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The United States and China announced Monday they were massively rolling back tariffs on each other’s goods for 90 days, after trade talks in Geneva over the weekend.

The United States and China said they have agreed a deal to slash reciprocal tariffs as Washington and Beijing seek to end a trade war that has disrupted the global economy and set financial markets on edge.

Reuters

The breakthrough follows months of ratcheting up economic tensions between the world’s two largest economies, since U.S. President Donald Trump returned to office and launched an all-out trade war against almost all of Washington’s partners and rivals.

In a rare joint statement, the two governments said U.S. tariffs on Chinese goods would be reduced from 145 per cent to 30, while China would cut its levies on U.S. imports from 125 per cent to 10. The reductions will take place by May 14 and last “for an initial period of 90 days.”

“After taking the aforementioned actions, the parties will establish a mechanism to continue discussions about economic and trade relations,” the joint statement said, adding this dialogue would be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.

Speaking in Geneva, Mr. Bessent said “we both have an interest in balanced trade, the U.S. will continue moving toward that.”

“We have a very good mechanism to avoid unfortunate escalations happening again,” Mr. Bessent said, adding the “consensus from both delegations is that neither side wanted a decoupling.”

Both economies have begun to feel the strain of reduced exports and severely higher prices as a result of reciprocal tariffs, and concerns over disruption to the bilateral relationship have contributed to chaos in the U.S. stock and treasury markets.

Facing growing criticism, Mr. Trump last month said he was open to a trade deal, which he said could happen “pretty quickly,” promising not to “play hardball” during negotiations with China.

“They’re gonna do very well, and I think they’re going to be happy, and we’re gonna live together very happily and ideally work together,” he said.

On April 2, Mr. Trump announced a raft of “Liberation Day” tariffs against almost every country in the world, with levies apparently decided based on a calculation derived from a target’s trade deficit with the U.S., though countries with a trade surplus and even uninhabited territories were not spared.

After markets plummeted and a global recession loomed, Mr. Trump backtracked, announcing a 90-day pause, which is still in effect. He has since been negotiating individual trade deals with many countries, with the most comprehensive struck last week with Britain.

Speaking to reporters Friday, Mr. Trump dismissed criticism of his approach.

“I think the tariffs are going to be the greatest thing we’ve ever done as a country,” he said. “It’s going to make our country rich again.”

With files from Alexandra Li in Beijing and Reuters

Monday May 12

China releases inflation data for April

2 pm ET: U.S. budget balance for April

Earnings include: Constellation Software Inc.; Denison Mines Corp.; Dentalcorp Holdings Ltd.; Exchange Income Corp.; Finning International Inc.; Hudbay Minerals Inc.; K92 Mining Inc.; Mag Silver Corp.; Simon Property Group Inc.

–

Tuesday May 13

Germany releases business conditions survey. UK releases payrolls data

Canadian federal cabinet announced

6 am ET: U.S. NFIB small business economic trends survey

830 at ET: U.S. consumer prices for April. Consensus is for a 0.3% monthly increase, or 2.4% year over year. Excluding food and energy, a monthly increase of 0.3% is also expected

Earnings include: Aya Gold & Silver Inc.; CAE Inc.; Endeavour Silver Corp.; Freehold Royalties Ltd.; Innergex Renewable Energy Inc.; Keyera Corp.; Northland Power Inc.; Peyto Exploration & Development Corp.; Power Corp. of Canada; Wesdome Gold Mines Ltd.

–

Wednesday May 14

Germany releases CPI data for April

830 am ET: Canada building permits for March

830 am ET: Canada new motor vehicle sales for March

Earnings include: Birchliff Energy Ltd.; Boralex Inc.; Cisco Systems Inc.; H&R REIT; Northwest Healthcare Properties REIT; Stantec Inc.

