Canada Imposes Fresh Tariffs; Oil Climbs amid Saudi Strikes

SPEAKER_1 (0:02)

Bloomberg Audio Studios, podcasts, radio, news.

Nathan Hager (0:09)

Good morning, I'm Nathan Hager.

Karen Moskow (0:11)

And I'm Karen Moskow. Here are the stories we're following today. Nathan, we begin with the latest volley in the US trade wars. Canada has slapped 15 to 50% tariffs on hundreds of American products and retaliation for its 50% duties on about $20 billion in Canadian goods.

As of a minute after midnight, Canada's import tax on many US steel items is up from 25 to 50% and a range of other consumer goods, from motorcycles to cosmetics and cheese, are facing higher tariffs as well. We get more from Bloomberg News global trade editor Brendan Murray.

Brendan Murray (0:46)

The Canadians hit back very strategically. You could argue that they could have gone even harder and that both sides are now going to sit back and look at what the next options are for the US. The Supreme Court reigned in President Trump's authority to put tariffs unilaterally on countries, but now he's got this new 338 authority that he's used against Canada. And there are provisions in that particular statute that allow the US president to target specific products from other countries that they feel are being discriminated against by that other country.

Karen Moskow (1:17)

And Bloomberg's Brendan Murray reports US officials have not specified how they could respond, but in a social media post, President Trump threatened to boycott Bombardier jets accusing the Canadian company of living off American buyers.

Nathan Hager (1:30)

And Karen, crude oil is on the rise this morning with Saudi Arabia facing new attacks near its border with Yemen. Iran backed Houthi rebels have claimed responsibility for attacks on three Aramco facilities in southern Saudi Arabia that have since suspended operations. This comes as Iran says it is getting closer to a deal with Oman that could lead to transit fees through the Strait of Hormuz. Bloomberg Middle East news director Will Kennedy reports that's putting pressure on the energy market as well.

Will Kennedy (1:56)

If you think about where we were in July when we had the MOU, we'd seen oil fall quite far and touching into the 60s, I think, and it's rallied all the way back since then on this blockade and Iranian restrictions on ships going through. So, you know, that's the pivot point for the markets at this stage.

Nathan Hager (2:15)

It's Bloomberg's Will Kennedy. And right now, Brent crude, the international benchmark is edging closer to $100 a barrel. Right now, it's just shy of $99, up 2% on the session. West Texas Intermediate is up more than 3% at $94.34.

Karen Moskow (2:30)

Well, the UK government, Nathan, is expected to ban trade with Israeli settlements in the West Bank. Let me go to London and get the very latest of Bloomberg's UN pots. UN, good morning.

Ewan Potts (2:40)

Karen and Nathan, Bloomberg has learned the UK is to announce a new sanctions regime targeting Israel, but limited to Jewish settlements in the West Bank. Prime Minister Andy Burnham is seeking to pressure Israel over home building in a strategically important part of the Palestinian territory. The move risks the vision with the Trump administration. Israel says it will consider retaliation against the UK.

In London, I'm Ewan Potts, Bloomberg Radio.

Nathan Hager (3:05)

Okay, Ewan, thank you. Now let's get to the latest in the war in Ukraine. Strikes on Kiev appear to have resumed after a three-day pause ordered by President Vladimir Putin of Russia came to an end. Ukraine says at least two people have been killed, ten others injured in the drone and ballistic missile attack. We get more from Bloomberg Russia editor Greg Sullivan.

Greg Sullivan (3:25)

Well, in some ways, these airstrikes are increasing because the fighting on the actual front line, the ground fighting, is more or less at a stalemate. Any advances that are being made are usually marginal, very slow and at great cost. So in turn, both sides have taken to escalating these airstrikes to try to inflict costs and drive the other side to a point where they're willing to make concessions.

Nathan Hager (3:47)

Bloomberg's Greg Sullivan says the latest attack comes after US Envoy Steve Whitcoff and Jared Kushner traveled from Moscow to Kiev over the weekend for talks aimed at ending the war.

Karen Moskow (3:57)

Back in this country, Nathan, it is primary election day in New Hampshire, but attention is already turning to the November matchup for retiring Democratic Senator Gene Shaheen's seat. On the Democratic side, Congressman Chris Pappas is leading his primary opponents, including progressive medical scientist Karishma Manzoor. For the Republicans, former Senator John Sununu has a comfortable lead over former Massachusetts Senator Scott Brown. The nonpartisan Cook Political Report still has New Hampshire leaning in the Democrats' favor, but Republican ally groups are spending about $24 million on Sununu's behalf. That's almost twice as much as Democrats are spending on Pappas. He says the funding disadvantage is making him nervous, as New Hampshire has a history of electing Republicans, too.