President Donald Trump claims Canada has not done enough to control the flow of drugs and illegal immigrants into the U.S. As a result, Trump announced that he might impose a 25% tariff on goods imported from Canada as early as February 1st. This means Canadian products sold in the U.S. could become more expensive.

Expected Impact· These tariffs could raise the prices of Canadian goods in the U.S. and reduce demand for them.· The full impact is complex and depends on various factors like currency changes and the availability of U.S. alternatives.

Canada’s Response· The Canadian government plans to retaliate if these tariffs are imposed.· Canada might put tariffs on $38 billion worth of U.S. imports, potentially increasing to $150 billion if needed.
Potential Effects· Canada might feel a more substantial economic impact than the U.S.· About 20% of Canada’s GDP comes from exports to the U.S., while only 1% of U.S. GDP is from exports to Canada.
Market Reaction· The Canadian dollar has weakened significantly recently, suggesting investors are concerned.· However, remember that markets often react before economic changes occur, so some of this bad news may already be reflected in current prices.

What This Means for YouThese trade tensions could impact various sectors and the overall economy. While the situation is still developing, it is essential to stay informed and think long-term. We will continue to monitor the situation closely and provide updates as needed.

As always, maintaining a diversified portfolio and focusing on long-term goals is crucial during times of market uncertainty. If you have any concerns about how these developments might affect your portfolio, please don’t hesitate to call us.

Have a great weekend,

Tracey & Paige

Source: https://eng2e.seismic.com/i/Sshet0GJ6bfpUDTkjDBWrilVNL2gtH2o2iChNAJJUqwKUEN9O4eIzF6o8rxXu5NJkNsMVOPLUSSIGNRA6iUsHYYURTHKjNqPLUSSIGNcpll4zRgIlfmKsE7w8EQUALSIGN
Photo by Hermes Rivera on Unsplash

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