Ways Canadians can be more financially savvy amid tariffs and economic uncertainty

The tariffs against Canada have plunged the country into economic uncertainty.

U.S. President Donald Trump officially slapped 25 per cent tariffs on all products from Canada and Mexico, including the 10 per cent tariffs on energy, on Tuesday.

Since then, stock markets in the U.S. and Canada have continued to fall as Canadian businesses brace for the impacts of the trade war.

In a press conference Thursday morning in Ottawa, Prime Minister Justin Trudeau was candid about the current situation.

“I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future,” he said.

So, what does this mean for the finances of everyday Canadians?

Natasha Macmillan, director of everyday banking at Ratehub.ca, shared advice on how Canadians can prepare for a potential economic fallout and strengthen their finances.

Build your emergency fund

She says your main priority should be building up your emergency fund if you’re worried about the impact of rising tariffs.

“Establishing a strong emergency fund will provide peace of mind and security when the unexpected happens, like the rising cost of living,” explained Macmillan in an email.

“A good rule of thumb is to aim for at least six months’ worth of paycheques saved up for any potential unemployment or unexpected price increases.”

Invest in low-risk investments

When it comes to investments, Macmillan recommends putting your money in low-risk investments like GICs, TFSAs and RRSPs.

“These options allow you to grow your savings steadily while minimizing exposure to market volatility,” she said.

“GICs offer a predictable return, making them a solid choice when you want stability, while TFSAs and RRSPs provide tax-free or tax-deferred growth, helping you keep more of your returns.”

Minimize your debt

Macmillan says the other priority for Canadians is to pay down debt.

“The less debt you carry, the more financial flexibility you’ll have when challenges arise,” she explained. “If tariffs lead to higher costs, reducing high-interest debt can free up more of your income to handle price hikes and the cost of living.”

The Ratehub.ca expert says Canadians can tackle debt efficiently by considering strategies like the avalanche method. This focuses on paying off high-interest balances first or consolidating your debt through a balance transfer credit card or personal loan.

“Not only does paying off debt relieve financial stress, but it also creates room for you to build an emergency fund or invest in low-risk options, giving you the confidence to navigate any economic challenges ahead,” she said.

Shop smarter

When it comes to what you spend your money on, Macmillan advises consumers to choose Canadian-made products to avoid rising prices on American imports.

You can quickly identify products made in Canada by using certain apps or check out our guide.

Additionally, Macmillan recommends checking the unit price (cost per pound or gram) when you go grocery shopping, especially as prices increase due to tariffs.

“Additionally, take advantage of money-saving apps like Flipp, Checkout51 or Drop, which offer coupons, cash-back deals and loyalty points,” she said. “Consider pairing these with a rewards credit card to maximize your savings even further.”