Dear valued client,
Markets are on track for more gains in a shortened trading week in the U.S. for Thanksgiving.
President-elect Donald Trump’s sweeping tariff proposals could have significant economic consequences for Canada, the U.S.’s second-largest trading partner. Trump announced a 25% tariff on all Canadian imports, accusing the country of failing to curb migration and drug trafficking into the U.S. This move could severely impact Canada’s economy, as 75% of its exports, including key sectors like energy, automobiles, and meat products, are destined for America. Energy, Canada’s largest export to its southern neighbor, could see price increases for American consumers, while disruptions in auto and agricultural supply chains may strain industries on both sides of the border. Canadian Prime Minister Justin Trudeau has already initiated talks with Trump, highlighting the potential for a trade conflict that could harm both economies. Economists warn these tariffs could inflate prices in the U.S. while destabilizing Canada’s trade-dependent economy, adding tension to the long-standing economic partnership between the two nations.
In addition, Trump has nominated hedge fund manager Scott Bessent as secretary of the Treasury, a decision that aligns with Wall Street preferences but diverges from Trump’s usual penchant for bold, unconventional appointments. Known for his connections to influential figures like JPMorgan CEO Jamie Dimon and his support for cryptocurrency, Bessent’s nomination surprised some, given his reputation as a “business-as-usual” choice. Despite this perception, Bessent actively campaigned for the role, offering innovative policy suggestions, including a proposal for a “shadow Fed chair” to influence monetary policy ahead of Jerome Powell’s term ending. He also advocated for using high tariffs as a strategic tool, aligning with Trump’s trade agenda. If confirmed, Bessent would make history as the first openly gay Treasury secretary, marking a milestone while also signaling a pragmatic, establishment-friendly direction for Trump’s economic team.A series of pro-Palestine demonstrations in Montreal has sparked widespread condemnation and raised serious concerns about public safety. The protests, which included vandalism, arson, and violent clashes with police, were linked to radical student groups and left-wing activist organizations such as the Coalition de résistance pour l’unité étudiante syndicale (CRUES) and Divest for Palestine. The incidents included a student-led walkout disrupting universities, graffiti and property damage, and a separate anti-Israel protest targeting a NATO Parliamentary Assembly meeting. Protesters, many masked and wearing keffiyehs, engaged in acts such as smashing windows, setting cars on fire, and “Viva, viva Intifada” chants. One participant was recorded making a fascist salute and calling for a “final solution.” These events have prompted calls from Conservative lawmakers for an emergency parliamentary investigation into the violence and its implications for Canadian public safety, with leaders across the political spectrum, including Prime Minister Justin Trudeau, denouncing the disorder.
Luckily, the temperature surrounding this conflict will likely lower precipitously as
Israel and Hezbollah have reportedly reached a U.S.-brokered cease-fire agreement, marking an end to over a year of intense conflict. The truce, expected to be approved by Israel’s cabinet, requires Israel to withdraw from Lebanon within 60 days while Hezbollah relocates its weapons further north, away from the Israeli border. The conflict, which began in October last year with Hezbollah attacking Israel in solidarity with Hamas in Gaza, has claimed more than 3,500 Lebanese lives, making it Lebanon’s deadliest war in decades. Israeli Prime Minister Benjamin Netanyahu stated the cease-fire would enable Israel to address threats from Iran and isolate Hamas, while President Biden emphasized the U.S. commitment to ensuring the deal’s full implementation. However, no cease-fire has been reached in the ongoing Israel-Hamas conflict in Gaza.
“Peace is not absence of conflict, it is the ability to handle conflict by peaceful means.” – Ronald Reagan
Have a terrific weekend,
PW
