Kelly Ann Shaw: This is a trade row rather than a full blown trade war

• The current situation is a 'trade row', not a 'full-blown trade war', with less than 5% of US-Canada trade impacted.
• Most trade between the two countries continues to flow duty-free, and the economic impact of the tariffs is 'relatively muted'.
• The tariffs are largely driven by political messaging and symbolism, with Canada seeking to appear tough, but unlikely to set a precedent for other countries.

Kelly Ann Shaw characterizes the Canada-US trade tensions as a 'trade row' rather than a 'full-blown trade war', noting that less than 5% of bilateral trade is affected. She emphasizes the political messaging and symbolism behind Canada's retaliatory tariffs, particularly on dairy, suggesting the economic impact is muted. Shaw believes a resolution will likely involve Canada complying with USMCA dairy commitments in exchange for tariff relief.