Tariffs and global trade tensions continue to dominate headlines. Stock market volatility is a daily thing. Most recently, the U.S. and China made a joint statement that both countries will lower tariffs on each other. Earlier, the U.S. announced a 90-day pause on tariffs placed on Canada and Mexico.
The recent change in the stance between China and the U.S. might not seem like it will have a direct impact on Canadian stocks. However, a cessation of trade hostilities between the two global giants might indirectly benefit Canadian companies. For instance, Chinese products that first come into the U.S. before making their way to Canada might be far more affordable than with the previously announced tariffs.
Despite the recent announcement, many investors continue to be uneasy. The trade war is an uncertain situation, and newer investors are looking to reduce their exposure or wait on the sidelines. Savvier Canadians with a long-term investment strategy know better.
The sell-off and then buying frenzy have seen a massive shift in the stock market. The S&P/TSX Composite Index, which is the benchmark for the Canadian stock market’s performance, dipped by 11.07% between April 2 and April 8, 2025. As of this writing, the index is up by 15.40% from its April 8th low, hovering around new all-time highs.
Investors trying to time the market might have missed the opportunity to buy the dip. However, those with a long-term view should focus on using the market uncertainty as a chance to buy high-quality stocks they can hold for years without worrying about short-term volatility.
Against this backdrop, here’s how I think long-term investors can find a way through the tariff-induced uncertainty.
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Impact of tariffs on Canadian stocks
Tariffs matter a lot to stock market investors because they directly impact the cost of running businesses. When tariffs are high, companies have no other choice but to pass on the additional cost to consumers. In turn, that can lead to weaker demand for goods and services, lower profit margins for businesses, and slower overall economic growth.
It should not be surprising to see so many ups and downs in the stock market amid developments in the tariff situation.
Investing with a long-term view
Without a doubt, short-term volatility can be off-putting for even the most risk-tolerant investor. However, seasoned investors know how to identify businesses that can weather short-term volatility and emerge stronger on the other side.
The goal should be to look for and invest in fundamentally strong companies. These are stocks with underlying businesses that can continue to generate consistent profits, grow sales, and deliver returns to investors.
Granite REIT (TSX:GRT.UN) is an excellent example of such a company. Granite is a $4.20 billion market-cap real estate investment trust (REIT) that engages in acquiring, developing, and managing a portfolio of primarily industrial properties across North America and Europe.
Granite REIT saw a sell-off during the broader market’s downturn due to worries about a prolonged trade war. However, the REIT saw a rapid rise in its share prices when things seemed to be improving. A significant portion of the portfolio that Granite REIT comprises is warehouses and distribution centers. The uptick reflects the popularity of online shopping and the demand companies have for spaces that the likes of Granite offer.
Foolish takeaway
As of this writing, Granite REIT trades for $67.49 per share, and it pays out $0.2833 per unit every month. This translates to a 5.04% annualized dividend yield. This top monthly Canadian dividend stock can be an excellent long-term holding. The management is buying back shares, an indicator that business is good and expects to improve. It also has a 14-year streak of increasing payouts by 3-4% annually.
If you’re seeking a way to stabilize your portfolio’s growth in a volatile market, GRT.UN stock could be a good holding to consider.
