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Israel Hit with Surprise Tariff

Israel will face a 17% tariff on its exports to the United States as part of President Donald Trump’s sweeping global tariff plan, despite having eliminated all remaining duties on US imports just a day earlier in an attempt to avoid the penalty.

Israeli officials, who expected some action but were surprised by the magnitude of the tariff, said on Thursday they believe it will apply only to physical goods, potentially sparing the country’s crucial high-tech service sector that comprises more than half of Israel’s exports.

“We knew this was going to happen, but we are surprised about the scope of the tariff,” Finance Ministry Chief Economist Shmuel Abramzon said at a conference at Reichman University in Herzliya.

You can read more on the matter here.

What’s going on?

• BC Credit Rating Slashed by S&P and Moody’s Over Ballooning Deficit (theDeepDive)

• Panama Papers leak has led to nearly $2B in recouped taxes for governments (CBC)

• GOP Senators Break Ranks to Challenge Trump’s Canada Tariffs (theDeepDive)

• Yukon targets Elon Musk's companies in response to U.S. tariffs (CTV)

• Canada Sees Unemployment Rise In March As Job Losses Mount (theDeepDive)

• Donald Trump fires National Security Agency director (FT)

• Manufacturing Layoffs Erupt Amid Mounting Tariff Pressures (theDeepDive)

• Race for South Korea’s Next Leader Starts With Dismissal of President (WSJ)

• Time’s Up for Elon: Trump Confidants Reveal Musk’s Imminent Departure (theDeepDive)

• Walmart considers joining investor group to buy TikTok, ABC News reporter says (Reuters)

• Canadian Gas Prices Drop After Government Scraps Carbon Tax (theDeepDive)

• B.C. mining firm seeking U.S. approval to dig in international waters (CBC)

• Carney Rules Out Supply Management in US Trade Talks (theDeepDive)

What’s the latest?

• Crypto: Bitcoin rose 1.7% to $83,396.89 on Friday, showing resilience amid broader market turmoil following China's retaliatory 34% tariff on U.S. goods. Other major cryptocurrencies gained as well—XRP and Solana rose 3%, Dogecoin jumped 6%. In contrast, crypto stocks fell, with Coinbase down 8% and MicroStrategy down over 1%. Gold declined, with spot gold down 2.6% and U.S. gold futures down 2.9%.

• Canada Economy: Canada lost 33,000 jobs in March, marking the worst monthly job loss since January 2022, as the unemployment rate rose to 6.7% from 6.6%. The decline was driven by the loss of 62,000 full-time jobs, partially offset by part-time gains. Key sectors affected included wholesale/retail trade (-29,000), information and culture (-20,000), and agriculture (-9,300), while utilities (+4,200) and other services (+12,000) saw gains. Manufacturing shed 7,000 jobs, and economists warn of further layoffs as U.S. tariffs disrupt trade, especially in the auto sector.

• TSX: North American stock markets plunged for a second day amid U.S. tariff concerns, with Canada’s S&P/TSX composite index down ~1,000 points (-4%) in morning trading. In the U.S., the Dow fell 1,396 points to 39,149, while the S&P 500 (-214.75) and Nasdaq (-676.32) also dropped sharply. The Canadian dollar weakened to 70.47 cents US, while crude oil fell to $62.23 (-$4.72) and gold dropped to $3,061.60 (-$60.10) per ounce.

• US Economy: The U.S. economy added 228,000 jobs in March, far exceeding expectations of 130,000 and up from 117,000 in February, despite ongoing trade tensions and labor disruptions. Unemployment rose slightly to 4.2%, while concerns grow about inflation, deportations, and federal workforce cuts. Hiring has slowed from past years, with 2024 monthly averages below previous levels. Economists warn that seasonal adjustments may be inflating job numbers and that revisions may paint a weaker labor picture in the coming months.

• Oil: Oil prices dropped to their lowest in over three years, with Brent crude falling more than 10% in two days after OPEC+ unexpectedly tripled its planned output hike for May and U.S. tariffs raised global recession fears. Goldman Sachs and ING cut their price forecasts, citing weaker demand and increased supply. Despite the sharp decline, analysts warn that geopolitical risks and U.S. sanctions on Iran and Venezuela could limit further losses and drive volatility.

Sierra Metals: The Hostile Takeover Attempt

The stock market and stuff

• OPEC+ Accelerates Oil Output Increase to 411,000 BPD for May (theDeepDive)

• Klarna pauses $15bn New York IPO plans in wake of Trump tariffs (FT)

• Rogers Sells Minority Interest In Wireless Network To Blackstone Funds For $7 Billion (theDeepDive)

• Technology stocks fall for a second session after Trump tariffs, led by Tesla and Nvidia (CNBC)

• Brookfield To Acquire Colonial Pipeline In Deal Valued At $9 Billion Enterprise Value (theDeepDive)

In the juniors

• Rua Gold Begins Drilling at Cumberland Target in the Reefton Goldfield, Following up on a 20.7m Intercept of 62g/t (2oz/t) Gold (JMN)

• Alamos Gold Sells Off Quartz Mountain Gold Project For $21 Million, Equity Interest (theDeepDive)

• Collective Mining Announces an Expanded Drill Program Following the Closing of its C$63.4 Million Financing (JMN)

FULL DISCLOSURE: Cytophage Technologies is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Cytophage Technologies. The author has been compensated to cover Cytophage Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.