Canada is central to Trump's tariff talk. The reasons why are varied.
Published On Jan 22, 2025, 12:36 PM
The article discusses former President Trump's renewed focus on Canada regarding possible tariffs. Trump has claimed Canada is abusing trade agreements and is considering imposing a 25% tariff. His rhetoric surrounding Canada is notably more aggressive compared to other countries like Mexico and China. Analysts suggest that the USMCA trade agreement is a crucial factor in this focus, with potential negotiation talks on the horizon. Economic repercussions could be significant if tariffs are implemented, possibly leading to a recession in Canada. Canada's response could include retaliatory measures against US goods.
Stock Forecasts
XOM
Negative
Given Trump's aggressive tariffs threat against Canada, the economic tension could negatively impact companies heavily involved in trading with Canada, particularly those in energy and materials. We may see volatility in asset prices linked to these sectors.
CP
Negative
Companies like Canadian Pacific Railway are intricately linked to trade with the US and may face challenges due to increased tariffs. This could also affect logistics and related sectors negatively.
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