Canada to think about export taxes on oil and uranium if Trump imposes tariffs – report
Canada these days has been floating a tough line towards potential tariffs underneath Trump. A report from Bloomberg says Canada will take into account export tariffs on oil, uranium and potash if Trump imposes the 25% across-the-board tariff he is tweeted about.
USD/CAD has risen about 15 pips and touched a recent four-year excessive on the headlines.
To be sincere, I believe that is all political bluster. Trump is not going to place 25% tariffs on Canada over border safety and Canada is not going to retaliate. It is all grandstanding and the report says this might be a “final resort”.
Shares of Canadian uranium big Cameco initially dipped on this however have shortly recovered. Canadian oil firm shares barely moved. That is a powerful signal this is not critical discuss.
This text was written by Adam Button at www.ubaidahsan.com.
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