Canada's counter-tariffs on American goods took effect at 12:01 a.m. on September 8, covering more than 700 US products worth about US$19.9 billion. Ottawa set rates of 15, 25 and 50 percent to match, dollar for dollar, the tariffs Washington placed on Canadian goods under Section 338 and Section 232 of US trade law. The move responds to a 50 percent US levy on about CA$20 billion of Canadian exports. Prime Minister Mark Carney said retaliation was unavoidable, while US Trade Representative Jamieson Greer said no new talks are planned. The measures hit US steel, dairy, electronics and other sectors, and end the arrangement that had exempted most cross-border trade from tariffs.
After-tax wage growth for lower-income US households reached 4.7 percent in August, outpacing the 3.5 percent recorded by higher-income households, according to the Bank of America Institute's monthly employment report. The figures flip the long-standing "K shape" of the recovery, in which high earners pulled ahead while lower earners lagged. Overall hiring cooled during the month, with estimated payroll growth slowing to 1.5 percent year over year from 1.8 percent in July. Bank of America economists said the data still points to a broadly resilient labor market, even as momentum fades, and separate institute data showed small-business hiring strengthening over the summer.
Volkswagen Group said Thursday that its supervisory board had approved a sweeping transformation plan that could remove about 50,000 jobs, including management positions, as Europe's largest automaker fights Chinese competition and trade costs. The company said its German factories can build about 500,000 more vehicles a year than it can sell and that it will cut roughly half of its vehicle offerings. Volkswagen did not say when the cuts would happen or how they would be spread across brands such as Audi, Porsche and Lamborghini. Employment in Germany has already fallen from about 275,000 in 2023 to 254,000 at the end of June. The plan is the company's biggest cost overhaul in years.
Canada's economy lost 42,000 jobs in August and the unemployment rate held at 6.4 percent, Statistics Canada reported Friday. Young workers aged 15 to 24 accounted for 19,000 of the losses as the summer hiring season ended. Economists called the report disappointing but said it was too soon to raise alarms, pointing to trade tension with the United States as a drag on hiring. The student jobless rate averaged 15.9 percent from May to August, two points lower than a year earlier. The figures contrast sharply with the United States, which added 162,000 jobs in August with unemployment at 4.1 percent. Analysts said the weak data cools any talk of interest rate increases by the Bank of Canada.
US employers added 162,000 jobs in August, a much stronger gain than forecasters expected and a clear rebound after weak hiring in July, the Labor Department reported Friday. The unemployment rate held steady at 4.1 percent. Economists surveyed by Bloomberg had expected only about 55,000 new jobs, and the government raised its counts for June and July by a combined 55,000. Hiring was concentrated in healthcare and hospitality, with factories and construction also adding workers. After the report, investors raised the odds of a September rate increase to about 60 percent. Many economists say next week's inflation report will matter more for the Federal Reserve's decision.
De Nederlandsche Bank has moved 86 tonnes of gold, worth billions of dollars, from the United States and Canada to London, citing "increasing geopolitical unrest." The months-long operation raised the share of Dutch gold held in London from 18.1 percent to 32.1 percent, while 30.8 percent remains inside the Netherlands. President Olaf Sleijpen said the gold can now be deployed faster in a crisis and called the move necessary to strengthen the bank's "resilience and preparedness." The shift comes as the US-Iran conflict shakes global trade and Washington's tariffs pressure Canada, and it shows how central banks are repositioning reserves as tensions rise.
A global sell-off in government bonds deepened this week as rising oil prices reignited fears that inflation will stay higher for longer. The yield on the 10-year US Treasury, which moves opposite to the bond price and influences mortgage rates, climbed to about 4.8 percent on Wednesday, its highest level since January 2025. Oil jumped after fresh US strikes on Iranian targets raised worries about Gulf supply, with US crude settling above $90 a barrel. The selling spread worldwide: Japan's 10-year yield topped 3 percent for the first time in 30 years, and Australia's 10-year yield hit its highest in more than 15 years. Wall Street fell as higher borrowing costs weighed on stocks, and analysts say a move toward 5 percent on the US 10-year is now possible.
Shein's shares fell on their first day of trading on the Hong Kong stock exchange on Tuesday. The fast-fashion retailer finally listed after a years-long quest to sell shares in New York and London. The debut valued the company well below the levels it reached in private funding rounds, when it was once worth about $100 billion. Shares opened lower and stayed down through the session as investors weighed slowing growth and trade pressure. The listing is still one of the largest retail IPOs in Asia this year and gives Shein access to fresh capital as it competes with rivals such as Temu. Executives said the company will use the funds to expand its supply chain and push into new markets.
The US federal debt has passed $40 trillion for the first time, according to the Treasury Department. The total reached $40.05 trillion, roughly double the level of a decade ago. Treasury also reported a $432.3 billion deficit in July, the highest monthly shortfall since March 2021. Interest on the debt now costs more than $1 trillion a year, making it the government's second-largest expense. With a population of about 343 million, the debt equals roughly $117,000 per American. Watchdogs project the country will hit its $41.1 trillion debt limit sometime between late winter and mid-summer 2027, forcing another congressional fight over borrowing.
The Trump administration is imposing a minimum import price for polysilicon, a raw material used in semiconductors and solar panels, along with new tariffs on products made with it. Officials say the measures aim to protect American manufacturers from cheap imports, but industry analysts warn they could raise costs across electronics and clean energy supply chains. Polysilicon prices have been volatile for years, and the move adds fresh uncertainty for chipmakers, solar developers, and the data center boom driving demand for advanced electronics. Domestic producers welcome the protection, while electronics and solar companies warn the policy will push up input costs. The first duties are expected to take effect within months, and companies are already reviewing supply contracts.