There will be no delay, selective targeting, or slow roll-out of phased-in tariffs as speculated by Goldman Sachs and Deutsche Bank. That said, there could be certain exemptions - such as for oil and gas, which Leavitt did not elaborate on. For now, all we have to go on is Trump's most recent comments on oil.
"It depends on what the price is. If the oil is properly priced, if they treat us properly — which they don't," he said Thursday while speaking with reporters.
The United States imported nearly 4.6 million barrels of oil per day from Canada in October, and 563,000 barrels from Mexico. Daily US production over the same period averaged nearly 13.5 million barrels per day.
So, according to DB - full tariffs with zero quarter given:
"In this scenario we would expect to see USDCAD move decidedly higher come Monday, challenging the 1.50 level and representing a more than 3% move higher in the cross relative to current spot. To be clear, Canada could retaliate with dollar-for-dollar tariffs in absolute terms since its trade relationship with the US is balanced, however, USDCAD will still be higher given that the US economy is more than 10x the size of its Canadian counterpart."On Friday, Canadian Prime Minister Justin Trudeau said that any tariffs would stoke an 'immediate' and 'forceful' response.
"We're ready with a response - a purposeful, forceful but reasonable, immediate response. It's not what we want, but if he moves forward, we will also act. All options are on the table."Canada sends 75% of its goods and services exports to the US, meaning that the tariffs will sting.
"I won't sugarcoat it - our nation could be facing difficult times in the coming days and weeks. I know Canadians might be anxious and worried, but I want them to know the federal government, and indeed, all orders of government, have their backs."Ontario Premier Doug Ford has already vowed to slap back by pulling American alcohol off of store shelves (and into his pantry?) - as Canada is the world's second largest market for America's distilled spirits, behind the 27-nation EU.
Reader Comments
It's akin to the Minsk accords.
These comments that
"Canada if totally reliant on us..."
should say,
"Canada is totally reliant on the trade commitments we made to them."
or
"Canada integrated their economy with us on trade agreements we made with them, what a bunch of idiots for believing that was binding."
or
"Canada has a small military because the only people that could attack them is us, and they don't think we'll attack them, Iran is way to big, so let's just attack Canada, they think we are trustworthy."
"This is all stuff I learned from The Mob in New York", says Donald.
Now watch as the dollar drops, your house price bottoms out, the TSE tanks and all the foreigners sell off.
We'll be ripe for the picking.
We thought we were on the same Team. How very wrong we were.
what a mess...The Libs/NDP voters on Facebook are melting down, lol.