In Case You Missed It...

If you missed our webinar this week, here’s a summary of the key insights we discussed regarding U.S. tariffs, economic impacts, and what’s ahead.

What You Need to Know:

• Tariff Uncertainty & Escalation: The U.S. has shifted from threats to action, implementing tariffs that directly impact global trading partners like China and Canada. The evolving nature of these policies continues to create uncertainty for businesses and markets.
• Economic Impact: Tariffs are projected to reduce U.S. GDP growth by 0.5% and Canada’s by 2%, with Canada feeling a greater impact due to its dependence on U.S. trade.
• U.S. Trade Strategy & USMCA: The administration’s goal appears to be reducing reliance on Canadian and Mexican manufacturing, potentially renegotiating key aspects of the USMCA before its scheduled 2026 review.
• Auto Industry & Reciprocal Tariffs: The U.S. considers Canadian sales taxes (HST, GST) as tariffs, which could trigger new U.S. tariffs as early as April. If auto tariffs are applied, U.S.-made vehicles could rise in price by 3%, while Canadian/U.S.-manufactured cars could see a 20% increase, incentivizing a shift of production back to the U.S.
• Border Security & Trade Politics: The U.S. is leveraging border security concerns, including the fentanyl crisis, to justify trade disruptions, reinforcing its economic protectionist approach.

Looking Ahead:

While tariffs present short-term challenges, they appear to be part of a broader U.S. strategy to reshape trade dynamics and strengthen domestic production. Markets are reacting to this continuing uncertainty, and central banks may be required to take steps to stabilize growth amid these shifts.

If you’d like to discuss how these developments may affect your portfolio or business strategy, feel free to reach out.