Search

Leverage the Tariff War for Long-Term Gains with a Strategic Approach

Ongoing tariff disputes and international trade frictions remain at the forefront of news reports. Daily fluctuations in stock markets have become commonplace. Recently, the United States and China issued a joint announcement stating they would reduce tariffs imposed on one another’s goods. Previously, the U.S. had declared a 90-day suspension on tariffs previously set for imports from Canada and Mexico.

The latest shift in relations between China and the United States may not appear to directly affect Canadian equities. Nonetheless, an end to trading conflicts between these major economies could provide indirect advantages for businesses in Canada. As an example, goods from China that usually enter Canada via the U.S., now burdened by previous tariffs, might become considerably less expensive once those tariffs cease.

Even though there has been a recent statement, numerous investors remain concerned. The ongoing trade conflict creates an unpredictable scenario, causing less experienced Canadian investors to consider decreasing their involvement or holding back until things become clearer. More astute Canadians have

long-term investment strategy

know better.

The dramatic selling off followed by an intense buying spree has caused a significant upheaval in the stock market.

S&P/TSX Composite Index

The S&P/TSX Composite Index, which serves as the standard measure for the Canadian stock market’s performance, fell by 11.07% during the period from April 2 to April 8, 2025. Currently, the index has risen by 15.40% since reaching its lowest point on April 8th and is now close to setting fresh record-high levels.

Investors aiming to predict market movements may have overlooked the chance to purchase undervalued assets. Nonetheless, individuals focused on the long term ought to seize this period of market instability as an occasion to acquire top-tier shares that they can retain for many years, disregarding day-to-day fluctuations.

Given this situation, here’s my view on how long-term investors can navigate the uncertainties caused by tariffs.

Effect of Tariffs on Stocks in Canada

Stock market investors place significant importance on tariffs since these significantly affect business operating costs. If tariffs rise, corporations often must transfer the extra expense to customers. Consequently, this may result in reduced consumer demand for products and services, diminished profit margins for firms, and a deceleration in total economic expansion.

Given the fluctuations in tariffs, it’s understandable to witness numerous rises and falls within the stock market.

Investing from a long-term perspective

Certainly, short-term volatility might deter even those who are quite tolerant of risks. Nonetheless, experienced investors understand how to spot companies capable of enduring such turbulence and coming out more robust afterwards.

The aim should be to seek out and put money into

fundamentally

robust enterprises. These are shares backed by corporations capable of consistently producing solid earnings, expanding their revenue, and providing gains for shareholders.

Granite REIT

(

TSX:GRT.UN

It serves as a great instance of this type of business. Granite, with a market cap of $4.20 billion, is a real estate investment trust (REIT).

REIT

) that focuses on purchasing, enhancing, and overseeing a collection of mainly industrial real estate assets throughout North America and Europe.

During the general market decline, Granite REIT experienced a sell-off because of concerns over an extended trade conflict. Nevertheless, the REIT witnessed a swift recovery in its stock price as conditions started looking better. Much of Granite REIT’s holdings consist of warehouses and logistics facilities. This positive shift mirrors the surge in e-commerce activities and businesses’ increasing need for such operational spaces provided by entities like Granite.

Foolish takeaway

At present, Granite REIT is trading at $67.49 per share and distributes $0.2833 per unit monthly. That equates to an annualized dividend yield of 5.04%.

leading Canadian dividend-paying equity for each month

It can serve as a great addition for long-term investments. The company is repurchasing shares, which suggests strong performance and anticipated future growth. Additionally, they have maintained a consistent practice over 14 years of boosting their distributions by 3-4% each year.

If you’re looking for a method to steady your portfolio’s expansion,

volatile market

, GRT.UN stock might be a worthwhile addition for your portfolio.

The post

Leverage the Tariff War for Long-Term Gains Through Strategic Planning

appeared first on

The Motley Fool Canada

.

More reading

• 
  How to Invest CAD 20,000 in Canadian Property for Financial Independence
  
• 
  How I’d Create a $250 Monthly Income Stream Using $14,000
  
• 
  If I could only purchase and hold one monthly payer stock, this would be the one.
  
• 
  How I’d Allocate $10,000 Across These 3 Stocks OfferingMonthly Dividends
  
• 
  Leading Canadian Bargain Stocks That I Would Purchase for My RRSP and Keep Throughout Retirement
  

Fool contributor

Adam Othman

has no holdings in any of the discussed stocks. The Motley Fool suggests investing in Granite Real Estate Investment Trust. The Motley Fool has a

disclosure policy

.