US-Canada Trade War: What Happens Next?

Summary

Bloomberg's Melissa Shin explains that U.S.-Canada trade talks collapsed despite earlier optimism, with 50% tariffs now in effect on selected Canadian goods and a threatened 50% auto tariff delayed until around January 1. She says negotiators understand the auto sector's importance to both economies, while current tariffs mainly hit small businesses and an estimated 90,000 jobs. Canadian political support for Prime Minister Mark Carney remains strong for now, but economic pain could test it. Key market exposure centers on Canadian autos, steel, aluminum, and U.S.-facing travel and consumer demand.

• U.S.-Canada talks fell apart after a potential deal last Wednesday.
• 50% tariffs on some Canadian goods took effect Saturday.
• Trump threatens 50% tariffs on Canadian autos starting around January 1.
• Estimate sees 90,000 Canadian jobs affected, mostly small businesses.
• Canadian officials remain open to talks but prepared for a prolonged fight.
• Poll shows about three in four Canadians support Carney's direction.
• Canadians have been boycotting U.S. products and limiting U.S. travel.
• U.S. negotiating goals reportedly include curbing Canadian autos, steel, and aluminum.