Canada’s response to U.S. tariffs on Canadian goods
From farmers and miners to housing builders and restaurants owners’ claims to tariffs on Sunday (25 % and 10 % of Canadian goods) representatives on behalf of each person’s association. At that time, both planned to take effect. During the Canadian revenge announced on Saturday, the tariff package will aim at Tuesday with the goal of 30 billion Canadian dollars on Tuesday, and then conducts additional US $ 125 billion in additional tariffs on American products within 21 days.
Economic impact of tariffs
Richard Lyall, chairman of the Ontario Residential Construction Committee, said in a statement on Sunday: “The United States and Canada’s actions are Lu CK and will cause economic difficulties in the United States and Canada.” “Our The state and supply chain stores are intertwined with each other and depend on each other, so no one won in the tariff war. ”
When commercial groups believe that the upcoming tariffs are so extensive, his feelings have been responded from the coast to the coast. Business analysts warn that these responsibilities may reduce Canada, push up inflation, and need a series of positive reductions in interest rates, because the country strives to make cash cheaper to keep the economy.
Douglas Porter, chief economist at BMO Capital Markets, wrote in his Sunday’s bill: “Trump’s tariff hammer will have a severe impact on Canada’s economy.” “If the announced tariffs remain, One year, the economy will face the risk of temporary decline.
He predicts that the Bank of Canada will decrease a quarter of the interest rate on each announcement, causing the benchmark interest rate in October to reach 1.50 %, which is lower than previous forecasts.
The prediction is based on BMO, indicating that the tariff will reduce the actual GDP growth to about zero in 2025, reflecting the reduction of the demand for exports of the United States
At the same time, the Canadian RSM economist Tu Nguyen predicts that tariffs will be from the current 2 % level to 2.7 %, because the cost of increasing the responsibility of the company has increased the customer. As for LONIE, she thinks it will slide more to make it lower than the current level, thus returning to the early stage of COVID-19-19. In a bill, she said to investors: “The depreciation of the Canadian dollar may reduce the export price of importers in the United States, but this exacerbates the pain of Canadian companies and consumers.”
Housing burden is risky
Economists and several business associations seem to agree that the promised tariffs are more important than 10 % of Canadian steel and 10 % of aluminum. The Trump administration applies in March 2018.
