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U.S. President Donald Trump raised the tariffs on Canadian goods to 35% last week, but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties.Goods that comply with the 2020 United States-Mexico-Canada Agreement that Trump negotiated during his first term are excluded from the tariffs.Here’s a look at Trump’s tariffs on the two countries and their exemptions: Most Canadian exports reaching the US duty free Canada’s central bank says 100% of energy exports and 95% of other exports are compliant with the trade pact, known as USMCA. The Royal Bank estimated that almost 90% of Canadian exports appear to have accessed the U.S. market duty free in April.Canadian Prime Minister Mark Carney said the commitment of the U.S. to the core of USMCA, reaffirmed again last week, means the U.S. average tariff rate on Canadian goods remains one of its lowest, and over 85% of Canada-U.S. trade continues to be tariff free.“Canada is better off than any of the trading partners right now because the Americans appear to be relying as a default on USMCA,” said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association. “That gives them the tough tariff headline but also allows them the access to the stuff they need from us. Because of that we’re in a relative better position.”Canadian and Mexican companies can claim preferential treatment under the USMCA based on where the products are made.“The headline news is 35% tariffs but it’s somewhat targeted,” said John Manley, Canada’s former industry minister, finance minister, foreign affairs minister and deputy prime minister.Manley said Canada is doing okay despite the economic uncertainty.“There is a lot of resilience I’d say. The Canadian economy has done relatively well, better than most of us expected, and remember that there is no tariffs on any of our energy exports,” he said. 25% tariffs on Mexican goods target a small slice of trade Trump said last week he would enter into a 90-day negotiating period with Mexico, also one of America’s largest trading partners. The current 25% tariff rates are staying in place, down from the 30% he had threatened earlier.But that 25% only applies to the fraction of Mexico’s trade with the U.S. that isn’t covered by the USMCA. Shortly after speaking with Trump on Thursday, President Claudia Sheinbaum said that within the “new commercial world order,” Mexico was still the best positioned nation because of the free trade agreement.“What’s within (USMCA) has no tariff, with the exception of what we already know: autos, steel and aluminum; and what is outside the treaty has 25%,” Sheinbaum said.But Economy Secretary Marcelo Ebrard pointed out that under the USMCA no tariffs were paid on more than 84% of Mexico’s trade with the United States.Most imports from Canada and Mexico are still protected by the USMCA, but the deal is up for review next year. U.S. Commerce Secretary Howard Lutnick said last month: “I think the president is absolutely going to renegotiate USMCA.”Preserving the free trade pact will be critical for Canada and Mexico.“It would be an incredible disruption to lose it especially if you lost it to the levels of tariffs Trump is imposing, 30%, 25% or even 20%. You can absorb a single digit tariff level across the board but you can’t adjust that kind of increase,” Manley said.More than 75% of Canada’s exports go to the U.S. while more than 80% of Mexico’s exports go there.Manley said that depending on how the trade war plays out the risk to the USMCA is very high. “Uncertainty in business is the enemy of decision making,” he said. Charging for access Carney said in a series of recent agreements with other countries that America is, in effect, charging for access to its economy.Manley said the investment thesis for Canada is pretty straightforward as Canada is rich in natural resources, has a skilled labor force, is open to immigration and has unfettered access to the U.S. market, the largest economy in the world.“If that latter point is no longer the case, we’ve still got all the others, but we’ve got to really redevelop the investment thesis for attracting investment to Canada,” Manley said.Trump has some sector specific tariffs, known as 232 tariffs, that are having an impact. There is a 50% tariff on steel and aluminum imports and a 25% tariff on auto imports, though there is a carve-out for Canadian and Mexican made cars.“Despite our advantages, certain major Canadian industries are being severely impacted by U.S. trade actions. These strategic sectors include autos, steel, aluminum, copper, pharmaceuticals, semiconductors, and of course, softwood lumber,” Carney said on Tuesday as he announced an aid package for the lumber industry as the U.S, ratches up duties.“It is clear we cannot count or fully rely on what has been our most valued trading relationship for our prosperity,” he added. Associated Press writer Fabiola Sánchez in Mexico City contributed to this report. Rob Gillies, Associated Press
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E-Commerce
