$BTC President Trump's 100% Tariff Threat: Impact on Canada 🇨🇦

President Trump's warning to Canada is a strategic move, primarily aimed at China. He fears a potential trade deal between Canada and Beijing could allow Chinese goods to bypass existing American tariffs, entering the U.S. via Canada. This scenario, in his view, would undermine U.S. trade defenses.

Canada's economic reliance on the U.S. is significant, with 75–76% of its exports ($450B annually) directed south. A 100% tariff would immediately render Canadian goods uncompetitive. Past tariffs (10–25% in 2018–2019) saw Canadian steel exports drop 41% and aluminum 19%, impacting $16.6B CAD in trade and jobs. 📉

Such a high tariff could severely impact key Canadian sectors like autos, energy, steel, and aluminum. Meanwhile, Canada is actively seeking to diversify its trade relations, including rebuilding ties with China for agriculture, EVs, and batteries. This presents an economic rationale but carries significant political implications. ⚖️

The question arises: Will Canada find itself caught in the ongoing U.S.–China trade tensions? This evolving situation has the potential to introduce rapid shifts in global markets. 🌍

Follow Wendy for more latest updates

#Macro #TradeWar #GlobalMarkets