Trump’s tariffs are reshaping North America — here’s how Canadians can protect and grow their wealth in 2026

With that in mind, here’s a closer look at how Canadians are being impacted by the tariffs and what steps they can take to protect themselves in 2026.

The tariff reality for Canadians

When it comes to the average Canadian, a Leger survey conducted in December 2025 found that 82% of Canadians said U.S. tariffs had a very or somewhat significant impact on the Canadian economy, with only 11% disagreeing. More than half of respondents (56%) reported the tariffs had directly affected their household finances, whether through higher prices, changed spending habits or other adjustments.

Among Canadian businesses, tariffs are also seen to be having a negative impact. According to the most recent Canadian Survey on Business Conditions put out by Statistics Canada, over a third of all Canadian businesses expect tariffs to negatively affect their business, no matter if they engage directly in trade or not. In particular, businesses involved in manufacturing, wholesale trade and agriculture, forestry, fishing and hunting felt the most pressure.

These worries do not come from nowhere: the macroeconomic toll of the tariffs has already been significant. Economists estimate the 2025/26 tariff cycle has reduced Canadian GDP by 1.5% to 2%, while Canadian households are absorbing an estimated US$1,700 to US$2,000 (C$2,340 to C$2,755) in higher annual costs.

Despite that pressure, Canada is proving to be more resilient than expected. According to RBC Economics, Canada posted its first gross domestic product (GDP) increase on a per capita basis in three years in 2025, and household spending held up even as consumer confidence plummeted in the spring of that year. Net foreign direct investment was also positive for the first time in more than a decade.

Still, the path ahead is uncertain, as real GDP on a per capita basis grew just 0.2% in the first quarter of 2026. Moreover, Canada’s exports to the U.S. represent roughly 20% of its GDP, making it structurally more exposed to American trade policy than almost any other developed economy. This puts it in an especially precarious position as new tariffs on imports from Canada and around 60 other countries are being proposed by the White House — even while both countries work toward a new bilateral trade framework under the Canada-United States-Mexico Agreement (CUSMA).

Betting on resilience

Despite the turbulence, major global companies continue to view North America — including Canada — as a reliable place to invest and grow. The White House’s official webpage even keeps a tally of new investments in the U.S. since Trump took office, calling it “the Trump Effect.”

The list includes many titans on Wall Street, including the likes of Apple, which committed US$600 billion (C$826 billion) to U.S. manufacturing and workforce training, and Meta, which also announced a US$600 billion (C$826 billion) investment in support of AI infrastructure and workforce expansion in the U.S.

In Canada, meanwhile, companies like Boeing have been pouring hundreds of millions into the country over the past two years.

These headline investment figures are a reminder that, even amid trade conflict, long-term capital tends to flow toward stability and scale. Canadian companies — and Canadian investors — can learn from that instinct.

Warren Buffett, whose 2025 shareholder letter reiterated that long-term wealth is built not by picking the perfect stock but by staying invested in great businesses, offered a timeless lesson especially relevant amid today's volatility: don’t interrupt the compounding process unnecessarily.

How Canadians can invest in stocks and ETFs

For most Canadians, the simplest way to stay invested through economic uncertainty is by sticking to low-cost, diversified exchange-traded funds (ETFs).

The Canadian ETF market has grown dramatically in recent years, with over 2,000 ETFs available to Canadian investors and total assets under management (AUM) approaching the trillion-dollar mark in June 2026. Here are two of the most widely recommended options for broad market exposure:

• iShares Core S&P/TSX Capped Composite Index ETF (TSX: XIC): This ETF tracks 200+ Canadian companies across large, mid and small caps with an expense ratio of just 0.06% as of May 2026.
• iShares S&P/TSX 60 Index ETF (TSX: XIU): This C$25.2 billion fund focuses on Canada's 60 largest companies, with a five-year return of 14.65% as of May 2026.

Canadians who want exposure to U.S. markets can also access S&P 500 index ETFs listed on the Toronto Stock Exchange (TSX), such as the BMO S&P 500 Index ETF (TSX: ZSP) or the Vanguard S&P 500 Index ETF (TSX: VSP), hedged to Canadian dollars.

