Latest news with #YahooFinanceCanada
Yahoo
25-06-2025
- Business
- Yahoo
Trump's tariff war: Canada expected to keep NAFTA 2.0 'carve-out' in new U.S. trade deal
A new Canada-U.S. trade deal will likely carry forward the Canada-United States-Mexico Agreement (CUSMA) tariff exemptions currently shielding most Canadian exports from American tariffs today, says Deloitte Canada chief economist Dawn Desjardins. She's optimistic that Canada can avoid the economic hit that may be in store for other U.S. trading partners. U.S. President Donald Trump has set July 9 as the deadline for countries to ink a trade deal in order to avoid his 'Liberation Day' tariffs, many of which are higher than the baseline 10 per cent levy the White House has applied to most countries. For Canada, Prime Minister Mark Carney and Trump agreed on the sidelines of the recent G7 meeting in Alberta to strike a deal by July 21. 'Our baseline view assumes that at a minimum, we continue to operate with our CUSMA carve-outs. Meaning, the vast majority of Canadian goods that we sell into the U.S. will continue to be tariff-free,' Desjardins told Yahoo Finance Canada in an interview earlier this week. 'The sounds we're hearing seem to be moving in the right direction. Obviously, [I have] no inside information. It's just an assumption that we will not be severely hit by 25 per cent tariffs across the board.' While Trump has ramped up tariffs on Canadian steel and aluminum, as well as the auto sector, economists say Canada achieved the lowest U.S. tariff rate among major trade partners when CUSMA-compliant goods were exempted on April 2. On Wednesday, RBC Economics estimated that roughly 86 per cent of Canadian exports should ultimately be able to access the U.S. market duty free under current trade rules. RBC expects the share of CUSMA-compliant trade to rise rapidly from 50 per cent in March. Trump signed CUSMA, also known as United States-Mexico-Canada Agreement, into U.S. law on Jan. 29, 2020. The deal was dubbed 'NAFTA 2.0' or 'New NAFTA,' as it replaced the North American Free Trade Agreement implemented in 1994. 'I'm a little surprised that we were already front and centre in terms of the initial tariffs being applied to Canada, given that we have that trade agreement,' Desjardins said. 'The element of trust that we have with our biggest trading partner has been quite damaged by this.' Deloitte Canada's latest economic forecast, published on Wednesday, calls for that damage to result in a 'modest recession' in the second and third quarters of the year. Ontario and Quebec are due to be hardest hit, given their weight in the manufacturing sector. Statistics Canada's latest GDP reading shows the economy grew at an annual rate of 2.2 per cent in the first quarter. Earlier this month, the Bank of Canada warned the economy will be "substantially weaker" in the second quarter of 2025, versus the start of the year as the full impact of U.S. import tariffs hits Canadian businesses. Deloitte sees Canada's real GDP growth rising 1.1 per cent in 2025, before accelerating to 1.6 per cent in 2026. 'As we move forward, and we have more clarity, whatever clarity looks like, but more clarity on our relationship with the U.S., and how the [Canadian] government is actually going to get into action, these are going to be the things that lift us as we go into 2026,' Desjardins said. Canadians will have to wait until the federal government's fall budget for more details on Carney's plans to spend billions on building housing inventory, advancing infrastructure projects, and investing in Canada's military. 'There's a lot in the hopper,' Desjardins added. 'There are just so many underlying factors at this stage that could have either a temporary or short-term impact, or be more persistent.' Deloitte Canada's optimistic take on rebuilding Canada-U.S. trade links comes on the heels of a similar analysis by the Canadian arm of fellow accounting giant PricewaterhouseCoopers (PwC) released last week. 'Canada is maybe in the best position of any other country,' Michael Dobner, PwC Canada's national leader of economics and policy practice, told Yahoo Finance Canada last Tuesday. 'The negotiation between Canada and the U.S. may further cement Canada's position over other countries as an exporter to the U.S.' Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
