Markets & Business

Business

Macro signals, central banks, earnings, and the deals moving capital today.

12 stories · Edition of 2026-08-25 · Curated by AI at Invalid Date

BUSINESS

Trump Announces 50% Tariffs on Canadian Vehicles and Steel Starting January 2027

61d ago · Source: washingtonpost

President Donald Trump announced on Monday that he will raise tariffs on Canadian automobiles, automotive parts and steel to 50% effective January 1, 2027. The measure follows the breakdown of negotiations between the United States and Canada this weekend.

The dispute arose after the United States imposed a 50% duty on a range of Canadian goods, including hockey sticks, beer and whisky, which took effect early Saturday. Canadian Prime Minister Mark Carney said the tariffs constitute an attack and announced that Canada will impose retaliatory tariffs on United States products beginning September 8.

Trump said Canada has been running a large trade deficit with the United States and asserted that the United States does not need Canada because 95% of Canada’s business is with the United States. He added that the reported annual deficit of $60 billion is higher than the $48 billion figure cited by economists, who say bilateral trade deficits have limited economic significance. U.S. farmers depend on Canadian potash fertilizer for about 80% of their annual use, and several northern border states rely on Canadian hydropower for electricity. Midwest refineries use heavy sour crude from Canadian wells to process oil, which helps keep U.S. gasoline prices lower. No timeline has been provided for the start of Canada’s retaliatory measures. The four-month delay between the announcement and the effective date leaves time for renewed talks, though no concrete progress has been reported.

BUSINESS

Federal Reserve Chairman Kevin Warsh to Speak at Jackson Hole Symposium

61d ago · Source: reuters

Federal Reserve Chairman Kevin Warsh will deliver a keynote address at the Kansas City Fed’s Jackson Hole symposium in Jackson Hole, Wyoming on Friday. He has said he will wait for recommendations from five task forces created earlier this year before outlining detailed policy intentions. Rising bond yields and inflation above the Fed’s 2% target for more than five years have led markets and analysts to expect guidance on potential rate hikes. Adam Posen, president of the Peterson Institute for International Economics, said the Fed should emphasize recent data, market developments and the committee’s assessment, suggesting that a statement indicating consideration of a rate hike if conditions do not change would be appropriate. Krishna Guha, former New York Fed official and vice chairman of Evercore ISI, noted that activist Treasury policy, including actions by Treasury Secretary Scott Bessent, could influence the Fed’s management of interest rates and the shape of the yield curve. The recent jump in U.S. and global bond yields and Bessent’s intervention have raised questions about the extent to which Treasury financing decisions may affect short‑term rates and the Fed’s ability to conduct monetary policy. Some Fed officials have expressed concern that postponing rate hikes could require larger rate hikes later, while others worry that prolonged inflation may undermine public confidence in the Fed’s commitment to its 2% goal. Democratic members of the Senate Banking Committee have requested details about Warsh’s communications with President Donald Trump, following press reports of regular phone calls. Markets are watching the speech for clarity on how the Fed will respond to inflation pressures and the interaction between monetary and fiscal policy. Former Fed Chair Jerome Powell previously used the same venue to unveil a new policy framework and signal a commitment to fighting inflation, which shaped market expectations for rate hikes. Warsh’s address is seen as an opportunity to clarify his thinking amid a complex economic backdrop and upcoming midterm elections that could influence the second half of the current administration’s term.

BUSINESS

Shein Prepares Hong Kong IPO Amid ESG and Regulatory Concerns

61d ago · Source: reuters

Shein is set to list its shares on the Hong Kong stock exchange next month, following regulatory scrutiny and ongoing ESG concerns. The Chinese fast‑fashion retailer has faced investigations by the European Commission and the U.S. Federal Trade Commission, as well as prior fines in France and Italy for alleged deceptive practices and greenwashing. Shein has increased its ESG disclosures, hired sustainability consultants and created an external advisory board in 2024, expanding its ESG report from 28 pages in 2021 to 118 pages last year. An ESG analyst at Union Investment noted that the company continues to encounter controversies regarding labor conditions, supply chain traceability and its high‑volume business model. The firm’s spokesperson said it remains committed to strong corporate governance and compliance with applicable laws. Shein’s dual‑class share structure gives its four co‑founders 59.6% of shares while granting them 90% of voting rights, and the founders hold executive positions and board seats, with only three of seven directors classified as independent. This concentration of voting power raises questions about board independence and shareholder alignment, according to Kiran Aziz of KLP pension fund. Shein’s carbon emissions are estimated to be about twice those of Inditex despite lower sales, and it adds roughly 4,700 new styles each day. Critics argue that low pricing and aggressive marketing promote frequent, impulsive purchases that conflict with sustainability objectives. An unnamed ESG investor said the long‑term sustainability of Shein’s growth strategy remains uncertain. The outcome of the Hong Kong IPO and the regulatory investigations will determine how the company addresses these challenges.

