Trump Slaps 35% Tariff on Canadian Imports

Markets dip as new tariffs announced; volatility cools, Delta rallies on earnings.

Trump announces 35% tariff on Canadian goods starting August

TL;DR:

🛃 Trump announces 35% tariff on Canada
🏦 Fed signals ongoing balance sheet reduction
📉 Market volatility drops despite trade threats
✈️ Delta Air Lines soars on strong forecast

Trump Announces 35% Tariff on Canada

President Trump declared a sweeping 35% tariff on Canadian imports, effective August 1, targeting a broad range of goods as part of a wider trade campaign. The move rattled investors and drew immediate responses from global trade partners, raising the specter of renewed trade tensions in North America. Full details and analysis can be found at FT.com.

Fed Signals Ongoing Balance Sheet Reduction

Federal Reserve Governor Christopher Waller confirmed that the Fed's balance sheet runoff is likely to continue, potentially reaching a $5.8 trillion target. This stance signals tighter liquidity conditions ahead, with markets closely watching for any signs of shifting policy. Read more at Reuters.

Market Volatility Drops Despite Trade Threats

Even as the White House escalated tariff threats, the VIX index—a key gauge of market fear—fell to 16, under its historic average. Traders are showing resilience, betting that the tariff headlines may not immediately disrupt global markets. Details are available at FT.com.

Delta Air Lines Soars on Strong Forecast

Delta Air Lines shares surged 12.9% after the company reported a robust profit outlook for both the third quarter and full year. The upbeat guidance bucked the broader market’s cautious tone, offering a rare bright spot in yesterday's trading. More from Reuters.

Trump announces 35% tariff on Canadian goods starting August