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CP-3.28%CA:CP was down 8%, as part of an overall selloff in many stocks expected to be hurt in the short term by Trump’s trade policy.
FDX, Norfolk Southern, Canadian Pacific downgraded on tariff woes as stocks dip – MarketWatch
Automakers brace for ‘massive’ impact of Trump’s tariffs | The Verge
Your next car purchase is probably going to be more expensive, thanks to President Donald Trump.
Around 5.3 million vehicles are built in Canada and Mexico, 70 percent of which are destined for the United States. Those vehicles will soon be subject to 25 percent tariffs, which were just announced by the Trump administration. And the companies paying the higher price to import those vehicles are very likely to pass that cost along to the consumer — to you.
You may not see higher MSRPs right away, says Mike Wall, executive director for automotive analysis at S&P Global Mobility. But you will likely see fewer incentives and special deals at dealerships as dealers get stingier about their vehicle inventories. Perhaps fewer vehicles even get made as manufacturers weigh the costs of paying 25 percent duties on key parts and components. Eventually, the higher cost of building and selling a car in the US will filter down to the consumer.
Around 5.3 million vehicles are built in Canada and Mexico, 70 percent of which are destined for the United States
“I can’t emphasize that enough,” Wall said. “A 25 percent tariff is just massive in this industry.”
A tariff is a tax on goods imported from another country. The Trump administration claims it’s levying the new tariffs on Canada, Mexico, and China to stop the flow of illegal drugs into the US. Often, presidents use tariffs as a threat during trade negotiations or to protect domestic industries from cheaper foreign products (as the Biden administration did with electric vehicles from China). But as The New York Times has noted, Trump sees tariffs as a significant source of revenue for the US, perhaps even as a replacement for income taxes.
But most economists expect the outcome to be higher prices for a wide range of consumer goods, from clothes, to shoes, to food, to cars. Trump claims foreign companies will eat the higher costs, but don’t be fooled.
Just listen to the companies that will be bearing those costs. “If we get tariffs, we will pass those tariff costs back to the consumer,” said Philip Daniele, CEO of AutoZone, on an earnings call in September, according to CNN.
Virtually every car company will be impacted: Ford’s F-series trucks and Mustangs with engines made in Canada; Mazda CX-50s from Mexico; full-size pickup trucks from General Motors and Stellantis; and even the Toyota RAV4.
“A 25 percent tariff is just massive in this industry.”
S&P Global Mobility estimates that a 25 percent tariff on a $25,000 vehicle from Canada or Mexico would be $6,450 — most of which would be borne by the consumer.
“As that price goes up, consumers exit,” Wall said. “They’re gonna hold off, they’re gonna wait. They may go to the used market. I’ll tell you what, if pricing on the new market goes up, guess what? That pricing on the used market is gonna be impacted because it’s a supply and demand thing.”
Electric vehicle prices may be impacted as well, especially if the price of certain components goes up as a result of the tariffs. Rivian CEO RJ Scaringe recently warned that the tariffs represent a bigger threat to the EV industry than the potential elimination of tax incentives under Trump. And while many EV makers are making huge investments in domestic manufacturing thanks to the Biden administration’s Inflation Reduction Act, they are still just as exposed as companies that build combustion engines.
Most automakers say they have contingency plans for tariffs but wouldn’t say exactly what those plans are. Spokespersons for Ford and BMW declined comment.
Monday February 3
China markets closed (through Tuesday)
China and Japan manufacturing PMI
Euro zone CPI and manufacturing PMI
(9:30 a.m. ET) Canada’s S&P Global Manufacturing PMI for January.
(9:45 a.m. ET) U.S. S&P Global Manufacturing PMI for January.
(10 a.m. ET) U.S. ISM Manufacturing PMI for January.
(2 p.m. ET) U.S. Senior Loan Officer Opinion Survey for January.
Also: Canadian and U.S. auto sales for January
Earnings include: NXP Semiconductors NV; Palantir Technologies Inc.; TMX Group Ltd.; Tyson Foods Inc.
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Tuesday February 4
(10 a.m. ET) U.S. Job Openings and Labor Turnover Survey for December.
(10 a.m. ET) U.S. factory orders for December. The Street is projecting a month-over-month rise of 0.5 per cent.
