New US tariffs on $20B Canadian goods take effect after talks collapse, sparking warnings of higher prices and political fallout ahead of midterm elections.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Donald Trump is facing opposition from Republican lawmakers and former allies over his new tariffs on Canadian goods, with warnings that the trade fight will raise prices for American households and businesses ahead of November's midterm elections.
Tariffs covering US$20 billion of Canadian products took effect Saturday, hours after talks between Washington and Ottawa collapsed Friday night. The new levies sit on top of existing U.S. duties on Canadian steel, aluminium, lumber and vehicles.
A Federal Reserve official said the prolonged dispute could keep inflation elevated. Tariffs push up import costs, and companies often pass those costs along to consumers. The Fed has been working to bring inflation back to its 2% target.
Prime Minister Mark Carney said Canada would soon announce "dollar-for-dollar" retaliatory tariffs on American goods. He did not say when they would take effect. U.S. trade representative Jamieson Greer said Washington would respond to any Canadian retaliation.
Senator Susan Collins of Maine, a Republican facing a tough re-election campaign, said the "on-again/off-again trade talks" between the two countries would "lead to higher costs, risk and uncertainty for Maine businesses." The new tariffs would "increase costs for Maine families, as most businesses will have no choice but to pass on the tariffs to their customers through higher prices," she added. Collins said Trump "must consider the negative impact of tariffs" and "work to reach a fair agreement" with Carney's government. Maine shares a long border with Canada, and cross-border trade supports thousands of jobs in the state.
Mike Pence, Trump's first-term vice-president, told CNN on Sunday that "the last thing we need right now, as our economy is getting back on its feet, is a trade war with Canada." Pence's rebuke underscores the political risk for Trump, who campaigned on lowering consumer prices and growing the economy.
Collins's race is one of a handful that will determine control of the Senate. Democrats hold a narrow majority heading into November.
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