logo
Trump's trade war goes global: U.S. president blows up postwar order

Trump's trade war goes global: U.S. president blows up postwar order

CBC03-04-2025
Social Sharing
After spending a few weeks pounding on Canada and Mexico, Donald Trump turned his attention Wednesday to a whole new target: the rest of Planet Earth.
The U.S. president broadened his trade war by imposing the widest set of tariffs in generations, effectively resetting the postwar trading system.
The only good news for Canada, such as it is, is that when Trump came swinging fast and furiously with new tariffs, it took no new lumps.
The good news ends there.
The bad news is that previously announced tariffs will remain in place: potentially devastating auto tariffs that kick in Thursday, steel and aluminum tariffs of 25 per cent, 10 per cent on energy and potash, and 25 per cent on certain other goods.
For Trump, this was a personal Kodak moment.
WATCH | Tariffs start at 10%:
Trump announces 10% 'baseline' tariff
5 hours ago
Duration 0:28
After showing a chart listing the various tariff percentages he will be charging some countries — Canada and Mexico were not on the chart — U.S. President Donald Trump said there would be a 10 per cent 'minimum baseline' tariff on goods from foreign countries.
Standing on the White House lawn, he referred to this as the culmination of an old dream, given his decades as a dyed-in-the-wool protectionist.
"I've been talking about it for 40 years," Trump said.
"If you look at my old speeches when I was young, very handsome, in my old speeches… I'd be talking about how we were being ripped off by these countries."
He added: "It's such an honour to be finally able to do this."
And by "this" he meant imposing tariffs ranging from 10 per cent to an eye-watering 50 per cent on some countries — shocking not only markets, but potentially realigning the planet's geopolitical map, with the U.S. retrenching to this hemisphere.
That said, elements of the plan appeared hastily slapped together. Trump's list included several non-countries, such as the unpopulated Heard and McDonald Islands, a barren Antarctic archipelago belonging to Australia that now faces a 10 per cent tariff.
Asia's out, Latin America's in
We'll see which countries, if any, negotiate a better deal. But the initial pattern is clear: Trump has flipped the tables on Asia.
There, where the U.S. had been cultivating allies against China, trading partners now face tariffs of 46 per cent (Vietnam), 49 per cent (Cambodia), 24 per cent (Japan), 32 per cent (Taiwan), 26 per cent (India) and 37 per cent (Bangladesh). China also got a 34-per-cent tariff.
Anyone selling clothing or electronics into the U.S. now has some incentive to shift production to Latin America, where tariffs are mostly 10 per cent.
"I do think there's huge geopolitical implications," said Chad Bown, a trade expert at the Peterson Institute in Washington, and former chief economist of the Biden State Department.
But he added an important caveat.
There's so much uncertainty about how long these tariffs will last, and it takes time to redesign supply chains, so it's unclear anyone can make long-term investment assumptions based on Wednesday's numbers.
The waves of uncertainty are certainly rippling through Canada. And, within Canada, no place risks being harder hit than auto country.
Canada faces pain
A tangle of tariffs is set to take effect on Canada's biggest manufactured product — it's up to 25 per cent on fully assembled vehicles and some parts, while other parts face none.
A southern Ontario auto worker says his colleagues are afraid to make big purchases now, fearing layoffs.
"It's going to be a hell of a time," Jayson Mercier told CBC News. "Here we are again, similar to [the economic crisis of] 2008 — where we don't know if we're going to have a job."
One Canadian-American trade consultant says Canada fared better than most countries in Wednesday's announcement. But that's cold comfort for certain sectors, he added.
"Autos is going to be massively impactful for Canada," said Eric Miller, the Canadian-born head of the Rideau Potomac consultancy in Washington.
"That's a huge amount of pain for Canada. And you will see a huge amount of restructuring and realignment in the North American auto sector."
WATCH | Canada will fight tariffs, Carney says:
Carney says Canada will 'fight' latest Trump tariffs
3 hours ago
Duration 1:38
Prime Minister Mark Carney, speaking from Parliament Hill on Wednesday, says Canada will act with 'purpose and with force' to fight new U.S. tariffs. President Donald Trump slapped new 25 per cent tariffs on foreign-made cars, but Canada was spared the 10 per cent baseline tariffs applied to many other countries.
One industry player put it even more bluntly in a social media post. He predicted an industry standstill within days, and not just in Canada.
"The. Auto. Tariff. Package. Will. Shut. Down. The. Auto. Sector. In. The. USA. And. In. Canada," Flavio Volpe, head of Canada's auto-parts lobby, wrote on X.
"Don't be distracted. 25% tariffs are 4 times the 6/7% profit margins of all the companies. Math, not art."
Certain goods traded under the rules of the Canada-U.S.-Mexico Agreement face no tariffs, under exemptions Trump announced weeks ago.
Estimates vary on how many goods will face duties, but it appears most of Canada's exports to the U.S. now indeed face tariffs.
"I'm not sure anybody knows [the exact percentage] at the moment," Bown said.
In Washington, tariff opponents rained on Trump's big moment.
As he began speaking, the Republican-led U.S. Senate began hours of debate on a mostly symbolic vote to repudiate his tariffs on Canada.
Some members of Trump's own party voted with Democrats in a no-hope bid to cancel the first batch of Canada tariffs. It's a doomed effort, even though it passed the Senate, 51-48. The House doesn't plan to take it up, and Trump would veto it anyway.
But it was intended to deliver a political black eye to Trump on the day he announced his tariffs, with those on Canada being especially unpopular, according to polls.
The first speaker was Rand Paul, the Kentucky senator who was one of the few Republicans backing the measure.
He tore a strip off Trump's actions — calling them "crazy."
Paul ridiculed Trump's idea that Canada represents a national security threat because of the fentanyl trade. He said more fentanyl comes from the U.S. than the other way, called Canada a valuable trading partner, and said Trump will drive up costs for Americans.
Plus, the libertarian-leaning lawmaker blasted the idea on principle.
He said there's nearly a millennium-long tradition, going back to the Magna Carta, through the American Revolution, that it should be a legislature to approve a new tax — not just one leader.
That's exactly what opponents are calling Trump's plan: the largest sudden tax increase in American history.
"Taxation without representation is tyranny," Paul said. "Conservatives used to understand that tariffs are taxes on the American people."
He added: "What happened? Did we all of a sudden give up all the things we used to believe in?"
Lately, for Republicans, there is no authority higher than Trump's. They could stop this if they wanted to, through the Congress.
It has a constitutional role in international trade, but, over the decades, Congress wrote several laws giving the president new power to impose tariffs by declaring an emergency.
Nobody has used that power, this way. Not until now. Now Trump is harnessing that power in unprecedented ways.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Could falling rent prices be your stepping stone to home ownership?
Could falling rent prices be your stepping stone to home ownership?

