Here are five things you need to know this morning
China raises canola duties: Canada has been hit with another tariff hike, this time from China. China is raising duties on Canadian canola after an anti-dumping probe. China plans to impose a 75.8 per cent duty on Aug. 14 after a preliminary ruling found Canadian imports constitute dumping, according to a statement from China’s commerce ministry. Earlier this year, Beijing imposed a 100 per cent tariff on Canadian canola imports, in response to Canadian levies on Chinese-made electric vehicles, steel and aluminum. Canadian canola exports to China totaled $5 billion in 2023. Separately, China also launched an anti-dumping investigation into pea starch imported from Canada. Ottawa has not yet responded to China’s move.
Trump extends China truce: Meanwhile, U.S. President Donald Trump has extended a pause of higher tariffs on Chinese goods for another 90 days. Trump signed an order extending the truce through Nov. 10, deferring a tariff hike set for Tuesday. Negotiators from both sides reached a preliminary agreement last month in Sweden. Had the truce not been extended, U.S. tariffs on Chinese goods would have jumped to at least 54 per cent.
U.S. inflation holds steady: Markets were on edge this morning ahead of the latest reading on inflation in the U.S. Traders were reassured as the consumer price index held steady at 2.7 per cent in July. Stock futures surged on the news. However, there were some signs of continued price pressures under the surface. Core inflation surged by the most since January.
Gildan reportedly close to Hanes deal: The Financial Times is reporting Canada’s Gildan Activewear is in advanced talks to buy U.S. underwear maker Hanesbrands. The report says the transaction could value Hanesbrands at almost US$5 billion including debt and it may be agreed by the end of the week, though negotiations are not finalized and may still collapse. Shares in Hanesbrands jumped as much as 26 per cent in premarket trading. Last year, Gildan’s entire board resigned, and CEO Vince Tyra stepped down as president and CEO after a prolonged proxy battle.
Mixed results from Cineplex: Canada’s dominant movie theatre chain has reported mixed quarterly results. Second quarter revenue jumped 31 per cent, topping analyst estimates, thanks to films such as A Minecraft Movie, Lilo & Stitch and Mission: Impossible - The Final Reckoning. Cineplex narrowed its losses in the quarter; however, analysts were expecting the company to make a profit. We’ll find out how the summer movie season has been going when Cineplex CEO Ellis Jacob joins BNN Bloomberg today at 3:20 eastern time.
