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US-EU Strike $1.4T Trade Pact

The US and the EU have announced a sweeping trade package that resets tariff baselines, commits the bloc to major US energy and chip purchases, and targets deeper investment and rules-of-origin coordination. The statement outlines near-term changes effective Sept. 1 and several measures contingent on legislation and future negotiations.

Washington will impose a 15% tariff on most EU imports. In a notable carve-out, effective Sept. 1 the US will apply only MFN tariffs to EU aircraft and parts, generic drugs, chemical precursors, and scarce natural resources. Auto duties will fall later, but only after the EU passes matching tariff-cut legislation.

On the other side, Brussels will eliminate tariffs on all US industrial goods and grant preferential access for US seafood and agriculture.

You can read more on the matter here.

What’s going on?

• Small Business Recovery Stalls with 2024 Insolvencies at 15-Year High (theDeepDive)

• China's carbon emissions fell in the first half of 2025, study shows (Reuters)

• China Bans ‘Autonomous Driving’ Marketing Claims Following Fatal Crash (theDeepDive)

• N.Y. Appeals Court Throws Out $500 Million Civil Fraud Penalty Against Trump (WSJ)

• Canada, Finland Establish Strategic Partnership Focused on Arctic Security, Ukraine Support (theDeepDive)

• EU races to secure lower US tariffs on car industry (FT)

• Kenney: By-Election Results Unmask Alberta Separatism as ‘Empty Shell’ (theDeepDive)

• Pierre Poilievre accuses Mark Carney of weakness in dealing with Donald Trump, China (Globe)

What’s the latest?

• Real Estate: U.S. homebuyers’ purchasing power has dropped by $27,000 since 2019, with the maximum affordable home price for median earners falling to $298,000 in 2025 from $325,000. Affordable listings shrank from 55.7% to 28% as the median home price rose to $439,450. Buying power declined 8.3% nationwide, with the steepest drops in Milwaukee (-10.5%), Houston (-9.4%), and Baltimore/New York (-9.3%). Meanwhile, Cleveland was one of six metros with gains, up 4.4% or $11,000.

• Air Canada: Air Canada’s 10,000 flight attendants will vote Aug. 27–Sept. 6 on a tentative deal that includes an immediate 12% raise for junior staff and 8% for senior attendants, followed by 3% in 2026, 2.5% in 2027, and 2.75% in 2028. The agreement, running until 2029, also introduces ground pay starting at 50% of hourly wages for 60–70 minutes before flights, rising to 70% by 2028. Even if the deal is rejected, pension, benefits, and ground pay terms will remain final, while wages would go to arbitration. Air Canada says 98% of domestic and 94% of international flights are already back in service after the strike.

• Walmart: Walmart reported Q2 revenue of $177.4B, above estimates, with U.S. comp sales up 4.6% and global e-commerce sales surging 25%. However, EPS came in at $0.68 vs. $0.74 expected, its first earnings miss in 3+ years, and gross margins were flat at 24.5% vs. 24.9% expected, sending shares down 4.3%. The company raised its FY sales growth forecast to 3.75–4.75% and EPS guidance to $2.52–$2.62, citing resilient consumer demand despite tariff-related cost pressures. Walmart logged 40% growth in marketplace sales and noted middle- and lower-income shoppers are shifting to private labels and buying fewer items.

• Hudson’s Bay : Hudson’s Bay’s court monitor opposes forcing landlords to accept billionaire Ruby Liu’s $69.1 million plan to buy 25 leases, citing major risks. Alvarez & Marsal says Liu’s company has no retail track record, her leadership team lacks experience, and her business plan raises concerns, especially after she admitted it was only recently translated into Mandarin. Landlords argue her budgets and timelines are unrealistic and that her plans for entertainment and dining violate lease terms. A court will hear arguments next week before ruling on the deal.

• Business: About 40% of Canadian small businesses risk closing within a year due to the Canada-U.S. trade war, with 25% fearing shutdown in six months, CFIB warns. Nearly 62% report higher costs, 48% lower revenue, and 41% face supply chain disruptions. U.S. tariffs have reached 50% on steel and aluminum, while Canada’s 25% counter-tariffs generated $29.8B. CFIB says 82% of businesses want Ottawa to return that revenue as support.

Aya Gold & Silver Q2 Earnings

The stock market and stuff

• NYSE’s Newest Venue Gets Jump on Upstart Texas Stock Exchange (Bloomberg)

• Meta Slams The Brakes On AI Hiring After Nine-Figure Salary Spree (theDeepDive)

• July home sales rise as prices approach inflection point (CNBC)

In the juniors

• Santacruz Silver Q2 2025: Net Income Surges Amid Output Decline (theDeepDive)

• Marimaca Copper Enters Option Arrangement For Sulfuric Acid Plant (theDeepDive)

• Altima Energy Closes $5.5M Private Financing As MCTO Deadline Nears (theDeepDive)

• White Gold Increases Mineral Resources To 3 Million Ounces At Flagship Project (theDeepDive)

FULL DISCLOSURE: Canadian Copper is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Canadian Copper. The author has been compensated to cover Canadian Copper 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.