UBS’s Paul Donovan comments on US President Trump’s social media attacks on Canada, including threats to block a US-Canada bridge and link a Canada-China trade deal to ice hockey in Canada. Donovan argues such outcomes are unlikely and expects markets to discount this rhetoric, noting that several threatened tariffs on Canadian and Iranian-linked trade have yet to materialize.
Trump threats and market reaction
“US President Trump’s social media accounts published an attack on Canada, threatening to block the opening of a US-Canada bridge (named after a Canadian hockey player), and suggesting a Canada-China trade deal would end the playing of ice hockey in Canada.”
“This seems an unlikely outcome in the post-“Heated Rivalry” environment.”
“Despite the tone of the statements, markets are likely to discount this rhetoric (tariffs on US importers of goods from Iranian trading partners, 100% tariffs on US importers of Canadian goods, and 50% tariffs on US importers of Canadian aircraft have yet to materialize).”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/us-trade-rhetoric-seen-as-market-noise-ubs-202602101858
