Three Tips for Managing the Uncertainty of Tariffs

“Fear is often our immediate response to uncertainty. There’s nothing wrong with experiencing fear. They key is not to get stuck in it.”

– Gabrielle Bernstein

Whether you live in Canada, the US, or any other part of the world, you’re most likely aware of the back-and-forth, tit-for-tat trade wars initiated by the president of the United States.

Given the unpredictability and uncertainty of what is happening, everyone’s stress levels are elevated. I hear from clients, friends, and family members about the possible negative impact American policies could have on their life and much of the world.

Like everyone else, I also think about the impact of tariffs on my life and community, and I notice my stress levels escalate when my thoughts go to this topic.

So, here are a few strategies I’ve been using to help balance my mood and to manage thoughts of uncertainty.

Managing Uncertainty

1. Put parameters and limits around your news consumption.

Knowing about current events and how they apply to your life is essential. But you don’t need to follow the news every hour. Doing so will only amplify your anxiety. Set some boundaries around what kind of news stories you follow and how much time you spend on them.

2. Differentiate between real worry and hypothetical worry.

Thinking about what could, might, or possibly happen are all hypothetical. Your quality of life might dramatically change as a result of these tariffs. Or, it might only change a little bit. Or, it might not change at all. Either way, thinking about hypothetical situations is a poor use of your time and energy.

Instead, focus on the present moment. Focus on what is happening in your life today.

For example, are you sleeping well? Are you getting enough exercise? Are you spending time with people you care about? These are all real concerns that deserve your attention rather than hypothetical worries that, by definition, don’t exist. Focus on the here-and-now rather than the ‘what if’s.’

3. Adversity provides opportunity.

Many economies worldwide rely on the US to purchase goods and services. However, due to these tariffs, countries will now have to shift their focus and begin to rely on each other. That is, the adversity and challenges one country brings can be another country’s opportunity to excel in ways they did not think about before.

For example, politicians are now eliminating trade barriers in Canada, making it easier for businesses to sell their products and services to other Canadians. The opportunity to ease trade within one’s country and create stronger partnerships with smaller countries has barely been considered until now.

Uncertainty in Life is the Only Certainty

As I reflect on these last couple of weeks and look at where we are now, the only sure thing is that uncertainty lies ahead.

At the same time, “uncertainty” will always be present in every aspect of life. There wasn’t absolute certainty that I would wake up this morning. Nor am I certain that I’ll never get into a serious car crash. I am also not certain that my children will go through life without a serious illness.

Yes, economically speaking, we are all uncertain about what the next few weeks and months will hold.

But five years ago, when a coronavirus circled the world, we all got hit with a significant dose of uncertainty. And because of that experience, you and I now have proof that we can deal with uncertainty, regardless of where it comes from.

Richard