The bond market continues to flash warning signs as the Trump administration expands its trade war, and no, you haven’t entered a time machine and returned to April 2025. This time, it’s the Section 338 law being applied, but the proclamation titled “Motor Vehicles” doesn’t actually apply to cars (or other goods) that were already targeted by Section 232 tariffs. Instead, these Section 338 levies target imports like apparel, plywood, cement, textiles, and sporting goods manufactured in Canada. Companies headquartered in Canada that don’t manufacture there aren’t subject to these levies, which is why stocks like Lululemon Athletica Inc. (NASDAQ: LULU) and Gildan Activewear Inc. (NYSE: GIL) didn’t move on the announcement.
