U.S.-Canada Trade: 5 Key Takeaways This Week
1. Trade Uncertainty Isn’t Going Away
The U.S. delayed 25% tariffs on Canada & Mexico for 30 days, but uncertainty lingers. More trade policies, including the America First Trade Policy (April 1) and USMCA review (2026), will keep trade tensions in focus.
2. The Bank of Canada May Cut Rates Further
If aggressive tariffs return, the Bank of Canada is likely to cut interest rates to counter economic slowdowns. Markets have already priced in additional rate cuts, showing expectations of weaker economic growth.
3. Canada’s Response Will Impact Prices
Canada has hinted at retaliatory tariffs on $155B of U.S. goods. The first $30B in tariffs target U.S. imports, with a focus on food. This could increase prices for Canadian consumers but may also push importers to seek alternative suppliers.
The U.S. delayed 25% tariffs on Canada & Mexico for 30 days, but uncertainty lingers. More trade policies, including the America First Trade Policy (April 1) and USMCA review (2026), will keep trade tensions in focus.
2. The Bank of Canada May Cut Rates Further
If aggressive tariffs return, the Bank of Canada is likely to cut interest rates to counter economic slowdowns. Markets have already priced in additional rate cuts, showing expectations of weaker economic growth.
3. Canada’s Response Will Impact Prices
Canada has hinted at retaliatory tariffs on $155B of U.S. goods. The first $30B in tariffs target U.S. imports, with a focus on food. This could increase prices for Canadian consumers but may also push importers to seek alternative suppliers.
4. Tariffs Will Affect Provinces Differently
Manufacturing-heavy provinces like Ontario, Quebec, and New Brunswick will be hit hardest, while energy-producing provinces (Alberta, Saskatchewan) may fare slightly better as Canadian oil exports face only a 10% tariff instead of 25%. B.C. and Nova Scotia are less affected due to diversified exports.
5. Government Support & Long-Term Reforms
If tariffs remain for 3-6 months, the risk of recession rises. Governments have signaled potential economic support, but long-term strategies like investments in critical minerals & tax reform may be needed to boost Canada’s economic resilience.
How will this impact mortgages & home prices? Stay tuned for insights!
Manufacturing-heavy provinces like Ontario, Quebec, and New Brunswick will be hit hardest, while energy-producing provinces (Alberta, Saskatchewan) may fare slightly better as Canadian oil exports face only a 10% tariff instead of 25%. B.C. and Nova Scotia are less affected due to diversified exports.
5. Government Support & Long-Term Reforms
If tariffs remain for 3-6 months, the risk of recession rises. Governments have signaled potential economic support, but long-term strategies like investments in critical minerals & tax reform may be needed to boost Canada’s economic resilience.
How will this impact mortgages & home prices? Stay tuned for insights!
Alexander Gasenko, Mortgage Broker
DLC Maple Mortgage Group, Lic #13415
DLC Maple Mortgage Group, Lic #13415
Sign up with
your email address
to receive news
and updates.
Subscribe
