We hosted an event this week featuring Eric Lascelles as guest speaker. Eric is RBC Global Asset Management’s Chief Economist, and the timing was perfect. Guess what? There was a lot of focus on tariffs…

 

 

I have a slide deck from the presentation if you would like, but here were a few of the key take-aways:

• We sometimes get caught up in the rhetoric: Canada (and all the countries), don’t pay these tariffs. The US isn’t getting any revenue from any country by charging tariffs: rather it’s the American company that imports the goods that pays and ultimately American consumers. It’s a “tax” on America.
• The initial significant pull-back in the market on “Liberation Day”, April 2nd: that would have been a bad day to panic sell: as the markets have rebounded, because the tariffs have been pushed backed, or reduced, or being re-negotiated
• Fundamentally, the U.S. still has many trade grievances and wants to shrink trade deficits, but not nearly to the extent that was originally presented
• While tariffs on Chinese goods have captured the headlines: exports to the U.S. from China is small potatoes for the Chinese economy, smaller than for Italy or Germany for instance (this surprised me a lot vs the headlines)
• Canada and Mexico of course, have the most significant tariff exposure. Canada also happens to be the US’s largest customer.

It’s Mother’s Day this Sunday. Don’t be that guy or gal and wait to the last minute to think of a way to celebrate or remember your mother, or Mother figures in your lives. The influence of mothers in society is certainly something to celebrate, and not just on Mother’s Day. Wishing all the mother’s the best on this day (to my mom and wife of course, Happy Mother’s Day the most from me!)