Scotiabank: Keep calm toward Canada-U.S. trade talks
Markets showed little reaction to U.S. President Donald Trump’s claim that he had ended trade talks with Canada, following Ontario’s Ronald Reagan ad. The Canadian dollar dipped just 0.25% and TSX futures remainedg flat. Scotiabank Vice President and Head of Capital Markets Economics Derek Holt argued that “Ontario’s ad is not ‘fake’ as Trump claims,” adding that “Reagan went on to rail against protectionism and the general use of tariffs while expressing strong support for free trade, including with Canada.” Analysts suggested the muted market response reflects recognition that “President Trump is an overly emotional, erratic and impulsive President” whose statements often change quickly.
