Here are five things you need to know this morning
Tariff pause boosts stocks: North American stock markets are set to pull back this morning after rallying yesterday by the most since 2008. That spike followed U.S. President Trump’s pledge to pause tariffs on most U.S. trading partners. The S&P 500 soared 9.5 per cent, the most since the global financial crisis, while the Nasdaq 100 surged 12 per cent. The S&P/TSX composite jumped by 5.4 per cent, its biggest gain since 2020. The U.S. bond market also reversed recent steep losses. However, U.S. equity futures are indicating a pullback of nearly two per cent, as investors return to worrying about the global trade war and the effect on economies.
Canada uncertainty: There is still some confusion about where things stand for Canada when it comes to U.S. tariffs. The Globe and Mail is reporting the Trump administration has informed Canada that it will not be subject to the universal 10-per-cent tariff the United States is imposing on most countries. The report says Kirsten Hillman, Canada’s ambassador to the United States, said she obtained the assurance from U.S. Trade Representative Jamieson Greer on Wednesday, hours after another U.S. official told reporters that Canadian and Mexican imports would be subject to U.S. levies on steel, aluminum and autos, which remain in place.
China and EU respond: China says it will reduce the number of American films allowed to show in the country, opening a new front in its trade war with the U.S. While China held off from an outright ban of U.S. films, the move signalled Beijing could now target American services in the trade war. Meanwhile, the European Union’s Executive Commission says it will put its retaliation measures against new U.S. tariffs on hold for 90 days. The EU says its decision is in order to give negotiations a chance. The commission warns, however, that if negotiations are unsatisfactory, countermeasures will kick in.
Inflation slowdown: Inflation in the United States has slowed. The consumer price index for the month of March rose by 2.4 per cent on annualized basis, slightly less than the month before. Compared to February, prices fell by 0.1 per cent – the first decrease in nearly five years. A drop in gasoline prices was the biggest factor in the decline.
Carney vows to speed permits: On the election front, Liberal leader Mark Carney is pledging to establish a single office to decide on major projects within two years. If elected, Carney says his government will launch the “Major Federal Project Office,” which would have a “one project, one review” mandate to eliminate duplication of federal and provincial assessments and speed up reviews. Carney also announced an expansion of a critical minerals exploration tax credit to include minerals necessary for defense, semiconductors, energy, and other clean technologies.
