Trade War

Trade War

  • 22.03.2025 05:44
  • bnnbloomberg.ca
  • Keywords: AI, Startup

The trade war between Canada and the U.S. is causing mixed market reactions, with some indices rising while others fall. Canada is responding to American tariffs with public campaigns and domestic strategies, while businesses face challenges like cost increases and potential layoffs. Experts warn of broader economic impacts, including slower growth and inflation.

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Estimated market influence

J&J

Positivesentiment_satisfied
Analyst rating: N/A

J&J is increasing its U.S. investments by 25% over four years in response to looming tariff threats.

Canada’s largest limoncello maker

Negativesentiment_dissatisfied
Analyst rating: N/A

Facing a possible US$70,000 tariff bill, the company is on edge due to U.S. tariffs.

Context

Trade War Analysis: Business Insights and Market Implications

Market Performance

  • S&P/TSX: -91.75 (24,968.49)
  • Dow Jones: +32.03 (41,985.35)
  • S&P 500: +4.67 (5,667.56)
  • Nasdaq: +92.42 (17,784.05)
  • WTI Crude: +0.21 (68.28)
  • WCS Crude: +0.29 (57.6)
  • CDN/USD Exchange Rate: -0.0012 (0.697)
  • Bitcoin: +315.51 (84,498.89)

Tariffs and Trade Policies

  • Canada plans to erect billboards in the U.S. to generate public discontent over American tariffs.
  • J&J boosts U.S. investments by 25% over four years due to tariff threats.
  • A potential $70,000 tariff on limoncello has manufacturers on edge.
  • Canada’s startups are focusing on homegrown funding amid strained U.S. relations.

Industry Impact

  • Small business optimism in Canada: Collapsed to a 25-year low.
  • U.S. tariffs risk: Severe for Canada's export-dependent greenhouse sector.
  • Auto sector uncertainty: Concerns about phasing out due to trade tensions.
  • Steel industry opportunity: Algoma Steel CEO sees "tremendous opportunity" in steel plate.

Competitive Dynamics

  • U.S. Senator Steve Daines visits Beijing amid tariff tensions.
  • Bank of Canada adjusts rate-setting strategy amid tariff uncertainty.
  • KPMG poll: 54% of manufacturers believe they can weather a trade war lasting over a year.

Global Implications

  • OECD warning: Trump’s trade wars could sap growth in Canada, Mexico, and the U.S.
  • World growth impact: Trade tensions may lead to slower global growth and faster inflation.
  • Europe's wine industry: At risk from Trump’s 200% tariff threat.

Strategic Considerations

  • Export bans and taxes: Suggested by Canada’s Rosenberg as trade war对策.
  • Medical supplies protection: Health groups urge shielding from counter-tariffs.
  • Critical minerals importance: Both sides recognize strategic significance amid trade war.

Sector-Specific Insights

  • Copper shipments: Record exports to U.S. ports due to tariff risks.
  • Breweries and maple syrup: Vermont businesses hit by Trump tariffs on Canada.
  • Real estate uncertainty: Concerns about spring market in Nova Scotia due to economic uncertainty.

Government and Policy Moves

  • New Canada PM Carney discusses progress in US trade talks.
  • Quebec MP and businesses join Vermont senator for border discussions on trade war.
  • Japan’s exports surge, leaving a trade surplus amid tariff concerns.

This analysis highlights the multifaceted impact of the trade war on markets, industries, and global economies, emphasizing the need for strategic adaptation and policy response.