HEADLINES

Carney Says Trump Agrees to Talks to Avert New 50% Tariff

Prime Minister Mark Carney said he and President Trump agreed Tuesday to accelerate trade talks in an effort to resolve friction and avoid a new 50% U.S. tariff on a series of goods.

The 50% tariff kicks in as of Aug. 19, after Trump signed a series of proclamations that target Canada for alleged discriminatory treatment of U.S. automobiles, alcohol and dairy products. The hefty duty would affect $20 billion of U.S.-bound Canadian exports, or 5% of total shipments to America. Economists and trade analysts say what's more important is the message: That Trump is prepared to use its economic heft to force policy changes on the Canadian side.

Canadian Stocks Rise as Markets Brush Off Trump's New Tariffs

U.S.-Canada Trade Fatigue May Explain Muted Response to Tariffs

Bank of Canada Seen Staying Patient on Rates

Bombardier, Saudi Arabia's The Helicopter Company Sign Agreement for Up to 60 Business Jets

Saudi Arabia's The Helicopter Company said it signed a letter of intent with Bombardier to expand into business aviation, with plans to acquire up to 60 private jets as it broadens its aviation operations.

Bombardier shares rose 3.6% to C$353.78.

The agreement between Bombardier and the portfolio company of Saudi Arabia's Public Investment Fund includes a planned firm order for 12 aircraft, including five Challenger 3500 jets, five Global 5500 jets and two Global 8000 aircraft, along with purchase options for an additional 48 aircraft across the three platforms, the companies said.

The announcement at the Farnborough International Airshow in the U.K. comes as The Helicopter Company moves into fixed-wing aviation for charter and aircraft management services.

MDA Space Gets Contract to Deliver Lunar Landing Sensors for European Space Agency Mission

MDA Space received a pre-authorization to proceed contract from space systems provider OHB System to deliver lunar landing sensors for the European Space Agency's Argonaut spacecraft.

The robotics and satellite systems company said the contract allows it to start engineering activities and procure items that require a long-lead time with support from the UK Space Agency, ahead of an anticipated full contract.

Under its expected full contract with OHB, MDA Space expects to supply two flight units of a light detection and ranging sensor for Argonaut's inaugural mission to the moon.

Shares of MDA Space rose 5.6% to C$44.53.

Discovery Mining Shares Rise on Expanded Pamour Deposit, Higher Grades

Discovery Mining shares rose after the company said recent drill results confirmed an expanded deposit at its Ontario mine.

Shares rose 10.5% to C$8.53.

The miner said that the 47 drill holes at the Pamour Mine showed that its mineral deposit is larger in all three phases of the current open-pit mine plan. At the same time, the results showed that there are high-grade intersections at multiple new targets located close to the existing deposits.

Chief Executive Tony Makuch said the results could help define the mine as a significant mining operation in Canada.

Empire Drops Grocery Property Restrictions After Competition Bureau Scrutiny

Canadian grocer Empire is rolling back the use of restrictive property controls that have long been used to keep competitors from opening nearby, after pressure from Canada's competition watchdog.

The company said that it will stop enforcing and registering restrictive covenants on any of its properties, including those that were previously sold, and drop exclusivity and radius clauses that limit competing grocers or specialty food retailers from opening up shops near its own stores.

Empire is the parent company of Sobeys, Farm Boy, Safeway, IGA, Foodland and FreshCo, among other banners in the country.

Empire shares fell 1.8% to C$49.83.

Barrick Mining Buys 10% Stake in Kingfisher Metals for C$20.9 Million

Barrick Mining is buying a minority stake in Kingfisher Metals with a C$20.9 million investment.

The Toronto-based miner said it has subscribed for 15.5 million units in a nonbrokered placement with the TSX Venture-listed Kingfisher.

The company is paying C$1.35 per unit, which comes with one common share and one-half of a common share purchase warrant, where one whole warrant gives Barrick the right to buy one Kingfisher common share at a price of C$1.70 per common share.

RTX's Pratt & Whitney to Invest C$275 Million in Quebec Facility Upgrade

RTX's aircraft--engine manufacturer Pratt & Whitney is investing C$275 million to modernize its Quebec manufacturing headquarters, a government-backed upgrade aimed at expanding production capacity and advancing digital manufacturing.

