The rise in trade tensions ahead of the sixth round of NAFTA trade talks scheduled to start later this month suggest that those talks could already be doomed. But we still think that there’s a good chance of a new trade deal being made eventually. That said, we wouldn’t be entirely surprised or overly concerned if, hypothetically, the US administration were to pull the plug on NAFTA. Although Canada’s economy would stumble briefly, any tariffs imposed under WTO agreements would be fairly modest on average and largely offset by some expected depreciation of the Canadian dollar.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services