BMO Equity Research IN Tune Impact of U.S. Tariffs on Canada's Economy, Equities, Oil, Autos, and Banks
Feb 3, 2025
Tamy Chen, a Consumer Analyst at BMO Capital Markets, dives into the turbulent waters of U.S. tariffs on Canada. She discusses the impending negative impacts on Canada's economy, forecasting declines in growth and rises in inflation. Tamy highlights the vulnerabilities of the North American auto sector, particularly for companies like Linamar, and explores how these tariffs could affect vehicle pricing and supply chains. Additionally, she assesses the resilience of Canadian banks amidst these challenges, suggesting potential opportunities for adaptation.
AI Snips
Chapters
Transcript
Episode notes
Tariffs' Impact on Canadian Economy
- The U.S. tariffs on Canada are negative for growth and will increase inflation.
- The degree of impact depends on how long these tariffs remain.
Investment Strategy Amidst Tariffs
- Don't overreact to market drawdowns; view them as opportunities.
- Focus on stock picking and consider companies with U.S.-based revenue.
Impact of Tariffs on Oil and Gas
- U.S. consumers, particularly in the Midwest and Rockies, will bear some tariff burden on oil.
- A weaker Canadian dollar could benefit Canadian oil and gas producers.