Canada-U.S. Trade Relationship on the Brink of Permanently Altering Course

A long-standing trade relationship between Canada and the United States may be coming to an end due to the intensifying tariff war, according to prominent U.S. investment strategist Peter Schiff.

Schiff, chief economist and global strategist at Euro Pacific Asset Management, believes that as Canadian companies are forced to find new markets, those markets will become more attractive to them. This could lead to a permanent shift in cross-border trade between the two countries.

The shift is not just due to tariffs, but also a change in mentality and a more protectionist and nationalist United States, said Drew Fagan, professor at the University of Toronto's Munk School of Global Affairs and Public Policy. Canada has historically relied on the U.S. as its key trading ally, due to convenience, shared values, and cultural ties.

Schiff added that if the U.S. dollar weakens, making south of the border an even less attractive trading partner, Canadian companies will have no choice but to seek out other relationships.