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Trump Threatens 100% Tariffs on Canadian Cars

As part of his relentless tirades on trade relations, President Donald Trump has also set his focus on the automotive sector, calling for steep tariffs as a way to bring car manufacturing jobs back to the US. His most recent remarks target Canada’s car industry, which he accuses of having been built at America’s expense.

“We’re going to put big tariffs on those cars. I don’t want those cars. We can make those cars right here,” Trump said in a Fox News interview. “If you look at Canada, Canada has a very big car industry. They stole it from us. They stole it because our people were asleep at the wheel.”

He then warned that if no favorable deal is reached, he would respond with drastic measures, adding that his administration would “put a big tariff on cars” that “could be 50% or 100%.”

You can read more on the matter here.

What’s going on?

• Will The New “Fentanyl Czar” Be Enough To Hold Trump Tariffs? (theDeepDive)

• ArriveCan contractors failed to meet terms of Indigenous procurement program, audits find (Globe)

• South Korea Mint Suspends Gold Sales as Prices Hit Record (theDeepDive)

• US consumer prices post largest increase in nearly 1-1/2 years in January (Reuters)

• Canada and Mexico tariffs risk inflating US housing crisis, Trump is warned (TG)

• Bell Targets 1,200 Union Jobs in Latest Round of Cuts (theDeepDive)

• Senate Confirms Tulsi Gabbard as Intelligence Chief (WSJ)

• Trump Campaign Used Decoy Plane to Counter Iranian Assassination Threat (theDeepDive)

• Trader Joe’s, Costco and other grocery chains are limiting egg purchases—here’s what to know (CNBC)

• Gold Hits Record as China Launches Insurer Pilot Program (theDeepDive)

• DOGE cuts $900-million from agency that tracks American students’ academic progress (Globe)

What’s the latest?

• Inflation: U.S. inflation rose to 3% in January, up from 2.9% in December, while core inflation increased to 3.3%. Monthly inflation jumped 0.5%, the highest since August 2023, with core prices up 0.4%. The Federal Reserve is likely to delay further rate cuts, keeping its benchmark rate at 4.3% after three cuts last year. Economists predict core inflation could drop to 2.3% by year-end, but new tariffs may push it up to 2.8%.

• CPP: The Canada Pension Plan Investment Board posted a 3.8% net return in the latest quarter, growing net assets to $699.6 billion from $675.1 billion. The increase included $26 billion in net income, offset by $1.5 billion in net outflows. Gains in private equity and credit drove returns, while fixed-income assets declined due to rising U.S. Treasury yields.

• Layoffs: Zepz is laying off around 200 employees, impacting 20% of its 1,000-person workforce, and shutting down operations in Poland and Kenya. The layoffs primarily affect IT roles, following automation and AI-driven restructuring. This follows previous cuts of 420 employees in 2023 and an additional 30 later that year. Despite its $5 billion valuation in 2021 and a $267 million funding round last year, Zepz faces strong competition from PayPal, Wise, Revolut, and Remitly.

• Alibaba: Alibaba’s Hong Kong-listed shares have surged 46% since Jan. 13, adding nearly $87 billion in market value and outperforming the Hang Seng Tech Index’s 25% gain. The rally is fueled by Alibaba’s AI investments, including its Qwen 2.5 Max model, which outperformed Meta’s Llama and DeepSeek’s V3 in benchmarks. However, challenges remain, including slower cloud growth—9.7% for Alibaba vs. 19% for Amazon—and uncertainty over AI monetization. Despite the rally, Alibaba trades at 12.2 times forward earnings, below its five-year average of 14.6 times, making it attractive to some investors..

• Tariff Retaliation: Trump imposed a 25% tariff on all steel and aluminum imports, with Canada supplying over 50% of U.S. aluminum, mostly from Quebec. Quebec Premier Francois Legault suggested Canada could retaliate with export taxes on aluminum if Trump enforces the tariffs in March. Such a move would increase costs for U.S. manufacturers and builders relying on Canadian aluminum.

Failed Gold Mine: A Future U.S. Asset?

The stock market and stuff

• First Quantum Yields Positive Earnings In Q4 2024 Despite Cobre Panama Hole (theDeepDive)

• China’s tech stocks enter bull market after DeepSeek breakthrough (FT)

• Ivanhoe To Explore Kazakhstan For Copper Under New Joint Venture (theDeepDive)

• The New York Stock Exchange is launching an exchange in Texas (CNBC)

• Barrick Gold Sees 106% Earnings Jump In Q4 2024 (theDeepDive)

In the juniors

• Silver47 Intersects 4.7 Metres Of 4,432 ppm Antimony At Dry Creek (theDeepDive)

• Gold Spinout & Premium Buyback: $180M Deal Funds Future? | Michelle DeCecco – Lithium Chile (theDeepDive)

• Global Atomic Expects To Announce Dasa Uranium Project Funding By End Of Q1 (theDeepDive)

FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold 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.