Some Canadian Goods to Become 'Uncompetitive' with New Trump Tariff
Dow Jones
Yesterday
11:00 ET--It would be a mistake to dismiss the impact of the Trump administration's new 50% tariff on $20 billion of Canadian goods, says National Bank of Canada economists. For sure, 80% of Canadian goods will remain exempt from U.S. tariffs. Still, for firms directly affected, National Bank says the new tariff "could simply render their products uncompetitive in the U.S. market ... A prohibitive tariff concentrated in a handful of sectors can trigger a sharp drop in exports, lost market share, factory closures and weaker investment." The economists estimate the average tariff on manufacturers will jump to 10% from the current 6% level. National Bank adds it is paramount that Canadian policymakers tackle domestic factors that thwart growth as a way to soften the tariff blow.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.