–

Thursday May 15

Euro area and UK releases first quarter GDP data and March industrial production

815 am ET: Canadian housing starts for April. BMO expects a 5% increase to an annualized rate of 225,000

830 am ET: Canadian manufacturing sales and new orders for March. BMO forecasts a decline of 1.9% and 2.5%, respectively

830 am ET: Canadian wholesale trade for March. A decline of 0.3% is forecast

830 am ET: Initial U.S. weekly jobless claims

830 am ET: U.S. retail sales for April. BMO expects a rise of 0.1%

830 am ET: U.S. PPI final demand for April. A rise of 2.6% is expected from a year earlier

840 am ET: U.S. Fed Chair Jerome Powell speaks on “framework review” in Washington, DC

9 am ET: Canadian existing home sales for April. A decline of 11.5% is expected from a year earlier, with average selling prices down 4%. The MLS home price index is also expected, with a 3% year over year drop forecast

915 am ET: U.S. industrial production for April

10 am ET: NAHB housing market index and U.S. business inventories

Ontario budget released

Earnings include: Alibaba ADR; Canada Goose Holdings Inc.; Deere & Co.; InterRent REIT; Merck ADR; South Bow Corp.; Walmart Inc.

–

Friday May 16

China releases GDP data for first quarter and industrial production for March

Euro area releases trade surplus for March

European commission spring economic forecasts released

830 am ET: International securities transactions for Canada for March

830 am ET: U.S. housing starts and building permits for April

830 am ET: U.S. import prices for April. Consensus is for a decline of 0.4% year over year

10 am ET: University of Michigan consumer sentiment survey

1030 am ET: BoC senior loan officer survey

No earnings of note

Oil sands producer Suncor Energy Inc. has reported quarterly production and refining records, despite Alberta’s February deep freeze and an uncertain global economic environment.

Production for the Calgary-based oil giant hit 853,000 barrels a day in the first quarter of 2025 – the company’s highest-ever first quarter and the second-highest quarter in its history, chief executive officer Rich Kruger told analysts on an earnings call Wednesday.

Suncor’s net earnings for the first three months of 2025 were $1.69-billion, or $1.36 per share, up from $1.61-billion or $1.25 per share in the same period last year. Gross revenues were $13.33-billion, up from $13.31-billion.

Refining throughput was 483,000 barrels a day, “far and away the highest first quarter in our history,” Mr. Kruger said, with every refinery producing more than atthe same time last year. Refined product sales hit 605,000 barrels a day.

“The bottom line: One year into our three-year plan, we’ve exceeded every single target. We’ve essentially achieved two years of our planned improvements in the first year,” Mr. Kruger said.

“In 1954 a gentleman named Roger Bannister, the world’s first four-minute miler, said, ‘Records are meant to be broken.’ And that is exactly what Suncor teams continue to do.”

Like other oil sands producers, Suncor’s production slowed in February when Alberta was hit with a brutal, record-breaking cold snap. Mr. Kruger said the key to avoiding a complete slowdown is learning from past winters and making sure equipment is resilient – whether it’s the fuel in haul trucks or the winterization of refineries.

“The last time I checked, it’s always cold in Canada in the first quarter,” he said.

“We face this uncertainty, this variability, every year. The last two years, we have been very focused on, ‘How do we engineer or design out the risk of that variability?’”

Amid strong production, Suncor continues to assess its 1,800 Petro-Canada gas stations. It is upgrading those in major markets with the highest margins and selling those on the other end of the spectrum, with the goal of transforming 20 per cent of its network by the end of 2026.

The company’s retail portfolio was a point of contention for activist investor Elliott Investment Management LP, which in 2022 pushed for a shakeup of Suncor and launched a campaign to oust several directors and explore a sale of the Petro-Canada chain.

Then-CEO Mark Little resigned, and Mr. Kruger took the reins of the company in 2023. People close to Elliott in 2024 said the fund was pleased with the improvement in Suncor’s fiscal fortunes under the new CEO and happy to let the retail strategy play out.

Asked how Suncor views its Petro-Canada assets these days, Mr. Kruger said Wednesday, “The only thing I unconditionally love are my kids and my grandkids. Everybody else has to earn their seat at the table.”

That doesn’t mean he’s keen to sell off the gas stations.

“I never say never, but right now that is a very, very valuable part of the company’s operations,” he said.

“We look at all of our assets for their ongoing contribution and their value to us,” and the sites are a boon, he said, allowingSuncor to integrate its operations all the way from production to sales.

