Trump tariifs🧐
Trump's tariffs could significantly impact the market, particularly in Canada. Here's what you need to know:
Economic Impact
- *Inflationary pressures*: Tariffs may lead to increased inflation, reducing the purchasing power of the Canadian dollar.
- *Recessionary pressures*: Higher tariffs could result in a growing current account deficit and GDP contraction.
- *Stagflation*: A combination of inflation and economic growth problems, which Canada is already experiencing.¹
Affected Industries
- *Automotive industry*: Tariffs may impact the automotive sector, as the US aims to onshore production and manufacturing.
- *Aviation and heavy machinery manufacturing*: These sectors may also be affected due to Trump's goal of boosting domestic production.
- *Other sectors*: Uncertainty surrounding tariffs may impact all market sectors, even if not directly targeted.
Resilient Sectors
- *Farmland*: Investing in farmland could hedge against inflation and recession, as food demand remains inelastic.
- *Automotive maintenance*: This sector may see growth due to increased demand for maintenance services.
- *Environmental services*: Regulation-driven growth could make this sector more resilient to market volatility.
- *Building products distribution*: The housing shortage in Canada may drive demand for building products.
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