Tariff Deal with Washington Gives Canada 'Green Light for Growth'

Dow Jones08-20

1018 ET - Details emerging about the tentative trade pact between the U.S. and Canada means "a green light for growth" for America's northern neighbor, says Derek Holt, economist at Bank of Nova Scotia. Based on some details emerging, per reporting by WSJ and other outlets, Holt calculates the overall tariff rate on U.S.-bound Canadian exports would be 3.7%, compared to the present 5.5% level. On a global basis, the total tariff rate on all Canadian exports drops to 2.8%. The rates were much lower prior to President Trump's second term, Holt says. Still, the result "is next to nothing by way of an incremental overall tariff burden," and rates that "vastly lower" than what the US is applying against other countries. He envisages two Bank of Canada rate hikes in 4Q.

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