Suncor’s retail volumes were up 6 per cent in the first quarter, and its truck stop business was up 9 per cent.

But even with record throughput at refineries, the company’s exports were down 25 per cent in the quarter. Mr. Kruger said keeping more products in the domestic market played a big role in driving margin improvement.

Menno Hulshof, with TD Cowan Equity Research, wrote in a note Wednesday that the first-quarter results continued Suncor’s “trend of outperformance,” despite the February cold snap. He added that the company’s 2025 production guidance is likely conservative and should slowly increase to capture its new normal.

“Given a much improved cost structure, strong balance sheet” and significant operational momentum, Mr. Hulshof wrote, Suncor is likely well-positioned to weather the current market volatility.

China’s exports beat forecasts in April, buoyed by demand for materials from overseas manufacturers who rushed out goods to make the most of U.S. President Donald Trump’s 90-day tariff pause.

The world’s two largest economies have been locked in a bruising tit-for-tat tariff war and businesses on both sides of the Pacific will be looking for some kind of resolution at closely watched trade talks in Switzerland this weekend.

Customs data on Friday showed outbound shipments from China rose 8.1 per cent year-on-year in April, beating a forecast 1.9 per cent increase in a Reuters poll of economists but slowing from the 12.4 per cent jump in March.

Trump announced sweeping “reciprocal tariffs” of 10 per cent on April 2, before offering a pause for most countries while the White House worked on multiple trade deals. China, however, was excluded from the reprieve and singled out for levies of 145 per cent, kicking off a protracted cat-and-mouse game that has rattled global markets and upended supply chains.

Chinese manufacturers had also been front-loading outbound shipments in anticipation of the duties, but are now banking on icebreaker tariff talks between American and Chinese officials in Geneva on Saturday.

Imports fell 0.2 per cent, compared with expectations for a 5.9 per cent drop, suggesting domestic demand may be holding up better than expected as policy-makers continue to take steps to prop up the $19-trillion economy.

“The ASEAN countries are speeding up their production to meet the July deadline, the 90-day negotiation break. Their production is highly reliant on China’s exports in raw materials and industrial inputs, so China’s exports got support,” said Dan Wang, China director at Eurasia Group.

“Over the next two months, China’s exports could continue to be strong due to industrial capacity relocation, but the trade data could deteriorate quite quickly if the 145 per cent tariffs on China are still in place and ASEAN countries’ talks (with the Trump administration) don’t make progress,” she added.

Exports to Southeast Asian countries rose 20.8 per cent in April.

China’s exports to the U.S., meanwhile, fell 21 per cent. That meant the trade surplus with the U.S. dropped to $20.5-billion from $27.6-billion in March, a win for Trump, who has repeatedly said he wants to narrow the gap.

Beijing cannot afford a trade war with the U.S. but sees Trump’s tariffs as unwelcome interference, with officials wanting to implement the painful domestic reforms needed to shore up long-term growth at their own pace.

If not lowered or removed, the tariffs could deal a heavy blow to China’s economy, which has relied on exports to drive growth as it struggles to recover from the pandemic shocks and a protracted property market slump.

“The damage of the U.S. tariffs has not shown up in the trade data for April,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “I expect the trade data will weaken in the next few months gradually.”

“Hopefully, the trade negotiations between China and the U.S. can reach agreement soon and bring down tariffs to mitigate the shock to global trade,” he added.

Beijing has in the past few months reiterated its confidence that China could achieve the “around 5 per cent” growth target for the year, and rolled out measures to bolster consumption and support the country’s exporters.

A slew of monetary stimulus measures, including liquidity injections and cuts to policy rates, was announced on Wednesday in a bid to ease tariff hits on the economy.

For now, the trade sector’s momentum is still riding on the global scramble to make the most of Trump’s brief tariff relief.

China’s steel exports topped 10 million metric tons for a second straight month in April, as top customers like South Korea and Vietnam bought in bulk to outrun the tariffs, which analysts expect to disrupt China’s lucrative transhipment trade.

With global copper producers rushing stocks to the U.S. after Trump proposed slapping levies on the metal, China’s imports of unwrought copper and copper products remained unchanged last month.

