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Tariff Costs Put New Pressure on U.S. Corporate Profits

Rising tariff expenses are beginning to weigh heavily on U.S. companies, prompting executives across multiple industries to warn that profit margins may tighten in the months ahead. Many firms had initially suggested they could manage the added costs through efficiency improvements or selective price increases, but that confidence is fading as import-related expenses continue to climb. Companies that rely on global supply chains are feeling the strain most acutely. Higher costs on imported materials and components are forcing difficult decisions: pass the increases on to consumers, risking weaker demand, or absorb the costs internally, which directly erodes profitability. For many businesses, neither option is attractive. Consumer-facing brands are finding it especially challenging to raise prices further, as shoppers show growing sensitivity to even modest increases. This resistance limits the ability of firms to offset tariff-driven expenses, creating a squeeze that is beginning t...
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Guaranteed Investment Certificates (GICs): A Safe Bet for Steady Returns



If you’re looking for a low-risk investment option, Guaranteed Investment Certificates (GICs) could be a good choice. A GIC is a savings product that works like a loan you make to a financial institution. You receive a guaranteed rate of interest, but your money is typically locked into the account for a pre-determined amount of time, which can range from 30 days to 10 years. The longer the term, the higher the interest rate you’ll receive. Interest can be paid out either monthly, quarterly, annually or at maturity. At the end of the term, you are paid back your full principal, plus any interest still owing. However, if you withdraw your money early, you might have to pay a penalty.

GICs are considered very safe investments and are popular among investors who want a safe option that will deliver somewhat higher interest returns 1. Your principal (and often the interest) are usually guaranteed by the Canada Deposit Insurance Corporation (CDIC), though the insurer can change depending on who you take the investment with and which province you live in. Amounts up to between $100,000 and $250,000 are covered, depending on your home province.

There are several different types of GICs available in the market. Fixed-rate GICs pay a predetermined interest premium each term and are ideal if you’re comfortable locking up your money for set periods of time. Variable-rate GICs link interest payments to a fluctuating benchmark, usually the institution’s prime rate. Redeemable GICs (or cashable GICs) are a good bet if you think you might need to withdraw your money before the end of the term, as they don’t charge a penalty. Equity-linked GICs link interest payments to the performance of an underlying stock market index and offer potentially higher returns than fixed-rate GICs but come with more risk.

The current interest rates for GICs vary depending on the financial institution and the term length of the GIC. As of October 25, 2023, the highest 1-year GIC rate is 5.98% offered by WealthONE Bank of Canada .  The highest 2-year GIC rate is 5.78% offered by WealthONE Bank of Canada. The highest 3-year GIC rate is 5.52% offered by VersaBank. The highest 4-year GIC rate is 5.35% offered by BMO Bank of Montreal. The highest 5-year GIC rate is 5.30% offered by Motive Financial, National Bank of Canada, and LBCDigital.ca.

Please note that these rates are subject to change and may not be available in all provinces. It’s always a good idea to shop around and compare rates from multiple financial institutions before making a decision.




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