The Canada-U.S. trade dispute has escalated into a high-stakes contest of tariffs and retaliatory measures, reshaping the investment landscape for Canadian equities and currency exposure. Since March 2025, U.S. tariffs of 25% on Canadian steel and aluminum, alongside a 10% tariff on other goods, have disrupted supply chains and raised costs for downstream industries. Canada’s response—retaliatory tariffs on $30 billion of U.S. goods, with a threat to expand to $155 billion—has further intensified tensions, targeting products like automobiles and agricultural staples [1]. While the Canada-United States-Mexico Agreement (CUSMA) has preserved tariff-free trade for 85% of bilateral commerce, the remaining friction points—steel, aluminum, and autos—remain critical for strategic asset allocation.
Sectoral Impacts: Steel, Aluminum, and Autos Under Fire
The U.S. tariffs have hit Canadian trade-exposed sectors hardest. Steel…
