Morning Money — Tuesday, September 8
Canada’s trade fight with the U.S. moves from headlines to checkout counters today. New Canadian counter-tariffs took effect just after midnight, with duties ranging from 15% to 50% across roughly C$27.6 billion of U.S. imports. The list includes products ranging from steel and furniture to clothing and electronics. For Canadians, the immediate issue is prices: tariffs can protect domestic producers, but they can also raise costs for businesses and consumers — adding another inflation risk at a time when interest rates are already under scrutiny.
Markets are starting the shortened week cautiously. TSX futures were down about 0.3% early this morning as weaker precious metals weighed on miners. Oil is moving the other way: Brent climbed close to US$100 a barrel after attacks on Saudi energy facilities intensified concerns about Middle East supply disruptions. Higher crude can support Canada’s energy-heavy market and the loonie, but sustained prices near these levels would also make the inflation picture more difficult. U.S. markets reopen today after Labour Day with investors watching oil, bond yields and Friday’s U.S. inflation report.
*What to watch:* The first market reaction to Canada’s new tariffs, whether Brent breaks decisively above US$100, and Friday’s U.S. CPI report — all three could shape expectations for interest rates from here.
