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Recent Editions
Risk Channel
North America
Canada is preparing for new 50% U.S. tariffs on nearly $20bn of goods from Wednesday as negotiations with Washington remain far from an agreement, raising concerns over further job losses and weaker investment. The duties will cover products including wine, furniture, dairy, cement and clothing, affecting about 5.2% of the $383bn of U.S. goods imports from Canada in 2025, and will apply even to products qualifying for preferential treatment under the U.S.-Mexico-Canada Agreement. Auto tariffs and Canada’s dairy system remain key sticking points in wider negotiations, while businesses have warned that a 50% levy could make some Canadian products uncompetitive in the U.S. and particularly hurt smaller exporters. The dispute also threatens to complicate the future of the USMCA after President Donald Trump declined to extend the agreement for another 16 years, leaving it subject to annual reviews.
Full Issue
Risk Channel
UK/Europe
A correction in US technology stocks is likely and could threaten the financial stability of the Eurozone, according to a blog post by a team of European Central Bank economists. "Economic research on past technological revolutions points to a worrisome conclusion: a correction of current stock market valuations is likely," said the post, which added that even if AI does live up to expectations and profits rise, stocks may still fall because it is hard to fulfil markets' excessively optimistic profit growth bets.
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