Here are five things you need to know this morning
Trump ends trade talks: U.S. President Donald Trump says he is terminating trade negotiations with Canada following new anti-tariff ads from the Ontario government that feature the voice of former U.S. president Ronald Reagan. “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Trump wrote in a post to Truth Social late Thursday. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” In a new post to Truth Social on Friday morning, Trump doubled down on his claims of fraud. Prime Minister Mark Carney and his cabinet have been in ongoing discussions with Trump and his administration for months, as the trade war between the two countries drags on.
GM and Stellantis lose tariff break: Elsewhere on the Canada-U.S. trade front, General Motors and Stellantis will be forced to pay tariffs on some U.S.-made vehicles they import for sale in Canada, after the companies decided to reduce assembly-line work at factories in Ontario. Canada put tariffs of as much as 25 per cent on U.S.-made cars and light trucks in April in retaliation for U.S. President Donald Trump’s levies on foreign vehicles. But Prime Minister Mark Carney’s government also carved out an exemption — known as “remission” — for automakers that make vehicles in Canada. But Stellantis will now see its quota of tariff-free vehicles slashed by 50 per cent and GM will face a 24 per cent reduction.
Trump to meet with Xi: Meanwhile the White House has confirmed plans for Trump to meet with Chinese leader Xi Jinping next week. The confirmation reduced some of the uncertainty surrounding trade tensions between the two biggest economies, though prospects for a significant trade deal remain unclear. This morning Chinese Commerce Minister Wang Wentao told reporters in Beijing that the two countries can still find ways to work together … and dialogue and cooperation are the only right choice for China and the U.S.
U.S. inflation picks up: Inflation in the United States picked up in September, but the increase was slightly less than expected. Consumer prices rose at a 3.0 per cent annualized rate. The report was released more than a week late because a U.S. government shutdown has stopped work on economic data. The U.S. Federal Reserve is still expected to cut rates at its meeting next week.
Ford adjusting to supplier disruption: Shares of Ford traded higher in the pre-market after the automaker signaled it will mostly bounce back next year after a fire devastated a key supplier of its top selling F-150 pickup truck in New York state. Ford says it expects the factory to resume production as soon as late November and ramp up through the end of year, which is earlier than was initially expected. Ford’s third quarter earnings beat analyst expectations.