Pratt & Whitney Canada said that the investment will go towards enhancing manufacturing operations at its Longueuil facility with new automated production lines, modernized machinery and cutting-edge digital processes.

The investment is supported by funds from Innovation, Science and Economic Development Canada and the Ministere de l'Economie, de l'Innovation et de l'Energie du Quebec.

TALKING POINT

Trump's New 50% Levy Unlikely to Exert Broad Damage in Canada, Economists Say

By Paul Vieira

OTTAWA--President Trump's proposed 50% tariff on an array of Canadian-made goods could exert pain on certain sectors but is unlikely to trigger major damage to Canada's economy, according to some initial estimates from economists.

Forecasting firms that reviewed Trump's latest policy proclamations, released Monday, suggest the 50% levy affects about 5% of total Canadian exports to America, representing a value of around $20 billion.

Chemicals, plastics, electronics and industrial equipment are among the goods most affected by Trump's planned new tariff, which the administration said is in response to Canada's "discriminatory treatment of American products" such as automobiles, cheese and alcohol.

"We see this as a sector-specific development rather than a broad macroeconomic story, though it is clearly significant for the industries directly affected," said Benjamin Tal, deputy chief economist at CIBC Capital Markets.

Foreign-exchange traders appear to hold a similar view, with the Canadian dollar holding steady in early Tuesday trading. "It's interesting that the market does not take the 50% tariff announcement seriously at all," said Brent Donnelly, head of foreign-exchange research firm Spectra Markets. "The never-ending onslaught of half-serious trade war measures from the U.S. administration does not agitate markets anymore as the end result is that they could be waived, delayed, or ruled illegal."

The White House said the 50% tariff would take effect in 30 days, or Aug. 19, which does give officials from Washington and Ottawa some time to reach a resolution. Canadian Prime Minister Mark Carney said federal negotiators have made a series of proposals over several months designed to settle existing trade tension with Washington, and those officials "stand ready to intensify those discussions in the coming weeks."

The new hefty tariff exempts some key Canadian exports to the U.S., such as energy, potash and critical minerals.

The 50% tariff represents the latest escalation in trade tensions between the U.S. and Canada, which last year conducted two-way trade of over $700 billion.

Since Trump returned to office, the level of Canada's gross domestic product has remained unchanged, reflecting struggles to adapt to hefty U.S. tariffs of up to 50% on key industrial sectors, most notably steel, aluminum, automobiles and forest products. Trump's trade policy has also fueled heightened business uncertainty, leading firms to scale back plans to invest and hire.

The Bank of Canada expects meager growth of 0.7% in 2026 before rebounding in the following two years.

The bulk of Canada's exports to the U.S. have been exempt from U.S. tariffs because they comply with the terms of the U.S.-Mexico-Canada trade treaty, or USMCA. The latest proposed tariff would remove that protection.

Bank of Canada Governor Tiff Macklem warned in the spring that the central bank might need to consider interest-rate cuts if significant new tariffs were placed on Canadian goods. Just last week, the Bank of Canada kept its policy interest rate unchanged in a sixth straight decision, with Macklem expressing optimism that the economy had turned a corner and businesses were adjusting to the U.S. trade-policy backdrop.

Karl Schamotta, chief market strategist at global-payments firm Corpay, said the key implication for Bank of Canada policy stemming from Trump's new tariff plan is a new layer of uncertainty facing businesses and households, which have scaled back spending plans because of the cloudy trade outlook.

Randall Bartlett, deputy chief economist at Desjardins Securities, said the new 50% tariff, should it be implemented, threatens to further dampen tepid business investment in Canada. Capital expenditures by Canadian private-sector have declined for five straight quarters. "This all points to the possibility for further excess supply in the Canadian economy and downward pressure on underlying inflation," Bartlett said.

Earlier this month, the U.S. opted against renewing USMCA for another 16 years, thereby subjecting the pact to annual reviews for at least a decade. Without an agreement among the three countries before 2036, the continental trade deal would be terminated.

