TD's Misra Warns of Border Tax Supply Chain Impact

The video discusses the SPLC function for analyzing supply chains, focusing on GM's suppliers in Canada. It explores the potential impact of a US border tax on global trade, particularly affecting Canada. The discussion includes Canada's possible economic responses, such as monetary and fiscal measures. The video also examines US-Canada trade relations, NAFTA, and the conflicting signals from the Trump administration regarding trade policies. Finally, it addresses the challenges of modeling economic growth amid significant policy uncertainty.

What is the SPLC function used for in the context of U.S. companies?

• To analyze stock market trends

• To show supply chains

• To predict economic growth

• To calculate tax rates

What might the Bank of Canada need to do in response to U.S. trade policies?

• Strengthen the Canadian dollar

• Implement new trade tariffs

• Increase interest rates

• Cut rates and provide monetary stimulus

What is a potential consequence of a U.S. border tax on Canada?

• Significant economic harm to Canada

• Strengthened NAFTA agreements

• Improved U.S.-Canada relations

• Increased Canadian exports

What is one of the conflicting signals from the Trump administration regarding trade?

• Support for the Keystone Pipeline

• Strengthening the U.S. dollar

• Reduction in U.S. oil imports

• Increased tariffs on Canadian goods

How should economic forecasts be adjusted in light of policy uncertainty?

• By using a higher standard deviation

• By ignoring policy changes

• By focusing only on domestic factors

• By assuming stable policies