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Running up debts to buy foreign goods is unsustainable in the long term. Identifying the problem is simple, but we see no easy or quick escape for the U.S. from the imbalances built up over the last four decades.
The Bank of Canada lowered its benchmark interest rate again in March, this time to 2.75% from 3%.
Although trade policies are evolving and government responses remain uncertain, here is a summary of what we know.
Tariffs can have many economic impacts, but we think investors should focus on the economic and political goals that are driving decision-making.
The Bank of Canada lowered its benchmark interest rate in January to 3% from 3.25% amid ongoing uncertainty over the threat of U.S. tariffs.
Despite potential headwinds, we are generally constructive on Canadian markets, though we expect less outperformance in credit.
North American equity markets are flirting with new highs, even as the incoming U.S. administration introduced fresh uncertainty. President-elect Donald Trump recently proposed sweeping tariffs: 25% on imports from Canada and Mexico and an additional
U.S. elections are just days away. We understand the scrutiny being placed on the presidential candidates and their policies but are mindful of the checks and balances that are built into the U.S. government structure that may constrain the next..