{"id":1601,"date":"2024-11-04T08:00:16","date_gmt":"2024-11-04T08:00:16","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/?p=1601"},"modified":"2025-05-26T15:31:04","modified_gmt":"2025-05-26T15:31:04","slug":"tariff-trends-impact-on-modern-investment-opportunities","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/tariff-trends-impact-on-modern-investment-opportunities\/","title":{"rendered":"Good News! Tariff Trends and Their Impact on Modern Investment Opportunities"},"content":{"rendered":"

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The Great Comet of 1811, as imagined by Midjourney<\/p>\n

Weightless yet massive, the Great Comet of 1811 glided elliptically through the cosmos, its path dictated by the Sun\u2019s gravity. Accelerating as it neared the Sun, a trail of space dust marked the path of its 2,785-year orbit. We won\u2019t see it again until the 48th century but in 1811 it lit up Earth\u2019s skies for 17 months, a space traveler simultaneously coming and going. Imagine standing on an American plain in 1811, gazing at a brilliant slow-moving streak covering a tenth of the night sky, night after night. Surely a sign\u2014but of what?<\/p>\n

Tariffs and the Birth of American Protectionism<\/strong><\/span><\/h2>\n

Within a year, America would start (and lose) the War of 1812 with what would become Canada. Thwarted on the battlefield, it turned its anti-British sentiment to tariffs. Just as the Great Comet of 1811 led people to reflect on their place in the universe, America was defining its own place in the world\u2014embracing its own industrial revolution. A wave of protectionism took hold to shield its nascent industries.<\/p>\n

The hyperbolically named “Tariff of Abominations” was enacted in 1828\u2014a policy favoured by the North that ironically fueled tensions with the South contributing to the Civil War. Tariffs steadily increased through the 19th century to new heights under President William McKinley in 1896. McKinley increased tariffs from 38% to nearly 50%, signaling a strong stance against foreign competition.<\/p>\n

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President William McKinley (then and now \ud83d\ude09) source<\/a><\/p>\n

Though not a Progressive himself, McKinley\u2019s administration marked the beginning of the Progressive Era. His tariff strategy succeeded in securing a persistent budgetary surplus (achieved without income tax) that funded a new navy, enabled victory in the Spanish-American War, and established the Gold Standard. America was finding its footing on the world stage, protected by tariffs and bolstered by its industrial prowess.<\/p>\n

The Post-Second World War Shift to Free Trade<\/strong><\/span><\/h2>\n

Since McKinley\u2019s era, the politics of tariffs has shifted drastically. For over a century, tariffs gained bipartisan support. After the Second World War, Republicans pivoted to champion free trade\u2014an unsurprising stance, given America\u2019s then-uncontested global manufacturing dominance. Today, with China overtaking this position, protectionist sentiments have reemerged. Tariffs, in many ways, have come full circle.<\/p>\n

Tariffs Return in 2024: A New Era?<\/strong><\/span><\/h2>\n

Just as the Great Comet of 1811 will one day return to our skies, tariffs have returned to American policy. Former President Donald Trump\u2019s 2024 bid seems to channel McKinley\u2019s role, but regardless of one\u2019s view of his platform, his potential victory signals economic shifts investors should take seriously. Here are three key areas to watch:<\/p>\n

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  1. Rising Trade Tensions:<\/strong>\u00a0Export-driven nations like Canada can expect intensifying trade tensions as protectionism takes hold.<\/li>\n
  2. Bitcoin Policy Thaw:<\/strong> While McKinley\u2019s Gold Standard redefined American finance, Trump\u2019s softer stance on Bitcoin could similarly impact the financial landscape.<\/li>\n
  3. Bank Deregulation:<\/strong>\u00a0Trump\u2019s preference for reducing banking regulations could offer embattled U.S. banks significant relief.<\/li>\n<\/ol>\n

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    Watch the Video: Tariffs, Comets, and Competition<\/strong><\/h3>\n

    Want to hear Glen\u2019s take in more detail? Check out our latest video on YouTube and subscribe to stay up to date.<\/p>\n