$BTC | Trump's 100% Tariff Threat May Wreck Canada
Trump is serious about his warning to Canada — it's a drastic trade strategy targeting China. The worry is that if Canada makes a special arrangement with China, products from China could enter the U. S. through Canada, avoiding American tariffs. In Trump's perspective, Canada would serve as an entry point that weakens U. S. trade regulations.
The stakes are high. Approximately 75 to 76 percent of what Canada exports goes to the U. S., amounting to over $450 billion annually. Imposing a 100 percent tariff would immediately make Canadian goods uncompetitive in the U. S. market. Past events provide a caution: from 2018 to 2019, tariffs of merely 10 to 25 percent reduced Canadian steel exports by 41 percent and aluminum by 19 percent, affecting C$16.6 billion in trade and resulting in job losses.
Now imagine that at 100 percent.
Vehicles. Energy. Steel. Aluminum. All at risk.
Canada's strategy has been to broaden its economic connections — reinforcing relations with China in sectors such as agriculture, electric vehicles, and battery supply chains. This is a logical economic move, but it could lead to political turmoil.
Is Canada about to find itself caught amid a renewed U. S.-China trade conflict? If tensions rise, markets may quickly react.
Stay tuned to Wendy for the latest news.
#Macro #TradeWar #GlobalMarkets
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