In a significant development reported by The Globe and Mail on Wednesday morning, two federal trade advisers indicated that Ottawa has decided not to impose levies on most US food products and components. This decision comes in the face of potential economic risks, namely the likelihood of increased costs for Canadian families, mass layoffs, and plant closures.
The move follows a report by the Wall Street Journal on Sunday, which revealed that the White House was considering implementing global tariffs of up to 20% on nearly all of the United States’ trading partners. This news sent shockwaves through international trade circles, with countries scrambling to assess the potential impact on their economies.
US President Donald Trump is scheduled to announce country – by – country global tariffs from the White House Rose Garden at 19 GMT on Wednesday. This announcement is eagerly anticipated by financial markets around the world, as it has the potential to reshape international trade dynamics.
Market Response
As of the time of writing, the USD/CAD currency pair remains under pressure near the 0.4300 mark. The Canadian Dollar (CAD) has gained some strength from Canada’s decision to avoid counter tariffs. This shows that investors are taking Canada’s measured approach as a positive sign, which is influencing the currency markets. The CAD’s resilience in the face of potential trade – related uncertainties is a key factor in the current market situation.
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