Soybean imports plunged to a 10-year low in April, but this was due to prolonged customs clearance delays and late Brazilian shipments caused by harvest slowdowns and logistics issues.

FIRST-QUARTER HIGHLIGHTS

• Consolidated comparable sales were up 4.7% and consolidated retail sales¹ were up 5.1%. Increased trips drove sales growth across all banners, with particular strength in Ontario, Quebec and Eastern Canada.
  • Canadian Tire Retail (CTR) comparable sales¹ grew 4.7%, with growth across all CTR divisions except Fixing, led by strong growth in seasonal weather-related categories. Auto maintenance, outdoor tools, and auto parts were the top-performing lines of business in the quarter.
  • SportChek delivered a third consecutive quarter of comparable sales¹ growth, up 6.3%, driven by strong sales across both corporate and franchise stores. Skiing and snowboards, hockey, and outerwear were the top performing categories in the quarter.
  • Mark’s comparable sales¹ were up 2.2%, driven by industrial wear. New store openings continued to be the most significant contributor to retail sales growth and advances in in-store Net Promoter Score (NPS).
• Backed by the strength of the Canadian Tire brand and Triangle member engagement, loyalty sales growth outperformed retail sales. Loyalty penetration¹ was up 132 bps, reaching 54.5% of retail sales on a direct scan, rolling 12-month basis.
• Consolidated income before income taxes (IBT) was down $51.3 million to $51.6 million and Diluted EPS was $0.67, including the results for Helly Hansen business (now included in discontinued operations) and expenses related to the implementation of the Company’s True North strategy.
• Normalized for the True North expenses, IBT¹ on a continuing operations basis was up $62.8 million to $165.7 million, which resulted in Normalized Diluted EPS (continuing operations) of $2.00, up $0.92 from last year. Improved IBT was mainly due to an increase in retail segment profitability.
  • Normalized Retail IBT¹ on a continuing operations basis was $50.9 million, up $69.2 million, due to higher gross margin and lower interest expense.
  • Financial Services IBT was $97.0 million, up $1.3 million, as higher revenue offset expected increases in net impairment losses, as well as higher funding costs.

https://www.newswire.ca/news-releases/canadian-tire-corporation-reports-strong-first-quarter-2025-results-865507253.html

Highlights
(All financial figures are unaudited and in Canadian dollars unless otherwise noted. * identifies non-GAAP financial measures. Please refer to Non-GAAP Reconciliations Appendices.)

• First quarter GAAP earnings of $2.3 billion or $1.04 per common share, compared with GAAP earnings of $1.4 billion or $0.67 per common share in 2024
• Adjusted earnings* of $2.2 billion or $1.03 per common share*, compared with $2.0 billion or $0.92 per common share in 2024
• Adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA)* of $5.8 billion, an increase of 18%, compared with $5.0 billion in 2024
• Cash provided by operating activities of $3.1 billion, compared with $3.2 billion in 2024
• Distributable cash flow (DCF)* of $3.8 billion, an increase of 9%, compared with $3.5 billion in 2024
• Reaffirmed 2025 full year financial guidance and multi-year financial outlook
• Sanctioned up to $2.0 billion of Mainline capital investment through 2028 to further reliability and maximize existing throughput given continuing demands on the system
• Launched a binding open season on Flanagan South Pipeline (FSP) supporting Mainline Optimization Phase 1 which adds 150 kbpd of capacity
• Announced definitive agreement to acquire a 10% equity interest in the operating Matterhorn Express Pipeline (MXP), a 2.5 bcf/d natural gas pipeline connecting growing Permian supply to Katy, Texas, for US$0.3 billion of cash consideration
• Sanctioned construction of the Traverse Pipeline alongside Whitewater Midstream (Whitewater), MPLX LP (MPLX), and Targa Resources (Targa) to provide natural gas transportation service between Katy and Agua Dulce in the U.S. Gulf Coast
• Sanctioned the $0.4 billion Birch Grove expansion of T-North Pipeline in British Columbia to serve growing egress needs out of the Montney basin
• Sanctioned a US$0.1 billion expansion of the T15 project at Enbridge Gas North Carolina, doubling capacity of the original natural gas generation related project

https://www.newswire.ca/news-releases/enbridge-reports-record-quarterly-results-and-reaffirms-2025-financial-guidance-illustrating-its-industry-leading-resilient-business-model-838461499.html

Canadian Natural Resources CNQ-T +5.99%increase reported a first-quarter profit on Thursday that beat analysts’ estimates, helped by higher oil and natural gas production, sending the company’s U.S.-listed shares up more than 2 per cent in premarket trading.

