Canadian Dollar: Trade dispute risks weigh on Canada – BNY
BNY’s Geoff Yu reports that Washington is considering further trade penalties against Canada after Ottawa’s dollar-for-dollar retaliation to new U.S. tariffs. Canada plans to double counter-tariffs on U.S. steel and aluminum and add new duties on a range of goods.
Canada faces growing trade dispute risks as Washington weighs additional penalties, according to BNY’s Geoff Yu. Ottawa’s retaliatory measures against U.S. tariffs have triggered a sharp decline in bilateral relations. In response, Canada plans to double counter-tariffs on U.S. steel and aluminum, while adding new duties on goods such as dairy, furniture, clothing, and electronics.
The escalation threatens to inflict approximately USD 20 billion in annual U.S. export losses. The dispute follows the failure of recent trade negotiations, exacerbating tensions further. Furthermore, the conflict could generate political pressure in U.S. manufacturing states heavily impacted by potential Canadian retaliation. Washington is contemplating higher tariffs and further measures as a retaliation, already threatening 50% auto tariffs on Canada from January.
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