Morning Money | Monday, August 24
What matters to Canadians: The Canada–U.S. trade dispute escalated over the weekend after negotiations failed to produce a deal. New U.S. tariffs of 50% on roughly $20 billion of Canadian goods are now in effect, while Canada has announced dollar-for-dollar retaliatory tariffs beginning September 8. This morning, President Trump went a step further, saying he plans to raise tariffs on cars, trucks, auto parts and steel to 50% starting January 1. For Canadians, the bigger issue is what this could mean for manufacturing jobs, business investment and the Canadian dollar.
Markets this morning: The TSX opened modestly higher, helped by mining shares as gold climbed to its highest level in more than three months. Meanwhile, the Canadian dollar has weakened following the breakdown in trade talks, while U.S. technology stocks are under pressure ahead of a major week for markets.
What to watch: Nvidia reports earnings Wednesday, alongside the latest U.S. PCE inflation reading. Then on Friday, Canada releases second-quarter GDP, an important read on how the economy is holding up, while Federal Reserve Chair Kevin Warsh speaks at Jackson Hole. Between trade, inflation, AI earnings and interest rates, there is plenty that could move markets this week.