Global News

time19 minutes ago

  • Global News

Could falling rent prices be your stepping stone to home ownership?

Rents are falling across Canada and so are home prices, leading many Canadians to wonder if the time is right for them to make the jump from living in a rented home to home ownership. The average asking rent for all residential properties in Canada fell by 2.7 per cent in June, compared with this time last year, to $2,125 a month. Combined with a soft housing market, this could offer opportunities for anyone looking to become a homeowner. 'Current market conditions certainly offer an opportunity to get into the ownership market, if that's something you've been considering for a while,' said Penelope Graham, mortgage expert at 'Mortgage rates are softer than they've been (typically). They've come down considerably from the peak that they hit in the fall of 2023.' Recent Statistics Canada data suggests younger Canadians are also building up financial resilience, despite the economic uncertainty caused by U.S. President Donald Trump's tariffs. Story continues below advertisement 'The debt-to-income ratio is actually dropping for people under 35 from 201 per cent down to 187 per cent, suggesting it is a good time because incomes are finally outpacing debt. So that does give young people more room to plan for home ownership,' said Nicole Lechter, senior real estate analyst at RSM Canada. 'Middle-income Canadians are quietly rebuilding. There's a 20 per cent surge in net savings.' Royal LePage spokesperson Anne-Elise Cugliari Allegritti said that 'home prices are down nationally about three and a half per cent from the peak in Q1 of 2022.' 'Over that same period, salaries have gone up nationally, an average of almost 12 per cent. Canadians have this opportunity, especially in the more expensive markets that have historically been more difficult to get into,' she said. 1:58 New realtor trends emerging as housing market cools Down payment biggest challenge According to monthly affordability report, while mortgage rates went up in most Canadian markets last month, they still remain just over that four per cent mark. The interest rate for the average five-year fixed mortgage was 4.48 per cent, according to the report. Story continues below advertisement This means that for many Canadians, depending on where they rent and where they are looking to buy, their monthly mortgage cost could very well end up being lower than what they pay in rent. Despite the drop, rents remained 11.9 per cent higher than they were in June 2022 and 4.1 per cent higher than in June 2023. 'The truth is a lot of people who are renting can afford a mortgage. It's the same monthly outlay. If I'm paying an inflated $3,200 (per month in rent) for a condo, I could surely afford a mortgage of a similar amount. But in order to have that rent turned into a mortgage, I first need this big chunk of capital,' said Cindy Marquez, a certified financial planner who works with millennial clients looking to become homeowners. And for some, taking advantage of falling rent prices may offer a chance to save for that goal. 2:00 Business Matters: Canadian housing market on hold, CREA data shows Can you find cheaper rent? For the committed renter, there are cheaper rents to be found in certain markets. Story continues below advertisement Paying even a few hundred dollars a month less could help some people boost their savings and save up for that down payment. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'It certainly can make financial sense, especially if it's just the couple and they don't have additional family members. If they have that flexibility, if you're downsizing from rental to rental, there's really nothing standing in your way there,' Graham said. Lechter said that 'renting isn't losing. It's a smart strategy.' She added that the demand on the rental market from heightened levels of immigration is easing. 'We're going to see further rent declines over the next 12 to 18 months. So that is a good opportunity to save,' she said. Being a renter, especially if your lease is month-to-month, can give you some flexibility in being able to move easily and find cheaper rent elsewhere. 'You're not going to pay any kind of penalties that you might if you owned your home and had to break your mortgage to do so. Downsizing the cost of living and boosting your ability to save will be beneficial if your goal is purchasing a home,' Lechter added. Marquez said she and her husband are currently renting a condo in Toronto, but they plan to move out of the city to pay less for rent. Story continues below advertisement 'We've given ourselves the benefit of paying less now so that we can save up more and get ready for that lead up (to home ownership),' she said. Lechter said condominium owners are feeling the pressure of the rental market, giving some power back to the renter. 'It's also an opportunity if you're a renter of a condo to go knock on your landlord's door and ask for a reduction in rent because you have some power here,' she said. 0:48 How many coffees you need to stop buying to afford a home in Ontario How much do you need to save? How much you save for your down payment can determine a lot. Story continues below advertisement 'It's going to be one of the key factors your lender is looking at. It's going to determine how much mortgage you're going to qualify for and your overall budget,' Graham said. 'If you're looking at purchasing a home at $1.5 million or more, you're going to need at least 20 per cent down. If you are a first-time homebuyer, though, you're likely at the lower end and saving up for that five per cent, or 7.5 per cent if you're looking at a property over $500,000,' she added. However, she said someone buying a home with less than 20 per cent down payment should consider the cost of mortgage insurance, which lenders require you to get if you don't meet the 20 per cent threshold. 5:32 Real estate: Spring outlook and 2025 home trends How to save for a down payment If you're able to save a few hundred dollars a month on rent, where should you squirrel those contributions away? Story continues below advertisement 'The First Home Savings Account (FHSA) is truly the best thing that we've had offered to us. You're getting the tax benefits of the RSP, where you get deductions on your contributions and the benefits of a TFSA. When you're making withdrawal from your FHSA for the purposes of buying or building a qualifying home, there are no taxable consequences,' Marquez said. The FHSA is a tax-free savings account that allows first-time buyers to save up to $8,000 a year to put toward their down payment. The time to open an FHSA is 'as early as possible,' Marquez said, but remember that you have a 15-year window to contribute to it. To open an FHSA, you need to be a Canadian citizen or permanent resident 18 years of age or older. You must also not have lived in a home that either you or your common law partner or spouse has owned for the last four years. However, if you became common law partners after you opened your FHSA, you will be able to withdraw that money tax-free for a down payment when you are buying a home. Marquez recommended maxing out the benefits of the FHSA and tax-free savings account (TFSA) before dipping into your registered retirement savings plan (RRSP), since that is money that you typically want to save for retirement. Story continues below advertisement 2:35 Frustrated and angry, Montreal condo buyers wait years for their units to be delivered Could you live in a condo? Canada's condominium market is in a major slump, with some of the most expensive markets in the country going ice-cold. In the Greater Toronto and Hamilton Area (GTHA), condo sale activity was down 91 per cent compared with the 10-year average in the second quarter of 2025, according to research from Urbanation. Story continues below advertisement Unsold inventory of condos has swelled to a record high in Q2, the report said. But for Canadians with families and pets, tiny one-bedroom condos with cramped living spaces are simply not an option. Lechter said one-bedrooms are not the only option on the condo market. There's one-bedroom, there's two-bedroom, there's three-bedroom condos,' she said. 'We're seeing more resilient demand for bigger-sized condos. We're also seeing that the purpose-built rentals that are coming back to the marketplace are gearing towards bigger units as well.' Allegritti said, 'I think that developers have really heard the need for larger units and we're going to start to see a lot more of that coming onto the market in years to come.'

