President Donald Trump says he will raise tariffs on Canadian-made cars, trucks, auto parts and steel to 50 percent starting January 1, 2027, escalating a trade fight that erupted after talks between the two countries collapsed. A fresh round of 50 percent tariffs on some Canadian goods took effect on Saturday, and Canada has promised to match them dollar for dollar. Prime Minister Mark Carney said Canada will retaliate to protect its workers and businesses. The new 50 percent levy would double the current 25 percent tariff on autos and would also cover steel. Automakers that build vehicles in Canada and sell them in the United States could face sharply higher costs. Trump said on social media that companies can avoid the tariffs by building in the United States.
President Trump has paused new tariffs on Canada for three days, saying the two sides are close to a deal. The pause comes after the United States threatened to raise tariffs on Canadian cars, trucks, auto parts, and steel to 50 percent starting January 1. Earlier talks collapsed when the two countries failed to reach a trade agreement. Trump said both sides are now finalizing documents to avert import taxes on a range of Canadian goods. Canada was the only country besides China to retaliate against the earlier U.S. tariffs. Markets reacted positively to the news, while economists warned that a full trade war would still hurt automakers and consumers on both sides of the border. The three-day window will test whether the two neighbors can avoid a full-blown trade war.
Unitree Robotics, the world's largest maker of humanoid robots, saw its shares soar more than 600% when it started trading on Shanghai's Star Market. The debut reflects strong investor appetite for robotics and artificial intelligence in China. The company plans to use the funds to expand production of humanoid robots for factories, warehouses and homes.
Nvidia reported a 106 percent jump in sales, beating Wall Street expectations as demand for its AI chips stays red-hot. The company's results, released Wednesday, reinforce its position as the biggest winner of the artificial intelligence boom. Analysts closely watch Nvidia as a bellwether for AI and the wider stock market. The company's data center business drove most of the growth, with cloud providers and tech giants buying chips in record numbers. Nvidia also said supply of its newest processors is sold out for the coming quarters. The strong report lifted tech stocks in after-hours trading and eased worries that the AI spending wave is slowing.
The US federal debt has crossed $40 trillion, according to the Treasury Department, as spending on the Iran war, tax cuts and tariff refunds outpaced revenue. President Trump promised to reduce the debt burden, but the borrowing has continued. Interest payments now eat a growing share of the federal budget. The milestone arrived as the trade fight with Canada escalated, with Ottawa announcing retaliatory tariffs of up to 50 percent on US goods. Treasury Secretary Scott Bessent said he expects inflation to retreat as the Iran conflict subsides. Economists are split on whether the debt level poses a near-term danger.
The Federal Reserve kept its benchmark interest rate at 3.50 to 3.75 percent at its July meeting, in a 9-3 vote. Three officials wanted an immediate quarter-point increase. Since then, fresh inflation data has come in milder than expected, giving the Fed room to stay patient. But the debate is not settled. Energy prices have swung with the conflict involving Iran, and mortgage rates climbed to 6.81 percent, their highest level in a year, before easing to 6.65 percent. The Fed's June projections showed nine members expecting at least one hike in 2026 and eight expecting no change. Most economists expect the Fed to hold rates for the rest of 2026, but the three dissents keep a September hike on the table.
Micron Technology announced plans to invest $10 billion over the next decade in Micron Research Labs, a new U.S. research hub headquartered in Boise, Idaho. The organization will focus on advanced memory technologies, memory and computing architectures, chip packaging and future semiconductor manufacturing for the AI era. Construction of the flagship campus is expected to begin in 2027. CEO Sanjay Mehrotra said America's AI future 'will be built on American-made memory.' The investment is separate from Micron's previously announced $250 billion in U.S. manufacturing and R&D through 2035. Micron shares, up roughly 234% this year, moved higher on the news.
The US national debt passed $40 trillion for the first time, according to the Treasury Department. Spending on the Iran war, tax cuts, and tariff refunds has pushed the total higher. President Trump promised to restore fiscal order, but the debt has kept climbing. Interest payments on the debt are also growing each year. Lawmakers remain divided over how to address the problem.
A Chinese court sentenced Hui Ka Yan, founder of property giant China Evergrande, to life in prison on charges of fraud and bribery. The court also fined Evergrande more than $2.3 billion for inflating assets and hiding massive debts. Hui was once one of China's richest men. His company became the world's most indebted property developer before collapsing under its debts. Evergrande's default in 2021 was the largest debt crisis in China's corporate history, sending shockwaves through global markets. The case is a warning to China's real estate sector, which has struggled since the crisis began. The sentence is among the harshest handed down in China's property industry crackdown.
The US national debt passed $40 trillion for the first time this week, according to the Treasury Department, a record milestone reached years earlier than projected. The government has added roughly $1.8 trillion to the debt in the past five months alone, after crossing $39 trillion in March and $38 trillion in October. The Congressional Budget Office had projected in May 2023 that the country would not reach $40 trillion until fiscal year 2028. Rising costs for defense, Social Security, Medicare and interest payments are driving the borrowing, along with tax cuts signed into law last year. Interest payments on the debt are expected to exceed $1 trillion this year, another record. Budget watchdogs warn the current path is unsustainable.