BUSINESS

Oil Prices Steady as Investors Assess U.S. Sanctions on Iran

61d ago · Source: reuters

Oil prices steadied on Tuesday after a decline of more than 2% the previous day, as investors evaluated the impact of new U.S. sanctions on Iran.

Brent crude futures rose 27 cents, or 0.3%, to $92.44 a barrel by 0330 GMT, while U.S. West Texas Intermediate crude increased 37 cents, or 0.4%, to $85.38. Both contracts had fallen on Monday, with U.S. crude reaching a one‑week low after profit taking.

ING commodity strategists noted that the market appeared largely unfazed by Washington’s effort to tighten economic pressure on Iran, treating the sanctions as marginal rather than a major price driver, according to a note released on Tuesday. KCM chief market analyst Tim Waterer added that investors priced economic pressure as a lower‑risk alternative to kinetic action, though he warned that Iran could still disrupt shipping, keeping a residual premium in oil prices.

U.S. Treasury Secretary Scott Bessent announced on Monday an expansion of sanctions aimed at cutting off Iran’s economic lifeline, requiring countries to sever business ties or face exclusion from the dollar‑based financial system; he did not name targeted countries or specify when penalties would take effect. Defense Secretary Pete Hegseth said the United States would not rule out the use of military force against Iran.

An oil tanker was struck by an unidentified projectile and disabled about 9 nautical miles northeast of Oman’s Ash Shishah on Tuesday, according to the United Kingdom Maritime Trade Operations. Iran asserted control over the Strait of Hormuz, which previously handled about 20% of global oil cargoes, and on Monday named 45 tankers that it said had violated strait rules, threatening confiscation of their cargoes.

The U.S. Strategic Petroleum Reserve fell by about 3.7 million barrels to 289.7 million barrels last week, the lowest level since November 1982, as countries drew down commercial and strategic stocks amid supply concerns. The ongoing impact of the sanctions and Iran’s potential shipping disruptions leaves the outlook for oil supply uncertain.

TOP STORY

Trump Threatens 50% Auto Tariff on Canada Amid Trade Talks Collapse

President Donald Trump announced on Monday that he will raise tariffs on automobiles and auto parts from Canada to 50% effective January 1.

61d ago · Source: bbc · 2 min read

President Donald Trump announced on Monday that he will raise tariffs on automobiles and auto parts from Canada to 50% effective January 1. The increase follows the collapse of trade negotiations between the United States and Canada that occurred late last week. Canadian Prime Minister Mark Carney said the proposal was expected. He accused the president of seeking to damage Canada’s auto industry. He said Canada would resume talks only if the United States approaches with the right attitude. Canadian officials said the United States introduced last‑minute demands they deemed unacceptable, including a clause limiting Canada’s ability to sign trade deals with other countries. US Trade Representative Jamieson Greer responded that Canada was the party that made last‑minute changes. Tensions rose as both sides publicly maintained their positions. Ontario Premier Doug Ford criticized the threat, saying Canada should charge the United States extra for oil, gas, electricity and critical minerals. He added that he would discuss a response with Carney. Trump replied on his social media platform, calling Ford’s remarks bluster and warning that Canada would face worse consequences if it did not fall in line. Canadian data show the country accounts for 60% of US crude oil imports and nearly all of its natural gas exports. Businesses on both sides warned that the new tariffs could raise prices. A clothing retailer in Portland, Oregon, said a Canadian‑made pillow could cost about 50% more, rising to $90. The company plans to keep prices steady while awaiting clarification. The escalation also raises concerns about the future of the United States‑Mexico‑Canada Agreement, which underpins $1.6 trillion in North American trade. Analysts from Oxford Economics warned that a breakdown of the agreement could push Canada into recession and lower its long‑term growth. Canada has announced C$11 billion in funding to build six new icebreakers for the Coast Guard, aiming to open winter shipping routes and diversify its trade relationships.

