China's Record-Breaking Trade Hit First Big Speed Bump Since May
Cargo throughput at the nation's ports was 6.2 million containers last week, according to data released Monday by the Ministry of Transport. That was the lowest since the second week in May and a drop of almost 7% from the previous week, according to the statement.
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Yahoo
19 minutes ago
- Yahoo
The 35% tariff kicked in today on Canadian goods. How big of an impact will it have?
With the signing of an executive order, U.S. President Donald Trump upped Canada's tariff rate to 35 per cent, effective at 12:01 a.m. today. That's a 10 per cent increase on the 25 per cent rate that has been in effect on Canadian goods headed south of the border since March, and is a blanket tariff that will apply to Canadian products across the board. However, that doesn't paint the whole picture. A very small number of Canadian products will be subjected to the 35 per cent tariff. That's because the tariffs don't apply to all goods that are subject to the Canada-U.S.-Mexico Agreement (CUSMA), the existing free trade deal governing trade between the three countries. Those products can keep going across the border free of tariffs. Most of the goods Canada exports to the U.S. are covered by CUSMA. The Bank of Canada said in its monetary policy report released Wednesday that an estimated 95 per cent of stuff sent south of the border qualifies under that agreement. That means the new, higher 35 per cent rate will be felt by a small fraction of exports that are not CUSMA-compliant, which likely includes a broad array of products across all sectors, according to experts. "[CUSMA] is the one thing that is ensuring normalcy in trade flows in much of the economy," said Eric Miller, president and CEO of Rideau Potomac Strategy Group. "And so the maintenance of that exemption was absolutely crucial." WATCH | Trump increases tariff on Canada to 35%, White House says: There's no simple list of items that are CUSMA-compliant, because products are certified on a case-by-case basis, based on a number of complicated factors. In order to get the exemption, a certain amount of the product needs to be made in Canada, with Canadian inputs. Take the example of a steak versus that of a screwdriver. If a cow is born, raised, slaughtered and prepared in Alberta, then the steak — the end product — is clearly Canadian and would be shielded under CUSMA, says Miller. But a typical screwdriver is made of metal, along with plastic or rubber for the handle. The manufacturer would have to make sure that enough of the materials come from Canada, Mexico or the U.S. That amount is usually about 60 per cent, according to lawyer Daniel Kiselbach, a managing partner at Miller Thompson LLP. WATCH | What we know — and what's still unclear — after tariffs hiked on Canadian goods: Then, you have to make sure you're adding value to those parts and converting them to a finished product before shipping it out. In the case of the screwdriver, you're taking the raw materials and making them into a new, finished item, so that would meet the bar. Overall, anything harvested or mined is usually CUSMA-compliant, Kiselbach said. Anything manufactured or produced in Canada gets more complicated. Electronics and machinery, in particular, are product types that tend to have a harder time getting CUSMA certification. On top of that, the certification process can be challenging, requiring records showing where all a product's components come from, and it is costly. "[Businesses] don't necessarily understand what the rules are telling them," Miller said. "It's almost like cryptography or something." For that reason, Miller says some businesses have simply not acquired CUSMA certification in the past — something that's changing now that the rates are so much higher. WATCH | Is Canada-U.S. free trade dead?: While the fraction of companies that don't qualify for the free trade exemption might be small, Miller says the impact of the new rate should not be overlooked. Many of those who will be hit by the Saturday tariff increase will be small- to medium-sized businesses that rely on components that are made in countries outside of Canada — and can't easily replace them with materials sourced elsewhere. "If you are used to sourcing a particular input from China for the last 10 years, it's not so easy to go and say, 'Now I'm going to buy that good somewhere else,'" Miller said. "They can't easily change and they can't meet the rules, so they have to pay 35 per cent. And for them, going from 25 per cent to 35 per cent is pretty devastating," Miller. Kiselbach says 35 per cent tariffs might be higher than some companies' profit margins, meaning they'd be losing money on each item they sell at the current rate. Sectoral tariffs still in play The 35 per cent rate also has no bearing on the rates Trump has set for specific sectors. Those include a 50 per cent tariff on steel and aluminum, as well as 25 per cent on cars and auto parts, both of which had already been in effect. A new, 50 per cent tariff on some copper products, including copper pipes and wiring, also went into effect today. The Trump administration made carveouts for copper input materials such as ores, concentrates and cathodes, which is providing the industry some relief. And while the sector-specific rates are largely not new, the impact of these steep rates on important sectors cannot be ignored, said Alan Arcand, chief economist with the trade association Canadian Manufacturers and Exporters. "These are very important industries for Canada," Arcand said. "These are tariff rates that are just not … sustainable for these industries. So that's really the rub of the issue right now." 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
Washington Post
22 minutes ago
- Washington Post
Sanctions bill targets China for enabling Putin's war in Ukraine
Bipartisan legislation introduced in the Senate on Friday would force the Trump administration to impose economic penalties on China for supporting Russia's war machine, targeting Moscow's most important sponsor as the president intensifies efforts to end the war in Ukraine. The bill introduced by Sens. Jeanne Shaheen (D-New Hampshire) and John Cornyn (R-Texas) would require the administration to target Chinese 'entities and individuals' that have helped sustain the Russian defense industry despite enormous battlefield losses and widespread Western sanctions imposed since the start of the war.
Yahoo
24 minutes ago
- Yahoo
Nintendo's Switch 2 Sales Near 6 Million
Sales for the Nintendo Switch 2 consoles have reached 5.82 million since its June 5 release, the Japan-based video game giant revealed along with its latest earnings results Friday. 'Looking at hardware sales volume in the first quarter of this fiscal year, Nintendo Switch 2 sales totaled 5.82 million units, and Nintendo Switch sales declined 53.5% year-on-year to 0.98 million units,' Nintendo stated in English-language explanatory materials accompanying the financials. 'Nintendo Switch is now in its ninth year since launch, so a year-on-year decline in sales is expected, but it continues to show stable sales.' More from Variety Apple Services Revenue Grows 13% to New Record, Earnings Massively Beat Street Amid Trump Tariff Uncertainty Amazon Beats Q2 Expectations as Revenue Rises 13% to Nearly $168 Billion Roku Drives Up Revenue 15%, Turns in Surprise Profit in Solid Q2 Earnings Beat Nintendo's Switch 2-specific game sales have hit a modest 8.67 million, which Nintendo attributes to 'the fact that many consumers purchased the hardware bundled with 'Mario Kart World,' and that there was a wide variety of titles from other software publishers.' Nintendo Switch software sales stood at 24.40 million units, a decline of 20.4% from the comparable period in 2024. However, it should be noted that Nintendo says, 'because Nintendo Switch 2 can play Nintendo Switch titles, the people purchasing Nintendo Switch software include not only owners of Nintendo Switch, but also people who have bought Nintendo Switch 2.' More to come… Best of Variety New Movies Out Now in Theaters: What to See This Week What's Coming to Disney+ in August 2025 What's Coming to Netflix in August 2025