Oil producers in Canada are benefiting from the start up of the Trans Mountain pipeline expansion project, which has nearly tripled the flow of oil to the country’s Pacific Coast from landlocked Alberta, raised the price of Canadian crude and opened up market access to refineries in Asia and the U.S. West Coast.

Canadian Natural Resources’ quarterly output also got a boost from the recently acquired Athabasca oil sands and Duvernay shale formation assets, which the company bought from Chevron for US$6.5-billion.

Canadian Natural Resources, the country’s largest oil and gas producer, said its total output rose to 1.58 million barrels of oil equivalent per day (mboepd) during the first quarter from 1.33 mboepd.

The company produced 1.17 million barrels per day (bpd) of liquids and 2.45 billion cubic feet (bcf) per day of natural gas during the quarter.

Total realized price for exploration and production liquids rose 14 per cent to $79.85 per barrel, while realized prices for natural gas output climbed nearly 23 per cent to $3.13 per thousand cubic feet.

Canadian Natural Resources said it would lower its annual capital budget by $100-million to $6.05-billion, adding that it would have no impact on the company’s planned operating activities or targeted production levels for 2025.

The company aims to produce between 1.51 million and 1.55 million barrels of oil equivalent per day (boepd) in 2025, the upper limit of which is in line with analysts’ expectations, according to data compiled by LSEG.

On an adjusted basis, Canadian Natural Resources earned $1.16 per share in the quarter, compared with analysts’ average expectation of $1.05.

Shopify SHOP-T -1.33%decrease reported double-digit revenue growth for its first fiscal quarter, but the stock slumped during morning trading as the company’s outlook fell short ofanalysts’ expectations.

Harley Finkelstein, president of the Ottawa e-commerce giant, said in an earnings call Thursday that tariffs have had little effect on the company so far. He cited the diversity of the company’s merchant base and consumers as one reason for Shopify’s strong quarter amid market volatility. The fact that more than half of U.S. customers buying from Shopify merchants have incomes exceeding US$100,000 also helps, he said.

“We believe this helps insulate our merchants from some of the potential swings in pricing or other market factors,” he said on the call.

Why Shopify could be a buy even in the middle of a trade war

Shopify, which charges merchants subscription and transaction fees to use its platform, generated US$2.4-billion in revenue in the first quarter ended March 31, beating analysts’ estimates of US$2.3-billion, according to S&P Capital IQ. That was up 27 per cent from US$1.9-billion in the same quarter last year.

Shopify posted a net loss of US$682-million, with a large chunk of that attributable to its equity holdings in other companies. Excluding the impact of those investments, the company reported a net income of US$226-million, up 57 per cent.

Gross merchandise volume (GMV), the value of sales made over Shopify’s platform, was US$74.8-billion, up 23 per cent.

Shopify, which reports in U.S. dollars, forecast revenue growth around a mid-20s-percentage rate on a year-over-year basis for the next quarter. The company also expects its gross profit to rise by a percentage rate in the high teens and operating expenses to be between 39 and 40 per cent of revenue, similar to this quarter.

In a note to shareholders Thursday morning, RBC analysts Paul Treiber and Daniel Perlin expressed concern about Shopify’s forecast for the coming quarter, noting that the company’s outlook for gross profit and free cash flow is below analysts’ consensus expectations.

Former Rogers CEO Joe Natale nominated to Shopify board

Jeff Hoffmeister, Shopify’s chief financial officer, responded to questions about the discrepancies on the morning call. He cited the company’s payment partnership with PayPal, the percentage of revenue taken up by Shopify Payments and larger GMV merchants coming onto its platform as possible headwinds to its gross margins.

