Trade Frictions Rise as Chokepoints and Rates Add Pressure

The latest economic commentary assesses the renewed trade conflict, vulnerabilities in global shipping routes and growing pressure on long-term U.S. interest rates.

• U.S.-Canada tensions are escalating, with new 50% tariffs threatening integrated North American supply chains and adding uncertainty for future investment. 
• Maritime chokepoints remain a major vulnerability: nearly 90% of global trade travels by sea, while Hormuz, Taiwan and other constrained routes offer limited alternatives. 
• Efforts to suppress long-term yields have struggled, as inflation, rising debt and strong credit demand push term premiums higher. 

Explore the full commentary for the broader implications for trade, rates and global growth.