US-Canada Tariffs Hit Stocks as Trade Talks Collapse
US-Canada tariffs hit the stock market Monday as trade talks collapsed and Washington imposed 50% duties, with Ottawa vowing retaliation by September 8.
Market Snapshot
Stocks opened lower to start the week, with the Nasdaq off around 0.7% as tech stayed soft ahead of Nvidia.
The dollar firmed and the VIX ticked up toward 16, which reads as a modest risk-off tone rather than a fear spike.
Gold held near a three-month high around 4,648 while WTI eased to around 85 after last week’s run.
Nvidia drifted lower ahead of Wednesday’s report, Tesla gave back a fraction of Friday’s 5% pop, and Exxon slipped alongside crude as the oil rally cooled.
Main Story
US-Canada tariffs hit the stock market Monday after Washington imposed 50% duties on a range of Canadian goods and weekend trade talks collapsed. Reuters reported Monday that Prime Minister Mark Carney suspended negotiations and set retaliatory tariffs to begin September 8, leaving the collapse as the fresh catalyst hitting the tape this morning.
- Washington imposed the 50% tariffs after talks broke down, and Ottawa’s retaliatory duties are set to begin September 8.
- The mainstream read is a straightforward risk-off move, with the Canadian dollar down around 0.4% and equity futures pointing lower into the open.
- What the market may be underpricing is the pileup of catalysts this week, with fresh Iran sanctions expected and Nvidia earnings Wednesday, either of which could swamp the tariff headline.
Chart of the Day
WTI has climbed off its mid-August low near $80 on the Iran and Strait of Hormuz risk premium, testing the $87.65 area before running into resistance.
The pullback to around $85 leaves crude sitting on support near $84.75, with a descending trendline around $87.42 still capping the upside.
The setup is coiled, so the next real move likely waits on whether Washington’s Iran sanctions actually bite into shipping flows.
Technical Trading
A few levels worth watching across the tape.
- WTI holds support around $84.75 with resistance near $87.42, and its 14-day RSI has eased back toward the low 60s from overbought.
- Gold is pressing resistance around $4,659 on the way toward $4,773, but a 14-day RSI near 73 flags overbought conditions.
- The S&P 500 sits between its 50-day average around 7,736 overhead and its 200-day average near 7,598 below, a tight band that should define the week.
Global News
- US-Canada trade talks collapsed and Washington imposed 50% tariffs on Canadian goods, with Ottawa promising like-for-like retaliation from September 8.
- The Trump administration is expected to detail new economic sanctions on Iran, keeping a war premium under oil and shipping through the Strait of Hormuz.
- US government debt topped $40 trillion for the first time, adding to the supply worries pressuring the long end of the Treasury curve.
- Treasury yields held near multi-decade highs, keeping pressure on rate-sensitive tech into a heavy earnings week.
- Nvidia reports Wednesday after the close, the last major AI bellwether of the season and a direct test of the trade that has led this market.
Texas News
Permian producers are driving West Texas power demand to record levels, with Diamondback’s CEO saying the basin’s electricity needs could double over the next decade.
That power crunch is becoming as central to the state’s energy story as the crude itself, especially with new pipelines set to feed Dallas-Fort Worth data centers.
Looking Ahead
Monday, August 24: Markets reopen with the tariff shock front of mind and thin summer liquidity likely to amplify any headline moves.
Wednesday, August 26: Nvidia reports fiscal second-quarter results after the close, guiding around $91 billion in revenue and setting the tone for the AI trade.
Friday, August 28: The week closes with month-end positioning in play as traders square books after Nvidia and any fresh Iran headlines.
The Y’all Street Podcast
Tarek sits down with investor and board advisor Michael Gentile for a look at where he sees the market’s biggest opportunities hiding. He breaks down why gold could be entering a new era, what rising debt and de-dollarization could mean for the U.S. dollar, and why junior mining companies may be dramatically undervalued even at record gold prices. Michael also shares how he hunts for 20 to 50x returns, what he learned from Warren Buffett, and why emotional intelligence matters more than intelligence when markets turn against you.
Prices from Yahoo Finance, CNBC and Fortune. Technical levels from Investing.com and FXStreet. News from Reuters, Al Jazeera and CNBC.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.
