Higher tariffs to take effect August 1, U.S. Commerce Secretary Lutnick says
Commerce Secretary Howard Lutnick told reporters that the higher tariffs would take effect on August 1, but Trump was 'setting the rates and the deals right now.'
Bessent says U.S. close to several trade deals ahead of July 9 tariff deadline
Trump in April announced a 10-per-cent base tariff rate on most countries and higher additional rates ranging up to 50 per cent, although he later delayed the effective date for all but 10 per cent until July 9. Lutnick's comments indicate a three-week reprieve.
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Japan Forward
3 hours ago
- Japan Forward
Why is Ishiba Letting Trump Call the Shots in Tariff Talks?
このページを 日本語 で読む There seems to be no end in sight for the Japan-United States tariff negotiations. With such slow progress, President Donald Trump has been stepping up his criticism of Japan. Trump has said that it is "unfair" that US auto exports to Japan are at such a low level and has rebuffed Japan's requests to scrap or reconsider the 25% additional tariffs his administration has slapped on Japanese cars. The President has also complained that the Japanese imports of US rice are insufficient. Trump has been pointing to both of these issues for quite some time. Nevertheless, the reason why he has recently intensified his criticism of Japan by name is likely a desire to shake up Tokyo. He wants to force major concessions from Japan in order to start eliminating the bilateral trade deficit. Of course, the self-righteous US criticism regarding motor vehicle imports is unacceptable. Additionally, Japan imported 346,000 tons of American rice in 2024, more than twice the amount from the next largest external source, Thailand. At the same time, rice production constitutes the foundation of Japan's food security. So there is no need for our nation to blindly comply with US demands for increased imports of American rice. Japan should remain undeterred by Trump's provocative words and actions and continue to negotiate tenaciously. What is worrisome is the fact that Prime Minister Shigeru Ishiba has been out of the picture. Minister Ryosei Akazawa leaves the meeting with Commerce Secretary Robert Lutnick on June 27 in Washington. (©Kyodo) Trump personally calls the shots as to whether the US will revise its tariff measures. The only person who can directly influence this impasse is the Prime Minister. So why is there no sign of Ishiba becoming proactively involved in the negotiations? After agreement could not be reached at the June summit, the parties decided to continue negotiations at the Cabinet minister level. However, leaving the negotiations to Ryosei Akazawa, Minister of State for Economic Revitalization, does not solve the problem. Akazawa is not in a position to negotiate directly with the President. Ishiba has a responsibility as prime minister to protect the national interest. If he just allows Trump to dictate the pace of negotiations, he will be unable to fulfill that responsibility. Currently, the Japan-US tariff talks remain stymied over the additional tariffs on Japanese motor vehicles imported into the United States. That sector is a priority for Japan. Akazawa visited the US at the end of June for the seventh ministerial meeting. However, he was unable to even meet with Treasury Secretary Scott Bessent, who is overseeing the US side in the talks. Trump's moratorium on the imposition of additional "reciprocal tariffs" is due to expire on July 9. Yet, no progress has been made in the negotiations, including regarding the possibility of extending the deadline. Prime Minister Ishiba answers reporters' questions on June 22. (©Sankei) Trump unilaterally established that deadline. The US President also mentioned that he might send a letter to Japan ending the negotiations and setting the tariff level. It is problematic that Trump continues to unilaterally impose his will without fairly considering the ministerial-level talks and other input. However, it is also questionable whether the Ishiba administration is capable of managing such Trump-style dealmaking. The Prime Minister must demonstrate the leadership necessary to break the impasse. That, of course, includes arranging a telephone summit with Trump, as well as writing him directly. The time has come for Prime Minister Ishiba to prove his ability. Author: Editorial Board, The Sankei Shimbun このページを 日本語 で読む
Globe and Mail
4 hours ago
- Globe and Mail
The Weekly Setup: What every investor needs to know about tariffs, Aritzia and job numbers
This week featured a lot of heat warnings at the kids' camp. The teens in charge have taken to handing out unlimited freezies. How can I explain to these well-meaning pre-adults the consequences of giving seven freezies to a five-year-old in one day? Maybe letting a deranged raccoon loose in their pantry would help them understand what we are dealing with at home. Here are five things to watch for this week: Want ads: Economists estimate Canada added zero jobs in June. That's not a typo. The consensus estimate for net job growth in a country of 20.7 million workers is 0.0. The unemployment rate is expected to advance to 7.1 per cent – the highest since the pandemic peak, or, apart from that, since April, 2016. Tariffs provide ample reason for pessimism. The manufacturing sector could post a third straight month of job losses, notes Benjamin Reitzes, Bank of Montreal managing director for Canadian rates and a macro strategist. 'U.S. steel and aluminum tariffs doubled in June, which will hit those already struggling sectors even harder,' Mr. Reitzes wrote in a note to clients. The data will be key for the Bank of Canada, which is set to make an interest-rate decision at month's end. The central bank has held rates steady at 2.75 per cent for two consecutive meetings, but the market is pricing in only a slight chance of a rate cut. If payrolls disappoint, this could sway the odds in favour of another cut. Let's make a deal: The deadline for deals with the United States on tariffs is fast approaching. President Donald Trump set July 9 as the deadline for country-based tariffs to begin on trading partners without deals in place. With the deadline days away, deals have only been hammered out with Vietnam and Britain. Although the U.S. and China have agreed to a truce, which involves cooling it on reciprocal tariffs and lowering export controls, Canada has promised a deal by July 21. Does a deal matter to markets? The S&P 500 INX and the TSX TXCX are at record highs. So far, tariffs aren't hitting inflation; does that mean companies are absorbing them at the expense of margins? Could margins be the undoing for investors? BMO chief investment officer Sadiq Adatia says tariffs may actually increase a company's profitability. 