Market Wire, North America

Donald Trump has threatened to raise tariffs on Canadian auto and steel products to 50%, a step that would mark a further breach of the USMCA agreement negotiated in his first term. The Canadian dollar is coming under selling pressure and interest rates are falling as traders price in a slower economy and a more dovish Bank of Canada. “On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” Trump wrote on social media. “Their ridiculously high tariffs on our Farmers and farm products has made life impossible...

Trade negotiations between the US and Canada collapsed last night, shortly before President Donald Trump’s 50% tariffs were due to take effect on roughly $20bn in Canadian goods. In a statement, Prime Minister Mark Carney said Canada had suspended the negotiations over “last-minute changes” that were “unfair, uneconomic, and called into question the reliability of any deal”. He vowed to impose dollar-for-dollar retaliatory tariffs and announce new support measures for Canadian workers in the days ahead. Jamieson Greer, the US trade representative, called it “a missed opportunity for Canada”, claiming that Washington had offered “the best treatment of any major...

The US job creation engine went into reverse last month, sharply lowering expectations for a rate hike at the Federal Reserve’s September meeting. According to an update just published by the Bureau of Labor Statistics, 23,000 jobs were lost in July—representing a massive undershoot relative to the 80,000-consensus forecast—while the previous two months were revised down by a total 103,000 positions, bringing the three-month average pace down to 20,000, from 111,000 ahead of the release. The unemployment rate ticked down to 4.1% from 4.2% in June, aligning with a continued drop in the participation rate. The number of jobs needed...