The Financial Post reports in its Wednesday edition that Canadian investors got a sneak peek into the potential winners and losers from a trade war on Monday, as markets tumbled to start the day before recovering after it was revealed that U.S. President Donald Trump had paused tariffs for 30 days, first on Mexico and then on Canada. The Post's Jane Switzer writes that most analysts have concluded that a trade war with Canada's biggest trading partner would be a losing scenario for investors. "It's going to be hard to find any real winners because this is bad on Canada," said Barry Schwartz at Baskin Wealth Management. "It hurts our economy. It could cause a recession. That's not good for consumer spending." One financial services winner Mr. Schwartz sees could be TMX Group, which owns and operates stock exchanges in Canada including the Toronto Stock Exchange.
"There's going to be heightened volatility and increased trading, and they make money on stock trading and the tariffs have no impact," he said.
The market pullback could be an opportunity for investors to buy Canadian companies they have been eyeing, especially if the stocks are not affected by tariffs or are just down due to selling from index funds.
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