Canada-US Trade Tensions Spark Concerns Over Economic Uncertainty

Pierre Ouimet, head investment strategist at UBS Canada, expressed concerns about the impact of trade tensions between Canada and the US on the country's economy. He stated that every new Canadian trade deal seems to bring 'a certain amount of ire' from the US, creating an environment of uncertainty.

Ouimet noted that a prolonged trade war with the US is not ideal for Canada's economy or its financial markets. He emphasized the need for Canada and the US to negotiate a solid trade deal, citing the current situation as 'not exactly where we want to be.'

The comments come after Prime Minister Mark Carney announced a potential trade deal with India, which Ouimet sees as another trade deal that could further strain relations with the US. He also mentioned the EU's offer for Canada to become its first associate member, which was met with criticism from US President Donald Trump.