As financial markets gird for a more protectionist U.S. trade policy, restructuring professionals north and south of the United States are preparing for an increase in creditor negotiations, particularly in the integrated automotive sector.
Although Canada and Mexico skirted broad national tariffs on goods for a month, they are now subject to a new 25% import tariff into the United States on steel and aluminium. The two countries, which are among the largest exporters of steel products to the U.S., should prepare for a U.S. economic policy that makes additional tariffs on other exports likely, experts said.
“Tariffs are probably coming on Canada and Mexico and other trading partners,” said Rachel Ziemba, senior fellow at the Center for a New American Security. “The question is whether they will come related to this migration and drugs trigger, or as part of USMCA renegotiations next year or in another context.”
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