After much drama, Canada too has managed to avoid U.S. President Donald Trump’s threatened tariffs after Canadian Prime Minister Justin Trudeau pledged to tighten security along the border with America.
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In a post on social media, Trudeau said that Trump has agreed to pause the implementation of planned tariffs on imports from Canada for at least 30 days after the Canadian government in Ottawa pledged to tighten border security and target the flow of the deadly opioid fentanyl.
“Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border,” wrote Trudeau in a social media post.
Trade War Averted
In his post, Trudeau added that, “Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
Trudeau’s pledge follows a similar one earlier in the day by the Mexican government, which announced that it is deploying 10,000 troops to help fortify the U.S. border. The tighter border security comes after Trump said over the weekend that he would impose 25% tariffs on most goods from Mexico and Canada, and 10% tariffs on goods imported from China.
Despite the focus on fentanyl, there is little evidence that much of the deadly drug flows into the U.S. from Canada. According to the Royal Canadian Mounted Police (RCMP), the country’s federal police force, the main drug that is smuggled into the U.S. from Canada is cannabis.
Is the Vanguard FTSE Canada All Cap Index ETF a Buy?
The Vanguard FTSE Canada All Cap Index ETF (TSE:VCN), which provides broad exposure to Canadian equities, has a consensus Moderate Buy rating based on 160 Wall Street analysts. That rating is based on 132 Buy, 26 Hold, and two Sell recommendations issued in the last three months. The average VCN price target of $58.61 implies 13.09% upside from current levels.
