Here are five things you need to know this morning

Tariffs remain – but temporary reprieve for auto sector: We remain on alert for any new developments on the U.S. tariff front. Yesterday the White House announced it is exempting automakers from newly imposed tariffs on Mexico and Canada for one month as a temporary reprieve following pleas from industry leaders. The exemption also applies to auto parts that comply with the trade pact. Earlier in the day, Prime Minister Justin Trudeau had a 50-minute phone call with U.S. President Donald Trump and other top officials, which apparently did not yield any tangible results. The tariff tension will not be helped by fresh trade data released this morning. The overall U.S. trade deficit widened to a record in January, and Canada’s trade surplus with the U.S. widened to a record $14.4 billion dollars.

Linamar deals with tariff uncertainty: Meanwhile, the leader of one of Canada’s largest auto parts companies says it’s impossible to “unscramble the egg” of the highly integrated North American auto industry. In an interview this morning on BNN Bloomberg, Linamar Executive Chair Linda Hasenfratz said that while her company is happy to see the tariff reprieve in the auto sector, she feels it would be “very destructive” for individual countries to entirely build their own vehicles, with “enormous costs” and “really no payback.” Indeed, one analyst has cut his ratings on Linamar and another Canadian auto parts company (Martinrea International), calling the U.S. tariffs an “existential threat” to Canada’s entire auto supply industry. Late yesterday, Linamar reported a slight decline in revenue and adjusted profit in its latest quarter, and a loss on its bottom line, mainly due to a write-down on its European operations.

Feds strengthening takeover protection: There has been another significant development in the wake of the Canada-U.S. trade war. Canada is expanding its criteria for intervention in foreign investment, adding a provision that would allow it to reject purchases and takeovers that it views as posing harm to the country’s broader “economic security.” In a posting on social media, Industry Minister Francois-Philippe Champagne said that as a result of a rapidly shifting trade environment, some Canadian businesses could see their valuations decline, making them susceptible to opportunistic or predatory investment behaviour by non-Canadians. While the move would protect Canadian companies, it could also prove to be a headwind for the market valuations of those companies, as the reduced possibility of foreign takeovers is factored into stock prices.

Parkland puts itself up for sale: And speaking of possible foreign takeovers, Parkland Corporation says it’s considering strategic options. The Calgary-based company says those options include a potential sale, acquisitions, and mergers. The move comes as the fuel retailer deals with pressure from investors. Simpson Oil -- Parkland’s largest shareholder -- began pushing last year to review strategic options in a bid to boost the stock. Parkland also reported revenue in its latest quarter that missed estimates.

7-Eleven owner acts as Couche looms: Meanwhile, there are new developments related to one Canadian company’s quest to take over a major international rival. Japan’s Seven & i Holdings has announced plans to sell an underperforming retail business, replace its chief executive and buy back shares to strengthen its case for repelling a US$47.5 billion takeover proposal by Quebec-based Alimentation Couche-Tard Inc. Stephen Dacus, the director leading the board committee evaluating Couche-Tard’s approach, will take over from Ryuichi Isaka as CEO. The company also plans to buy back more than $13 billion in its stock over the next few years, separately list its U.S. 7-Eleven convenience store business and cut its holdings in a banking unit.