In the past five trading days, the downtrend in telecom stocks continued due to the uncertainty regarding trade settlement with Canada and looming threats of tariff imposition on $200 billion worth of goods imported from China. To add to the woes, the U.S. trade deficit jumped the most in three years. It hit a five-month high in July and further hastened the decline.

After several rounds of negotiations between the United States and Canada to redraw the NAFTA deal by ironing out the trade-related disputes at the higher levels, both the parties failed to reach a consensus by the Friday deadline. As the talks ended in a stalemate, President Trump upped the ante by threatening to dump the tripartite trade agreement and script a bilateral trade deal with Mexico, forcing Canada to either mend its ways or accept the shift in trade dynamics.

To that end, Trump formally notified the Congress of his intentions to ink the new NAFTA deal with or without Canada within a 90-day period. Canada has voiced its dissent against the unrelenting pressure tactics of the United States and made it clear that it would not sign a deal unless it is beneficial for its citizens. Although both Canada and United States hope to reach a consensus by the deadline, concerns of the deal falling flat remain a serious threat.