One of the worlds newest so-called meme stocks is having a very bad day today. Shares in Opendoor Technologies (Nasdaq: OPEN) are currently slumping more than 20% in premarket trading. Heres what you need to know. Opendoor reports its Q2 2025 results Yesterday, Opendoor announced second-quarter results for its fiscal 2025. Heres what Opendoor reported: Revenue of $1.6 billion Gross profit of $128 million Net loss of $29 million The company also revealed that it had an inventory balance of 4,538 homes with a total value of $1.5 billion. Additionally, it said that during the quarter, it purchased 1,757 homes, which was down 51% from the previous quarter and down 63% from the same quarter a year earlier. For its current Q3, Opendoor issued revenue guidance of $800 million to $875 million. But unfortunately for the companys shareholders, after Opendoor announced its results, the stock plummeted over 20%. When are OPEN shares down so much? There are a few reasons why OPEN shares have fallen so much since the company announced its results yesterday. The first is that the company reported a disappointing revenue guidance for the current Q3. It said it expects revenue of $800 million to $875 million. As noted by CNBC, that would represent a 36% decline from the same period a year ago. This revenue decline is partly expected due to the current challenging home-buying environment. High interest rates, which in turn make mortgage rates high, deter home buyers, resulting in decreased home sales. Another possible factor in Opendoors stock price slump today is that the company did not give much detailed information on its evolving business model, which it has dubbed Product to Platform. This new model will see Opendoor moving from a single product to a distributed platform with multiple offerings delivered through agents, according to comments from CEO Carrie A. Wheeler on the companys earnings call. When a company radically changes its business model, it introduces uncertaintyand uncertainty makes investors nervous. A third possible reason why OPEN stock is falling so much today is much simpler: It’s a meme stock, and meme stocks are highly volatile. Yesterday’s earnings announcement was the first since OPEN stock went stratospheric last month, and the lackluster results may be prompting some investors who got in at the right time to take profits. OPEN stocks wild summer Over the past month, Opendoors stock has been on a wild ride. Starting around mid-July, the stock surged in popularity within the meme stock community. Shares went from being worth around 75 cents each to surging to over $3.20 per share in little more than a week. As of yesterdays close, OPEN shares had surged more than 313% in the past month. However, as todays 20% share price drop shows, when it comes to meme stocks, what goes up rapidly can come down just as rapidly.
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E-Commerce
Cyberattacks are on the rise, and artificial intelligence is making it easier for bad actors to scam individuals and businesses alike. In response, Visa is launching a new initiative that offers businesses tailored data to better combat cybercrime. Today, August 6, Visa unveils its new Cybersecurity Advisory Practice, providing customers and businesses with access to advanced tools designed to protect against the growing threat of cybercrime. Over the past year, the digital payments giant says it has invested billions in cybersecurity infrastructure and enhanced its global payments network by deploying generative AI to detect and block fraud. With its latest initiative, Visa plans to share those capabilities directly with clients to address mounting concerns around information security in the AI era. The new practice will leverage Visas internal fraud-fighting insights and adapt them to meet the specific needs of each business. Utilizing AI and drawing from a team of 2,000 consultants, data scientists, and product experts, Visa aims to help clients defend against increasingly sophisticated cyberattacks. Visas Cybersecurity Advisory Practice emerged from what Carl Rutstein, the companys global head of advisory services, describes as a clear need from clients for deeper, more proactive support amid a rapidly evolving threat landscape. As online commerce grows, so does cybercrime. There has been a nearly 300% increase in internet fraud just over the last few years, he tells Fast Company, prompting businesses to seek new ways to proactively identify, evaluate, and obviously mitigate emerging cyber threats. According to cybersecurity and compliance firm VikingCloud, cybercrime could cost businesses as much as $10.5 trillion by years end, and up to $15.63 trillion by 2029. The FBI reported that in 2024 the top three internet crimes were phishing/spoofing, extortion, and personal data breaches. Cybercriminals are increasingly turning to AI, using it to crack passwords, manipulate or poison data, and create deepfakes. Rutstein says fraud has escalated as bad actors adopt AI to exploit the financial system. Visa, he notes, blocked $14 million in presumed fraud in 2024a 30% increase over 2023. The Cybersecurity Advisory Practice is intended to build on Visas current payment ecosystem, offering services such as dark web threat detection, vulnerability testing, enumeration defense, employee training, and cybersecurity maturity assessments. Other digital payments providers are also responding to the growing threat. Just last month, Mastercard announced its Security Solutions Program, which includes financial investments in startups that are developing cybersecurity and fraud prevention technologies. Much like Mastercards strategy of investing in next-gen security, Visa says its approach focuses on advising businesses of all sizes directly, emphasizing a proactive, rather than reactive, stance. We built it to just help our clients, Rutstein said. We do exactly what you would expect an advisory firm connected to a network to be doing, and therefore these are resources and capabilities that are available.
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E-Commerce
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