Tariff Tempest North of the Border
President Trump’s announcement of a 35% tariff on Canadian goods has shocked both diplomats and investors, reigniting cross-border tension just as summer travel heats up. While the tariffs are slated to kick in on August 1, there’s hope for cool heads as White House trade adviser Peter Navarro called on Canada to “negotiate fairly” in last-minute talks. The message for Canadian leaders: play ball, or face a costly "America First" fastball straight over home plate.
Carveouts and Cliffhangers
Not every good north of the 49th parallel will get slugged by the new rate. USMCA-compliant products and crucial imports like Canadian oil and the fertilizer potash are poised for exemptions, offering a lifeline to industries on both sides of the border. Meanwhile, heavily tariffed sectors—steel, aluminum, autos, and soon-to-be-copper—are exempt, at least from Trump’s 35%, thanks to previously imposed duties ranging from 25% to 50%.
Markets Throw a Fit
The threat—no stranger to last-minute extensions—spooked investors, pushing the S&P 500 and Dow off their record highs as Wall Street digested what more protracted trade uncertainty might mean for supply chains, consumer prices, and global growth. While this isn’t the first tariff standoff of the Trump era, U.S. officials insist this is the final warning before tariffs become reality—though even that promise may be, well, negotiable. For now, Canadians, Americans, and their respective stock portfolios are united in holding their collective breath as the clock ticks down to August.
