Bank of Canada: The impact of tariffs on the market is still uncertain

On February 27, strategists at the Royal Bank of Canada’s Capital Market said that so far, the market’s response to Trump’s tariff threat has been relatively muted. Many of the threats have yet to materialize, and Trump has said he is considering delaying the tariffs on Canada and Mexico for another month. Economic data have not yet reflected this uncertainty. "The extent to which lingering tariff uncertainty will impact markets and overall economic outcomes remains unclear. In any case, the economy is developing, with the economies of Europe and Canada improving, while the exception of the United States may be fading. Trump on Wednesday threatened to impose a 25 percent tariff on goods from the European Union. Euro and Eurozone bond yields fell slightly, but the impact is limited for now.