Tariff Talk

The Montreal Canadiens and Toronto Maple Leafs played each other north of the border for the NHL regular season puck drop this week. Two of the “Original Six” and two founding members of the National Hockey League, both teams were created before the league was founded. With both nations being die-hard hockey fans, trade tensions might impact how we experience and play the game.

As it stands, trade tensions have escalated to U.S. bans on Canadian alcohol and dairy, while hockey sticks, a small-business strength in Canada, face a 50% tariff. In response, Canada has enacted tariffs of 15%, 25%, and 50%, leaving lovers of hockey less likely to experience products of each other’s origin. Will fans cross the border to see games and enjoy each other’s cities? While Canada wages a dollar-for-dollar response, they are also leaning more into their European markets to offset the loss of U.S. business.

As the northern border ices and fear over the future of the USMCA grows, the words “trade agreement” hit headlines along with the visit of Chinese President Xi to the U.S. A year and a half ago, Chinese goods faced a 125% reciprocal tariff, while Canada was facing few new tariffs, with the embodiment of USMCA-qualified goods held intact.

The meeting between the two leaders declared a continued pause in tariff increases and materialized a U.S.–China Board of Trade, with a goal to reduce or eliminate additional tariffs placed on nearly $30 billion of goods in each direction, dubbed the “30-for-30.” Each country is publishing lists of proposed articles, with the U.S. potentially lifting tariffs on certain housewares, electronics, and toys. The committee is expected to present its findings to the board within 90 days.

OCEANAIR will continue to monitor tariff developments and their impact on our clients.