Canada: Prepare for a bloody trade war! | WHAT REALLY HAPPENED


Canada: Prepare for a bloody trade war!

In late May 2018, the U.S announced its decision (previously telegraphed and widely expected) to forge ahead with tariffs on steel (25 percent) and aluminum (10 percent) imported from Canada (and other countries too!). The mere fact that these tough, yet highly anticipated, tariffs were looming, sent the Canadian economy in a tizzy:

The S&P/TSX Composite Index dipped by 43.87 points, losing 0.27% intra-day
The stock price of Canada’s lone publicly-traded steel company, Stelco Holdings Inc., saw a 3.1% decline
The Loonie dipped by 0.7%; and
The yields on 10-year government of Canada bonds lost 4-basis points, dropping to 2.23%
If just the mere announcing of tariffs can have this type of impact, imagine what kind of ripple-effect the actual imposition and counter-imposition of more duties will have globally!

The world trading order is a highly interconnected piece of multi-lateral relationships, with the U.S. importing steel from over 100 nations. The attempt to target one specific country (in this case, China) through the broad imposition of steel and aluminum tariffs, will have a domino effect.

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