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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening! Thank you for your attention to this matter. President DONALD J.TRUMP”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Trump’s emphatic rejection of the idea that China could “take over” Canada may ease immediate geopolitical fears, which could modestly support risk sentiment in both Canadian (EWC) and Chinese (MCHI) equities by reducing perceived odds of extreme conflict or sanctions scenarios. However, the inflammatory framing of China as a strategic threat could still reinforce longer‑term concerns about U.S.–China tensions, potentially weighing on Chinese stocks and the iShares MSCI China ETF if investors anticipate more hawkish policies or trade restrictions. For Canada, the reassurance of U.S. support and alignment against such a scenario could be seen as stabilizing for its political and economic outlook, offering a slight positive bias to the iShares MSCI Canada ETF, especially in sectors sensitive to North American security and trade relations.
Here are some of the stocks that might be affected:
iShares MSCI China ETF ((MCHI)),
iShares MSCI Canada ETF ((EWC)).