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CUSMA Not Renewed: What the Trade Deal Impasse Means for Your Wallet

  July 2, 2026 | Trade & Economy The mandatory six-year review of Canada's most important trade agreement came and went this week — and it did not go the way Ottawa hoped. On July 1, U.S. Trade Representative Jamieson Greer confirmed that the United States will not renew the Canada-United States-Mexico Agreement (CUSMA) in its current form, sending the deal into a more uncertain, year-by-year footing right as Canadians are already navigating tariffs, a soft labour market, and a technical recession. Here is what actually happened, why it matters, and what it could mean for your budget in the months ahead. The short version CUSMA isn't dead. It remains legally in force until 2036. But instead of locking in a fresh 16-year term, the deal now shifts into annual reviews, with existing tariffs on steel, aluminum, autos and softwood lumber unresolved for now. What happened on July 1 CUSMA was built with a mandatory joint review every six years. If Canada, the U.S. and Mexico had a...
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How to Prepare Your Investments for Rising Rates in Canada

 

On October 25, the Bank of Canada made a decision: they kept the interest rates steady at 5%. This means that investors need to adjust their portfolios to cope with the new normal of higher borrowing costs and lower bond prices. Here are some tips on how to do that:

1. Reduce your exposure to long-term bonds. Long-term bonds are more sensitive to interest rate changes than short-term bonds, so they will lose more value when rates go up. You can switch to shorter-term bonds or bond funds, or use bond ladders to stagger the maturity dates of your bonds.

2. Diversify your income sources. Interest income from bonds will likely decline as rates rise, so you may want to look for other sources of income, such as dividends, real estate investment trusts (REITs), or preferred shares. These assets can provide steady cash flow and may also benefit from economic growth and inflation.

3. Consider adding some inflation protection. Higher interest rates often come with higher inflation, which erodes the purchasing power of your money. You can protect yourself from inflation by investing in assets that tend to rise in value when prices go up, such as commodities, gold, or inflation-linked bonds.

4. Review your asset allocation. Higher interest rates may affect the performance of different asset classes, so you may need to rebalance your portfolio to maintain your desired risk-reward profile. For example, you may want to reduce your exposure to growth stocks that rely on cheap debt to fund their expansion, and increase your exposure to value stocks that have strong cash flows and dividends.

5. Seek professional advice. Adjusting your portfolio for higher interest rates can be complex and challenging, especially if you have a long-term horizon and multiple goals. You may want to consult a financial planner or advisor who can help you create a personalized plan that suits your needs and preferences.

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