Canada-US Trade Tensions Simmer Ahead of Tariff Deadline

The Canada-US trade dispute is heating up as the August 19 deadline for 50% tariffs on $20 billion of Canadian exports approaches. This marks the 10th anniversary of The Tragically Hip's final concert, and the original Canada-U.S. Free-Trade Agreement (FTA) is nearing its 38th birthday. The FTA has undergone several transformations since its inception in 1988, including a name change to NAFTA in 1995 and then the USMCA in 2020.

Courageously, the Canadian economy has held up remarkably well despite 21 months of tariffs and trade threats. In fact, consumers have been particularly resilient. While growth and employment were flat in the first year of the trade fight, there are signs that the economy is turning the corner with purpose more recently.

The Canadian dollar is now at its strongest level in almost three months, above 72 cents (or $1.387/US$), and the TSX has been on an absolute tear, hitting a series of record highs this week and is up a towering 45% since the first tariff threat.