Categories Retail, U.S. Markets News

Food and hospitality segments to suffer as Canadians boycott US vacations, goods

Evidently irked by President Donald Trump’s derogatory comments on Canadian Prime Minister Justin Trudeau and the escalation of a trade war between the two nations, Canadians are now boycotting US products and canceling their vacations to America. Canada is also seeking all options, including granting assistance to the auto industry, to deal with the potential US tariffs.

Trade tariffs have been imposed by the US on Canadian steel, aluminum, and lumber. Also, in a tweet, Trump condemned Trudeau, calling him very dishonest & weak for opposing the tariffs. The US President blamed Trudeau for not signing a joint communique with other G-7 members during last week’s meeting.

The Canadian PM, meanwhile, intends to impose disciplinary tariffs on US imports following a 25%-10% tariff on aluminum and steel from Canada and other countries as established by Trump.

Hashtags such as #BuyCanadian, #VacationCanada, #BoycottUSA, #BoycottUSProducts and their French equivalents are trending on Twitter throughout Canada. US firms operating in various segments such as food and beverages, restaurants, automobile, as well as travel and hospitality are expected to bear the brunt of the Canadian revolt.

According to USA Today, it is a mixed situation with some Canadians urging Trudeau to seek peace with Trump, while others want to hang tough.

Canada’s growth is expected to fall to 1.2% in 2020 from 2.1% in 2018 due to steel and auto tariffs, according to a Scotiabank analysis. Reuters reported that this might force Bank of Canada to lower interest rates.

After China, Canada is America’s largest trading partner. According to the Department of Commerce, Canada accounted for around $673.9 billion in trade and services in 2017.

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