“Go back two years, there are a lot of good products we produced. They’re continuing to ramp. They’re ramping really well. Just given the size of the overall business, it takes a while for them to have a meaningful impact,” he said.

In recent quarters, Shopify, which operates in more than 170 countries with millions of customers worldwide, has been gaining momentum through its Plus subscriptions, targeted at large-enterprise customers.

The company’s revenue from subscriptions went up 21 per cent to US$620-million, and it made $US$1.7-billion from merchant fees, up 29 per cent. Free cash flow increased 56 per cent per cent.

While analysts are generally positive about Shopify’s long-term organic growth, many of them reduced their targets ahead of the company reporting its first quarter earnings. They cited headwinds including U.S. President Donald Trump’s lifting of the de minimis exemption on May 2 for goods imported into the U.S. from China. Previously, this exemption allowed goods valued at or below US$800 to enter the country duty-free.

Shopify offered Mark Carney a job as president in 2020, before he went to Brookfield

Days after Mr. Trump signed an executive order on April 2 to eliminate the de minimis exemption and amid tariff announcements, Shopify’s stocked dropped about 20 per cent alongside several other high-profile technology stocks.

Analysts expect the de minimis elimination to slightly affect the company’s GMV growth in future quarters by slowing shipments from drop shippers, which do not keep inventories but instead use Shopify’s platform to ship goods directly from foreign manufacturers to domestic consumers.

However, Mr. Hoffmeister dispelled anxiety about the recent de minimis expiration on Thursday’s earnings call, saying it wasn’t “expected to have a meaningful impact on Shopify in the near term.”

He added only 1 per cent of the company’s GMV is related to imports from China that were subject to the exemption. “We will continue to monitor its impact on our business.”

To adjust for tariffs, Mr. Finkelstein said Shopify has seen some merchants raise prices, but the increases aren’t part of a broader trend yet. Merchants are using a number of strategies, including reconsidering which countries to source goods from, when to buy inventory or which products to stock, he added.

Shopify recently introduced a number of tools to help those on its platform navigate tariffs, including local shopping features, tools to display and collect duties at checkout and international importing guides.

“We acknowledge the uncertainty ahead and are actively monitoring our data to help us support our merchants and adapt to whatever changes may arise,” Mr. Finkelstein said.

Restaurant Brands QSR-T -0.01%decrease missed first-quarter revenue and profit estimates on Thursday, hurt by sluggish demand at its restaurant chains such as Burger King and Tim Hortons amid tariff-related uncertainty.

The restaurant industry has been battling ongoing sales declines as budget-conscious Americans stick to home-cooked meals, prioritizing spending on essentials over dining out.

The U.S. economy shrank for the first time in three years in the first quarter, signaling consumers are expecting product prices to shoot up due to the escalating global trade tensions.

The Trump administration’s shifting tariff policies have forced businesses to raise prices in an effort to protect profit margins from rising input costs and supply chain disruptions.

Fast-food chain operators such as McDonald’s, Domino’s, Chipotle and Starbucks took a hit to sales and flagged weak consumer demand.

“We anticipated that Q1 would be our softest quarter of the year and believe that some of the macro noise may have driven further softness,” Restaurant Brands CEO Josh Kobza said on a post-earnings call.

Comparable sales at the company’s Tim Hortons segment, its biggest revenue generator, dipped 0.1 per cent in the quarter, while at Burger King it fell 1.3 per cent.

“Surprised by the Tim Hortons miss in the context of peers that cited strength in Canada including McDonald’s, Starbucks, Wendy’s & Yum!, while the brand was a theoretical beneficiary of the ‘Buy Canadian movement’,” Andrew Charles, analyst with TD Cowen Securities, said.

Rising prices of commodities such as coffee pushed up its supply chain costs, according to Restaurant Brands.

The company reported quarterly revenue of $2.11-billion, compared with analysts’ average expectation of $2.13-billion, according to data compiled by LSEG.

On an adjusted basis, Restaurant Brands earned 75 cents per share, missing estimates of 78 cents.