Canada could be on the lower end of Trump’s tariffs – report

The Toronto Star reports — citing sources — that Canada ‘could be on the lower end’ of the April 2 tariffs.

• Nothing is guaranteed
• Trump may impose three escalating levels of tariffs
• Despite a recent news report the tiered-approach is not on the table,
  the sources said it aligns with the government’s understanding of what’s
  about to hit next week
• Countries would in fact be put into low, medium or high levels
• It’s not clear what those tariff levels would be

I suspect a lot of this is already in the market but many of the questions raised in the report remain, as does the retaliation. The US may believe (rightly or wrongly) that threatening 25% tariffs may put Canada in a position to ‘tolerate’ a 5% or 10% level without retaliating.

This article was written by Adam Button at www.forexlive.com.