUSMA free trade agreement, and on the non-Canadian content of CUSMA-compliant vehicles from the United States.
“We must respond with both purpose and force. We are a free, sovereign, and ambitious country. We are masters in our own home,” he said.
Carney, who spoke in his role as current prime minister in a caretaker government but is campaigning as Liberal leader, said Canada was preparing a framework for automakers to get relief from Canada’s counter-tariffs, “as long as they maintain their production and investment in our country.”
— with files from The Associated Press
© 2025 Global News, a division of Corus Entertainment Inc.
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