Trump Tariffs Pose Asymmetric Risk to Toronto Equity Investors

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Trump Tariffs Pose Asymmetric Risk to Toronto Equity Investors
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Equity investors in Toronto and New York face vastly different risks following President-elect Donald Trump’s threat to ramp up tariffs on cross-border trade to 25% from previous expectations of 10%.

Founder of Zechner Associates John Zechner explains which stocks he believes could be vulnerable under Trump's proposed tariffs.

Those are merely the names with most exposure to the US economy. More than a third of the stocks on Canada’s main stocks benchmark have revenue booked in the US, including some of the country’s largest companies like Canadian National Railway Co., Barrick Gold Corp. and Cenovus Energy Inc. Some of country’s largest manufacturers, including auto parts company Magna International Inc. and watercraft maker BRP Inc., are doubly exposed — producing goods in both Mexico and Canada.

US investors, by contrast, have significantly less to fear in the form of retaliatory tariffs from Canada and the impact to revenue and earnings.

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