President Donald Trump said he may broaden the scope of U.S. tariffs on imports to include automobiles, pharmaceuticals and semiconductors.

In remarks to reporters Tuesday, Trump said the duties would be around 25% and “go very substantially higher over a course of a year.” The president did not indicate whether the new tariffs would apply to all vehicles coming into the U.S. or be targeted toward certain countries but said they could start as early as April 2.

However, the threat represents a broadening in the administration’s aggressive trade policy that already has included 25% tariffs on steel and aluminum imports set to take effect in March.

The nations with the biggest auto exports to the U.S. are Mexico, Japan and Canada.

Trump said the tariffs already are having the desired effect, with companies domiciled overseas wanting to come back to the U.S.

“I’ve been contacted by some of the biggest companies in the world, and because of what we’re doing economically and through tariffs and incentives, they want to come back into the United States,” he said.

“When they come back into the United States and they have their plant or factory here, there is no tariff,” Trump added. “So we want to give them a little bit of a chance.”

On pharmaceuticals, the nations feeling the biggest impact likely would be Japan and India. The economic impact would be unclear, though the tariffs might aggravate costs and cause shortages initially.

“The tariffs could drive up drug prices for US patients, exacerbate drug supply shortages, and push manufacturers to seek alternative markets,” said Ophelia Chan, senior business fundamentals analyst at GlobalData. Chan also noted that companies in the industry “may respond by relocating manufacturing and trials to the US or other tariff-free countries, though the full effects are still uncertain.”

On semiconductors, Trump did not indicate when they would happen. Those levies would impact Taiwan Semiconductor, which provides chips to companies including Nvidia and Apple

S&P 500 closes at another record Wednesday as investors look past Trump tariff fears: Live updates

The S&P 500 climbed to a fresh record on Wednesday, as stocks remain resilient despite President Donald Trump’s threat of more tariffs and a continuously cautious Federal Reserve.

The S&P 500 rose 0.24%, settling at 6,144.15 and earning its second record close in a row. The index also touched a fresh all-time high during the session. The Nasdaq Composite added 0.07% to close at 20,056.25, while Dow Jones Industrial Average advanced 71.25 points, or 0.16%, to end at 44,627.59.

Shares of Microsoft gained 1.3% and led the broader technology sector higher after the company unveiled its first ever quantum computing chip. Tesla climbed almost 2%. Analog Devices surged nearly 10% after posting better-than-expected quarterly results on the top and bottom lines.

Trump on Tuesday floated the notion of imposing a 25% tariff on imported autos, chips and pharmaceuticals. Trump did not specify whether or not the potential duties would be targeted or broad, but did say they could be implemented as soon as April 2.

“I think there’s a lot of noise tied to DOGE, Elon Musk and tariffs in the short-term, which is what you’re seeing today. And I think a lot of this stuff will linger,” said Jim Elios, founder and chief investment officer at Elios Financial Group. “It’s the Trump effect with headlines that are weighing on markets and causing some pain. In the long term, I’m still really bullish about how this can become a pro-business environment.”

Additionally, investors weighed the minutes from the latest Federal Reserve meeting, which showed that central bank officials want to see more progress on inflation before cutting interest rates further, and also are concerned about the impact of Trump’s tariffs.

• Microsoft’s Majorana 1 chip includes eight topological quantum bits.
• Majorana 1 won’t be available through Microsoft’s Azure cloud, but it opens the door to future models with greater capacity that likely will be, an executive told CNBC.
• In the meantime, the company will engage with national laboratories and universities on research using Majorana 1. 

Microsoft on Wednesday announced Majorana 1, its first quantum computing chip. 

The achievement comes after the company has spent nearly two decades of research in the field. 

Technologists believe quantum computers could one day efficiently solve problems that would be taxing if not impossible for classical computers. Today’s computers use bits that can be either on or off while quantum computers employ quantum bits, or qubits, that can operate in both states simultaneously.

Google and IBM have also developed quantum processors, as have smaller companies IonQ and Rigetti Computing. Microsoft’s quantum chip employs eight topological qubits using indium arsenide, which is a semiconductor, and aluminum, which is a superconductor. A new paper in the journal Nature describes the chip in detail.

