The Globe and Mail reports in its Saturday edition that the trade war has revealed that U.S. stocks are overvalued compared with Canadian ones. The Globe's Rob Carrick writes that U.S. stocks are falling harder and faster. The S&P/TSX Composite Index was down 4.8 per cent in the past three months, the S&P 500 was down about 9.5 per cent and the Nasdaq 100 was down 11 per cent; hardest hit were high-flying tech stocks. The trade war has led to a reappraisal of both Canadian and U.S. stocks in light of the economic uncertainty ahead. Tariffs are being used by U.S. President Donald Trump as a way to create a revenue stream to finance government initiatives such as tax cuts while also powering the country's industrial base. The expectation is that companies will move production to the U.S. to avoid tariffs on imported goods. But tariffs also hurt the economy by contributing to inflation and disrupting supply chains. Falling share prices indicate investor concern about how corporate profits will be affected in a trade war with not just Canada, but Mexico and China as well. Canada's economy is more vulnerable in a trade war than the U.S., and further declines in Toronto should be expected if tariffs persist.