BMO's ETF boss is bullish on gold, as portfolio managers face prospect of ‘nightmare scenarios'
Gold's rapid ascent to the US$3,300 per ounce range is surely fuelling FOMO among investors who might have ignored the precious metal this year. BMO's head of exchange-traded funds (ETFs) says while it may look overbought at these levels, there's a good case for adding gold to your portfolio. Gold futures (GC=F) have climbed more than 25 per cent in 2025, following banner years for gold in both 2024 and 2023. Rising purchases by central banks, U.S. President Donald Trump's trade war, Russian President Vladimir Putin's war in Ukraine, and general unease about the trajectory of the global economy have all played a role. 'You could certainly make a case that gold, on a monthly basis, does look incredibly overbought here,' BMO's Bipan Rai said in an interview with Yahoo Finance Canada. While it generates no yield, investors have long turned to gold as a safe-haven investment in times of economic upheaval and war. Prices have also benefited from central banks purchasing at the highest level since the late 1990s, and mounting fears about U.S. debt. 'There are palpable concerns with respect to whether or not the U.S., at least from an administrative perspective, is overusing sanctions,' Rai added. 'You have some of the countries that are not necessarily aligned with the United States trying to circumvent that, moving away from dollars and holding more of their savings in gold. Certainly that has been one of the key reasons for gold's performance.' To his point, China's central bank added more gold to its reserves for a seventh-straight month in May. According to a recent report by London-based consulting firm Metals Focus, central banks worldwide are on track to buy 1,000 metric tons of gold this year, about eight per cent less than the record high of 1,086 in 2024. Meanwhile, correlation between U.S. stocks and bonds is challenging the stability of the traditional 60/40 portfolio of equities and fixed-income. Rai said this tends to happen during periods of stickier-than-expected inflation, creating 'nightmare scenarios' for portfolio managers. Goldman Sachs recently advised clients to make a higher-than-usual allocation to bullion 'following the recent failure of U.S. bonds to protect against equity downside.' 'There is a risk, and not an immaterial risk, that you have your traditional assets more strongly correlated with each other, including stocks and bonds,' Rai said. 'That inevitably will also mean that there's going to be more demand for something like gold as that diversifier in the portfolio.' 'All that suggests to me that there's upside risk for gold,' he added. Last week, RBC Capital Markets called for stable near-term prices in 2025, raising its year-end spot estimate to US$3,350 per ounce, rising to US$3,600 by the end of 2026. London-based Capital Economics also expects a new all-time high next year near US$3,600. Goldman Sachs is yet more bullish, calling for prices to hit $4,000 by mid-2026. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Gas prices fell again in Canada this week; Here's where the discounts are deepest
