Prime Minister Carney announces new support measures for softwood lumber industry
Carney is promising an aid package for the industry that includes $700 million in loan guarantees and $500 million for long-term supports to help companies diversify export markets and develop their products.
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After walkbacks and confusion, U.S. tariffs kick in for dozens of countries
Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10 per cent or higher. Products from the European Union, Japan and South Korea are taxed at 15 per cent, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20 per cent. Trump also expects the European Union, Japan and South Korea to invest hundreds of billions of dollars in the U.S. I think the growth is going to be unprecedented, Trump said Wednesday afternoon. He added that the U.S. was taking in hundreds of billions of dollars in tariffs, but he couldn't provide a specific figure for revenues because we don't even know what the final number is regarding tariff rates. Canada and the U.S. have not come to renewed terms after a Trump-imposed deadline of Aug. 1, resulting in a 35 per cent import tax on some Canadian goods. The rate applies to goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA), which governs trade between the three countries. In addition to generalized tariffs, Trump has also threatened sector-specific duties. Import taxes are still coming on pharmaceutical drugs and Trump announced this week 100 per cent tariffs on computer chips. That could leave the U.S. economy in a place of suspended animation as it awaits the impact. Trump, including just before midnight on social media (new window) , has complained that countries, including allies, have taken advantage of the United States in trade over the years. But in the case of Canada and Mexico, it was Trump who signed off on CUSMA in his first term. LISTEN l CBC Politics reporter Aaron Wherry on Carney's tariff tightrope (new window) Effects expected to play out over months Trump has promoted the tariffs as a way to reduce the persistent U.S. trade deficit, although many economists believe that indicator alone does not signify economic weakness. There are signs of self-inflicted wounds for the U.S. economy as a result of Trump's plans, which recovered from the height of the coronavirus pandemic in stronger fashion than other G7 countries, albeit with similar inflationary pressures. Importers in general purchased more goods before tariffs have gone into full effect. As a result, the $582.7 US billion trade imbalance for the first half of the year was 38 per cent higher than in 2024. Total construction spending has dropped 2.9 per cent over the past year, and the factory jobs promised by Trump have so far resulted in job losses. A less productive economy requires fewer workers, said John Silvia, CEO of Dynamic Economic Strategy, in an analysis note. But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences. The president's use of a 1977 law to declare an economic emergency to impose the tariffs is under challenge — and potentially headed to the Supreme Court. The impending ruling from last week's hearing before a U.S. appeals court could cause Trump to find other legal justifications if judges say he exceeded his authority. Still, the stock market has been solid during the recent tariff drama, with the S&P 500 index climbing more than 25 per cent from its April low. The market's rebound and the income tax cuts in Trump's tax and spending measures signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. The ultimate transformations of the tariffs could play out over months, if not years. Many economists say the risk is that the American economy is steadily eroded rather than collapsing instantly. We all want it to be made for television where it's this explosion — it's not like that, said Brad Jensen, a professor at Georgetown University. It's going to be fine sand in the gears and slow things down. Even people who worked with Trump during his first term are skeptical that things will go smoothly for the economy, such as Paul Ryan, the former Republican House speaker. There's no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions, Ryan told CNBC on Wednesday. I think choppy waters are ahead, because I think they're going to have some legal challenges. Slapdash process The lead-up to Thursday fit the slapdash nature of Trump's tariffs, which have been variously rolled out, walked back, delayed, increased, imposed by letter and frantically renegotiated. Trump has heralded frameworks to a deal, with few specific details available so far in my cases. India, for example, saw Trump on Wednesday announce an additional 25 per cent tariffs to be imposed effective Aug. 28, for its buying of Russian oil since the outbreak of war in Ukraine, bringing its total import taxes to 50 per cent. Absorbing this sudden cost escalation is simply not viable. Margins are already thin, S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. WATCH l 'Deep fog': Business plans affected by tariff uncertainty: India and the U.S. have had five rounds of negotiations on a bilateral trade agreement but haven't been able to clinch one so far, straining what had been a chummy relationship between the countries in Trump's first term. The process has been so muddled that officials for key trade partners were unclear at the start of the week whether the tariffs would begin Thursday or Friday. The language of the July 31 order to delay the start of tariffs from Aug. 1 said the higher tax rates would start in seven days. On Wednesday morning, Kevin Hassett, director of the White House National Economic Council, was asked if the new tariffs began at midnight Thursday, and he said reporters should check with the U.S. Trade Representative's Office. With files from CBC News
Toronto Sun
2 minutes ago
- Toronto Sun
CHARLEBOIS: Sunny-side up for farmers, scrambled for consumers
