Last week, equity markets experienced a mix of volatility and resilience as they reacted to tariffs against Mexico and Canada being announced and subsequently delayed. Despite the increased uncertainty from the current administration’s trade policies, U.S. and Canadian markets have been resilient with each posting a positive return year-to-date. Despite ongoing uncertainty around trade and tariffs, the U.S. economy continued to demonstrate strength, supported by healthy consumption and corporate earnings growth. The labor market remains robust, with the unemployment rate falling to 4% and wage growth outpacing inflation. However, tariff policy remains a significant overhang, contributing to market volatility and concerns about inflation. Overall, we believe diversification will prove to be a key strategy to navigate the political and economic uncertainties ahead.