President Donald Trump's latest tariff threat against Canada marks the starting point for potentially difficult negotiations on the US-Mexico-Canada Agreement, analysts at Canadian Imperial Bank of Commerce said. The White House announced a 50% tariff on some Canadian goods Monday, claiming unfair treatment of American alcohol, cars and dairy, with the levy set to take effect in 30 days. The tariff would apply to items including milk, hockey equipment, fishing rods and honey, but does not touch major resource products such as oil and potash. The tariffs are being applied under Section 338 of the 1930 Tariff Act, which CIBC described as an untested tool, adding that tariffs are here to stay for at least the next 30 months.
Canadian Imperial Bank Of CommerceCIBC analysts comment on tariff impact on USMCA talks, but no direct effect on bank's operations.