BOC Outlook’s investigation highlights the deterioration of trade expectations about customs tariff fears
The BOC Commercial Excellence Poll (BOC) for the first quarter showed that economic activity expectations are sharply ignoring as the United States (the United States) seeks to raise a global trade war in all fields. According to BOC, companies have been appointed by an overwhelming majority to start increasing prices in an attempt to overcome the sharp import taxes imposed by the Trump administration.
The most prominent major landmarks
- BOC Q1 survey showed that the total feelings deteriorated, and uncertainty remains widely.
- The business survey index decreased to -2.14 from -1.16 in Q4 2024.
- 32 % of Canadian companies expect Canada to be in a recession within 12 months, an increase of 15 % in the fourth quarter.
- 65 % of companies believe that the costs will be paid up; 35 % of companies expect to increase selling prices directly.
- Less number of companies expect sales to increase next year.
- 23 % of companies expect inflation will remain above 3 % over the next two years.
- 28 % of companies have been a direct decrease in explicit sales during the past year.
- 66.5 % of Canadians expect stagnation in the next 12 months.
- Consumers expect inflation for 5 years to rise to 3.39 % compared to 2.99 %.
- The results of the survey were collected from February 2 to February 26, not including the latest Trump tariff announcement from April 2.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful commercial war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.
