HEADLINES

Trump Threatens 50% Tariff on Automobiles and Parts From Canada

President Trump said the U.S. would impose 50% tariffs on automobiles and parts from Canada starting in January, the latest escalation in a tit-for-tat trade conflict that erupted over the weekend.

"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump said on Truth Social. U.S. tariffs on Canadian automobiles now stand at 25%, with discounts for the U.S. content in cars, while steel tariffs are at 50%.

The threat came after Canadian Prime Minister Mark Carney said his government would respond to a separate set of Trump's tariffs with levies on U.S. products. Trump imposed those new tariffs-effective on about 5% of Canadian exports to the U.S.-early on Saturday, after last-minute talks fell apart.

U.S.-Canada Trade Conflict Muddies Outlook for USMCA

Canada to Roll Out Stimulus For Sectors, Firms Hit By New 50% U.S. Tariff

Auto-Parts Makers Hard Hit on Trump's Tariff Threat

Rate Cuts Could Emerge Depending on Trade Row Damage

The escalation in U.S.-Canada trade tensions -- with President Trump now threatening 50% tariffs on all Canadian autos and auto parts -- tilts toward the Bank of Canada cutting rates in the months ahead, said Sebastien Mc Mahon, chief economist at IA Financial Group.

The new 50% tariff on $20 billion of Canadian goods "are a real downside risks." He expects the BOC at its Sept. 2 decision to keep the policy rate steady at 2.25%, and flag trade tensions as a downside risk to growth.

There's no urgency for the BOC to act, given a pickup in growth in the second quater and solid hiring in recent months. "If the trade damage shows up in the hard data this fall, the door to a rate cut stays open," Mc Mahon said.

Renewed Tariff Row to Damage Business Confidence

CAD Weakens as Traders Reassess Outlook

Factory Sales Estimated Down Slightly in July After Five Straight Months of Growth

Factory activity in Canada weakened last month, with an early estimate pointing to the first drop in sales in six months.

The value of manufacturing shipments edged down an estimated 0.2% in July from a month prior, Statistics Canada said.

The largest declines were in chemicals and fabricated metal products, the data agency said.

The slowdown comes after factory trade inched up 0.1% in June, with increased sales of chemicals and transportation equipment more than countering a drop in petroleum products with a pull back in prices. In volume terms, manufacturing sales rose 1.2% in June.

Agnico Eagle Buying Stake in Radisson Mining, Helping Fund Exploration at Quebec Project

Agnico Eagle Mines will build a roughly 10% stake in Radisson Mining Resources, helping fund underground work at the gold explorer's flagship project in Quebec.

The big Canadian gold producer on Monday said it has agreed to buy about 53.4 million Radisson units for a total C$57.2 million.

Each unit, which will be bought for C$1.07 apiece, comprises one-half share-purchase warrant of Radisson. Each warrant will entitle the holder to buy one share at a price of C$1.39. Radisson's shares last closed at C$1.01, up 12% so far this year.

Ontario Premier Wants Canada to Restrict Commodity Exports in U.S. Trade Conflict

The leader of Canada's most-populous province says it is time for the country to restrict exports to the U.S. of commodities like energy, potash and electricity as part of trade retaliation.

Ontario Premier Doug Ford said in an interview that Canada "should be using every bit of leverage we can. President Trump wants to inflict pain on Canadians. Well unfortunately, we have to inflict pain on Americans."

In March of last year, Ford tried to slap a 25% export tax on electricity shipped to the U.S., but later rescinded the measure after Trump threatened to double the 25% duty on Canadian steel and aluminum. Months later, the U.S. doubled the tariff on those metals.

Exchange Income Agrees to Buy TerraPro for C$30 Million

Exchange Income has agreed to acquire access-matting provider TerraPro for C$30 million in cash and stock.

The diversified acquisition-oriented company said that it will fund the transaction using up to C$4 million in common shares and the rest through its credit facility.

TerraPro, which provides access-matting equipment and manufacturing for infrastructure and resource projects across Western Canada, will be integrated into Exchange Income's Environmental Access Solutions platform once the deal is complete.

