Trump’s Trade Termination with Canada: Potential Market Repercussions

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs. The ad was for $75,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED. Thank you for your attention to this matter! President DJT”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Donald Trump’s announcement of terminating trade negotiations with Canada could lead to a negative impact on Canadian stocks such as Canadian National Railway Company, Canadian Pacific Kansas City Limited, and Royal Bank Of Canada due to potential trade disruptions. ETFs with significant exposure to Canadian and industrial sectors, like iShares MSCI Canada ETF, Vanguard Industrials ETF, and iShares U.S. Industrials ETF, may experience volatility as investors react to potential trade tensions. Financial and industrial sector funds, including Financial Select Sector SPDR Fund and Industrial Select Sector SPDR Fund, might also face uncertainty due to the broader implications on U.S.-Canada economic relations.

Here are some of the stocks that might be affected:
Canadian National Railway Company ((CNI)),
Canadian Pacific Kansas City Limited ((CP)),
Royal Bank Of Canada ((RY)),
Vanguard Industrials ETF ((VIS)),
Financial Select Sector SPDR Fund ((XLF)),
Industrial Select Sector SPDR Fund ((XLI)),
Vanguard Financials ETF ((VFH)),
iShares MSCI Canada ETF ((EWC)),
iShares U.S. Industrials ETF ((IYJ)).