BUSINESS

Bessent Announces New Iran Sanctions, Delays Toughest Measures

61d ago · Source: washingtonpost

Treasury Secretary Scott Bessent announced on Monday a new set of U.S. sanctions aimed at limiting Iran’s access to global finance. The measures target five sectors: cryptocurrency used by the Islamic Revolutionary Guard Corps and regime officials; weapons‑related technologies; gold used to support the Iranian currency; Iran’s airlines; and shipping that transports weapons components and oil. In addition, the Treasury placed sanctions on 60 entities, individuals and vessels that facilitate Iran’s procurement of nuclear or missile technology, cyber operations and oil sales.

Bessent said the United States is urging other governments to support the effort, describing it as an “endgame” in the conflict begun by President Donald Trump in February. He declined to name the countries contacted or set a timeline for the sanctions to take effect, and said the administration wants to give nations an opportunity to change their behavior before imposing the toughest penalties.

The announcement follows weeks of heightened rhetoric from Trump and Bessent about an “economic D‑Day” against Iran. Some analysts said the plan appears to be the administration’s last major leverage against Iran, noting that it does not yet target Chinese oil refiners or banks that handle Iranian oil. Matt Swinehart, a former Treasury official now at Rock Creek Global Advisors, said the administration may need to sanction privately owned Chinese refineries and large Chinese banks to achieve meaningful pressure.

Iranian officials dismissed the measures. Parliament Speaker Mohammad Baqer Qalibaf called the sanctions “big talk,” while Deputy Foreign Minister Kazem Gharibabadi posted on social media that the claims of dismantling Iran’s military and nuclear capabilities were contradictory to the new financial offensive.

The sanctions come amid a near‑stalemate in the conflict, with a ceasefire agreement that expired last week. Disruptions to shipping through the Strait of Hormuz have reduced oil flows, contributing to higher global oil and gasoline prices ahead of the November midterm elections. Iran’s currency fell to a record low on Monday, and inflation has risen sharply, making basic goods unaffordable for many citizens.

Rachel Chason contributed to this report.

BUSINESS

China Expands Robotics Automation in Factories and Training Programs

61d ago · Source: bbc

China has deployed more than two million industrial robots in its factories, representing over half of the world’s total, as part of a $20 billion state initiative to make the country a leader in robotics and artificial intelligence.

The scale of deployment reflects a strategic effort by the Chinese government to sustain manufacturing growth amid a shrinking and ageing workforce, with official estimates projecting that more than one‑third of the population will be over 60 by 2035.

At the Hangzhou Technician Institute, students as young as 15 receive training in robotics and AI, while factories such as those of Leapmotor have achieved near‑full automation in stamping, welding and painting, according to Cao Li, vice‑president of the EV maker. Researchers at CRP Technology are developing prototype robots capable of performing a wide range of tasks, and some hope to replace human workers within the next decade.

China’s workforce is expected to lose nearly 60 million people in the next decade, a decline comparable to the population of France, raising concerns about potential job losses if automation proceeds rapidly. While machines can operate continuously, they also require maintenance and inspection, factors that affect production schedules.

China’s manufacturing advantage stems from a dense supply chain for robot components, enabling faster assembly than in regions such as Europe, while U.S. firms remain ahead in AI development. Analysts note that the next phase of competition will depend on the ability to integrate AI into large numbers of machines, and the impact on employment remains uncertain as the government balances economic transformation with social stability.

BUSINESS

Restaurants Eliminate and Raise Prices to Pay Staff Fixed Wages

61d ago · Source: bbc

Some US restaurants have eliminated tip payments and increased menu prices to provide staff with fixed hourly wages.

The shift, exemplified by establishments such as La Cigale in San Francisco, Nightshade Noodle Bar in Massachusetts, and Dirt Candy in New York, aims to create pay equity and reduce reliance on customer generosity, but raises overall dining costs.

