The Tarriff Hype.
- Thread starter petros
- Start date
Most of them are foreign owned. BHP developed Jansen. Mosaic HQ is in Chicago. Canadians do work there though.
And at the Port of Vancouver and our two railroads . Not to mention royalties etc.
LONDON, July 27 (Reuters) - In the end, Europe found it lacked the leverage to pull Donald Trump's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour.
As such, Sunday's agreement on a blanket 15% tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China.
US, EU agree trade deal, EU will see 15% tariff across the board — Reuters
U.S. President Donald Trump on Sunday said the United States and the European Union had reached agreement on a trade deal that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment.
U.S. inflation has begun to tick higher, rising to an annual rate of 2.7 per cent in June from 2.4 per cent in May. And economists think more inflation is likely in the pipeline for the second half of the year as U.S. importers run down inventory they built up before the tariffs came into force, and the U.S. labour market remains tight.
Royal Bank of Canada economists Mike Reid and Carrie Freestone said in a note to clients that the Fed may need to remain on hold through the fall, with a risk that it “will need to continue to wait to start a cutting cycle, until such time that the tariff impacts subside, likely not until 2026.”
After cutting its policy rate eight consecutive times in 2024 and early 2025, the Bank of Canada has been on hold since April. There’s little chance that’s going to change this week, with financial markets pricing in less than 10-per-cent odds that the bank will cut on Wednesday, according to LSEG data.
“If you haven’t won the last battle [over inflation], and you don’t know what to expect going forward, you probably just sit on your hands,” said Mr. Holt.
With a hold fully priced-in, the main question is what signal BoC Governor Tiff Macklem will send in his press conference on Wednesday.
think the bank will likely need to resume cutting in the fall, as the negative impact of Mr. Trump’s trade war on the Canadian economy becomes more clear.
So far, the tariffs have been masked by a spike in Canadian exports to the U.S. in the first quarter as companies rushed goods across the border to beat the levies, said Darcy Briggs, senior vice-president and portfolio manager for Franklin Templeton, who oversees Canadian fixed-income strategy.
But that dynamic will likely go into reverse in the second quarter, Mr. Briggs said in an interview, weighing on Canadian GDP. Moreover, trade uncertainty has frozen business investment, and Canada could face additional trade shocks if Mr. Trump proceeds with sectoral tariffs on copper, lumber and pharmaceuticals, among other industries he’s threatened.
“The ultimate magnitude and duration of these tariffs are completely unknown because you could come to an agreement and that could be in place for a month and then, [Mr. Trump could say], ‘You did something we don’t like, so we’re going to reopen that up.’ So it just freezes everything, because a handshake doesn’t mean it’s a final deal,” Mr. Briggs said.
Bank of Canada, Fed expected to remain on hold as Trump’s tariffs, attacks on Powell muddy monetary policy — The Globe and Mail
Both central banks will deliver rate decisions on Wednesday, two days before the Aug. 1 deadline that Trump set to strike a trade deal with Ottawa