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Vancouver Sun
14-07-2025
- Business
- Vancouver Sun
Here's what we know about which U.S. goods are still subject to Canadian tariffs
When U.S. President Donald Trump threatened to increase tariffs on Canada in a letter last week, he complained that the federal government had 'financially retaliated against the United States.' In the letter, posted to Truth Social on Thursday, Trump said the U.S. tariff on Canadian goods would jump from 25 per cent to 35 per cent on Aug. 1 and he warned Prime Minister Mark Carney not to consider raising Canada's counter tariffs on the U.S. In response to Trump's tariffs, Canada has announced tariffs on $96 billion worth of U.S. merchandise, according to an Oxford Economics analysis. However, Carney has also since exempted a number of products from these tariffs. The Oxford Economics analysis also found that at least $56 billion is eligible for exemption or remittance from tariffs. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Here's what we know about the current state of Canada's retaliatory tariffs against the United States. Over the course of the spring, Canada announced several rounds of tariffs. On March 4, a 25 per cent tariff on $30 billion worth of U.S. imports. On March 13, a 25 per cent tariff on a further $29.8 billion worth of U.S. goods, including steel and aluminum. As of April 9, a 25 per cent tariff on $35.6 billion worth of cars and parts that are not compliant with existing free-trade agreements. At present, the government of Canada lists 37 pages of goods that are facing tariffs. It includes items such as food, clothing and cosmetics. On page 37, for example, scent sprays and other toilet sprays are listed as being subject to a 25 per cent tariff. The same tariff is applied to everything from chicken and powdered milk on page 1, to prune wine on page 7 and négligés on page 16. All in, Oxford Economics estimates between $32 billion and $40 billion in U.S. product remain tariffed by Canada after exemptions are accounted for. A number of exemptions have since been carved out. Canada, like the U.S., has exempted goods that are compliant under the United States–Mexico–Canada Agreement, which has been in effect since July 1, 2020. For example, this would include much of the auto sector. A 25-per-cent tariff remains on non-USMCA compliant automobiles and auto parts. There are a further set of exemptions, too. The first is an exemption for some auto manufacturers that continue to produce vehicles in Canada and carry out planned corporate investments. This represents a $35.6-billion exemption, analysis suggests. The second, writes Tony Stillo of Oxford Economics, is for 'manufacturing, processing, and food and beverage packaging, and on those used for public health, health care, public safety, and national security.' This, likely worth a bit more than $20 billion, includes some steel and aluminium. This exemption will run for six months, from mid-April to mid-October 2025. 'A lot of those intermediate goods that go into manufacturing, food packaging and things of that nature, are eligible for relief,' said Stillo in an interview. Yes. 'There's still a degree of uncertainty about what qualifies for exemption,' said Stillo. There are several exemption categories that are less clear. This includes the public health, health care, public safety and national security products, which Stillo estimates are worth around $3.2 billion. While it's tough to say exactly why some decisions were made by the federal government, Stillo has a hunch: There are some goods that are easily replaced. For example, Canadians can buy Canadian chicken instead of American chicken. Or chicken could be sourced from other countries. This is similarly true with all sorts of food and all sorts of cosmetics and clothing. However, there are some goods and materials moving through North America's heavily integrated supply chain that can't easily be swapped out. 'What the government's trying to do, and I think this is really a good plan, is we realize that it's going to be tough for a lot of our manufacturers to source from non-U.S. sources, and they're giving them time to find an alternative source,' said Stillo. 'I think the Canadian government appreciates the damage that a trade war can inflict, and they strategically aim to target counter tariffs that would be more harmful to the U.S. and Canada.' Well, it means fundamentally that some goods cost more in Canada now than they would without tariffs. And it means some are less expensive because they aren't tariffed. It also means that, fundamentally, the United States has an effective tariff rate of 14.1 per cent on Canadian goods, while Canada's effective tariff rate is more like 2.8 per cent, if you account for all the tariff relief. 'We're less than proportional, for sure,' said Stillo. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here .
Ottawa Citizen
14-07-2025
- Business
- Ottawa Citizen
Here's what we know about which U.S. goods are still subject to Canadian tariffs
When U.S. President Donald Trump threatened to increase tariffs on Canada in a letter last week, he complained that the federal government had 'financially retaliated against the United States.' Article content In the letter, posted to Truth Social on Thursday, Trump said the U.S. tariff on Canadian goods would jump from 25 per cent to 35 per cent on Aug. 1 and he warned Prime Minister Mark Carney not to consider raising Canada's counter tariffs on the U.S. Article content Article content In response to Trump's tariffs, Canada has announced tariffs on $96 billion worth of U.S. merchandise, according to an Oxford Economics analysis. However, Carney has also since exempted a number of products from these tariffs. The Oxford Economics analysis also found that at least $56 billion is eligible for exemption or remittance from tariffs. Article content Article content Over the course of the spring, Canada announced several rounds of tariffs. Article content On March 4, a 25 per cent tariff on $30 billion worth of U.S. imports. Article content On March 13, a 25 per cent tariff on a further $29.8 billion worth of U.S. goods, including steel and aluminum. Article content As of April 9, a 25 per cent tariff on $35.6 billion worth of cars and parts that are not compliant with existing free-trade agreements. Article content Article content At present, the government of Canada lists 37 pages of goods that are facing tariffs. Article content Article content It includes items such as food, clothing and cosmetics. Article content On page 37, for example, scent sprays and other toilet sprays are listed as being subject to a 25 per cent tariff. Article content The same tariff is applied to everything from chicken and powdered milk on page 1, to prune wine on page 7 and négligés on page 16. Article content All in, Oxford Economics estimates between $32 billion and $40 billion in U.S. product remain tariffed by Canada after exemptions are accounted for. Article content Canada, like the U.S., has exempted goods that are compliant under the United States–Mexico–Canada Agreement, which has been in effect since July 1, 2020. Article content For example, this would include much of the auto sector. A 25-per-cent tariff remains on non-USMCA compliant automobiles and auto parts.
