Here are four things you need to know this morning
Trump targets autos: The auto sector is the latest target of U.S. President Donald Trump’s trade war, with a 25 per cent tariff on auto imports set to come into effect on April 3 for fully assembled vehicles, and a scheduled expansion to include major automobile parts by May 3. Trump has also followed up with threats to Canada and the EU, saying that if they work together to retaliate, they will face further tariffs. Shares of auto companies around the world are under pressure this morning on the news. Prime Minister Mark Carney says the tariffs are a “direct attack” on Canadian auto workers and his government will respond soon. Carney is convening a meeting of cabinet ministers focused on Canada-U.S. trade to discuss options today. Speaking to reporters yesterday, Ontario Premier Doug Ford expressed his support for retaliatory tariffs, calling for “as much pain as possible to the American people without inflicting pain on the Canadian population.”
Hudbay takes control of Copper Mountain: As the price of copper soars to record highs, one of the metal’s largest Canadian producers is taking steps to consolidate ownership of a significant mine in western Canada. Hudbay Minerals is buying a 25 per cent interest in the Copper Mountain mine from Mitsubishi Materials, in a deal valued at about US$44.25 million. Copper Mountain is an open pit operation in southern British Columbia that also produces gold and silver as by-product metals. Hudbay CEO Peter Kukielski says consolidating ownership fits with a strategy of growing copper production in mining-friendly areas and will strengthen Hudbay’s position as a “North American copper champion.”
Telus shopping towers stake: Telus has confirmed reports that it is working on a plan to sell a minority stake in its wireless towers. The Globe and Mail reports a 49.9 per cent stake in the assets is being offered, with an estimated price tag of more than $1 billion. Telus says 100 per cent of the proceeds would be used to pay down debt.
The Reject Shop called: Montreal-based Dollarama is buying discount retailer The Reject Shop in an all-cash deal valued at about $233 million. While the company’s name may conjure up memories of an inadequate zinger by George Costanza on Seinfeld, The Reject Shop is actually the largest discount retailer in Australia with more than 390 locations.
