Here are five things you need to know this morning
Trump’s tariff plan: U.S. President Donald Trump has disrupted the global economy, imposing steep import tariffs against most countries, sparking threats of retaliation and a selloff in markets around the world. Trump announced he will apply at least a 10 per cent “reciprocal” tariff on all exporters to the U.S., with even higher duties on some 60 nations, to counter large trade imbalances with the U.S. That includes some of the country’s biggest trading partners, such as China — which now faces a tariff of well above 50 per cent on many goods — as well as the European Union, Japan and Vietnam. The EU and China re vowing to impose retaliatory measures. Canada and Mexico will not be subject to the new 10 per cent U.S. tariff – though measures Trump has already imposed on Canadian and Mexican goods remain intact, and new ones that touch the automotive sector come into force today.
Canada’s response: Prime Minister Mark Carney responded to Trump’s announcements late yesterday, saying: “In a crisis it’s important to come together and it’s essential to act with purpose and with force, and that’s what we will do.” Carney told reporters Trump has introduced measures that will change the international trading system in a fundamental manner but has preserved some major aspects of the Canada-U.S. trading relationship. He also indicated Canada will respond with countermeasures, but did not give specifics. Carney said Canada’s response will come after he meets with provincial premiers today.
Markets plunge: Meanwhile, global financial markets have been hit by a sweeping selloff after Trump’s announcement, with U.S. equity futures slumping by more than three per cent. American companies such as Apple and Nike that rely on overseas production are under the most pressure, as well as retailers such as Walmart that sell a large amount of foreign-made goods. The price of oil is down about five per cent amid fears of a global economic slowdown. The U.S. dollar is trading lower against most currencies including the loonie, which has surged to its highest level against the greenback since last December, approaching 71 U.S. cents. BNN Bloomberg will have extensive coverage throughout the day, including insight from influential market analyst David Rosenberg at 10 a.m. EDT.
Auto tariffs now in effect: Trump’s 25 per cent tariff on U.S. auto imports takes effect today, in a move expected to dramatically increase costs and upend industry supply chains. Certain auto parts will also be hit by an equivalent levy no later than May 3 under a plan Trump announced last week. The impact is already being felt here in Canada – Stellantis will be halting production at its Chrysler factory in Windsor for two weeks, as the U.S.-European auto giant seeks to adjust to the new tariff regime.
Dollarama beats expectations: One stock that might be able to buck today’s downdraft is Dollarama. The Canadian discount retailer topped sales and profit expectations in its latest quarter and raised its dividend by 15 per cent. Looking ahead to fiscal 2026, Dollarama said it expects demand from consumers to stay strong as it continues to provide a value-driven offering, especially considering heightened economic uncertainty.