Pres. Trump announced plans to reduce government size and promote private sector growth, while also signing actions related to the public service loan forgiveness programme. He remarked on Canada’s high tariffs on lumber and dairy, expressing intent to impose reciprocal tariffs soon.
Trump asserted that the EU has been an abuser of tariffs, foreseeing a preference for manufacturing jobs over government roles. He anticipates positive economic reports, noting minimal disturbances currently.
International Concerns And Trade Policies
Regarding international matters, Trump indicated increasing tensions with Iran and the ongoing conflict in Ukraine. The USDCAD exchange rate has risen above its 100 and 200-hour moving averages, reaching 1.4388.
Trump’s recent comments on trade policies and government downsizing indicate a clear shift towards prioritising private enterprise. His emphasis on reducing the public sector, while promoting industry, signals potential changes in market liquidity and investor behaviour. The mention of upcoming reciprocal tariffs on Canadian goods introduces considerations for market participants exposed to currency fluctuations between the US dollar and the Canadian dollar. Given his stance, the near-term movements in tariff-related commodities should not be overlooked.
His criticism of the European Union highlights a continuing theme of trade disputes, particularly regarding manufacturing. If policies favour production within national borders, demand shifts could appear in sectors reliant on imports or exports. Employment distribution is another factor, as shifts away from government positions create dynamics in consumer growth and spending habits.
Geopolitical Risks And Market Reactions
On the geopolitical front, Trump’s remarks on Iran and Ukraine suggest areas of potential disruption. Increased friction in these regions often leads to price swings in commodities, particularly energy markets. While the broader economic outlook remains relatively stable according to his observations, sudden developments in these conflicts could introduce rapid changes.
The move in USDCAD beyond its 100- and 200-hour moving averages reflects a trend worth monitoring. With the exchange rate reaching 1.4388, resistance and support levels become focal points. Any external pressures arising from trade realignments, tariff announcements, or geopolitical risks could reinforce or reverse this behaviour. The coming weeks will likely bring clearer signals on whether this movement sustains or adjusts.