Supply management was designed to deliver price stability — not regional chaos and $5 eggs. If this is what control looks like, consumers have every right to question who's really being protected Eggs in plastic white packaging on supermarket shelves. Photo by NVS / Getty Images/iStockphoto Many food items are significantly more expensive at the grocery store today than they were a year ago in Canada. Leading the pack is rice, with a year-over-year increase of 48.9%, according to Statistics Canada. The spike is largely driven by export restrictions in key producing countries such as India and Thailand. Grapes come second with a 34.1% jump, likely the result of Canadian grocers pivoting away from U.S. suppliers this past winter—many stores carried grapes from South Africa, Peru, and Chile instead. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Other notable price increases are linked to Ottawa's retaliatory tariffs, especially on U.S. goods like coffee and oranges. These items have risen well over 25% in the past year—an outcome that was both foreseeable and politically driven. But what stands out in the data is the rise in prices for supply-managed commodities, especially eggs. Canada's egg sector is governed by supply management, which theoretically ensures price stability by matching domestic production to demand through quotas and tariff protections. In practice, however, external shocks can still ripple through the system. The most significant of these shocks has been the avian influenza outbreak, which has led to the culling of over 14 million birds in Canada in recent months. This has put immense pressure on egg supply across the country, even within a regulated framework. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. In the U.S., the same virus made headlines when egg prices surged earlier this year, increasing by as much as 53% in some states. Even now, in June 2025, the average retail price of eggs in the U.S. remains 27.3% higher than a year earlier. Canada hasn't escaped the impact. Despite supply management, egg prices are up 12% nationally over the past year. In 2017, it wasn't uncommon to find a dozen eggs for under $3. Today, anything under $4.50 is seen as a deal. The national average now hovers just below $5. This begs the question: If we have supply management, why the price hikes? Egg prices in Canada are being driven by a combination of biological and structural factors. The avian flu's impact on domestic flocks has reduced supply, while the market's rigidity — designed to avoid surplus — offers little flexibility to respond to rapid shifts in production. While the system can dampen extreme volatility, it cannot fully shield consumers from inflationary shocks. This advertisement has not loaded yet, but your article continues below. What's particularly telling is the variation in prices across provinces, despite the existence of a national quota system. In British Columbia, where the avian flu hit hardest, prices have barely budged—up just 0.4% over the past year. In Alberta, they rose by 1.2%. Ontario saw a 7% increase. But in Quebec, prices jumped an eye-watering 28%, rivaling the U.S. spike—even though Quebec's egg sector is also supply-managed. Nova Scotia saw a more moderate rise of 6.2%. That level of disparity — more than a dollar a dozen between provinces — raises questions about the consistency and fairness of price transmission under supply management. Unlike dairy boards, which often act independently and defensively, egg boards across provinces have historically worked more collaboratively. That makes the interprovincial variation even more puzzling — and concerning. This advertisement has not loaded yet, but your article continues below. Another trend this summer is the decline in promotional pricing. Eggs, once a staple of grocery flyers, are rarely discounted today. When they are, the discounts are modest. This week, the lowest advertised price is $3.89 for a dozen Grade A large eggs—offered not by a grocer, but by a pharmacy chain. Most retailers are charging well above $4.50, despite summer usually being a low-demand period when sales are common. Clearly, affordability is slipping, even for staples like eggs, often regarded as one of the most accessible forms of animal protein. While supply management provides critical support to producers and helps ensure domestic food sovereignty, it must not lose sight of the consumer. The egg sector's strength lies in its ability to coordinate across provinces — a feature not shared with other supply-managed commodities. If there's one system capable of improving affordability and transparency, it's this one. Now is the time for egg producers and boards to demonstrate leadership — not just in ensuring supply, but in addressing regional inequities and restoring consumer trust. — Dr. Sylvain Charlebois is Director of the Agri-Food Analytics Lab at Dalhousie University, co-host of The Food Professor Podcast and Visiting Scholar at McGill University. Columnists Celebrity Sunshine Girls Editorial Cartoons World
The Market Online
26 minutes ago
- The Market Online
TSX Powers Up as Tariff Fallout Takes a Bite Out of Earnings
Futures inched higher this morning as steeper tariffs on Canadian imports took effect, signaling trade tensions are escalating but largely expected. Ongoing strength in corporate earnings helped keep investor momentum intact despite geopolitical headwinds. Market Numbers (Futures) TSX : Up ( 0.60%) 28,088.40TSXV: Up (0.36%) 786.54DOW: Up (0.44%) 44,504.00NASDAQ: Up (0.73%) 23,596.50 FTSE: Down (0.81%) 9,090.47 In the Headlines: Amazon's bid to erase a union win in B.C. was brutally shot down by the Labour Relations Board, calling out its hiring surge as a naked attempt to dilute worker power. And Toyota just took a gut punch, its Q2 profit cratered 37%, knocking billions off its annual outlook thanks to Trump's tariff hammer. Currencies Update: (Futures) The loonie holds the line, barely nudging to USD$0.7284 and up 0.05% to $0.6245 against the EURO, a dead heat with both majors. Crypto steals the spotlight again today, with Bitcoin ripping 1.95% higher, landing at CDN$159,935.97 Commodities: (Futures) Natural Gas: Up (0.13%), 3.08WTI: Up (0.63%), 64.76Gold: Up (0.45%), 3,381.97 Copper: Up (0.14%) 5.99 To stay up-to-date on all of your market news head to Join the discussion: Find out what everybody's saying check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