NYSE Content Advisory: Pre-market update + NIQ to debut, NYSE joins AI Summit
NYSE Content Advisory: Pre-market update + NIQ to debut, NYSE joins AI Summit

Cision Canada

time19 minutes ago

  • Cision Canada

NYSE Content Advisory: Pre-market update + NIQ to debut, NYSE joins AI Summit

NEW YORK, July 23, 2025 /CNW/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor. The NYSE is participating at the All In and Hill and Valley's "Winning the AI Race" Summit, capturing insights from key voices shaping the future of business, technology, and innovation. delivers the pre-market update on July 23rd Stocks are fractionally higher Wednesday morning after President Trump announced a "massive deal" with Japan. This move includes a reciprocal tariff of 15% on exports to the U.S. and Japan investing $550 Billion to the U.S. Investors are also paying attention to a slew of earnings throughout the day including NYSE-listed telecommunications giant AT&T. Tesla and Alphabet headline earnings after market close. Consumer intelligence company NielsenIQ celebrates its IPO at the NYSE this morning. The company, which raised over $1 billion, will ring the opening bell and begin trading under the ticker symbol NIQ. The NYSE is participating in the All In and Hill & Valley "Winning the AI Race" Summit in Washington D.C., engaging with influential leaders and innovators to gather strategic insights on the evolving intersection of AI, business, and technology. Opening Bell NielsenIQ (NYSE: NIQ) celebrates its initial public offering SOURCE New York Stock Exchange

Back-to-Back Catalysts Line Up for U.S. Oil and Gas Producers as Domestic Output Tightens
Back-to-Back Catalysts Line Up for U.S. Oil and Gas Producers as Domestic Output Tightens

Cision Canada

time19 minutes ago

  • Cision Canada

Back-to-Back Catalysts Line Up for U.S. Oil and Gas Producers as Domestic Output Tightens

