Business Brief: Catching up and zooming out

Morning. Today in Canada’s trade clash with the United States, we’re winning fans in China, seeking out more in the European Union and adding up the bill on countertariffs.

Up first

In the news

Investing: Mining and energy stocks lift the TSX past trade-war fears.

Social media: Meta agrees to pay $17-billion to settle social-media harms lawsuit, add stronger child-safety measures.

AI: Nvidia passes consensus estimates for its second quarter ⁠and raised its ​third-quarter guidance.

In focus

Tracking the trade news – and tallying Canada’s response

First, the latest:

• Alberta and Saskatchewan rejected any suggestion that Ottawa apply export levies on natural resources like oil and potash in retaliation for the U.S. applying new tariffs on Canadian products.
• Mark Carney will address the European Union Parliament next month in Strasbourg, France, as the Prime Minister makes efforts to expand Canada’s ties with other partners.
• Canada’s tough response to Trump’s trade war is winning fans in China, Asia correspondent James Griffiths reports. “In an editorial this week, the state-run Global Times said Canada and China ‘are the only countries daring to respond to U.S. pressure with reciprocal measures.’”
• To First Nations that named Lake Ontario, whose name originates from the Iroquois word meaning “beautiful lake” or “sparkling water,” Trump’s threat this week to rename it is an affront.
• Canadians can boycott U.S. travel and alcohol. But investments are a different story.

Taking stock

From Globe reporter Jason Kirby and data editor Dexter McMillan, here are four things to know about Canada’s countertariffs – set to go into effect on Sept. 8.

1. An eye for an eye

From the outset, Carney said Canada would respond dollar-for-dollar to U.S. President Donald Trump’s 50-per-cent tariffs on $27.6-billion worth of exports from Canada.

Many of the items on Canada’s list appear to be lifted directly from Trump’s own tariff playbook, including honey, hair-care products and metal furniture.

But while the flow of some tariffed items such as networking equipment between the two countries is similar in scale, that’s not true of most. Canada shipped much more insulated electric wire and cable to the U.S. than it bought. The same goes for honey: Canadian producers face a bigger hit than their U.S. counterparts.

2. Hitting home

Despite the announcement of a $7.5-billion support package for businesses and workers, there’s little question that Canadian consumers will feel the impacts of the countertariffs. Importers will inevitably pass some of their tariff costs on to their customers.

At the same time, the tariffs will lower U.S. imports, and that reduced competition will give domestic companies more pricing power.

While countertariffs on industrial products such as steel and networking equipment account for the largest dollar values, duties on consumer items such as golf clubs, hair-care products, video-game consoles, clothing and furniture will all hit Canadians more directly.

3. From zero to 50

Canada’s retaliation list targets both products covered by existing tariffs – albeit now with higher levies – and goods that currently enter Canada duty-free.

For instance, a key element of Canada’s retaliation, and one that carries the largest dollar value, was the move by Ottawa to hike existing tariffs on steel and aluminum and derivative products to 50 per cent from the current 25 per cent.

But many other items are being hit by duties for the first time, and the tariff costs are significant. Canada’s 2025 imports of $920-million worth of networking equipment, such as routers and switches, would incur a $460-million duty charge.

4. Impact on the U.S.

Not every state will feel Canada’s countertariffs equally. Maine, which exported $300-million of lobster to Canada in 2025, was acutely exposed since roughly one-third of the products initially facing countertariffs were seafood. (Ottawa announced last night it was removing seafood and fish products from the list after getting industry feedback.)

Likewise, Canada is one of the largest foreign purchasers of motorcycles from Pennsylvania, where Harley Davidson has a plant. More than $120-million worth of motorcycles from that state will now be subject to a 50-per-cent tariff.

Neighbouring Ohio is arguably the state with the most at stake, with $3.2-billion of tariff-covered exports heading north, largely made up of metals and metal derivatives.

–JK and DM

To do

Canada’s best sandwiches

On the menu: We’ve had our share of charts today. Instead, let’s look at some sandwiches. From turkey kimchi melts to Montreal smoked meat, The Globe rounded up the best sammies in the country, according to readers and staff.

Quoted

Brad Wheeler writes about his conversations with Dolly Parton, a musician of many colours.

Up next

More files we’re following

At the bell: Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto-Dominion Bank wrap up the Big Six banks quarterly earnings. Newfoundland-based Kraken Robotics Inc. also reports.

By the numbers: Canada’s payrolls and vacancy rate survey for June offers an employer view on the labour market. In the U.S., the Jackson Hole Economic Policy Symposium gets under way. Investors will hope to find clues on monetary-policy makers’ next moves.

Morning update

Global markets steadied after Nvidia’s strong sales growth forecast bolstered ​technology shares, while geopolitical uncertainty and a stubbornly high U.S. inflation measure subdued trade elsewhere.

Wall Street futures were mixed, while TSX futures were in the red.

Overseas, the pan-European STOXX 600 was down 0.38 per cent in morning trading. Britain’s FTSE 100 fell 0.47 per cent, Germany’s DAX advanced 0.24 per cent and France’s CAC 40 dropped 0.98 per cent.

In Asia, Japan’s Nikkei closed 0.2 per cent lower, while Hong Kong’s Hang Seng declined 0.34 per cent.

The Canadian dollar traded at 72.05 U.S. cents.