How investors looking for good returns can navigate Trump tariffs 

​From increased volatility to uncertainty in the markets, here’s what investors can do to protect their portfolios and prosperPublished Feb 03, 2025  •  Last updated 3 hours ago  •  5 minute readStock market boards flash numbers at the New York Stock Exchange during morning trading on Feb. 3, 2025. All three major indexes opened on a downward trajectory to start the month of February after Donald Trump signed an executive order enacting tariffs. Photo by Michael M. Santiago /Getty ImagesInvestors can find unpredictable turns in stock markets hard to handle but their resolve will especially be tested this year due to U.S. President Donald Trump’s actions. Economists expect market volatility surges driven by a combination of policy changes, trade disruptions and economic and currency shocks from his administration.Article contentArticle contentBut market disruptions and downturns are always a possibility for equities investors and experts recommend avoiding panic and taking a longer-term view that sees markets rising over longer time frames.Advertisement 2Story continues belowThis advertisement has not loaded yet, but your article continues below. View more offersArticle contentOne of the main likely drivers of market volatility is the tariffs Trump has been threatening Canada and Mexico with since November, as well as other global markets. While any reprieves through negotiation may temper effects, the determination of the U.S. government to enact tariffs may lead to bumpy markets over the next four years, making it difficult for investors to predict returns and manage risk, market watchers expect.If tariffs cause a sustained trade war, like they did in 1930 with the Smoot Hawley Act — which raised tariffs on 20,000 imported goods in an effort to help American farmers — it could affect stock markets around the world.The protectionist attitude of the Trump administration poses risks to key sectors of the Canadian economy and the effect that such tariffs would have specifically on Canadian oil stocks, for instance, is already being seen. Add to that the fact that several Canadian natural gas and pipeline companies are trailing U.S. natural gas companies, and the obvious choice for oil and gas investors who want to eliminate tariff risks is simply to buy U.S. energy stocks and dial back on Canadian energy stocks.Top StoriesGet the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.We encountered an issue signing you up. Please try againArticle contentAdvertisement 3Story continues belowThis advertisement has not loaded yet, but your article continues below.Article contentOther sectors, too, are not immune. Potential tariffs could affect the auto sector, economists have warned, stalling recent electric vehicle investments. And, according to the Conference Board of Canada paper, Trump, Tariffs and Trade, the U.S. is also aggressively attracting investment in the