News
Insight
Copy me
Today, at 12:31 UTC, Canada’s own Chrystia Freeland hinted that if the US imposes a 25% tariff, Canada would respond dollar-for-dollar, starting with 100% tariffs on key US exports like Tesla vehicles and U.S. wine, beer, and spirits.
Link to this post has been copied to your clipboard!
Insight
A Surge For "Made In Canada"
Canadian businesses and consumers are doubling down on local suppliers. Recent polls show an uptick in Canadian nationalism as individuals are looking to support the Canadian market in any way they can.
There is a massive opportunity for businesses that position themselves as the go-to Canadian option. If you can deliver quality, consistency, and a local “Made in Canada” narrative, you’ll win big in this shift in market dynamics.
Link to this post has been copied to your clipboard!
News
Key Moment
Steel And Aluminum Hit With 25% Tariffs
Trump suddenly imposes the 25% tariff on all steel and aluminum imports, including from Canada and Mexico, sparking criticism from Canadian officials and industry leaders.
The tariffs take into effect immediately. Canadian politicians condemned the move with some calling for an early renegotiation of the CUSMA trade deal.
Link to this post has been copied to your clipboard!
News
Canadian Economic Summit Announced
Trudeau announces a joint Canada-U.S. Economic Summit to be had on Friday February 7, 2025. The goal is to find a path towards a no tariff policy, increasing investments and easing internal trade barriers. It will also explore opportunities to break down barriers between provinces and territories.
Link to this post has been copied to your clipboard!
News
Tariffs Delayed Until March 2025
After meeting with Trudeau the Trump Administration has decided to delay the tariffs by one month to March 2025. In return Canada has announced a 1.3B dollar plan to tackle the illegal movement of drugs between the borders. It's still unclear if the tariffs will stick but negotiations will continue behind the scenes. Analysts believe some tariffs will still land as Trump eyes to reduce the debt deficit in the United States.
Link to this post has been copied to your clipboard!
Fiscal Support
Canadian Relief For Impacted Businesses
As new U.S. tariffs are expected take effect on February 4, 2025, the Canadian government is offering businesses a path to relief through a remission process.
Companies that rely on U.S. imports and face supply chain challenges can request tariff exemptions if goods are unavailable from Canadian or non-U.S. sources, or if tariffs would cause severe economic harm.
Eligible Canadian businesses must provide detailed documentation on sourcing limitations, production costs, and economic impact.
Zero Draft AI will help streamline the application process for any impacted businesses looking to file for these claims.
Book a free consultation and get actionable insights for your business free of charge.
Link to this post has been copied to your clipboard!
Insight
AI, Crypto And TSMC To Be Impacted
Trump has consistently announced that he will be placing tariffs on foreign produced computer chips, semiconductors, and likely a ban on usage of foreign AI. This will likely spark rising costs for Canadian businesses as well.
AI Impact:
- Higher Infrastructure Costs: Nvidia GPUs and AI server components will become more expensive. These prices are likely to trickle into non-US markets to compensate for profit losses.
- Investment Shifts: AI firms may divert funds from R&D to manage rising costs and shifts in legal policy. Canada is likely to capitalize on this with their existing Pan-Canadian AI strategy with a focus on commercialiation.
Crypto Impact:
- Rising Mining Costs: More expensive GPUs could reduce mining profitability going forward. If so, this might translate into higher prices for crypto assets.
- Hashrate Migration: Miners may relocate to regions with lower costs and stability in their fiscal policy.
TSMC Impact:
- Chip Pricing Pressure: As the world’s largest semiconductor foundry, TSMC faces higher costs for exporting to the U.S., potentially impacting Nvidia, AMD, and Apple. This will impact consumer products like laptops and smartphones but also any businesses that depend on cutting edge chips.
- Production Relocation Challenges: TSMC’s Arizona plant may become more critical, but scaling domestic production is slow and expensive. It will likely take multiple years before we see any meaningful output from any US based computer chip manufacturing plants.
AI, Crypto, and Semiconductor firms must brace for rising costs, supply chain shifts, and potential production realignments.
Link to this post has been copied to your clipboard!
News
Counter Tariffs Announced
Canada will impose a dollar for dollar 25% tariff on C$155 billion of U.S. goods in response to U.S. tariffs, with C$30 billion effective Tuesday February 2 and the rest in 21 days. Prime Minister Trudeau warns of economic harm to the U.S. and urged Canadians to support domestic products and travel.
Link to this post has been copied to your clipboard!
Insight
Steel And Aluminum At Risk
The Globe and Mail reports that the US government will impose 25% tariffs on Canadian goods starting February 4. This strategic move is poised to escalate trade tensions, potentially affecting key sectors like steel and aluminum.
Manufacturers and business owners, especially those operating cross-border, should brace for increased cost and a ripple effect in supply chains as the dispute unfolds.
Link to this post has been copied to your clipboard!
News
Trade War Begins
Trump confirms Canadian tariffs which are expected to take into effect on Tuesday February 2. Canada and Mexico are hit with 25% tariffs while China is hit with 10%. Trump is hoping to prevent the movement of illegal drugs and migrants on the US border. It's unclear if he will lift the tariffs even if those issues are resolved as he eyes for tariffs across the EU and Asia as well.
Link to this post has been copied to your clipboard!
Insight
Ripple Effect On Consumer Spending
No matter what industry you work in, tariffs will impact consumer spending.
In 2018, the U.S. imposed a 25% tariff on steel and 10% on aluminum, raising costs for Canadian producers, who passed these onto consumers.
For example, washing machine prices in the U.S. rose 12% due to these tariffs.
Increased raw material costs affected various sectors, leading to higher prices for goods and services, which strained household budgets and reduced spending.
The tech industry will also likely raise prices due to higher costs from affected sectors.
This chain reaction—from tariffs to increased costs and reduced spending—is something businesses and consumers must monitor closely.
Link to this post has been copied to your clipboard!
Insight
Trade War Likely To Escalate
Both countries have shown commitment to escalating back and forth tariffs. Canada is, unfortunately, positioned to lose more from this exchange.
Immediate Production Disruption: The new tariffs threaten to immediately disrupt production for any manufacturer that relies on cross-border components or materials. Steel, aluminum, lumber, and chips all seem under threat.
Severe Job Losses: Projections suggest that significant job losses, potentially reaching 500,000 in regions like Ontario, could affect all manufacturing sectors.
Federal Intervention: The Federal Government expressed willingness to impose pandemic levels of financial support to affected businesses, in particular directly affected business like manufacturers.
Likely To Stick: It is unlikely the tariffs will quickly settle due to Trump's desire to reduce the deficit. Since Canada is their largest trading partner they are a likely candidate for long term tariffs.
Manufacturers should especially brace for the impacts since they will experience costly supply chain disruptions. Some markets might not event remain profitable anymore. They should all keep eye to any federal announcements as they contain important information for claiming fiscal support.
Link to this post has been copied to your clipboard!
News
Canada To Retaliate Against Tariffs
A series of reports detailed Canada’s possible targeted retaliatory approach (drawing on past examples like specific tariffs on Florida orange juice and select whiskeys) and noted that this will likely trigger a trade war between the two countries.
Link to this post has been copied to your clipboard!
News
Key Moment
Trump Announces 25% Canada Tariff
After campaigning on implementing tariffs against US trading partners, president Trump follows through by announcing 25% tariffs against Mexico and Canada. China is expected to also receive a 10% tariff and they are expected to be declared on Saturday February 1st.
Link to this post has been copied to your clipboard!