As we know, Donald Trump wants to impose tariffs up to 25% tariff on Canadian and Mexican products going to the U.S (10% on energy products). In retaliation, Canada has placed tariff's on U.S. goods coming into Canada.

Tariffs are essentially a tax on goods coming into a country. So, when we ship goods to the U.S., those purchasers will now have an increase of 25% on the cost of that good. Goods that are shipped to Canada from the U.S. will now have an increase of 25% on the cost of that good. 

In this excellent Toronto Star article, it states: “These include U.S. goods like beer, wine, bourbon, fruit, fruit juices, household appliances, furniture and materials like lumber and plastic. It means Canadian companies — and most likely Canadian consumers — will have to pay more for the same goods from the States.”

So what do we do? How do we handle this? What is going to happen to my mortgage?

All real, relevant questions. Here are our thoughts:

• We don't know how this will play out and we do not know how long the tariffs will remain in place. The longer that this goes on the more impact it will have on the economy.

• In this Bank of Canada article, Governor Tiff Macklem addresses the impact of tariffs on the Canadian Economy. It isn't clear on how they are going to manage the possible increase in inflation because this is new territory for them too. The last time we saw something like this was in the 30's. Our thoughts? It would be surprising to us if they raise interest rates in what could be an economic downturn. If inflation goes up but growth goes down, raising rates would make things worse.

• We suggest limiting exposure to negative social media. We are guilty of sliding into the rabbit hole of doom too. We were just talking about it this morning and agree that we need to focus on what is in our power to control.

And finally….

We are Canadians. We are strong. We will get through this and we will be ok. We have survived so much and will continue to persevere.

Is it time for a budget review?

As we look to the future, some of might be worrying about an increase in costs or decrease in income. 

Having a budget helps quell the fear. It really does. Even if the numbers look bleak, knowing them helps you look at things realistically and make decisions. It might be time to look at a refinance if you have equity in your home, or maybe calling your credit card companies to lower the rates on your cards.

• If you are not sure where to start, you can do a few things:

• You can try using a budgeting app. Our favorite is You Need a Budget

• If you need more hands on assistance, I have connected with Sandy Mac, a Money Coach with Mac Money Solutions based out of Calgary. Learn about Sandy HERE

• Create a budgeting spreadsheet. This book, Get the Hell out of Debt is phenomenal with helping you organize your finances. It was written by Erin Skye Kelly, a fellow Albertan!

• Reach out to me for a mortgage review

I find that looking at the numbers gives us a sense of control, because it is something that we can control. What's going on in the world right now is crazy and scary. Let's take comfort in what is in our power and take action on what we can do in our sphere of influence.

I am here to help with an objective view of the numbers. Reach out if you wish!

Contact Me