Q: How will Trump’s tariff policy impact Canadian companies operating in the United States? Taking ATZ as an example, will the tariffs raise Aritzia's costs, making their clothing less competitive in the U.S. and potentially slowing their expansion there? Additionally, which Canadian companies with U.S. operations are most likely to feel the effects of these tariffs?
5i Research Answer:
Canadian companies with operations based in the US will be less impacted; that is Trump's whole plan: to get businesses to set up in the US. Canadian companies only selling to the US may be more impacted. In this question we discuss companies that may benefit. ATZ's might see increased costs with tariffs on imported goods, but most of its competitors will see the same thing. We do not think it will be seriously disadvantaged. There are (for now) few material clothing manufacturers with the majority of their manufacturing operations based in the US.