If you’re interested in pursuing this strategy, there are basically two ways of going about it — you could leave it to the experts with a managed portfolio or you could do it yourself with a self-directed brokerage account. Both come with their own advantages.

The advantages of a managed portfolio

If you know you should be investing but don’t want the guesswork of doing it alone, Wealthsimple Portfolios offers an easy, hands-off way to grow your money.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re saving for retirement, a home or building long-term wealth, there’s a portfolio that’s right for every investor.

Expert-managed and designed to weather market ups and downs, Wealthsimple takes care of the heavy lifting: automatic contributions, dividend reinvesting and smart rebalancing keep your investments on track.

You can invest through RRSPs, TFSAs or non-registered accounts, all from an intuitive online dashboard or their easy-to-use mobile app.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

As a Money.ca reader, get a $25 bonus when you open your first account and fund at least $1 within 30 days.

Visit Wealthsimple for up-to-date terms and conditions.

The advantages of a self-directed portfolio

For self-directed investors, Canadian discount brokerages such as Questrade allow commission-free ETF purchases with low account minimums — making it easier than ever to build a diversified portfolio from scratch.

Questrade has long been one of Canada’s leading discount brokerages, offering various accounts to buy and sell stocks, ETFs, options and more. And now, with commission-free trades on stocks and ETF listed in Canada or the U.S., it’s a top choice for self-directed investors who want to build their own portfolios without being burdened by fees. That way, you can keep your cash where it belongs — in your investments. Plus, when you open a self-directed investing account today, you can get $50 cash back with a minimum deposit as little as $250.

For those who want experts to do the heavy lifting, you can also invest the easy way with Questrade Portfolios, which gives you pre-built, low-fee ETF portfolios monitored on your behalf by financial professionals. With management fees starting at only 0.25%, you pay a fraction of what you might normally pay somewhere else for mutual funds. And if you open an account now, you can receive as much as $10,000 of your cash managed for a year — entirely free.

Don’t know which option to choose — Wealthsimple or Questrade? Here is a comparison review of both brokerages, so you can decide which is best for you.

Canadian real estate: REITs as an accessible option

Real estate has long been a cornerstone of building wealth — and Canada is no exception. But with home prices still elevated across major markets, direct property ownership isn't accessible for everyone. That's where real estate investment trusts (REITs) come in.

Canadian REITs are publicly traded on the TSX and give investors exposure to income-generating properties — apartments, industrial facilities, retail centres and healthcare facilities — without the complexity or capital of direct ownership. By law, Canadian REITs must distribute at least 90% of their taxable income to unitholders, which typically results in steady dividend yields.

Canadian REITs delivered 11.8% returns in 2025, outperforming many global peers. If those kinds of returns interest you, here are two options frequently cited by analysts:

• Canadian Apartment Properties REIT (CAPREIT): This is Canada's largest residential REIT, with 45,400 residential apartment suites and townhomes across the country, a dividend yield of 4.4% and a market capitalization of C$5.4 billion.
• Dream Industrial REIT (TSX: DIR.UN): An industrial REIT that is often a top pick for 2026, based on strong demand for logistics and warehousing space.

The beauty of REITs is that they trade like stocks and can be held in the same accounts as other holdings. This lets you diversify into real estate without having to open and manage multiple accounts.

The ease of diversifying with REITS can offer huge advantages — it gives you real estate exposure, but it also lets you use common online and mobile trading platforms backed by Canada’s largest banks, like CIBC Investor’s Edge. That way, not only can you maximize your diversification, but you can also take advantage of their other perks, such as no maintenance charges on investor portfolios with $10,000 or more. Plus, you can enjoy unlimited commission-free trades on over 180 select ETFs.

Open an account today and get 200 free trades when using promo code EDGE2026. Terms and conditions apply. Offer ends September 30, 2026.

Diversify like the wealthy: Finding the right asset mix

Beyond stocks and real estate, alternative investments can represent another tool in the wealth-building toolkit. While art-investing platforms like Masterworks are available to eligible U.S. investors, Canadian investors have access to a growing range of alternatives, including private equity funds, infrastructure investments and farmland REITs.

For most Canadians, however, a diversified mix of low-cost ETFs — spanning Canadian equities, international equities and fixed income — provides meaningful diversification without the complexity or illiquidity of niche alternative assets, which are just one piece of a broader financial picture.