Yahoo
10-07-2025
- Business
- Yahoo
Prices are now starting to rise because of tariffs. Economists say this is just the beginning
Economists, researchers and analysts have warned that President Donald Trump's sweeping trade policy of tacking steep tariffs on most goods that come into America will deliver a taxing blow to consumers via higher prices. However, recent months' economic data has shown that overall inflation has remained fairly tame. Trump and members of his administration tout the positive economic reports as signs that tariffs are working. However, the chorus of concern is growing: Prices are moving higher, and economists say this is just the beginning. Here's a look at the mechanisms behind why price hikes, and hotter inflation, are a slow burn: Tariffs have been applied in a staggered manner: The earliest tariffs went into effect in February (China, non-USMCA goods) and March (steel, aluminum), but the bulk were not announced or applied until April or later. Trade policy and tariffs are in flux: There have been plenty of instances where announced tariffs have been postponed, suddenly nixed, or unexpectedly increased or decreased in size. Shipping takes time: Sea cargo shipments can take weeks to more than a month to reach the US from other countries. Domestic supply chains take time, too: Once goods land on US soil, they don't hit shelves the very next day. In addition to domestic transport times, the imported products (which are not always finished goods but rather parts and materials) have to still go through the manufacturing and production processes before being distributed to sales channels. Inventories were loaded up before tariffs hit: Near the end of last year, businesses frontloaded import orders to prepare for any disruptions that could come from a massive, and short-lived East and Gulf Coast port strike and also to get ahead of potential tariffs. Those stockpiling efforts surged this year as steep — and unexpectedly expansive — tariffs came into view and during periods in which they were postponed or lessened. Some costs are being eaten: First, foreign exporters are absorbing some of the added costs. A Goldman Sachs analysis puts that share at about 20%, meaning that the remaining 80% of higher costs from tariffs (which are added to the price of wholesale goods when they hit US soil) have been split between US businesses and US consumers. Goldman Sachs economists expect that eventually about 70% of the direct cost of tariffs will be passed onto consumers through higher prices. (However, that 70% could move higher, depending on how much domestic producers change their prices as well, according to the analysis). Businesses are hesitant to pass on higher prices: Consumers, hammered for years by a bout of high inflation, don't have the appetite — or the savings — for higher prices. 'Firms' pricing power is just getting a little weakened because consumer spending is starting to soften,' Nicole Cervi, a Wells Fargo economist, told CNN. Awareness of goods prices is lower in summer than fall and winter: The US is a service-heavy economy, especially in the summertime, when spending is directed more at travel, recreation and leisure. However, some goods prices are already on the rise, and companies are warning more are on the way. However, goods will play a more central role in household budgets come fall and winter, when back-to-school season and spendy holidays such as Halloween and Christmas hit. 'I think some of this might become more real for people' later this year, said Tyler Schipper, associate professor in economics and data analysis at the University of St. Thomas in St. Paul, Minnesota. Economic data is often lagged: Next week, for example, the Bureau of Labor Statistics will release critical inflation data that covers the month of June. Inflation indices are comprehensive: Rising goods prices are showing up in the inflation data; however, they've largely been overshadowed by factors such as falling gas prices and a continued slowing of price hikes for services, particularly rent and housing. As such, inflation data to this point has remained fairly muted — for now. 'It's not surprising that tariff effects have not shown up strongly in official consumer prices yet,' according to a Goldman Sachs' July 8 note. However, the seemingly muted headline inflation numbers don't tell the full story: Goods prices — particularly in tariff-exposed categories — are already on the rise, both private-sector and federal data shows. The May Consumer Price Index showed that several tariff-sensitive categories saw price increases: The price of appliances rose by 0.8% in both April and May, the highest monthly increase in nearly four years. Toy prices climbed for the second consecutive month, leaping by 1.3% (matching a four-year high). Household furnishings, tools and sporting goods showed an acceleration in price hikes after post-Covid years when prices fell. A DataWeave analysis of 200,000 products on 13 major US e-commerce sites show that prices have risen since January: Home and furniture prices have accelerated for the past five months as compared to January: up 1.1% in February, 2.1% in March, 2.8% in April, 3.7% in May and 4.7% in June. Toys showed a similar trajectory, but on a smaller scale: Prices were up 3.8% in June versus January. Apparel and footwear prices were fairly flat in February through May but shot a little higher in June, up 1.7% from January. Some price hikes are even greater at some retailers: For example, toys at Walmart and Target were up 7.4% and 6.1% from January, versus the average increase of 3.8%, respectively. 