Topic: How To Invest

What is Pat’s commentary for the week of June 26, 2018

Article Excerpt

Canadians have a long history of feeling helpless at the hands of Americans. You’ve probably heard some of the many one-liners used to describe the relationship over the years: “When the U.S. sneezes, Canada gets pneumonia” “We’re like a mouse in bed with an elephant” “We’re like the under-achieving younger sibling” This mindset affects the way Canadians see the tariffs that U.S. President Donald Trump has proposed on imports from Canada. The C.D. Howe Institute calculates that if the U.S. put a 10% tariff on all Canadian goods and services, it would cut U.S. demand for Canadian imports enough to lower our annual GDP by 0.9%. But it gets worse if Canada decides it has had enough and refuses to be pushed around anymore, as Prime Minister Trudeau recently warned. If we strike back by putting the same 10% tariff on all our imports of U.S. goods and services, C.D. Howe calculates that it would cut our GDP by 2%. That exceeds our first quarter…