'Let's say a 10-per-cent tariff is imposed on goods crossing the border,' he said on my podcast. 'Most consumers think prices will go up by 10 per cent. But only 40 per cent of the product's cost comes from raw goods. So, 10 per cent on 40 per cent is only a 4-per-cent tariff. Companies know people expect 10 per cent, so they might raise prices by 7 per cent and say, 'We're doing you a favour. We're not doing 10.' But they've increased their profits by another 3 per cent.' High fashion: Someone forgot to tell Aritzia Inc. ATZ-T there's a consumer slowdown. The stock hit a record high last week, creating an interesting set-up for quarterly results due Thursday after markets close. Aritzia is expected to show a 150-per-cent rebound in profitability and a nearly 15-per-cent jump in same-store sales. In this economy? Apparently. With the stock trading at a hefty premium to peers (UBS estimates it at 48 per cent) it will make the quarterly results a nail-biter. Will Aritzia continue to buck the trend of weak consumer growth? Can it continue to manage around tariffs? As with most companies, it may come down to the outlook it provides. 'We believe the 'bar' for the event is ATZ maintains its FY26 operating guidance and provides a 2Q26 outlook supportive of the Street's C$0.37 EPS forecast,' Mauricio Serna of UBS wrote in a preview note. Jamie Murray of Murray Wealth Group flagged Aritzia as a winner on my podcast back in February. It promptly went straight down before recovering and reaching new highs. He's still holding. 'They've beat quarterly guidance by at least 5 per cent the past 3 quarters and we expect a similar result,' he wrote in an e-mail. Hungry for change: Shares of MTY Food Group Inc. MTY-T have been grinding lower for years, and this week investors will get to assess if catalysts for the stock remain elusive when it reports results on Friday. MTY is known as a food-court purveyor of such brands as Manchu Wok and Mr. Sub, but it has diversified and has many free-standing restaurants. It is also known for its growth-by-acquisition business model – except recently it hasn't been growing or acquiring. Its last deal was in 2022 for Wetzel's Pretzels. While sales of that brand are strong, other brands haven't fared as well and same-store sales have struggled for five consecutive quarters. Even so, it is worth pointing out that MTY is a cash-flow machine reliably spitting out more than $100-million a year. Bank of Nova Scotia's John Zamparo wondered out loud, in a June note to clients, if this makes MTY an attractive takeout candidate. 'MTY's valuation is overly punitive,' he wrote, noting that MTY owns 90 brands but only three are interesting to investors (Wetzel's, Cold Stone, sweetFrog). 'Strategic buyers typically want simpler businesses … which leads to private equity as the likeliest acquirer,' Mr. Zamparo said. Turbulence: Delta Air Lines Inc. DAL-N reports Thursday and will give investors a sense of travel demand. Between tariffs, geopolitics and a spike in gas prices, not to mention generally lower travel into the U.S., there was no shortage of volatility for airlines. We will see how all of this plays out. The airline is poised to report a 7-per-cent drop in revenue and 12-per-cent drop in earnings per share. In the Money with Amber Kanwar brings you actionable insights from top portfolio managers and business leaders. New episodes out Tuesdays and Thursdays.
CTV News
4 hours ago
- CTV News
Couple finds sweetness in shared gingerbread Alberta legislature project
Matt Intihar and Sheila Guevara with their model of the Alberta legislature created out of gingerbread. This is a love story made out of gingerbread. Matt Intihar and Sheila Guevara spend often spend quality time relaxing together in a unique way: by making model houses from the sweet-and-spicy baked delight. 'Both of us inspired each other in doing a project, because he's good at what I'm not, and I think for him, I'm good at what he's not, so we compliment each other,' Guevara told CTV News Edmonton. The pair were in a local bake shop when they saw a gingerbread castle built by the baker. 'We thought, 'Geez, that would be pretty neat if we could build something like that,' Inithar said. 'I don't know if we're up to it, but we can give it a try.' Gingerbread Alberta legislature A replica of the Alberta legislature created by Matt Intihar and Sheila Guevara out of gingerbread. (Connor Hogg/CTV News Edmonton) Their first gingerbread house was simple, then they decided to go bigger. At first, they planned to build a replica of the White House, home of the U.S. president. They ultimately selected the Alberta legislature as their subject. It was closer to home and easier to research in person. 'As time went on, we thought, 'We can do this, we can add that on, and so slowly, it became a bit more detailed as time went on,' Intihar said. Intihar and Guevara worked on their project together and separately, dictated by their shift-work schedules. 'He comes home, I'm sleeping, or I come home, he's sleeping,' Guevara said. 'But when I come home, I see something that he did. and I'm like, 'Oh, cool! I can do this!' Creating their delicious legislature took six months of manipulating gingerbread and key ingredient marzipan – plus painstaking research, baking, sculpting and re-sculpting. 'We managed to finish it, and we're pretty happy with how it looks,' Intihar said. Alberta legislature gingerbread A replica of the Alberta legislature created by Matt Intihar and Sheila Guevara out of gingerbread. (Connor Hogg/CTV News Edmonton) The happy couple are in the process of finding a place to display their work and also sharing what they learned about each other in the process. 'He sits right there and he's just doing his little thing,' Guevara said. 'It's very heartwarming, and he is very graceful doing it, and it makes me push myself harder, too.' Intihar said the process brought them even closer. 'I guess this kind of thing could pull people apart, maybe they'd get fed up with each other,' he said. 'I think, for us, it did bring us together.'
