Episode summary
US-Canada Trade Breakdown; Warsh Readies for Jackson Hole | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 17 min
Summary
The show centered on two escalating trade and sanctions fights: the US and Canada after talks collapsed, and a new push by the Trump administration to tighten pressure on Iran’s oil trade. The host said the US had slapped 50% tariffs on about $20 billion of Canadian goods, while Canada was preparing retaliatory tariffs and a domestic aid package for affected businesses. A guest said Ottawa appears to believe the political cost of a prolonged fight may hurt Republicans heading into the November midterms, but also that Canada is using the dispute to make a political statement that it can resist Washington.
On Iran, the host and a guest said Treasury Secretary Scott Bessent is expected to unveil secondary sanctions aimed at countries that still buy Iranian oil, especially China. The guest argued such measures may be less effective than advertised because sanctions on Iran have existed for years and Tehran has learned to work around them through shadow fleets and front companies. The likely goal, the guest said, is to pressure third countries to cut off trade with Iran, even if that becomes difficult given wider US interests.
Markets were framed around a cautious Jackson Hole ahead of Fed chair Kevin Warsh’s comments. A market strategist said he expects “a whole lot of nothing” and little forward guidance, while Treasury yields sat near multi-year highs and investors also watched Nvidia earnings, Asian tech weakness, and renewed demand for bitcoin ETFs.
Key takeaways
- The host said the US imposed 50% tariffs on roughly $20 billion of Canadian goods after trade talks collapsed, and Canada is preparing retaliation.
- A guest said Ottawa may be betting that a trade war hurts Republican political prospects before the November midterms.
- The guest said Canada’s retaliatory tariffs are due September 8 and that any resumption of talks likely depends on the political fallout.
- A guest said Bessent’s Iran plan is aimed at secondary sanctions on countries such as China that keep buying Iranian oil.
- A market strategist said to expect little clarity from Kevin Warsh at Jackson Hole, calling it likely to be “a whole lot of nothing.”
Notable quotes
“The US has slapped 50% tariffs on around 20 billion dollars of Canadian goods after talks collapsed late Friday”
“Canada's retaliatory tariffs won't take effect until September 8th, but sources tell Bloomberg News Canada's domestic aid package could remain in place through the rest of President Trump's term if need be”
“what is widely expected is an announcement of some kind of secondary sanctions against countries that continue or choose to continue to do deals or trade deals with Iran”
“I think we're going to hear a whole lot of nothing, you know, to to probably oversimplify things”
“the objective is to quote sever every economic lifeline that sustains the tyrannical regime until Thran stands alone”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager. — And I'm Alexis Christopherus. Here are the stories we're following today. — Alexis, we begin with the new trade war for the US with its northern neighbor. The US has slapped 50% tariffs on around 20 billion dollars of Canadian goods after talks collapsed late Friday. Now, Canada's preparing retaliatory tariffs, and Prime Minister Mark Carney says he's also preparing a domestic aid package for businesses affected by the spat. Transportation Secretary Shawn Duffy says this won't end well for Canada.
To think that they're going to go to war with Donald Trump and actually win that war with the US. I think it's foolish on their part. I think you're going to see Mark Carney come to the table very, very quickly because it's going to be devastating for his country.
Transportation Secretary Shawn Duffy appeared on Fox News Sunday, heard every Sunday on Bloomberg Radio. Bloomberg Global Trade Editor Brendan Murray reports Canada sees little chance though of resuming talks with the US before the November midterms. It looks like the calculus from from Ottawa's perspective to some extent is that that the the political costs here for Donald Trump to engage with Canada in in a trade war to slap tariffs on each other uh you might be detrimental to the the Republican party heading into the midterm elections here.
Now, Bloomberg's Brendan Murray reports Canada's retaliatory tariffs won't take effect until September 8th, but sources tell Bloomberg News Canada's domestic aid package could remain in place through the rest of President Trump's term if need be. And Treasury Secretary Scott Bessant is preparing to announce an economic D-Day for Tehran. We get more from Bloomberg Middle East correspondent Aira Omar in Dubai.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us-canada trade talks
- trump tariffs and midterm elections
- iran oil shipments
- economic isolation plan targeting chinese refiners
- fed inflation guidance
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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