The new tariff may only affect a small share of Canadian exports, but what's important is "the message this sends - leverage during the USMCA negotiations, which promise to be tough and cast a renewed cloud over the local economy," said David Rosenberg, head of market-strategy firm Rosenberg Research.

Write to Paul Vieira at [paul.vieira@wsj.com]

Expected Major Events for Wednesday

05:00/JPN: Jun Steel Production

05:00/JPN: Jun Supermarket sales

06:00/UK: Jun Producer Price Index

06:00/UK: Jun CPI

08:30/UK: May UK House Price Index

11:00/US: 07/17 MBA Weekly Mortgage Applications Survey

14:30/US: 07/17 EIA Weekly Petroleum Status Report

23:01/UK: BRC Consumer Sentiment Monitor

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Wednesday

AT&T Inc $(T)$ is expected to report $0.59 for 2Q.

Badger Meter Inc (BMI) is expected to report $1.01 for 2Q.

BankUnited Inc (BKU) is expected to report $1.01 for 2Q.

Banner Corp $(BANR)$ is expected to report $1.46 for 2Q.

CME Group Inc $(CME)$ is expected to report $2.82 for 2Q.

Cal-Maine Foods Inc (CALM) is expected to report $0.08 for 4Q.

Choice Properties Real Estate Investment Trust (CHP.UN.T) is expected to report for 2Q.

Farmers National Banc Corp (FMNB) is expected to report $0.34 for 2Q.

Fidelity D&D Bancorp Inc $(FDBC)$ is expected to report for 2Q.

First Community Corp (South Carolina) $(FCCO)$ is expected to report $0.69 for 2Q.

First Industrial Realty Trust Inc $(FR)$ is expected to report $0.44 for 2Q.

Fulton Financial Corp $(FULT)$ is expected to report $0.41 for 2Q.

GE Vernova Inc (GEV) is expected to report for 2Q.

Greene County Bancorp Inc $(GCBC)$ is expected to report for 4Q.

Healthcare Services Group Inc $(HCSG)$ is expected to report $0.22 for 2Q.

Iridium Communications Inc $(IRDM)$ is expected to report $0.28 for 2Q.

John Marshall Bancorp Inc (JMSB) is expected to report $0.44 for 2Q.

Kinder Morgan Inc $(KMI)$ is expected to report $0.32 for 2Q.

Marten Transport Ltd $(MRTN)$ is expected to report $0.08 for 2Q.

Martin Midstream Partners LP $(MMLP)$ is expected to report $0.24 for 2Q.

Moody's Corp $(MCO)$ is expected to report $4.41 for 2Q.

NVR Inc (NVR) is expected to report $89.98 for 2Q.

Northern Trust Corp $(NTRS)$ is expected to report $4.22 for 2Q.

Norwood Financial Corp (NWFL) is expected to report $0.87 for 2Q.

Old National Bancorp (ONB) is expected to report $0.62 for 2Q.

Otis Worldwide Corp (OTIS) is expected to report $1.00 for 2Q.

Parke Bancorp Inc $(PKBK)$ is expected to report for 2Q.

Philip Morris International Inc (PM) is expected to report $2.00 for 2Q.

Pinnacle Financial Partners Inc $(PNFP)$ is expected to report for 2Q.

Preferred Bank Los Angeles $(PFBC)$ is expected to report $2.65 for 2Q.

PulteGroup Inc $(PHM)$ is expected to report $2.36 for 2Q.

RPM International Inc (RPM) is expected to report $1.87 for 4Q.

Rogers Communications Inc - Class B (RCI,RCI.A.T,RCI.B.T) is expected to report $0.85 for 2Q.

SL Green Realty Corp (SLG) is expected to report $-0.64 for 2Q.

Stifel Financial Corp (SF) is expected to report $1.25 for 2Q.

Strata Skin Sciences Inc (SSKN) is expected to report for 1Q.

TE Connectivity PLC $(TEL)$ is expected to report for 3Q.

Teledyne Technologies Inc (TDY) is expected to report $4.83 for 2Q.

Travel + Leisure Co $(TNL)$ is expected to report $1.87 for 2Q.

Wabtec $(WAB)$ is expected to report $2.39 for 2Q.

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(END) Dow Jones Newswires

July 21, 2026 16:34 ET (20:34 GMT)

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