Issued on behalf of Prairie Operating Co. VANCOUVER, BC, July 23, 2025 /CNW/ -- USA News Group News Commentary – U.S. crude inventories continue to shrink despite efforts by the current administration to rebuild domestic stockpiles, with the latest EIA data showing a 3.9 million barrel decline. Earlier this year, the EIA projected strong domestic crude and gas production through 2030, even as OPEC now expects global oil demand to grow well beyond 2050, fueled in part by surging power needs from AI-focused data centers in the Middle East. In the U.S., President Trump's AI Action Plan is expected to accelerate investment into domestic energy sources—positioning select non-OPEC producers to benefit from the trend, including Prairie Operating Co. (NASDAQ: PROP), Ring Energy, Inc. (NYSE-American: REI), Amplify Energy Corp. (NYSE: AMPY), Matador Resources Company (NYSE: MTDR), and Obsidian Energy Ltd. (NYSE-American: OBE) (TSX: OBE). Meanwhile, the Strategic Petroleum Reserve remains depleted, and Energy Secretary Chris Wright warns that refilling it to prior levels could cost US$20 billion and take years. That prolonged timeline, coupled with accelerating AI-driven energy demand, is drawing fresh attention to the importance of stable, domestically sourced oil and gas supplies. Prairie Operating Co. (NASDAQ: PROP) has remained a stealth operator in the energy space, steadily growing its position in the Denver–Julesburg Basin without drawing much attention. Over the past four months, the Houston-based driller has methodically built scale while maintaining a disciplined capital approach that continues to resonate with cost-conscious investors. In its latest strategic addition, Prairie acquired a portion of Edge Energy's assets for US$12.5 million, securing roughly 11,000 net acres, 190 boe/d of current production, and 40 locations ready for drilling. "This strategic and highly accretive bolt-on acquisition enhances our existing footprint in the DJ Basin," said Edward Kovalik, Chairman and CEO of Prairie. "With a high working interest, established cash flow, and development-ready drilling locations, this transaction aligns with our capital allocation strategy and adds near-term value and long-term inventory." Prairie financed the Edge Energy acquisition through its reserve-based lending facility, avoiding any equity dilution. The flexibility comes thanks to a June update, when Prairie confirmed a US$1 billion RBL led by Citibank. On June 9, the lending syndicate—which now includes Bank of America and West Texas National —reaffirmed a US$475 million borrowing base following a review of Prairie's expanded reserve profile. Operational momentum continues to build. In late April, Prairie began completions on nine drilled-but-uncompleted wells at its Opal Coalbank location, with first oil expected this summer. Those follow the 11-well Rusch Pad, which was spudded on April 1 and features alternating 2-mile laterals targeting the Niobrara and Codell formations. Initial production from Rusch is expected in early August, setting up back-to-back volume catalysts. Prairie's broader expansion is anchored by its US$602.8 million acquisition of Bayswater Exploration assets, which closed in late March. That deal boosted daily production by approximately 25,700 boe, added 77.9 MMboe in proved reserves, and delivered more than 600 future drilling locations across 24,000 net acres. At a purchase price of less than 0.7× proved PV-10, the assets offer firm value support under the stock. "The addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin," said Gary Hanna, President of Prairie. "These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders." Prairie now holds approximately 60,000 net acres in the DJ Basin, with a runway of over 550 economic locations and leverage holding steady near 1× EBITDA. Production remains weighted about 70% to liquids—a favorable profile as rising AI-related power demand lifts both crude and associated gas fundamentals. With new wells at Opal Coalbank and Rusch nearing first production, Prairie's execution timeline is about to be put to the test. In other recent industry developments and happenings in the market include: Ring Energy, Inc. (NYSE-American: REI) has selected Veriforce as its exclusive contractor management partner to enhance safety, compliance, and operational efficiency across its expanding network. "Our goal was to free up time with our field and office