Microsoft won’t be allowing clients to use its Majorana 1 chip through the company’s Azure public cloud, as it plans to do with its custom artificial intelligence chip, Maia 100. Instead, Majorana 1 is a step toward a goal of a million qubits on a chip, following extensive physics research.

Rather than rely on Taiwan Semiconductor or another company for fabrication, Microsoft is manufacturing the components of Majorana 1 itself in the U.S. That’s possible because the work is unfolding at a small scale.

“We want to get to a few hundred qubits before we start talking about commercial reliability,” Jason Zander, a Microsoft executive vice president, told CNBC.

In the meantime, the company will engage with national laboratories and universities on research using Majorana 1. 

Despite the focus on research, investors are fascinated by quantum.

IonQ shares went up 237% in 2024, and Rigetti gained nearly 1,500%. The two generated a combined $14.8 million in third-quarter revenue. Further gains came in January, after Microsoft issued a blog post declaring that 2025 is “the year to become quantum-ready.”

Microsoft’s Azure Quantum cloud service, which lets developers experiment with programs and algorithms, offers access to chips from IonQ and Rigetti. It’s possible that a Microsoft quantum chip might become available through Azure before 2030, Zander said.

“There’s a lot of speculation that we’re decades off from this,” he said. “We believe it’s more like years.”

Rather than exist as a stand-alone category, quantum computing might end up boosting other parts of Microsoft. For example, there’s Microsoft’s AI business, which has an annualized revenue run rate that exceeds $13 billion. Quantum computers could be used to build data used to train AI models, Zander said. 

“Now you can ask it to invent some new molecule, invent some new drug, something that really would have been impossible to do before,” Zander said.

Gildan Activewear Inc. raised its dividend as it reported a fourth-quarter profit of US$132.3 million. The clothing maker says it will pay a quarterly dividend of 22.6 cents US per share, up from 20.5 cents US. The increased payment came as Gildan, which keeps its books in U.S. dollars, said it earned 86 cents US per diluted share for the quarter ended Dec. 29 compared with a profit of US$153.3 million or 89 cents US per diluted share a year earlier. Net sales for the quarter totalled US$821.5 million, up from US$782.7 million. On an adjusted basis, Gildan says it earned 83 cents US per diluted share in its latest quarter, up from an adjusted profit of 75 cents US per diluted share a year earlier. In its outlook, the company says it expects revenue growth for 2025 to be up mid-single digit, while adjusted diluted earnings per share are expected to be in a range of US$3.38 to US$3.58, an increase of between 13 and 19 per cent. This report by The Canadian Press was first published Feb. 19, 2025. Companies in this story: (TSX:GIL)

Tue, February 18, 2025

WESTCHESTER, Ill., February 18, 2025–(BUSINESS WIRE)–RB Global, Inc. (NYSE & TSX: RBA, the “Company”, “RB Global”, “we”, “us”, “their”, or “our”) reported the following results for the three months and year ended December 31, 2024.

“I am proud of everything the RB Global team accomplished in 2024,” said Jim Kessler, CEO of RB Global. “We made significant progress on our strategic priorities, and we have a firm foundation by which we expect continued long-term growth and value creation.”

Commenting on the results, Eric J. Guerin, Chief Financial Officer, said, “I am pleased with the financial discipline we’ve instilled as a team. This past year we have enhanced our operational efficiency, made strategic investments in long-term growth opportunities, and significantly reduced our leverage.”

Fourth Quarter Financial Highlights^1,2,3:

• Total gross transaction value (“GTV”) increased 2% year over year to $4.1 billion.
• Total revenue increased 10% year over year to $1.1 billion.
  • Service revenue increased 8% year over year to $875.5 million.
  • Inventory sales revenue increased 15% year over year to $266.1 million.
• Net income increased 41% year over year to $118.4 million.
• Net income available to common stockholders increased 44% year over year to $107.8 million.
• Diluted earnings per share available to common stockholders increased 41% to $0.58 per share.
• Diluted adjusted earnings per share available to common stockholders increased 16% year over year to $0.95 per share.
• Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) increased 13% year over year to $346.0 million.

2025 Financial Outlook
The table below outlines the Company’s outlook for select full-year 2025 financial data:

	Year ended December 31, 2025
(in U.S. dollars in millions, except percentages)	Low-End	High-End
GTV growth	0%	3%
Adjusted EBITDA	$1,320	$1,380
Full year tax rate (GAAP and Adjusted)	25%	28%
Capital Expenditures4	$350	$400

Gold prices edged higher on Tuesday as the focus shifted to the U.S.-Russia bilateral talks on Ukraine.

