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Trump's Tariff Shake-Up: Global Trade Faces New Challenges

On April 2, 2025, U.S. President Donald Trump announced sweeping 10% tariffs on imports from all trading partners, marking a significant escalation in global trade tensions. These tariffs, described as "baseline," aim to address what Trump perceives as unfair trade practices and chronic trade deficits. While the announcement has sent ripples across international markets, the specific impact on Canada remains uncertain. Canada, a close trading partner of the U.S., has previously faced tariffs on steel, aluminum, and energy imports under Trump's administration. The new measures could further strain bilateral relations and affect key Canadian industries. Prime Minister Mark Carney is reportedly preparing Canada's response, as the trade war becomes a central issue in the upcoming federal election. Trump's move has sparked debates among economists and policymakers, with critics warning of potential economic fallout and supporters praising the tariffs as a step toward ...
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US Weekly Jobless Claims Fall More Than Expected

 

The number of Americans filing new applications for unemployment benefits fell more than expected last week, suggesting that fears of the labor market unraveling were overblown. Initial claims for state unemployment benefits dropped by 17,000 to a seasonally adjusted 233,000 for the week ending August 3. This marks the largest drop in about 11 months.

Economists had forecasted 240,000 claims for the latest week, but the actual decline exceeded expectations. While claims have been on an upward trend since June, factors like temporary motor vehicle plant shutdowns and disruptions caused by Hurricane Beryl contributed to the volatility. Despite this, layoffs remain generally low, and government data from June indicated the lowest layoffs rate in over two years.

The slowdown in the labor market is primarily driven by less aggressive hiring, influenced by the Federal Reserve’s interest rate hikes in 2022 and 2023. However, the recent monthly nonfarm payrolls report showed a significant slowdown in job gains in July, raising concerns that the labor market may be deteriorating. The Fed is closely monitoring the situation and may consider reducing borrowing costs in their next policy meeting in September.


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