The deal is expected to close early in the fourth quarter.

Predictive Discovery Rebrands as PDI Gold, Approves Reverse Stock Split

Predictive Discovery shareholders have approved the company's plan to rename to PDI Gold and a share one-for-five share consolidation.

The West African-focused gold production and development company said Monday that it has officially changed its corporate name to PDI Gold following shareholder approval at its Aug. 21 general meeting.

The name change will be effective on both exchanges where it is listed--the Australian Securities Exchange and the Toronto Stock Exchange--starting on Sept. 9 The stock's ticker symbol PDI will remain unchanged.

Additionally, shareholders approved a one-for-five share consolidation plan, which is scheduled to become effective on the TSX on Aug. 27 and begin normal settlement trading on the ASX on Sept. 7.

Cineplex Gets TSX Green Light to Buy Back Up to 10% of Public Float

Cineplex intends to launch a share repurchase program for up to 10% of its common shares over the course of the next year.

The Canadian movie-theater chain said the Toronto Stock Exchange has approved its plan to buy back up to 6.3 million shares for cancellation.

Shares rose 2.2% to C$12.74.

Cineplex can begin buying back shares starting on Aug. 26.

TALKING POINT

Big Banks Expected to Log Another Strong Quarter While Valuations Stretched

By Robb M. Stewart

OTTAWA--Canada's biggest banks face a high bar ahead of their latest quarterly readouts, as recent strong trends have stretched market valuations.

Third-quarter earnings for Canada's Big Six lenders are set to be released over three days this week, beginning with numbers Tuesday from Bank of Montreal and Bank of Nova Scotia.

Analysts broadly anticipate a continuation of the trends seen in recent quarters, with growth driven by capital markets activity, wealth segment revenue and credit losses that have been held in check.

On the flip side, those tailwinds have pushed shares higher, raising questions about whether their results can sustain their stock prices.

"It is hard to say if bank stocks can continue to push higher. It is easier to say that third-quarter results should not be the reason for the stocks to trade lower," said Paul Holden, an analyst at CIBC Capital Markets.

Holden, like other analysts, forecasts the banks' results will look similar to last quarter, with rising investment banking and trading revenue, improving commercial loan growth, and signs credit losses won't be a concern. Based on FactSet data, adjusted per-share earnings for the large banks are expected to jump 28% from a year earlier and top-line revenue 22%.

The continued growth, coupled with strong capital ratios that have allowed for ongoing share buyback plus expectations that Ottawa's push for nation-building infrastructure projects will boost investment flows in Canada, has raised interest in bank stocks. Share prices are up an average 26% so far in 2026, while the Toronto market is up 16%.

Holden said bank stocks are trading at about 16 times expected earnings, well above a 10-year historical average of 10.8 times, and at 2.6 times book value compared with a historical average of 1.7 times.

Analysts at Keefe, Bruyette & Woods, who recently resumed coverage of Canada's banks, note shares are now trading at an 8% premium to their U.S. peers versus a 5% discount historically. KBW argues that the valuation is rich but is positive on the fundamentals of Canadian banks thanks to their scale in the domestic market and their strategies for penetrating the U.S. market. KBW says the elevated trading multiples are justified by a number of factors, including improving prospects for Canada's economy.

Even with the banks trading at premium valuations, BofA Securities argued investors should want to maintain their exposure to what its analysts say is a Canada story underpinned by the improving domestic outlook under Prime Minister Mark Carney and a banking sector that remains well positioned to convert that into higher returns.

The outlook for the banks isn't without clouds, largely due to the recent breakdown in bilateral trade talks between Ottawa and Washington and an escalation of tariffs. The developments raise questions about the impact on Canadian business and how effective the Canadian government's support measures will be, as well as the impact on employment levels, said Tim O'Brien, managing director for North American financial institution ratings at Morningstar DBRS.

"That said, the banks' AA-range credit ratings reflect superior underlying credit profiles that are well-positioned to deal with any further near-term deterioration in the credit environment," O'Brien and his team said in a research report.