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Home » CNBC Daily Open: The US is flexing its economic power – eliciting retaliation
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CNBC Daily Open: The US is flexing its economic power – eliciting retaliation

Editor-In-ChiefBy Editor-In-ChiefAugust 26, 2026No Comments4 Mins Read
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Canadian Prime Minister Mark Carney speaks about the trade dispute with the United States at the Davie Shipyard in Levis, Quebec, Canada, on August 24, 2026.

Andrei Ivanov AFP | Getty Images

Hello, my name is Hui Jie from Singapore. Welcome to another edition of CNBC’s Daily Open.

The US government launched economic attacks against Iran and Canada. These two countries are not usually thought of together. However, US President Donald Trump has repeatedly declared that Tehran has been defeated, while simultaneously opposing them, while insisting that Canada cannot survive without the United States.

Neither has been submitted. Canada retaliates with “dollar for dollar,” and Iran is working with Oman to complete a trade route through the Strait of Hormuz. Meanwhile, China is building a modest hedge against dollar-based sanctions.

What you need to know today

Days after the United States imposed hefty tariffs on Canada, Ottawa announced retaliatory measures comparable “dollar-for-dollar” to the 50% tariffs imposed by President Donald Trump over the weekend after trade negotiations broke down.

Ottawa’s new tariffs target more than 700 U.S. products worth about $20 billion, mirroring the scale of President Trump’s latest import duties on items such as Canadian wine, cement and hockey sticks.

Among the most significant are 50% tariffs on U.S. steel and aluminum, doubling current tax rates. Other goods subject to tariffs include dairy products, seafood, electronics, wood and paper products, and clothing.

In China, the United States has threatened to cut off from the American financial system companies that help Iran evade sanctions. And while the Chinese government could deny the request, its largest financial institutions still have strong incentives to maintain access to the US dollar.

However, China has built hedges against Washington’s actions, albeit still small.

Peter Alexander, managing director at Shanghai-based advisory firm Z Ben, told CNBC that China’s Cross-Border Interbank Payment System (CIPS) signals that China is diversifying away from dollar-centric finance, rather than abandoning it completely.

CIPS transactions have increased since the Russia-Ukraine war in 2022 and have increased overall this year, according to official statistics.

In the Middle East, Iran appears to be trying to shut the United States out of efforts to open the vital Strait of Hormuz, as it negotiates with Oman to demineralize the vital oil export corridor and establish temporary joint shipping lanes.

Oman’s foreign minister said “practical arrangements to restore safe navigation” would be announced soon and said talks with Iran’s top diplomat Abbas Araghchi in Tehran were constructive.

Muscat’s reference to the mine-clearing mission also appears to contradict President Donald Trump’s statement on Tuesday that the US Navy had notified that all mines had been cleared from international waters in Hormuz.

In the market, all three major US indexes rose overnight, ahead of which semiconductor stocks were the focus. NvidiaThis is the result.

Shares in the company, led by Jensen Huang, rose 2%, ending a seven-day slide. Advanced Micro Devices and Micron Technology rose 4.9% and 2.5%, respectively.

Amid the war for AI talent, OpenAI continues to be leaked. The company’s head of data centers, Chris Malone, is leaving the company, adding to a recent wave of executive departures.

His resignation comes after Dennis Dresser, OpenAI’s head of revenue, abruptly announced earlier this month that he would be leaving the company after less than a year at the company. Her departure comes days after fellow longtime executive Brad Lightcap said he was ending his eight years at OpenAI to “start something new.”

And finally…

Apple unveils new Mac Mini and Mac Studio models with AI upgrades

As more consumers turn to Apple computers to create and run AI agents, the company is rolling out new Mac Mini and Mac Studio models with updated chips and other upgrades for artificial intelligence applications.

Mac Mini can now be configured with two new chips: M6 and M5 Pro. This is the first Apple computer to feature an M6 generation chip manufactured on Taiwan Semiconductor Manufacturing Company’s 2-nanometer process.

Prices are also rising. Prices for this computer start at $899, an increase of $100 over the previous model. This comes after Apple raised the price from $599 over the summer, blaming it on memory costs.

— Kiff Lesswing

Never miss the most trusted news moments in business news when you choose CNBC as your preferred source on Google.



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