Morning Money | Tuesday, August 25

What matters to Canadians: Canada could announce retaliatory tariffs on U.S. goods today after President Trump threatened to raise tariffs on Canadian cars, trucks and auto parts to 50% starting January 1. The latest escalation follows the collapse of trade negotiations last week and puts renewed pressure on Canada’s auto sector, manufacturing jobs and the Canadian dollar. The loonie weakened on Monday as trade tensions intensified.

What to watch: U.S. markets opened higher this morning as technology stocks bounced back, but the bigger tests come tomorrow. Nvidia reports earnings, which will be closely watched as a gauge of whether AI spending remains strong, while new U.S. inflation data could shift expectations for interest rates. For Canadians, the immediate focus today is whether Ottawa formally announces its retaliatory tariff package and which U.S. products are targeted.