Trump’s Trade Termination with Canada: Implications for Tech Stocks and ETFs

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period. Thank you for your attention to this matter!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Donald Trump’s statement could lead to increased volatility in the stock market, particularly affecting American technology companies like Apple Inc, Alphabet Inc. Class A, and Microsoft, as they may face new trade barriers and tariffs in Canada. The Invesco QQQ Trust, Technology Select Sector SPDR Fund, and Vanguard Information Technology ETF, which have significant holdings in these tech giants, might experience fluctuations due to potential trade tensions. Additionally, the iShares MSCI Canada ETF could be impacted by the anticipated tariffs on Canadian exports to the U.S., leading to uncertainty in Canadian markets.

Here are some of the stocks that might be affected:
Apple Inc ((AAPL)),
Alphabet Inc. Class A ((GOOGL)),
Microsoft ((MSFT)),
Invesco QQQ Trust ((QQQ)),
Technology Select Sector SPDR Fund ((XLK)),
Vanguard Information Technology ETF ((VGT)),
iShares MSCI Canada ETF ((EWC)).