Canadians and Mexicans nervously watch the US election
Published On Oct 21, 2024, 7:02 PM
As the US presidential election approaches, both Canadians and Mexicans are closely following the situation, as the outcome could significantly influence trade relations with the US. A potential Trump victory could lead to stringent import tariffs, impacting trade with both countries, whereas a win for Kamala Harris is expected to maintain the current open trade policies. Notably, trade between the US and Mexico was valued at $807 billion last year, while trade with Canada reached $782 billion. Concerns about tariffs and their economic implications are prevalent among business owners and farmers near the US borders, raising fears about the future of mutual trade relations, especially in light of pending USMCA renegotiations in 2026.
Stock Forecasts
XLI
Negative
Given the potential for increased import tariffs if Trump wins, investors in companies reliant on trade with Canada and Mexico may face challenges, leading to a negative outlook. Conversely, a Harris victory could benefit those companies, supporting a more stable trade environment and potentially positive market sentiment.
CORN
Positive
The trade landscape is expected to remain stable or improve with a Harris presidency, which could bolster confidence among investors in sectors dependent on US-Mexico trade and overall North American agreements. This trend could lead to a positive outlook in sectors like consumer goods and agriculture.
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