La Cigale charges $140 per person and pays servers $40 per hour without tips, while Nightshade Noodle Bar has raised its tasting menu from $102 to $126 and reports higher staff retention. Dirt Candy, which began a tip‑free model in 2015, pays its staff about $30 per hour and notes that many customers are surprised by the removal of tip expectations. Talulla in Cambridge raised menu prices by 23% in 2020 to cover higher wages but resumed tipping in September after winter revenue declined.

Cornell University professor William Michael Lynn observes that higher menu prices can be difficult for customers to evaluate without the tip component, potentially reducing demand, and that staff who rely on tips may be harder to attract and retain.

Operators such as Miller of Nightshade Noodle Bar say the model has improved staff stability, while analysts note that the economic trade‑offs of eliminating tips remain uncertain as tipping fatigue grows.

BUSINESS

Washington Post Ordered to Reinstate Columnist Karen Attiah

61d ago · Source: guardian

An arbitrator has ordered the Washington Post to reinstate columnist Karen Attiah and compensate her for lost wages after finding the newspaper violated her rights as a union‑protected employee.

Attiah was dismissed in September 2025 following social media posts about the slain conservative activist Charlie Kirk.

The Post said it terminated Attiah because her posts violated its social media policy, which bars conduct that could harm editorial integrity.

Senior opinion editor Adam O’Neal emailed a colleague that the posts were “beyond the pale” and urged an urgent meeting, according to testimony.

Later that day, publisher Will Lewis and other senior managers decided to end her employment. O’Neal also said the posts raised security concerns for the newsroom.

Attiah’s union, the Washington‑Baltimore News Guild, and the legal group Democracy Defenders Fund argued that she was exercising her professional duty as an opinion writer and had not engaged in misconduct.

Arbitrator Sarah Miller Espinosa concluded that the Post’s security concerns were speculative and that terminating Attiah for those reasons was not supported by good and sufficient cause. She said the decision to fire her four hours after the posts were reported was rushed and disproportionate.

The Post said it respects the arbitration process but declined to comment further. It has not indicated whether it will appeal the ruling.

Attiah said she was performing her job as an opinion journalist and that the decision restores her record.

Eisen, co‑founder of the Democracy Defenders Fund, called the ruling a landmark decision for journalists.

The decision may influence future discussions about free expression and social media conduct for newsroom employees.

BUSINESS

Trump Threatens 50% Tariffs on Canadian Cars and Trucks

61d ago · Source: reuters

President Donald Trump on Monday threatened to impose a 50% tariff on all cars, trucks and automotive parts imported from Canada, effective January 1, 2027, after trade negotiations collapsed. Trump said the United States would have no tariffs on its own vehicles and warned that Canada would be treated like a state, posting the message on social media. U.S. Treasury Secretary Scott Bessent told reporters that Canada needed to return to the negotiating table in good faith. Canadian Prime Minister Mark Carney said a mutually beneficial agreement was possible only if the United States respected Canada’s sovereignty, speaking at a press conference in Quebec where he announced an investment in six new icebreaker ships. Auto stocks fell on the announcement, with Ford down 3.6%, Stellantis down 4.2%, General Motors down 1.6%, Toyota down 1.5% and Honda down 2.1%. The proposed deal would have lowered the tariff on Canadian cars and light‑duty trucks from 25% to 15% and reduced the 50% levy on aluminum and steel to 25%, but it fell apart on Friday over whether the tariff relief would apply to medium‑ and heavy‑duty trucks. U.S. trade with Canada totaled $872.3 billion in the previous year, a 4.6% decline, and Canada exported about three‑quarters of its goods to the United States while importing almost half from the United States. Canada announced it would impose retaliatory tariffs on selected U.S. goods beginning September 8, covering $20 billion of Canadian products. Three‑quarters of Canadians approved of Carney’s decision to walk away from the negotiations, according to an Angus Reid Institute poll. Industry executives expressed doubt that the 50% threat would be implemented, noting that previous Trump tariff announcements on aircraft were later delayed or withdrawn. The White House has not responded to requests for further details. The tariff threat could increase costs for U.S. automakers and consumers, disrupt an integrated supply chain, and deepen a trade standoff that has already reduced Canadian imports of U.S. vehicles by 22%. The situation remains unresolved, with negotiations expected to resume after the November U.S. midterm elections.