Spot gold rose half a percent to $2,912.55 per ounce in European trade while U.S. gold futures were up 0.9 percent at $2,925.71.

U.S. and Russian officials have started the highest-level talks in Riyadh about the war in Ukraine.

European officials are not part of these discussions, with Volodymyr Zelenskyy warning his country will not recognize peace deals made without Ukrainian participation.

The private talks between Trump and Putin have raised fears that the EU’s role in Ukraine’s future could be sidelined.

Meanwhile, a senior Russian official said that Ukrainian drones had attacked a pipeline in Russia which pumps about 1 percent of global crude supply.

CPC, whose largest shareholder is Russia with 24 percent, said today that the Kropotkinskaya pumping station of the crude oil transportation facility was subject to a drone attack.

The U.S. economic calendar remains light this week, with Wednesday’s FOMC minutes likely to garner some attention.

Federal Reserve Governor Christopher Waller noted late Monday that recent economic data support keeping interest rates on hold, but officials can get back to cutting rates at some point this year, if inflation behaves as it did in 2024.

Separately, Michelle Bowman, Governor of the Federal Reserve, said that she wants to see more progress on inflation before deciding on another rate cut.

Oil prices climbed on Tuesday after a senior Russian official said that Ukrainian drones had attacked a pipeline in Russia which pumps about 1 percent of global crude supply.

Also, Kazakhstan will take further measures to meet its OPEC+ commitments, including cutting production at other oilfields, to offset the January excess, according to the Energy Ministry’s press service.

Benchmark Brent crude futures were up 0.7 percent at $75.74 in European trade while WTI crude futures jumped 1.5 percent to $71.80.

CPC, whose largest shareholder is Russia with 24 percent, said today that the Kropotkinskaya pumping station of the crude oil transportation facility was subject to a drone attack.

“The terrorist strike was delivered using seven unmanned aerial vehicles loaded in addition to explosives with shrapnel. The attack was timed, aiming to not only disrupt service of the facility but also cause casualties among the station’s operations personnel,” CPC said in a statement.

Traders were also reacting to reports suggesting that the OPEC+ alliance is considering delaying restoring output, with a decision likely to be finalized in coming weeks

Canada’s annual inflation rate ticked higher in January but remained below the Bank of Canada’s target, as the rise in energy prices offset the lingering effects of the federal tax holiday on the price of food and other goods.

The Consumer Price Index rose 1.9 per cent in January, year-over-year, up from 1.8 per cent in December, Statistics Canada reported Tuesday. That was the first increase in three months and matched analyst expectations. Inflation increased 0.1 per cent on a monthly basis.

Financial markets trimmed their bets on another interest rate cut from the Bank of Canada following the inflation reading. Interest rate swap markets now put the odds of another quarter-point cut at the central bank’s next meeting on March 12 at about 40 per cent, according to LSEG data, down several notches from before the Statscan report.

The central bank’s two preferred core inflation measures, which strip out volatile price movements, rose to an average 2.7 per cent, up from 2.55 per cent in December. That suggests price pressures are building underneath the headline CPI number, which has been weighed down by the two-month GST break that started in mid-December and ended on Feb 15.

The Bank of Canada has cut interest rates six consecutive times, bringing its benchmark policy rate to 3 per cent in January. But there is considerable uncertainty about the path forward for monetary policy.

With inflation below the central bank’s 2-per-cent target and the policy rate near the bank’s estimate of “neutral,” officials have said that further rate cuts aren’t a sure thing. At the same time, if a full-blown trade war breaks out with the United States, the central bank may have to cut aggressively to support the Canadian economy through a recession.

“The GST holiday meant that headline inflation remained below the 2 per cent target in January, but there is clear evidence that underlying inflation pressures are building,” Stephen Brown, deputy chief North America economist at Capital Economics, wrote in a note to clients. “That suggests the Bank of Canada is getting close to the end of its loosening cycle, although the outlook for monetary policy ultimately hinges on whether President [Donald] Trump soon imposes stiff tariffs on imports from Canada.”

