|

Canada PM pins new US tariff talk on NAFTA - Reuters

As reported by Reuters, Canada's Prime Minister, Justin Trudeau, accused the Trump administration of "flimsy logic" regarding a new investigation into placing tariffs on foreign vehicles imported into the US, and suggested the move is specifically linked to NAFTA talks. 

Trudeau also predicted talk of tariffs would likely disappear if slow-moving negotiations to update the North American Free Trade Agreement - currently stuck on autos issues - are successful. “I am - even more than I was with steel and aluminum - trying to figure out where a possible national security connection is,” Trudeau said. "Taking that a step further into autos seems to me to be on even flimsier logical grounds.” Trudeau continued, “But we know that this is very much linked to ongoing negotiations around moving forward on NAFTA.”

Talk of tariffs and potential trade wars will be on the agenda when Trump comes to La Malbaie for the G7 summit on June 8-9. Prominent G7 members such as Germany and France are also unhappy about what they see as Trump’s protectionist rhetoric.

 - Reuters

Canadian PM Trudeau has voiced Canada's need to diversify away from trade flows with the US, who currently account for three-quarters of all Canadian goods exports. The Trump administration's protectionist stance has seen Canada shift its attention to China as a potential major trade partner.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading 

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.