Canadian businesses already feeling impact of Trump's tariff threats

Published On Feb 24, 2025, 5:30 AM

Canadian businesses are beginning to feel the effects of President Trump's proposed 25% tariffs on steel and aluminum imports, set to take effect on March 12. Concerns over these tariffs are leading to order cancellations and disruptions in trade between the U.S. and Canada. Many Canadian firms report falling orders and disruptions in shipments, with some companies being forced to cut shifts and reallocate inventory domestically. There is uncertainty among Canadians regarding whether the tariffs will indeed be imposed, with mixed opinions on their potential impact.

Stock Forecasts

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Negative

The proposed tariffs are likely to lead to increased costs for businesses that rely on imported steel and aluminum, potentially reducing their profitability. This could negatively impact U.S. companies in the metal sector and those dependent on these materials, resulting in bearish sentiment around their stock outcomes. As trade tensions escalate, investors might see a decline in stocks related to U.S.-Canada trade, particularly in the manufacturing and construction sectors.

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