Here are five things you need to know this morning
U.S. vows 50% tariff on Canadian goods
U.S. President Donald Trump is vowing to impose a fresh 50 per cent tariff on a range of Canadian goods. The surprise move is over what the Trump administration calls unfair treatment of American alcohol, cars, and dairy. The items expected to be hit include milk, beer, hockey equipment, and plywood. Energy, potash, and critical minerals will be spared, as well as autos and steel. Prime Minister Mark Carney says Canada has already made a series of detailed and comprehensive proposals to resolve the trade war as well as modernize CUSMA. Carney says Ottawa stands ready to intensify discussions in the coming weeks. It is estimated about $20 billion worth of Canadian imports would get hit by the new tariffs.
Mediation begins to attempt to end U.S.-Iran war
Iran’s Interior Minister has begun meetings with mediators in Pakistan as attacks continue for the tenth consecutive day. Diplomats are seeking to salvage the collapsed interim deal between Iran and the U.S. Earlier today, Iran attacked a tanker in the Strait of Hormuz, while the U.S. conducted yet another round of air strikes targeting the Islamic Republic. The Houthi militant group in Yemen have threatened shipping in the Red Sea by saying it would impose a maritime blockade on Saudi Arabia. That move would put the flow of millions of barrels of oil at risk.
Empire to stop use of property controls
Empire will stop using a measure that can limit competing businesses from operating at specific locations. The parent company of Sobeys outlined its approach in a new policy document, nearly a month after the Competition Bureau broadened its investigation into the grocer’s use of property controls. Empire says it will no longer use or enforce the measures and will also limit the size, product scope, and time frame of exclusivity provisions in future grocery store leases. Other major grocers, including Walmart Canada and Loblaw, have already pledged to get rid of property controls relating to retail competition.
Sleep Country Canada buying Sleep Number
Sleep Country Canada is expanding into the United States. The sleep retailer has announced it is buying U.S.-based Sleep Number for US$702 million following a court-supervised sale process. The deal comes after Sleep Number announced last month that it entered into an agreement to combine with Sleep Country and initiated a voluntary bankruptcy sale process. Once the transaction closes, Sleep Country will become the second largest sleep retailer in the world, with more than 800 store locations.
GM raises full-year profit outlook
General Motors has raised its full-year profit forecast after beating expectations for second quarter earnings. The automaker also posted revenue that topped estimates at more than US$48 billion, driven by robust sales of its gas-powered cars and SUVs. On the downside, GM says its results will continue to be weighed down by tariff pressures and rising supply costs. It also anticipates softness internationally due to the middle east conflict.
