Economic tensions between Canada and the USA are escalating: Canadian retailers are removing US products such as whiskey and wine from their shelves, and more and more Canadians are avoiding travel to the US. Frustration with the protectionist US policy is growing - and with it the idea of closer economic ties with Europe.
Boycott hits US economy hard
❌ US whiskey and wine are disappearing from Canadian stores - manufacturers such as Brown-Forman (Jack Daniel's) ($B1FC34 ) are feeling the consequences.
❌ Fewer Canadians are traveling to the USA - the tourism sector in Florida, California and New York could suffer as a result.
❌ Rising demand for European products - French wine and Scotch whiskey in particular are benefiting.
Canadian shares as winners?
While US companies are suffering losses, there are clear winners in Canada:
📈 Shopify ($SHOP (-4,6 %) ) - e-commerce benefits from increasing online purchases of Canadian and European products.
📈 Air Canada ($AC (-2,02 %) ) - More Canadians are traveling to Europe instead of the US, which could strengthen transatlantic flight routes.
📈 Magna International ($MG (-4,38 %) ) - The automotive supplier already exports massively to Europe and would benefit from even closer market access.
📈 Nestlé ($NSRGY (-3,21 %) ) - European food manufacturers could gain market share in Canada if US products are replaced.
EU accession as the next step?
The growing rift with the USA is making discussions about closer ties with the EU louder. Full EU accession remains unlikely, but an extended economic partnership - perhaps even with the use of the euro? - is no longer ruled out.
Conclusion
Canada's departure from the USA could have far-reaching economic and geopolitical consequences. How do you see this? Is this just a short-term boycott or the start of a long-term realignment?
