Canada faces 100% tariffs, angering President Trump

The adage “Good fences make good neighbors” seems to sum up U.S. President Donald Trump’s threat to impose 100% tariffs on Canada if it signs a trade deal with China.

This comes after President Trump on Thursday withdrew his invitation to Canadian Prime Minister Mark Carney to join the Peace Commission, a council originally set up to oversee Gaza reconstruction.

But such estrangement with America’s northern neighbor is probably not what poet Robert Frost meant when he wrote this line, which was often taken out of context.

Frost goes on to write, “Before I built a wall, I wanted to know what I was walling up, what I was walling off/And who I was angry at.” That context feels relevant as relations between Washington and Canada become more strained.

Across the Pacific, uncertainty took a different form. Japan’s Prime Minister Sanae Takaichi dissolved parliament on Friday ahead of a snap general election scheduled for February 8. On Sunday, it promised to intervene in any “speculative or highly unusual movements” in the Japanese yen and government bonds, which have been sold off in recent weeks.

The U.S. Treasury said both moves would have a direct impact on U.S. markets, given that Japan is the largest foreign holder of U.S. debt. A rise in Japanese government bond yields could encourage domestic investors to repatriate capital, putting upward pressure on U.S. borrowing costs.

So far, the market has experienced good development. U.S. Treasury stock was relatively unchanged on Friday. S&P500. of Nasdaq Composite Increased by 0.28%, Dow Jones Industrial Average It fell by 0.58%.

Calm did not carry over into the new week. American futures fell Sunday night as investors braced for a busy week of trading. apple, meta and microsoft Earnings are expected and the Federal Reserve concludes its interest rate-setting meeting on Wednesday.

President Trump threatened to impose 100% tariffs on Canada. “If Canada reaches an agreement with China, 100% tariffs will apply immediately,” the president said in a post on Truth Social on Saturday. Earlier this month, Canada reached a tentative agreement with China to lower trade barriers.

Japan vows to intervene in market speculation. Investors have sold off Japanese government bonds and the yen in the past few weeks. “The government will take necessary measures against speculative or extremely abnormal market movements,” Prime Minister Sanae Takaichi said on Sunday.

India plans to reduce tariffs on EU cars. Cars from the European Union with an import value of more than 15,000 euros ($17,800) will be subject to tariffs of up to 110% to 40%, Reuters reported, citing two sources. Tariffs are expected to be reduced to 10% over time.

U.S. stocks were mixed on Friday. goldman sachs The stock price fell nearly 4%. intel Although it fell by about 17%, Nvidia and advanced micro device They rose more than 1.5% and 2%, respectively. european Stocks 600 Closes almost flat. Gold prices soared above $5,000 on Monday.

(PRO) New AI stock trends in China. Concerns about the AI ​​chip bubble are driving local investors away from infrastructure businesses and away from investing in AI applications. Stocks to watch within that sector include:

Investors went to Davos looking for AI. They left talking about Greenland.

As I moved between panel meetings, hotel lobbies, and conferences over the past week, it often felt like two conferences were being held in the same snowy Swiss village.

At one Davos meeting, the atmosphere was surprisingly optimistic. Executives and investors talked about how artificial intelligence is moving from hype to practical application, and terms like “world model” and “physical AI” were thrown around.

On the other, the conversation seems to have ended up returning to tariffs, Greenland, geopolitical tensions, and a growing sense that the global rules that investors have relied on for decades are changing in real time.

— Spriha Srivastava