Canada Tries to Find Alternative Trading Allies as Trade War With US Escalates

Summary

Bloomberg's Thomas Seal reports from Vancouver on Canada's retaliatory tariffs and its push to deepen non-U.S. trade partnerships. He discusses the trade war's uneven impact across steel, aluminum, lumber and autos. Key market implications include tariff pass-through lifting U.S. aluminum prices and pressure on the Canadian lumber industry.

• Canada imposed new tariffs on about $20 billion of U.S. goods after negotiations failed.
• Canada is pursuing deeper trade, security, defense and supply-chain ties with the EU and talking to China and India.
• The U.S. remains Canada's most important export market.
• U.S. domestic steel and aluminum producers were not unhappy with the trade talks breaking down.
• U.S. aluminum prices have risen by more than the 50% U.S. tariff.
• Canadian lumber is a captive exporter and sawmills are closing under tariff pressure.