'The percentage changes are definitely higher than what we've seen in previous years,' Karthik Bettadapura, co-founder and CEO of DataWeave, told CNN in an interview. In June 2024, for example, home and furniture prices were up 1.9% from January, toy prices were up 0.4%, and apparel and footwear were up 0.7%, DataWeave data shows. Bettadapura said he anticipates a further and broader 'price creep' in the coming months as tariffs ripple through the supply chain. And given ongoing pushback on higher prices, he expects there also to be a rise in shrinkflation (where brands may trim package sizes) and private-label expansion. The June CPI, due out next week, also is expected to be the 'turning point' where the steeply higher effective tariff rate will make a bigger mark on overall inflation, said Wells Fargo's Cervi, noting expected gains in the closely watched core goods category (which excludes gas and food). 'The core goods side will start to leg up higher because of this tariff pass-through starting to take effect,' she said. Wells Fargo expects that the overall CPI could peak at 2.9% later this year (in part because of the further disinflationary effects from the services side). But even if inflationary impacts are 'modest,' the effects on Americans could cut deeper, said Schipper, from the University of St. Thomas. 'Right now, I am less concerned about inflation building on itself,' Schipper said. 'There's still a cost to consumers that are struggling.'
Time of India
27-06-2025
- Business
- Time of India
Trump terminates trade talks with Canada with immediate effect, says tariffs will be announced within a week
US President Donald Trump on Friday said that the country was he is calling off trade negotiations with Canada immediately, citing its digital services tax . He added that the neighbouring country would be informed of the tariff rate within a week. "We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," Trump said on Truth Social. Trump accused Canada of blatant attack on the US and copying the European Union. "They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period," he added. Live Events Canada is the second-largest trading partner of the US. Currently, all non-USMCA goods imported from Canada face a tariff rate of 25 per cent. This excludes energy products, which Trump has applied a 10 per cent tariff rate to. It also bears much of the brunt of Trump's 50 per cent tax on steel and aluminum imports.
Yahoo
26-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From ITT's Q1 Earnings Call
ITT's first quarter saw a positive market response, as the company delivered flat sales of $913 million—exceeding Wall Street revenue expectations by a small margin. Management attributed stable performance to strong order momentum, especially in the Industrial Process segment and recent acquisitions. CEO Luca Savi highlighted that orders grew 7% overall, with notable contributions from the kSARIA and Svanehøj acquisitions, driving a record backlog. Despite headwinds from lower volumes in auto and aerospace and currency effects, Savi credited 'shop floor productivity and price' for supporting margins and noted record free cash flow in the quarter. Is now the time to buy ITT? Find out in our full research report (it's free). Revenue: $913 million vs analyst estimates of $907.8 million (flat year on year, 0.6% beat) Adjusted EPS: $1.45 vs analyst estimates of $1.44 (0.8% beat) Adjusted EBITDA: $196.5 million vs analyst estimates of $193.4 million (21.5% margin, 1.6% beat) Management reiterated its full-year Adjusted EPS guidance of $6.30 at the midpoint Operating Margin: 16.5%, in line with the same quarter last year Organic Revenue was flat year on year (9.5% in the same quarter last year) Market Capitalization: $12.18 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Scott Davis (Melius Research) asked if the surge in orders reflected pre-buying ahead of price increases. CEO Luca Savi replied that order growth was driven by long-term project wins and market share gains, not purchasing acceleration. Mike Halloran (Baird) questioned how much pricing and FX contributed to updated guidance. CFO Emmanuel Caprais detailed that minor positive impacts from FX and share count were offset by higher tax rates and inflation, with acquisitions performing better than initially expected. Vlad Bystricky (Citigroup) inquired about risk to Saudi project spending amid oil price declines. Savi said customer tone remains positive, with orders in oil and gas continuing to grow and market share gains offsetting external risks. Jeff Hammond (KeyBanc Capital Markets) pressed on the company's ability to pass through tariff costs and the sourcing strategy. Savi explained that dual sourcing and price increases, especially on non-USMCA products, would mitigate tariff impacts without affecting EPS guidance. Joe Ritchie (Goldman Sachs) asked about VIDAR's sales strategy and cross-selling potential. Savi clarified VIDAR operates as a separate business with its own sales force, though some sales incentives could leverage existing pump business relationships. Looking ahead, the StockStory team will be monitoring (1) the pace at which VIDAR gains commercial traction and contributes to revenue, (2) the successful conversion of record project backlog into realized sales, and (3) the effectiveness of pricing and sourcing actions in offsetting tariff pressures. Progress on M&A execution and further innovation announcements will also be important milestones. ITT currently trades at $154.78, up from $137.09 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
