Tuesday was a whirlwind for Toronto’s Bay Street as stocks dipped in response to U.S. tariffs on Canadian goods coming into effect.
TorontoToday spoke to several financial industry workers as they sought to make sense of the new financial outlook.
They said the new tariffs have made their jobs more difficult — that they will require new business strategies, prompt conversations with skittish customers and may make raising money more difficult.
But in interviews in the heart of the financial district, a select few also said it could create new business opportunities.
On Tuesday, President Donald Trump’s decision to impose 25 per cent tariffs on all Canadian goods went into effect. In response Prime Minister Justin Trudeau enacted retaliatory tariffs, beginning with 25 per cent tariffs on $30 billion worth of goods immediately, followed by tariffs on an additional $125 billion worth of goods later this month.
Manny Dhudwarr
Financial advisor, Bank of Montreal (BMO)
Manny Dudwarr, a financial advisor with BMO said the first day of American tariffs has been “chaos.”
“Everyone’s running around, trying to figure things out,” he said. “We know that the markets are really upside down right now, and we’re just waiting.”
In the opening hours of market trading on Tuesday, the S&P/TSX Composite Index, a benchmark Canadian index, dropped considerably before rebounding a bit.
At the end of the trading day the index was down about 1.5 per cent — one of the largest single-day drops in the past six months.
Dudwarr said he’s had friends reach out for his perspective after seeing the value of their portfolios dip. His advice? “Let it ride,” he said.
“By Friday, we’ll have a clearer picture of what’s happening and what’s going to happen.”
David Ritchie
Founder, CFO Hive
Founder of CFO Hive, David Ritchie told TorontoToday the impact of the tariffs varies considerably among his clients.
Ritchie’s business offers other companies a “fractional” chief financial officer — a part-time financial executive who can assist with finance and strategic planning.
He said he spoke on Tuesday morning with a client whose business sells appliances and relies heavily on imports from American suppliers. The customer told Ritchie he was very concerned about the impact of Canada’s retaliatory tariffs, which will make it much more costly to import.
Ritchie said the client has been on the phone with suppliers, trying to assess whether existing stock will be honoured at the pre-tariff prices.
Still, he said, other businesses aren’t so hard hit, including his own.
Ritchie said it’s a good time to be in the fractional CFO business as a larger number of companies may be in the market for on-call financial advice.
He also said there are ways many companies can weather the storm.
Some manufacturers may now seize an opportunity to increase output at plants in the United States or alternatively, may choose to try to boost market share in Canada, he said.
Bruce Lane
Managing Director, GTI Energy
In town for the world’s largest mining conference, Bruce Lane, managing director of uranium company GTI Energy said the tariffs have created both opportunities and headaches for his business.
Lane said the market volatility may make it more difficult for his company and others in the industry to raise necessary capital. In an industry like mining that’s already risky, he said, any additional added market volatility only makes things more challenging.
Still, Lane said there may also be a silver lining for companies with U.S. production.
His Australia-based company has uranium projects in Wyoming, and these may now become more valuable because of the tariffs, he said.
The executive explained that a competitor, Saskatoon-based Cameco, is one of the largest suppliers of the uranium to the United States market. The tariffs will make the company’s product more costly to import to the U.S., which could be an opportunity for U.S.-based suppliers.
Greg David
Product marketing lead, Capital Group
Greg David said day one of the U.S. tariffs has meant a “lot of consternation” among Canadian financial advisors within his company and beyond.
He’s the product marketing lead for Capital Group, a global company that manages trillions of dollars worldwide and about $15 billion in Canada.
David said that within the company, the first order of business has been to try to “cut through all of the headline noise” to find out exactly what’s happening and how it will impact clients.
David said there’s a hunger for both good information and for decisive political action.
“People are looking for policy responses,” he said. “I think it’s incited a lot of nationalistic feelings.”
Linda McGilvray
Executive assistant
Linda McGilvray was one of few financial district workers who told TorontoToday the new tariffs haven’t had much of an effect on her job — but she said they have already altered her consumption choices.
McGilvray, an executive assistant with a company based in Toronto, said her employer doesn't have many American clients, so the tariffs haven’t yet had a significant impact.
Still, she said she’s decided to show her displeasure with the American taxes by increasing the shopping she’s doing at Canadian businesses.
For her morning coffee, McGilvray went to Toronto boutique chain Dineen Coffee Co., rather than Starbucks, she said.
McGilgray said she’s hopeful the provinces and federal government stand up strongly to the Americans. She also said she’d be glad to see Canada consider broadening its economic horizons.
“Joining the EU? That’d be pretty cool,” she said.
