May 2025 Market Update from Canada Life Investment Management

Global equity markets ended higher over May as trade talks between major economies and the delay of tariffs against several economies lifted investor sentiment. The U.S. and China agreed to pause higher tariffs for 90 days, while the U.S. agreed to delay tariffs on the European Union (“EU”) as talks move forward. Near the end of the month, a U.S. court blocked the additional tariffs, requesting they be removed in 10 days. However, the U.S. Presidential Administration immediately appealed the decision. An appeals court temporarily removed the earlier ruling. Tariffs are still in place, but their legality is being considered by the court system. At the end of the month, U.S. President Donald Trump announced he would raise the tariff on aluminum and steel from 25% to 50% in early June.