Canada Tariff Spike Adds New Trade Risk
Moves. The new rule makes it clear that any attempt to dodge the hike through rerouting gets punished hardera 40% transshipment tariff now kicks inwhile goods that still qualify under USMCA keep their preferred treatment. Trump didn't slam the door shut on talks; he even floated the idea of a conversation with Prime Minister Mark Carney later that night, so this is escalation with a sliver of a reset option.
Warning! GuruFocus has detected 7 Warning Signs with BOM:500400.
The message from Washington frames the move as emergency action to force cooperation, but for markets it just added a fresh layer of political risk to the already tight cross-border trade relationship.
Companies with supply chains straddling the border now have to factor in uncertainty, and investors will be watching whether Ottawa responds, if talks ease the tension, or if this becomes a broader tit-for-tat episode.
This article first appeared on GuruFocus.
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