Episode summary
Canada Imposes Fresh Tariffs; Oil Climbs amid Saudi Strikes | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
Canada escalated the trade fight with the US by imposing 15% to 50% tariffs on hundreds of American products, answering Washington’s duties on about $20 billion of Canadian goods. The host and Bloomberg’s Brendan Murray framed it as a classic tit-for-tat move aimed at forcing the White House back to negotiations, though the exact next US response remains unclear. Murray said the latest round still leaves room for more escalation, but both sides face pressure from the likely fallout to consumers and companies on both sides of the border.
Oil was another main focus as Brent crude climbed toward $100 a barrel after attacks on Saudi energy facilities disrupted operations. The host said Brent was just shy of $99 and West Texas Intermediate was above $94, while Bloomberg’s Will Kennedy said markets are reacting to the chance of a prolonged Mideast conflict and shipping disruptions that could last into 2027.
The yen also strengthened sharply, with the currency approaching its best level of the year after breaking through 155 per dollar and triggering stop-loss orders. The show also noted a busy calendar for investors, including Thursday’s CPI report and a $58 billion bond auction, alongside weaker shares for Novartis after another clinical trial setback.
Key takeaways
- Canada’s new 15% to 50% tariffs cover hundreds of US products, including steel items, furniture, dairy and beer, in response to US duties on about $20 billion of Canadian goods.
- Brendan Murray said the trade battle still has room to intensify, but both governments are under pressure to return to the negotiating table because of risks to consumers and businesses.
- Brent crude moved to just under $99 a barrel and WTI to $94.34 after attacks on Saudi facilities raised concern that Middle East shipping disruptions could persist into 2027.
- The yen strengthened to 154.05 per dollar after breaking 155, with the host citing stop-loss buying and expectations for tighter BOJ policy.
- Novartis shares fell almost 9% after another late-stage trial failure, adding to a week of clinical setbacks for the Swiss drugmaker.
Notable quotes
“The Canadians hit back very strategically. You could argue that they could have gone even harder”
“it's it's your classic tit fortat escalation uh in in in the amount of trade volume that goes on between across the border”
“right now, Brent crude the international benchmark is edging closer to $100 a barrel”
“the yen is closing in on its strongest level this year after a breakthrough 155 per dollar triggered stop-loss orders”
How the episode opens
Bloomberg Audio Studios podcasts, radio news. — Good morning. I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today. Nathan, we begin with the latest volley in the US trade wars.
Canada has slapped 15 to 50% tariffs on hundreds of American products in retaliation for its 50% duties on about $20 billion in Canadian goods. As of a minute after midnight, Canada's import tax on many US steel items is up from 25 to 50% and a range of other consumer goods from motorcycles to cosmetics and cheese are facing higher tariffs as well. We get more from Bloomberg News global trade editor Brendan Murray.
The Canadians hit back very strategically. You could argue that they could have gone even harder and that both sides are now going to sit back and look at what the next options are for the US. The Supreme Court reigned in President Trump's authority to put tariffs unilaterally on countries, but now he's got this new 338 authority that he's used against Canada.
And there are provisions in that particular statute that allow the US president to target specific products from other countries that they feel are being discriminated against by that other country. And Bloomberg's Brandon Murray reports. US officials have not specified how they could respond.
But in a social media post, President Trump threatened to boycott Bombardier jets, accusing the Canadian company of living off American buyers.
And Karen crude oil is on the rise this morning with Saudi Arabia facing new attacks near its border with Yemen. Iranbacked Houthy rebels have claimed responsibility for attacks on three Aramco facilities in southern Saudi Arabia that have since suspended operations. This comes as Iran says it is getting closer to a deal with Oman that could lead to transit fees through the street of Hormuz.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- canada us tariffs
- oil price outlook
- saudi energy facility attacks
- yen appreciation
- boj policy expectations
Companies and tickers mentioned
- GS
- Goldman Sachs
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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