As Belski put it, “It’s a mistake to be a reactive investor in general. We are investment strategists, we’re not political strategists.” He further emphasized that Canadian stock trends often mirror those in the US, underlining the critical role the US economy plays in Canadian financial markets.
On the other side, a report by T. Rowe Price assesses the potential impact of Trump’s policies on the US economy. It suggests Trump’s administration could double down on several key areas, including tax cuts, deregulation, and assertive trade tariffs.
T. Rowe Price predicts that extending the Tax Cuts and Jobs Act (TCJA), a significant tax reduction introduced in Trump’s first term, would create a US$4tn–US$5tn deficit over the next decade.
These cuts, which Trump advocates extending, could affect sectors across the board, as policymakers may seek offsetting adjustments, including changes to clean energy incentives introduced under the Inflation Reduction Act.
Trump has voiced support for additional tax relief, although political realities may temper his ambitions, the report notes.