The two-month tax holiday, which the Liberals announced late last year in a bid to improve their political fortunes, continued to influence food price inflation. Food prices decreased 0.6 per cent, year-over-year, the first annual decrease since May 2017. That was driven by a 5.1-per-cent decline in restaurant prices, triple the previous record decline.

Canadians also paid 3.6 per cent less for alcoholic beverages and 6.8 per cent less for toys, games and hobby supplies, compared to a year earlier, as a result of the tax break.

This was offset by a jump in gasoline pieces. Prices at the pump were up 8.6 per cent in January, year-over-year, following a 3.5-per-cent increase in December. In Manitoba, gasoline prices jumped 26 per cent as the provincial sales tax was reintroduced after a year-long suspension in 2024.

Natural gas prices rose 4.8 per cent on an annual basis, following a 5.5 per cent decline in December.

Shelter remains the biggest driver of overall inflation, although the increase in homeownership costs and rental costs are slowing down. Mortgage interest costs were up 10.2 per cent year-over-year in January, compared to 11.7 per cent in December, while rent was up 6.3 per cent year-over-year, compared to 7.1 per cent the month before.

“No big surprises in today’s report, which is generally a good thing on the inflation front, and we’ll call this one a draw on the interest rate outlook front,” Bank of Montreal chief economist Douglas Porter wrote in a note to clients.

“However, as the GST holiday lifts from the data in the next two months, the headline tally will likely quickly rise to roughly match current core trends of closer to 2.5 per cent … We continue to lean to the view that the BoC will take a pause at their next decision (March 12), although developments on the tariff front may yet have a big say in that call – the possible 25 per cent U.S. tariff on Canada and Mexico still looms for March 4,” he wrote.

Auto parts maker Magna International Inc. is warning tariffs would have a negative impact on the auto industry, but says it’s ready to deal with what comes.

“I believe this is going to be disruptive,” said company chief executive Swamy Kotagiri Friday on an earnings call with analysts.

“We’re not looking forward to that but that muscle is there and we have to work through this.”

The auto sector is facing immense uncertainty as U.S. President Donald Trump threatens to impose blanket tariffs of 25 per cent on imports from Canada and Mexico into the country early next month. Auto parts would be particularly vulnerable because they can cross North American borders multiple times before ending up in a finished vehicle.

“It really is an industry issue that you have to solve holistically and not in isolation,” said Kotagiri.

“For a supplier to absorb this magnitude that they’re talking about is really unrealistic and unattainable.”

Magna has about 142 manufacturing facilities across Canada, the U.S. and Mexico and employs more than 73,000 workers across North America.

Kotagiri said the company has been having “significant” discussions with its customers and policymakers since December.

But he warned, “this is not a switch that can be turned on and off in the short term,” and could have long-term effects.

His comments came as Magna reported its latest quarterly results for the last three months of 2024.

The Aurora, Ont.-based manufacturer raised its dividend as it posted a fourth-quarter profit attributable to the company of US$203 million.

The company, which keeps its books in U.S. dollars, said it will now pay a quarterly dividend of 48.5 cents US per share, up from 47.5 cents US.

The increased payment came as Magna says its profit amounted to 71 cents US per diluted share for the quarter ended Dec. 31, down from US$271 million or 94 cents US per diluted share in the last three months of 2023.

On an adjusted basis, Magna said it earned US$1.69 per diluted share in its latest quarter, up from an adjusted profit of US$1.33 per diluted share a year earlier.

Sales for the fourth quarter increased two per cent to US$10.63 billion year-over-year.

Magna lowered its 2026 revenue outlook to between $40.5 billion and $42.6 billion from its previous forecast, which ranged between $48.8 billion to $51.2 billion. It also predicts a weaker first quarter of this year.

“Our outlook reflects the two per cent decline in weighted global vehicle production in 2025 and no growth over the 2024 to 2026 period,” said Patrick McCann, Magna’s chief financial officer.

An overall weaker macroeconomic picture drove the forecast lower, McCann said, while the company noted the outlook doesn’t take into account the effects of potential tariffs.

“The industry has been experiencing a high degree of volatility related to a number of factors including electric vehicle penetration rates, government policies, market share shifts, and the overall macro environment,” he told investors on the conference call.

“These have made forecasting more difficult than it has been in the past.”

Magna shares were trading 4.7 per cent lower at $53.62 on Friday afternoo