Earnings include: Advanced Micro Devices Inc.; Allied Properties REIT; Alphabet Inc.; Amgen Inc.; Chipotle Mexican Grill Inc.; Finning International Inc.; Merck & Co. Inc.; PayPal Holdings Inc.; Pepsico Inc.; Pfizer Inc.; Spotify Technology SA
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Wednesday February 5
China, Japan and Euro zone services and composite PMI
(8:15 a.m. ET) U.S. ADP National Employment Report for January.
(8:30 a.m. ET) Canada’s merchandise trade balance for December.
(8:30 a.m. ET) U.S. goods and services trade deficit for December.
(9:30 a.m. ET) Canada’s S&P Global Services PMI for January.
(9:45 a.m. ET) U.S. S&P global services and composite PMI for January.
(10 a.m. ET) U.S. ISM Services PMI for January.
Earnings include: Algoma Steel Group Inc.; Arm Holdings PLC; Dayforce Inc.; FirstService Corp.; Ford Motor Co.; Great-West Lifeco Inc.; Heroux-Devtek Inc.; Novo Nordisk PLC; Qualcomm Inc.; Walt Disney Co.; Uber Technologies Inc.
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Thursday February 6
China foreign reservces
Euro zone retail sales
Germany factory orders
Bank of England rate announcement and monetary policy report
(8:30 a.m. ET) U.S. initial jobless claims for week of Feb. 1. Estimate is 212,000, up 5,000 from the previous month.
(8:30 a.m. ET) U.S. productivity and unit labor costs for Q4. Estimates are annualized rate increases of 1.1 per cent and 3.3 per cent, respectively.
(10 a.m. ET) Canada’s Ivey PMI for January.
Earnings include: AstraZeneca PLC; BCE Inc.; Bombardier Inc.; Canada Goose Holdings Inc.; Colliers International Group Inc.; ConocoPhillips; Constellation Software Inc.; Eli Lilly and Co.; Honeywell International Inc.; IGM Financial Inc.; Lightspeed Commerce Inc.; Open Text Corp.; Philip Morris International Inc.; Saputo Inc.; Suncor Energy Inc.; Trisura Group Ltd.
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Friday February 7
Japan household spending
Germany industrial production and trade surplus
(8:30 a.m. ET) Canadian employment for January. The Street is projecting a rise of 0.1 per cent, or 25,000 jobs, from December with the unemployment rate rising 0.1 per cent to 6.8 per cent and average hourly wages up 4.2 per cent from the same period a year ago.
(8:30 a.m. ET) U.S. nonfarm payrolls for January. Consensus is a gain of 150,000 jobs month-over-month with the unemployment rate remaining 4.1 per cent and average hourly wages up 0.3 per cent from December.
(10 a.m. ET) U.S. wholesale inventories for December.
(10 a.m. ET) U.S. University of Michigan Consumer Sentiment for February.
Earnings include: Arc Resources Ltd.; CAE Inc.; Canopy Growth Corp.; Fortive Corp.
Celestica Inc. (CLS) on Wednesday reported profit of $151.7 million in its fourth quarter.
On a per-share basis, the Toronto-based company said it had profit of $1.29. Earnings, adjusted for non-recurring gains, were $1.11 per share.
The electronics manufacturing services company posted revenue of $2.55 billion in the period.
For the year, the company reported profit of $428 million, or $3.61 per share. Revenue was reported as $9.65 billion.
For the current quarter ending in March, Celestica expects its per-share earnings to range from $1.06 to $1.16.
The company said it expects revenue in the range of $2.48 billion to $2.63 billion for the fiscal first quarter.
Celestica expects full-year earnings to be $4.75 per share, with revenue expected to be $10.7 billion.
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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CLS at https://www.zacks.com/ap/CLS
Rogers tops $20 billion in annual revenue in 2024 as more Canadians choose Rogers Wireless and Internet than any other carrier in Canada
Q4 caps our third straight year of delivering industry-leading financial and operating performance led by continued disciplined loading and efficiency gains
Rogers’ network leadership continues
Provides 2025 outlook; anticipates single-digit total service revenue and adjusted EBITDA growth, strong free cash flow, and continued network investments and expansion across all regions in Canada
TORONTO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI) today announced its unaudited financial and operating results for the fourth quarter ended December 31, 2024.