Gas prices fell 1.1 cents per litre of regular fuel on average in cities across Canada this week, according to data from Kalibrate. The average rate at the pumps is down about 13 per cent year-over-year. This week, Abbotsford, B.C. led the nation with the biggest drop, at 17.9 cents per litre. Victoria and Prince George, B.C. followed with weekly discounts of 11.6 cents and 8.8 cents, respectively. Meanwhile, resumed trade talks between U.S. President Donald Trump and Chinese leader Xi Jinping have helped put the price of oil (CL=F) on track for its first seven-day gain in three weeks. Back in Canada, CEOs and executives at oil and gas firms are loading up on company stock. A report from BMO Capital Markets found insiders purchased $54 million in shares in the 90 days since March 1. Analyst Jeremy McCrea says this is an undeniably bullish signal for investors. 'Although there are many reasons why insiders sell ... there is one reason they buy," he wrote. Follow Yahoo Finance Canada for more weekly gas price updates. Scroll below to find your nearest city. Location May 29 June 5 Price Change Canada Average (V) 143.8 142.7 -1.1 WHITEHORSE 161.9 161.9 0 VANCOUVER* 167 163.8 -3.2 VICTORIA 181.5 169.9 -11.6 PRINCE GEORGE 140.9 132.1 -8.8 KAMLOOPS 152.9 151.2 -1.7 KELOWNA 142.6 142.8 0.2 FORT ST. JOHN 145.4 139.4 -6 ABBOTSFORD 160.8 142.9 -17.9 YELLOWKNIFE 134.9 144.9 10 CALGARY* 131 131 0 RED DEER 134.5 131 -3.5 EDMONTON 130.7 129.6 -1.1 LETHBRIDGE 124.6 126 1.4 LLOYDMINSTER 133.5 128.6 -4.9 GRANDE PRAIRIE 137.9 129.5 -8.4 REGINA* 134.8 133.7 -1.1 SASKATOON 135.6 135.4 -0.2 PRINCE ALBERT 132.3 132 -0.3 MOOSE JAW 135.7 135.7 0 WINNIPEG * 131.7 130.9 -0.8 BRANDON 131.7 128.4 -3.3 CITY OF TORONTO* 135.4 135.2 -0.2 BRAMPTON 134.9 134.9 0 ETOBICOKE 134.9 134.4 -0.5 MISSISSAUGA 134.1 133.8 -0.3 NORTH YORK 135.5 135.4 -0.1 SCARBOROUGH 135 135.1 0.1 VAUGHAN/MARKHAM 135.1 135.3 0.2 OTTAWA 133.2 133.3 0.1 KINGSTON 128.8 122.5 -6.3 PETERBOROUGH 126.8 122.7 -4.1 WINDSOR 133.1 133 -0.1 LONDON 135.5 134.2 -1.3 SUDBURY 138.8 132.9 -5.9 SAULT STE MARIE 128.3 128.3 0 THUNDER BAY 138.3 132.6 -5.7 NORTH BAY 136.8 127.5 -9.3 TIMMINS 144.7 144.7 0 HAMILTON 131.8 131.5 -0.3 ST. CATHARINES 129.8 130.3 0.5 BARRIE 134.5 134.2 -0.3 BRANTFORD 128.4 129.1 0.7 GUELPH 134.8 134.7 -0.1 KITCHENER 133.6 133.4 -0.2 OSHAWA 134.4 134.9 0.5 SARNIA 124.4 124.8 0.4 MONTRÉAL* 159.3 157.8 -1.5 QUÉBEC 155.3 154.4 -0.9 SHERBROOKE 152.3 153.2 0.9 GASPÉ 157.4 157.4 0 CHICOUTIMI 145.5 143.5 -2 RIMOUSKI 151.4 151.4 0 TROIS RIVIÈRES 151.8 154 2.2 DRUMMONDVILLE 150.8 150.8 0 VAL D'OR 159.6 159.6 0 GATINEAU 143.2 141.6 -1.6 SAINT JOHN* 144.2 140.6 -3.6 FREDERICTON 145 141 -4 MONCTON 144.4 140.1 -4.3 BATHURST 142.3 141 -1.3 EDMUNDSTON 144 140.1 -3.9 MIRAMICHI 146.2 142.3 -3.9 CAMPBELLTON 146.3 137.5 -8.8 SUSSEX 143.7 140.9 -2.8 WOODSTOCK 146.2 142.3 -3.9 HALIFAX* 145 141.6 -3.4 SYDNEY 146.9 143.5 -3.4 YARMOUTH 146 142.6 -3.4 TRURO 146.1 142.7 -3.4 KENTVILLE 145.5 142.1 -3.4 NEW GLASGOW 146.1 142.7 -3.4 CHARLOTTETOWN* 150.8 147.3 -3.5 ST JOHNS* 153.5 149.9 -3.6 GANDER 157.3 152.2 -5.1 LABRADOR CITY 160 157.2 -2.8 CORNER BROOK 154.6 150.8 -3.8 GRAND FALLS 157.3 151.2 -6.1 SOURCE: KALIBRATE • All figures in CAD cents (*) Denotes markets used in Volume Weighted Canada Average Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Ski-Doo maker BRP books near 300% profit jump, boosts estimate for tariff hit up to $70M this year
Ski-Doo and Sea-Doo maker BRP ( shares rose to their highest level since March as the company reported a nearly 300 per cent year-over-year jump in profit. However, the Canadian powersports manufacturer also increased its estimated hit from U.S. tariffs to between $60 million and $70 million this fiscal year, while warning about challenging demand from consumers. Valcourt, Que.-based BRP reported that first-quarter profit hit $161 million, up from $42.5 million the prior year. Sales for the three months ended April 30 rose slightly on an annualized basis to $1.8 billion. 'The operating environment remains challenging, with significant macroeconomic uncertainty and a volatile tariff situation affecting consumer confidence,' chief executive officer José Boisjoli told analysts on a post-earnings conference call. BRP on Thursday morning announced Boisjoli will retire at the end of the year. 