For Canada, Trade Tumult From Trump’s Return Has Begun

Published On Nov 30, 2024, 6:00 AM

President-elect Donald Trump is indicating he may impose significant tariffs (25%) on Canadian exports to the US and 10% on imports from China starting on January 20. This moves comes after past tariffs President Trump had placed on Canadian aluminum and steel imports, which were eventually negotiated away by Prime Minister Trudeau. The meeting between Trump and Trudeau this week has left many speculating about the actual outcome, as skepticism remains about Trump's commitment to follow through with these new tariffs.

Stock Forecasts

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Negative

The potential tariffs on Canadian goods could adversely impact Canadian stocks, particularly those in the materials and export sectors. Additionally, sectors heavily reliant on trade with Canada in the US may also see negative sentiment. On the other hand, US manufacturers that compete with Canadian exports might benefit from reduced competition, potentially boosting their stock prices.

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