Trade negotiations with Canada have stopped, Trump says
President Donald Trump says he has stopped negotiating trade deals with Canada for now.
US stocks opened higher, with Nasdaq powered by the Broad S&P 500 and Tech winning fresh records.
After President Donald Trump suddenly ended trade talks with Canada over Canada’s digital services tax last week, Canada withdrew its tax to resume debate. High-tech sharing such as Facebook Parent Meta and Google Rose.
Over the weekend, the Senate also narrowly cleared key procedural steps to advance the mega-tax bill. But it still has a way to go through the Senate and vote in the House of Representatives. Not all Republican senators or House representatives are on board, and with such a majority, the bill must pass almost every vote. The Senate is scheduled to vote Monday.
At 9:30am ET, the Blue Chip Dow added 0.46%, or 201.94 points, to 44,021.21. The S&P 500 rose 0.33% or 20.48 points to 6,193.55. The Nasdaq has 0.46% (92.64 points) to 20,366.10. The benchmark’s 10-year financial yield fell to 4.257%.
The S&P 500 and NASDAQ are looking to close the month strongly, extending profits by opening from record highs last weekend. The S&P 500 started a week of 4.4% increase in the month, slowing down the 6.1% increase in Nasdaq in June. The Dow has added around 3.7% so far this month, below 3% from its record high.
Trade progress
Investors first cheered for a breakthrough in trade talks with China last week. China has agreed to approve rare earth export applications to the United States to export rare earth. China manages 90% of the world’s most powerful rare earth magnets, and Ford Motors recently had to cut production due to a magnet shortage.
They were also relieved after the Trump administration informed Trump’s voluntary July 9 deadline would be extended for the country to sign trade contracts or face higher tariffs. If Trump extends the deadline, it could slow the rise in inflation, which many economists expect to see high tariffs.
But investors were quick to remind us that the risk remains after Trump suddenly ended talks with Canada over Canada’s digital services tax. Trump said he will announce new tariffs in Canada within days. Canada is one of the largest trading partners in the United States.
The stock initially fell on Canadian trade news, but suppressing emotions wasn’t enough. Over the weekend, Canada withdrew its digital services tax to resume trade negotiations. The initial payments from the Digital Services Tax were originally scheduled to be collected on Monday.
Canadian Prime Minister Mark Carney aims to reach a trade agreement with the US by July 21st.
Separately, Europe said it would buy more arms from the US to pave the way for negotiations to trade contracts.
Corporate News
- Modanya said the experimental influenza vaccine showed positive results in late studies. Stocks in biotech companies rose 4.5%.
- The shares of Hewlett Packard Enterprise and Juniper Networks challenged the $14 billion acquisition of Juniper Networks after the Justice Department settled a lawsuit that challenged Hewlett Packard Enterprise. Hewlett’s shares rose 12.66% and Juniper rose 8.42%.
(This story has been updated with new information.)
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
