Trump raises tariffs on Canadian goods, BoC keeps rate steady and Telus' new network deal: Business and investing stories for the week of Aug. 3

Globe and Mail

02-08-2025

Getting caught up on a week that got away? Here's your weekly digest of The Globe's most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
U.S. President Donald Trump signed an executive order Thursday evening increasing tariffs on some Canadian goods. The order, effective at midnight on Aug. 1, raises the tariffs that Mr. Trump imposed on Canadian goods in March to 35 per cent from 25 per cent — it does not, however, apply to products that meet the rules outlined in the United States-Mexico-Canada free trade agreement, known as USMCA.
Prime Minister Mark Carney, in a statement early Friday morning, said the Canadian government is disappointed by Mr. Trump's actions but remains committed to the free-trade agreement. The Prime Minister disputed Mr. Trump's justification for the 35-per-cent tariff – namely that Canada is a significant source of the deadly opioid fentanyl smuggled into the United States. While the Canadian economy has mostly avoided the impact of the tariffs because the USMCA carve-out, certain industries — such as steel and aluminium, cars, and copper — will be hit harder by the changes.
The Bank of Canada held its policy interest rate at 2.75 per cent for the third consecutive time as U.S. trade policy continues to muddy the economic outlook. The central bank is operating amid massive levels of uncertainty created by U.S. President Donald Trump's barrage of tariffs and attempt to rewrite the rules of global trade. Governor Tiff Macklem said there was a 'clear consensus' to hold the rate steady, but suggested the door remained open to additional rate cuts if needed, Mark Rendell reports.
The bank also held off again on publishing a central forecast in its quarterly Monetary Policy Report. Instead, it detailed three potential paths for the Canadian economy that depend on the trajectory of U.S. tariffs, ranging from a mild downturn to an extended recession.
Even before Mr. Trump's tariff threads, the vibrancy of Canada's business sector was already weak, but the trade war has only deepened the rut. Statistics Canada reported this week that the number of active businesses was effectively flat in April on a month-over-month basis, increasing by just 0.1 per cent.
Sectors that are dependent on U.S. demand, such as mining, oil and gas extraction, experienced a sharper decline in the number of active businesses from the start of last year than other sectors, and the gap has widened since Mr. Trump returned to the White House. Statscan noted this decline began before that, and suggested other factors could be at play. Jason Kirby takes a closer look at the numbers in this week's Decoder series.
After a months-long search for buyers, Telus Corp. T-T has entered a definitive agreement with the Caisse de dépôt et placement du Québec to sell a minority stake in its nationwide cellphone tower network for $1.26-billion. The Caisse, Canada's second-largest pension fund, will acquire a 49.9-per-cent stake in the infrastructure asset, which is being spun out as a new company called Terrion. The business is worth $2.5-billion, including Telus's 50.1-per-cent equity interest. Telus had $25-billion in long-term debt as of March, and intends to use all proceeds from the sale to pay some of it down.
Drumeo is the brainchild of Jared Falk, an Abbotsford-born music teacher, performer and entrepreneur who first started giving drum lessons by video in the pre-streaming era of the early 2000s. Now Mr. Falk's company – Musora Media Inc. – boasts more than 100,000 paid subscribers, with offerings for piano, vocals and guitar as well.
Armed with a roster of drumming legends — including Chad Smith of the Red Hot Chili Peppers, Stewart Copeland of The Police, the internet sensation known as El Estepario Siberiano, and The Rolling Stones veteran session man Steve Jordan — Drumeo appears all over the internet with viral clips of musicians showing off their signature grooves and testing themselves on unfamiliar tunes. Jeffrey Jones spoke with Mr. Falk about how he built his music lesson empire, and how Drumeo sets itself apart from the competition.
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