BUSINESS

Canada Plans Retaliatory Tariffs on U.S. Goods and Considers Energy Surcharges

61d ago · Source: bbc

Canadian Prime Minister Mark Carney announced plans for retaliatory duties on steel, dairy, appliances, agricultural equipment, electronics, pulp and paper, to be applied on a dollar‑for‑dollar basis as a response to U.S. trade measures.

Canada relies heavily on the United States, with about 70% of its goods sold to the U.S., making it a top customer for 26 states and among the top three customers for 45 of 50 states.

The proposed tariffs cover a range of products, while energy imports such as natural gas, electricity and crude oil, which Canada supplies to the United States, are not currently included in the counter‑measures, though officials have indicated they remain an option.

Ontario Premier Doug Ford said an energy surcharge on electricity exports is under consideration, including a proposed 25% levy that would affect roughly 1.5 million homes and businesses in Michigan, Minnesota and New York. Canada is also the world’s largest supplier of potash, lithium, nickel and graphite, and the United States is its primary market for mineral exports.

Earlier, most Canadian provinces banned U.S. alcohol from liquor store shelves in response to initial U.S. tariffs, resulting in a 78% decline in U.S. wine exports to Canada and a loss of about C$357 million, with spirits exports falling by more than 70%, according to government data and industry associations. The bans remain in place in 11 provinces and territories.

Avoiding travel to the United States has contributed to an estimated C$3.3 billion revenue loss for the United States, with Canadians making 800,000 fewer trips in April compared with the same month of 2024, according to national statistics.

Analysts estimate that the most recent 50% tariff on about $20 billion of Canadian imports could reduce Canada’s GDP by 0.3% to 0.6% in the short term, while the U.S. Treasury projects household costs of about $1,100 per year under current tariff levels. A poll by Angus Reid found that 76% of Canadians support the government’s decision to maintain a hard bargaining position despite concerns about personal job security.

Ford said the United States would not obtain any resources from Ontario and indicated that retaliatory measures could target Republican‑leaning U.S. states. Carney warned that higher tariffs on automobiles and auto parts after January 1 could hurt U.S. workers in Michigan, Ohio, Kentucky and Alabama, noting that Canada purchases more U.S. vehicles than the EU and other regions. British Columbia Premier David Eby said U.S. consumers would feel the impact of tariffs on items such as plywood, veneers, cut flowers and fishing equipment.

The situation remains unresolved as the U.S. midterm elections approach, with the economy a central issue for voters in border states such as Michigan and Maine. Further tariff increases could intensify economic pressure on both sides.

BUSINESS

Dollar Slips Slightly as Markets Assess Iran Sanctions and Treasury Buyback Plans

61d ago · Source: reuters

The U.S. dollar slipped slightly on Tuesday, receding from a three‑month low as markets evaluated expanded U.S. sanctions on Iran and the Treasury’s plan to increase purchases of longer‑dated Treasury bonds. Against a basket of major currencies, the euro rose to $1.1668, near its three‑month peak reached last week, while the British pound edged up 0.1% to $1.3639, close to its six‑month high. The Canadian dollar steadied at $1.3844 after a 0.6% decline the prior session, and the Japanese yen rose to 159.21 per dollar. The dollar index fell marginally to 98.96 in Asian trading. On Monday, Treasury Secretary Scott Bessent announced a broader set of sanctions targeting entities that do business with Iran, warning that firms could be cut off from the dollar‑based financial system. Analysts said the measures might prompt a short‑term demand for dollars before sanctions take effect. The Treasury also indicated it could use part of its cash balance to buy back longer‑dated bonds, a move that drew modest support from bond markets. The 2‑year Treasury yield remained flat at 4.246%, and the 10‑year yield held at 4.704%, limiting the impact of the buyback proposal. Market participants are watching Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium in Wyoming on Friday for guidance on the recent rise in yields and the Fed’s inflation stance. Analysts noted that policy uncertainty and doubts about the Fed’s commitment to inflation control increase the focus on the speech. Uncertainty over the Fed’s reaction function continues to constrain gains for the dollar. Bitcoin rose 1% to $78,817.34, extending its largest weekly gain in nearly three and a half years, while the Reserve Bank of Australia is set to release its August policy minutes later this week.