'As uncertainty is expected to continue affecting consumer confidence, we are planning for demand to remain tough until economic conditions improve,' he added. BRP manufactures products in Canada and Mexico. The company says all of its vehicles are compliant with the United States-Mexico-Canada Agreement, and are thus exempt from the bulk of American tariffs. 'However, we have seen incremental tariffs stemming from the U.S. tariff rate increase on China, the new tariffs on other countries; these are primarily impacting our [parts and accessories] business and some of our U.S. suppliers, which in turn is impacting us,' Boisjoli said. 'We now estimate that the total gross tariff impact to our business for fiscal 2026 to be between $60 million and $70 million,' he added. 'We expect this impact to be manageable, as we should be able to offset most of the incremental cost using different levers across our value chain.' In March, Boisjoli estimated a $40 million impact from tariffs throughout the year. Toronto-listed shares gained 9.79 per cent to $54.57 as at 10:23 a.m. ET on Thursday, after rising as much as 13 per cent in earlier trading. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Automotive
- Yahoo
Ottawa's halted $5,000 rebate won't sway most EV shoppers, says J.D. Power
Most Canadians shopping for an electric vehicle (EV) say the federal government's halt on rebates worth up to $5,000 has not put the brakes on their purchase plans, according to J.D. Power Canada. Ottawa announced an immediate pause on its zero-emission vehicle (ZEV) incentive program in mid-January. At the time, Transport Canada dubbed it a 'huge success,' having granted rebates for over half a million eligible vehicles since its launch in 2019. The following month, DesRosiers Automotive Consultants described an 'astonishing' collapse in battery electric vehicle sales, adding that 'stunning declines were witnessed by a plethora of BEVs, as sales plummeted across the segment.' The situation was compounded by shrinking rebates in Quebec, a top market for electric vehicle sales. According to Statistics Canada, ZEV sales tumbled 47 per cent year-over-year in March, after a 41 per cent drop in February. However, J.D. Power Canada says only 42 per cent of new vehicle shoppers likely considering an EV say Ottawa's rebate halt had a 'negative effect' on their decision. Twenty-eight per cent say the pause was 'more or less neutral' in terms of swaying their intentions. J.D. Power says it collected responses from 3,979 new vehicle shoppers in March and April. EV shoppers remain a slim segment of the overall market, notes J.D. Ney, director of the automotive practice at J.D. Power Canada. 'There is a significant percentage of the population (72 per cent) that are not even considering an EV, regardless of the incentive landscape,' he told Yahoo Finance Canada in an email. The federal government is targeting 100 per cent ZEV sales by 2035 for all new light-duty vehicles. J.D. Power Canada found the percentage of new vehicle shoppers who say they are 'very likely' or 'somewhat likely' to consider an EV for their next purchase has held steady at 28 per cent year-over-year, down a single percentage point from 2024. 'The disappearance of incentive dollars certainly won't make the targets more achievable,' Ney added. J.D. Power Canada notes 'widespread pessimism,' with 75 per cent of new vehicle shoppers responding to its study saying they are 'not at all confident' or 'not very confident' the target will be achieved. Earlier this month, the global head of electrification and sustainability for ride-hailing giant Uber Technologies (UBER) said the company is facing 'big challenges' in its push for drivers to embrace electric vehicles. Uber is targeting 100 per cent zero emissions rides in Canada, the United States and Europe by 2030. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
