March 03-31, 2025

2025-03-07

[BNN Bloomberg, Canada]: Trump flip-flop: Another unexpected twist on the tariff front yesterday afternoon, as U.S. President Trump exempted Mexican and Canadian goods covered by the North American trade agreement. The 25 per cent tariffs are being delayed until April 2. Products that meet United States-Mexico-Canada Agreement (USMCA) requirements are among the products exempt from the tariffs – though it is a complicated just which goods are covered by this exemption. Canadian potash used heavily in fertilizers for U.S. agricultural producers faces a lower 10 per cent duty. This is in line with the lower tariff rate Trump placed on energy and critical minerals imports from Canada. In response, Ottawa says it won’t proceed with a second rounds of tariffs on some $125-billion worth of U.S. goods – though Canadian tariffs on around $30-billion worth of U.S. goods, imposed earlier this week, will remain in place. Trump says he plans to push ahead with 25-per-cent tariffs on steel and aluminum, scheduled to take effect next Wednesday, and will move forward with “reciprocal” tariffs against all other countries on April 2.

Markets jolted: North American stock markets absorbed sharp losses yesterday, in part due to the tariff confusion. Canada’s S&P/TSX Composite Index fell 1.2 per cent, while the U.S. S&P 500 Index fell 1.78 per cent. U.S. stocks are on pace for their worst week since September 2024 … however there may be some relief on the way. After the bell yesterday chipmaker Broadcom gave a stronger-than-expected sales estimate for its current quarter. The forecast seemed to re-assure investors that spending on artificial-intelligence technology remains robust.

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2025-03-06

[BNN Bloomberg, Canada]: Tariffs remain – but temporary reprieve for auto sector: We remain on alert for any new developments on the U.S. tariff front. Yesterday the White House announced it is exempting automakers from newly imposed tariffs on Mexico and Canada for one month as a temporary reprieve following pleas from industry leaders. The exemption also applies to auto parts that comply with the trade pact. Earlier in the day, Prime Minister Justin Trudeau had a 50-minute phone call with U.S. President Donald Trump and other top officials, which apparently did not yield any tangible results. The tariff tension will not be helped by fresh trade data released this morning. The overall U.S. trade deficit widened to a record in January, and Canada’s trade surplus with the U.S. widened to a record $14.4 billion dollars.

Feds strengthening takeover protection: There has been another significant development in the wake of the Canada-U.S. trade war. Canada is expanding its criteria for intervention in foreign investment, adding a provision that would allow it to reject purchases and takeovers that it views as posing harm to the country’s broader “economic security.” In a posting on social media, Industry Minister Francois-Philippe Champagne said that as a result of a rapidly shifting trade environment, some Canadian businesses could see their valuations decline, making them susceptible to opportunistic or predatory investment behaviour by non-Canadians. While the move would protect Canadian companies, it could also prove to be a headwind for the market valuations of those companies, as the reduced possibility of foreign takeovers is factored into stock prices.

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2025-03-04

[BNN Bloomberg, Canada]: U.S. follows through on tariffs – Canada responds: It is a seismic threat to the Canadian economy, with implications for all businesses, as well as financial markets. U.S. President Donald Trump has delivered on his threat to hit Canada and Mexico with sweeping import levies and doubled an existing charge on China, spurring swift reprisals that plunged the world economy into a deepening trade war. The U.S. tariffs — 25 per cent on most Canadian and Mexican products and raising the charge on China to 20 per cent — apply to roughly US$1.5 trillion in annual imports. Canada has hit back with phased levies on $155 billion worth of U.S. goods while China imposed tariffs of as high as 15 per cent, mainly on American agricultural shipments. Stock futures are pointing to further declines after yesterday’s biggest drop for the S&P 500 this year. Canada’s main stock index fell by 1.5 per cent. Prime Minister Justin Trudeau and members of his cabinet will speak at 10:30 a.m. eastern time. BNN Bloomberg will cover developments live as they happen and bring you analysis throughout the day from investment professionals, economists, trade experts, and reporters.

Royal Bank CEO warns of ‘enormous pain’ from tariffs: The CEO of Royal Bank is speaking out against the tariffs. At an industry conference this morning, Dave Mckay said it’s frustrating to see tariffs impede growth. McKay says tariff volatility has already hit consumers in Canada and the U.S., and the auto industry in particular will feel “enormous pain”, that will hit consumers. Nevertheless, McKay says he’s hoping for the “best outcome”, with the tariffs proving to be short-lived.

U.S. companies respond to tariffs: We are already seeing corporate responses to the tariff news. Major U.S. retailer Target is projecting little to no sales growth this year. Target also warned of “meaningful” pressure on profit in the coming months, citing factors such as weak February sales and uncertainty around consumer sentiment and tariffs. Target’s Chief Executive Officer warned that consumers would see price increases over the next couple of days in response to the U.S. import tariffs. Meanwhile Best Buy’s CEO is warning price increases are “highly likely” in the wake of the new tariffs. The company says shoppers will remain constrained by inflation this year as it forecasts that annual sales could be little changed.

[Investopedia, USA]: Canada and China announced retaliatory actions against the U.S. as tariffs against the two nations and Mexico kicked in today. Canada responded by announcing 25% tariffs on C$30 billion ($27 billion) worth of U.S. goods, while China said it will impose tariffs on a string of U.S. farm products.

Prime Minister of Canada Justin Trudeau. “Statement by the Prime Minister on unjustified U.S. tariffs against Canada.”

Market watchers are also waiting for remarks tonight from President Donald Trump.

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2025-03-03

[Investopedia, USA]: Legendary investor Warren Buffett said in an interview with CBS News that tariffs are a tax on goods that could lead to inflation, describing the import duties as "an act of war, to some degree."2 The CEO of conglomerate Berkshire Hathaway (BRK.A)(BRK.B) said that "prices will be higher 10 years from now, and 20 years from now, and 30 years from now." President Trump said last week that he plans to impose 25% tariffs on products from Mexico and Canada beginning Tuesday, and that the U.S. would raise double tariffs on goods from China to 20%.

[BNN Bloomberg, Canada]: Trump tariff watch continues: The world is anxiously waiting to see whether U.S. President Donald Trump follows through on punitive tariffs on Canada, Mexico and China. Trump has vowed to put a 25 per cent tariff on all imports from Canada and Mexico, except Canadian energy, which would face a 10 per cent rate. He has also said he’ll double tariffs on China to 20 per cent. The tariffs are set to take effect tomorrow. However, U.S. Commerce Secretary Howard Lutnick said Sunday that both Canada and Mexico have been working hard on controlling the border, calling it “a fluid situation,” and saying, “there are going to be tariffs on Tuesday on Mexico and Canada, exactly what they are, we’re going to leave that for the president and his team to negotiate.”  BNN Bloomberg will have analysis throughout the day from investment professionals, economists, trade experts, and reporters.

Trump boosts crypto: The price of bitcoin surged more than 20 per cent and several other cryptocurrencies also rallied sharply after U.S. President Trump raised the possibility of a new strategic reserve that would include a range of tokens. Trump said in a post on Truth Social on Sunday that his January executive order on digital assets would create a stockpile of currencies, including bitcoin, ether, XRP, solana and cardano. The names had not previously been announced. As of 8 a.m. ET Monday, bitcoin was holding onto most of its gains but was pulling back from its initial rally, as skepticism emerged about the project’s merits and the motivations behind it.