US: Trade rhetoric seen as market noise – UBS

UBS’s Paul Donovan comments on US President Trump’s social media attacks on Canada, including threats to block a US-Canada bridge and link a Canada-China trade deal to ice hockey in Canada. Donovan argues such outcomes are unlikely and expects markets to discount this rhetoric, noting that several threatened tariffs on Canadian and Iranian-linked trade have yet to materialize.

Trump threats and market reaction

"US President Trump’s social media accounts published an attack on Canada, threatening to block the opening of a US-Canada bridge (named after a Canadian hockey player), and suggesting a Canada-China trade deal would end the playing of ice hockey in Canada."

"This seems an unlikely outcome in the post-“Heated Rivalry” environment."

"Despite the tone of the statements, markets are likely to discount this rhetoric (tariffs on US importers of goods from Iranian trading partners, 100% tariffs on US importers of Canadian goods, and 50% tariffs on US importers of Canadian aircraft have yet to materialize)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)