“The fourth quarter caps three straight years of industry-leading results,” said Tony Staffieri, President and CEO. “I’m proud of our team and their disciplined execution in a very competitive market. As I look to the year ahead, our 2025 outlook reflects continued growth, strong free cash flow, and investment in our core businesses.”
Fourth-quarter 2024 results
CPKC delivers strong fourth-quarter results; positioned to accelerate growth in 2025
Canadian oil producer Imperial Oil IMO-T -2.42%decrease posted a fall in fourth-quarter profit on Friday, as lower crude prices offset higher production and stronger refinery-capacity utilization.
Benchmark crude prices fell 3 per cent in 2024 due to economic challenges in China, a sluggish post-pandemic demand recovery and a supply glut worsened by surging oil production by the U.S. and other non-OPEC nations.
The company still raised its quarterly dividend by 20 per cent to 72 cents per share.
Imperial’s upstream production for the October-December quarter was 460,000 gross barrels of oil equivalent per day (boepd), compared with 452,000 gross boepd during the same period last year.
Total throughput volumes, or the amount of crude processed, were up nearly 1 per cent at 411,000 barrels per day (bpd). Refinery utilization stood at 95 per cent, compared with 94 per cent last year.
The Calgary-based company said its net income fell to $1.23-billion, or $2.37 per share, in the quarter ended Dec. 31, from $1.37-billion, or $2.47 per share, last year.
The fall in Imperial’s earnings comes as the Canadian energy sector braces for U.S. President Donald Trump’s proposed 25 per cent tariff on Canadian imports, expected to be issued on Feb. 1.
Canada has been the biggest source of U.S. oil imports for over two decades and supplied more than half of all crude imports into the country in 2023, according to the Energy Information Administration (EIA).
Imperial Oil is majority owned by U.S. oil and gas major Exxon Mobil, which separately posted a fall in fourth-quarter profit earlier today.
Canadian National Railway Co. CNR-T +0.56%increase says year-over-year profits fell by nearly half in its latest quarter amid lower volumes across virtually all freight segments.
The country’s largest railway is reporting net income for the three months ended Dec. 31 dropped 46 per cent to $1.15 billion, down from $2.13 billion in the same period the year before.
The Montreal-based company says fourth-quarter revenue dipped three per cent to $4.36 billion from $4.47 billion a year earlier.
On an adjusted basis, diluted earnings per share decreased to $1.82 from $2.02 per share, below analysts’ expectations of $1.96 per share, according to financial markets data firm Refinitiv.
CN is forecasting growth in adjusted diluted earnings per share of between 10 per cent and 15 per cent for 2025 alongside $3.4 billion of capital investment. It also announced a five per cent dividend increase Thursday.
CEO Tracy Robinson says the company was quick to recover from supply chain shocks last year that ranged from wildfires to work stoppages.
The Bank of Canada cut its benchmark interest rate on Wednesday. Its U.S. counterpart, the Federal Reserve, did not.
As a result, Canadian rates are lagging behind those of the U.S. at the widest differential since 1997. In a research note, Bank of Montreal chief economist Doug Porter said “the gap is extreme” and only the second time in the past 50 years that Canadian rates have trailed by more than 100 basis points. (There are 100 basis points in a percentage point.)
With inflation under control and the economy needing a lift, the Bank of Canada has cut rates substantially since last summer. The Fed, meanwhile, can’t cut too much because of persistent inflation.
Monetary policy divergence is one of several factors weighing on the Canadian dollar, which is trading at less than 70 U.S. cents. “The Canadian dollar has depreciated materially against the U.S. dollar, largely reflecting trade uncertainty and broader strength in the U.S. currency,” the Bank of Canada said in a press release accompanying Wednesday’s decision, which cut the policy interest rate by 25 basis points to 3 per cent.
The outlook for interest rates and the Canadian dollar is highly uncertain because of U.S. President Donald Trump’s threat to impose steep tariffs on imports of Canadian goods, which could begin as soon as Feb. 1.
“Interest rate developments are unlikely to provide a sufficient offset to the economic hit that could be delivered by a tariff announcement this Saturday, and it remains reasonable to think that the loonie’s trading range could widen substantially in the coming weeks,” said Karl Schamotta, chief market strategist at Corpay Inc., a foreign exchange and payments company, in a research note. “The exchange rate will remain under pressure for now.”
