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Trump Eyes 25% Tariffs on Key Sectors

In our next episode on tariffs, President Donald Trump has declared his intention to impose a 25% tariff—or potentially higher—on imported vehicles, pharmaceuticals, and semiconductors. As usual, the plan is long on rhetoric, and short on specifics.

If enacted at scale, this initiative would strike more than $500 billion worth of goods, encompassing supply chains that link the US with close allies such as Canada, Mexico, the European Union, Japan, and Taiwan.

When asked about auto tariffs in a press conference, Trump answered that he “probably will tell you that on April 2nd, but it will be in the neighborhood of 25%.” Soon after, he mentioned the same 25% figure in relation to semiconductors and pharmaceuticals, adding that it could be “substantially higher.”

You can read more on the matter here.

What’s going on?

• Nikola Files For Chapter 11 Bankruptcy (theDeepDive)

• German ambassador tells Canadians that 'Europe has your back' amid Trump threats (CBC)

• South Africa Seeks US Response on Aid Cut as China Pledges Support (theDeepDive)

• Trudeau government to announce high-speed rail plans from Toronto to Quebec City (TS)

• Multiple Lawsuits Challenge The Constitutionality of Elon Musk’s DOGE Power (theDeepDive)

• Investigation into Delta plane crash at Pearson airport continues as black box recovered (Globe)

• Trump Targets To Gut NEPA In Effort To Cut Environmental Review Timelines (theDeepDive)

• US Housing Starts Fall in Broad Pullback After December Surge (Bloomberg)

• Mexican Senate Sanctions US Military Deployment For Training (theDeepDive)

• Trump Calls Zelensky a Dictator, Accuses Him of Misusing U.S. Aid (WSJ)

• Trump To The World: Tariffs “For Purposes Of Fairness” (theDeepDive)

• UK inflation leaps to higher-than-expected 3% in January (CNBC)

What’s the latest?

• Canadian Tire: Canadian Tire Corp. is selling Helly Hansen to U.S.-based Kontoor Brands for nearly $1.3 billion. The deal is expected to close in Q2 2025, pending regulatory approvals. Canadian Tire originally acquired Helly Hansen in 2018 for $985 million. A multi-year supply agreement will allow Canadian Tire to continue selling Helly Hansen products.

• DOGE: The Department of Government Efficiency (DOGE) claims $55 billion in U.S. federal savings, but only $16.6 billion is itemized on its website, with errors reducing that to $8.6 billion. A misreported $8 billion contract cancellation was actually worth $8 million, highlighting transparency issues. DOGE, led by Elon Musk, has cut contracts and jobs but operates outside traditional oversight, with Musk reporting directly to Trump. Despite concerns, a federal judge ruled in favor of DOGE’s actions, and the administration aims for $1 trillion in deficit reduction.

• GameStop: GameStop Corp. plans to sell its Canadian and French operations as part of an international asset review. CEO Ryan Cohen announced the sale on X but did not provide further details. GameStop had 203 Canadian locations as of last year and has been focusing on cost-cutting and profitability. In Q3, the company reported a US$17.4 million profit, with sales declining to US$860.3 million.

• Loblaw: Loblaw plans to open 80 new grocery and pharmacy stores in 2025, with 50 being discount grocers, as part of a $10 billion investment over five years. The company will also renovate over 300 locations and modernize its supply chain, including launching a new distribution center in Ontario. Loblaw has been expanding discount shopping options, responding to inflation-driven consumer demand. In 2023, it opened 31 discount stores and began testing new formats, including small No Frills stores and a No Name banner for deeper savings.

• Tariffs: U.S. President Donald Trump announced plans for 25% tariffs on auto imports, semiconductors, and pharmaceuticals, with auto duties potentially starting by April 2. He also imposed a 10% tariff on Chinese imports and set a March 12 start date for 25% tariffs on steel and aluminum imports, removing exemptions for key allies. Trump has directed his team to implement reciprocal tariffs matching foreign rates product-by-product. A similar 25% auto tariff was considered in 2018-2019 but was never enacted.

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The stock market and stuff

• Strategy To Sell $2.0 Billion In 0% Notes To Buy More Bitcoin (theDeepDive)

• Wall St slips after Trump's latest tariffs threat (Reuters)

• JetBlue talking to 'multiple airlines' about a new partnership (CNBC)

• Loblaw To Spend $2.2 Billion On Capital Expenditures In 2025 As It Attempts To Join “Team Canada” Push (theDeepDive)

In the juniors

• Sandstorm Gold Sees 63% Drop In 2024 Annual Net Income (theDeepDive)

• Snowline Gold Intersects 2.08 g/t Gold Over 15.5 Metres In 300 Metre Step Out (theDeepDive)

• SSR Mining Reports Revenue Decline, Positive Net Income In Q4 2024 (theDeepDive)

• Pampa Metals Enters Letter Agreement To Acquire Rugby Resources To Create Porphyry-Focused Explorer (theDeepDive)

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