Mark Carney and Donald Trump
Canada and the U.S. have historically shared one of the closest economic partnerships in the world, with tightly connected supply chains and decades of smooth trade. But Prime Minister Mark Carney has announced that chapter has ended. In his national address, Carney warned that global changes and new U.S. tariffs have created a “rupture” in the relationship — turning some of Canada’s former strengths into vulnerabilities and forcing the country to chart a new path forward (1).
“This decades-long process of an ever-closer economic relationship between the Canadian and U.S. economies is now over,” Carney recently stated in Ottawa.
As a result, the new American tariff policies are putting pressure on Canadian industries that rely on selling goods to the U.S.
“Our workers in autos, steel and lumber are facing real risks from these tariffs,” Carney said. He explained that the uncertainty is causing Canadian businesses to delay important investments because they no longer know what the rules will be.
In short, the “good old days” of easy trade and steady predictability are over — and they’re not coming back.
“Our relationship with the United States will never be the same as it was, even though, in the new protectionist world, we have the best trade deal of any country,” he added.
Canada isn’t the only country feeling the impact. Because the U.S. is the world’s largest consumer of goods and services, broad tariffs could hurt economies far beyond North America. Carney has even warned (2) that Trump’s sweeping tariffs could “rupture the global economy.”
Changes of this magnitude can feel worrisome, but they aren’t new. The world has faced recessions, trade disputes and financial crises before — and citizens have found ways to adapt. While no one can accurately predict what lies ahead, investors can still create a plan and focus on assets that stay resilient when uncertainty rises.
Long regarded as a safe haven, gold isn’t tied to any single country, currency or economy.
During moments of uncertainty, investors around the world often move more of their money into gold. It can’t be printed out of thin air like fiat money and in times of heated geopolitical activity, investors tend to pile in — driving up its value (3).
That pattern has shown up again this year, with gold prices rising 50% over the past 12 months and, according to leading financial market data provider the London Stock Exchange Group (LSEG) (4), is “outpacing leading asset classes.” This marks one of the strongest runs since the late 1970s as investors and even central banks look for protection from inflation, currency swings and global unrest (5).
Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?
If you decide that gold belongs in your portfolio, there are several ways you can invest in it — each with different costs, risks and benefits.
One of the easiest options is to buy gold-linked exchange-traded funds (ETFs), which let you track the price of gold without needing to physically store the precious metal yourself. ETFs offer low fees, can be held in registered accounts like a Registered Retirement Savings Account (RRSPs) or a Tax-Free Savings Account (TFSAs) and provide quick access to buy or sell whenever you need.
You can also buy physical gold, such as coins or bars, through authorized dealers. This gives you direct gold ownership, though it typically comes with added costs for secure storage and insurance.
Another option is gold-related stocks, including shares of mining companies or producers. These investments may rise and fall with market prices and can be more volatile, since they depend on company performance rather than just gold’s value.
If gold is the go-to hedge for moments of chaos, real estate is the long game — something Trump, who started off as a real estate magnate, understands well.
This asset class is still considered one of the most reliable ways to grow and protect wealth over time. Property values and rental income often rise with inflation, which helps real estate hold its ground when everyday costs are increasing (6).
Real estate doesn’t rely on a strong stock market to deliver returns. Even when markets are shaky, well-chosen properties can continue to generate income, providing steady cash flow. If you’re looking to build resilience into your portfolio, real estate can offer stability — and there are more ways than one to invest in it than owning physical property.
If you’re interested in real estate as part of your investment strategy, you have numerous ways to gain exposure — ranging from direct property ownership to hands-off investment options.
**Real Estate Investment Trusts **(REITs) are companies that own and manage properties like apartments, offices, shopping centres or industrial plazas. When you buy a REIT, you’re purchasing a slice of a diversified property portfolio. REITs trade on stock exchanges, offer regular income via dividends and, like gold, can be held in RRSPs or TFSAs.
Real estate ETFs bundle a group of REITs and real estate companies together into a single fund. This lets you diversify your real estate exposure across many property types and markets with a single investment. Like REITs, ETFs can be easily bought and sold on the stock market and may also provide dividend income.
Real estate stocks allow you to invest in individual companies involved in real estate, or firms that develop, build or manage properties. These stocks may offer growth if the companies perform well, but they carry the risks associated with any individual business.
Direct property ownership is the traditional way to invest in real estate. This means buying rentals properties yourself — such as duplexes or condos — and earning passive income from rent, as well as long-term appreciation on the unit itself. However, this route also comes with hands-on responsibilities like maintenance, taxes and tenant management.
In light of Canada’s relationship breakdown with the U.S., you may be looking to steady your finances in the midst of global uncertainty. Gold can offer protection during periods of volatility, while real estate provides long-term growth with regular, passive income. Together, they give investors practical ways to build resilience when economic conditions — and global relationships — suddenly shift.
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Prime Minister of Canada (1); CBC (2); Standard Chartered (3); London Stock Exchange Group (4); Business Insider (5); REALnorth Opportunities Fund (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.