Here are four things you need to know this morning
Tariffs kick in: U.S. President Donald Trump’s 25 per cent tariff on steel and aluminum imports is now in effect. The tariffs apply to all countries, including Canada, Mexico and Australia, ending previous exemptions granted to preferred U.S. trading partners. The move follows yesterday’s back-and-forth, with the U.S. threatening to raise Canadian duties to 50 per cent… then backing off after Ontario Premier Doug Ford suspended a 25 per cent surcharge on electricity exports to the U.S. The European Union has launched countermeasures, with plans to impose its own duties on up to €26 billion worth of American goods. Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly plan to hold a news conference this morning to announce Ottawa’s countermeasures.
Companies react to tariffs: We are starting to see Canadian companies taking action to respond to the tariff plans south of the border. Yesterday on BNN Bloomberg, Michael Garcia, CEO of Algoma Steel, said his company will likely halt shipments of steel to the United States, as the 25 per cent tariffs take effect. Garcia said Algoma is looking at redirecting as much of its business as possible to the domestic Canadian market. Late yesterday, as part of its quarterly earnings report, Blackline Safety, a Calgary-based company that makes safety and monitoring equipment for industrial workers, said it has increased its inventory in the U.S. as a way to mitigate the impact of U.S. tariffs. As well, Blackline says it now plans to start assembling some of its products in the U.S.
BoC rate announcement: It’s not often that the interest rate decision by the Bank of Canada takes a back seat to other events, but that is arguably the case today. The BoC is expected to cut rates for a seventh straight meeting, with a quarter-point reduction. As Bloomberg’s Erik Hertzberg reports, the uncertainty posed by Trump’s tariff barrage will likely compel the central bank to keep cutting in order to stem economic damage. Tiff Macklem’s news conference will be closely watched for insight on how the Bank is dealing with the tariff impact. BNN Bloomberg will have full live coverage.
Stock watch: And of course, we will be watching the markets after another day of significant losses. At one point yesterday the S&P 500 moved into “correction” territory, falling by more than 10 per cent below its recent peak.