personnel, improving how we verify contractor insurance and MSAs," said Chris Gafford, HSE Manager for Ring Energy. "More importantly, we needed a better way to understand how our contractors are handling safety. Veriforce provides that insight." The move centralizes contractor oversight and integrates training programs like SafeLand and H2S awareness to streamline field readiness. The initiative reflects Ring's continued growth in the Permian and its commitment to risk reduction and workforce scalability Amplify Energy Corp. (NYSE: AMPY) has sold its non-operated Eagle Ford assets to Murphy Exploration & Production for US$23 million, aiming to strengthen its balance sheet and reduce debt. "Reducing debt and accelerating Beta development are core tenets of our go-forward strategy," said Martyn Willsher, President and CEO of Amplify. "This deal is consistent with both of these objectives, and we believe we are receiving fair value for the divested assets. We will continue to look for other opportunities that align with our strategic intent." The proceeds may also fund the return of previously deferred Beta field development wells. The divestiture supports Amplify's pivot toward a more focused operational strategy centered on higher-return assets. Matador Resources Company (NYSE: MTDR) has successfully completed a major expansion of its Marlan cryogenic gas processing plant in New Mexico, boosting capacity from 60 MMcf/d to 260 MMcf/d. "We are pleased to announce the start up of the expansion of the Marlan Plant," said Joseph Wm. Foran, Chairman and CEO of Matador. "The increased processing capacity at the Marlan Plant should allow San Mateo to continue to provide Matador with reliable flow assurance in our Ranger and Antelope Ridge asset areas in Lea County, New Mexico. The Board and I congratulate and thank the members of our midstream and operational asset teams – especially the teams in the field – for the significant value they have created through their extra efforts to complete the Marlan Plant expansion on time and on budget." The project supports both Matador's operations in the Delaware Basin and third-party volumes through its midstream affiliate, San Mateo. Alongside the infrastructure upgrade, Matador received a corporate credit rating bump from Fitch to BB and saw its US$3.25 billion borrowing base reaffirmed by all 19 participating lenders. Obsidian Energy Ltd. (NYSE-American: OBE) (TSX: OBE) has unveiled a US$110–120 million second-half capital program, focused on drilling 28 operated wells across its Peace River and Willesden Green assets. "With the disposition of our Pembina asset during the second quarter, coupled with the recent tariff and OPEC+ induced commodity price volatility, we have adapted our approach to 2025 accordingly," said Stephen Loukas, Obsidian Energy's President and CEO. "Post-disposition, due to our enhanced liquidity position as well as the continued discount that our shares trade to intrinsic-value, we have opted to moderate our near-term production growth via the reduction in capital expenditures and have chosen to drive growth in per-share metrics via incremental share buybacks. Moreover, during the second half we are extending infrastructure to our Open Creek field which will, upon completion, allow us to aggressively grow our Cardium and Belly River production volumes as market conditions improve. Furthermore, we plan on building an all-season road to our Nampa field that will bring ~200 barrels per day of currently shut-in oil back on production and enable pursuit of a full field development plan." The company aims to exit 2025 at approximately 29,000 boe/d, supported by infrastructure upgrades and moderate production growth. Obsidian also plans a Canadian share exchange offer involving its stake in InPlay Oil Corp. as part of its capital return strategy. DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for Prairie Operating Co. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Prairie Operating Co. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Prairie Operating Co. which were purchased in the open market, and reserve the right to buy and sell, and will buy and sell shares of Prairie Operating Co. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQ has been approved by Oncolytics Biotech Inc.; this is a paid advertisement, we currently own shares of Prairie Operating Co. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store