CBC: Tariffs could be a tactic — or a major blow to the economy

“Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions, says the latest round of tariffs risks deepening the tit-for-tat spiral of retaliation and dragging Canada's currency to a weaker place. While the Canadian dollar slid a bit following the announcement, Schamotta says the fact that it didn't "fall off a cliff" is good news — and a sign that markets view the new proclamations as a threat. "It may be a bet that markets are making that this is a negotiation tactic as opposed to, you know, a serious effort to raise tariffs substantially on Canada," he told CBC's Hanomansing Tonight. Still, he says the 50 per cent levies could deal a "devastating blow" to the Canadian economy if they do come to pass. "It's definitely something that could inflict a lot of damage," Schamotta said. "So, you know … we can't downplay its importance right now, it's something that everyone needs to take very, very seriously."

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