Trump Escalates Trade War with Latest Tariff Hike

US President Donald Trump's latest move in the ongoing trade dispute between Canada and the US has been met with a mixed reaction from economists. The escalation of tariffs on Canadian goods, including motorcycles, dairy products, and select alcoholic beverages, is seen as having limited immediate impact on the Canadian economy.

Nathan Janzen, an assistant chief economist at RBC, stated that 'the marginal impact of the change on the Canadian economy is likely relatively small,' given that many of these products already faced a 50% tariff. However, he did acknowledge that specific exporters may be significantly affected.

Scotiabank economist Derek Holt echoed Janzen's sentiments, calling the exclusion of Canadian companies from a US government procurement program 'immaterial' due to their minimal share of the market.