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Trump Threatens Canada with 35 % Tariffs

U.S. President Donald Trump announced a sharp escalation in trade policy by imposing a 35 % tariff on Canadian goods effective August 1, citing Canada’s alleged role in the U.S. fentanyl crisis and Canadian tariffs on American dairy and other sectors. This marks a significant increase from the 25 % tariff introduced earlier, with exceptions for USMCA‑compliant products. Trump also threatened blanket 15–20 % tariffs on other trading partners, including the EU, Japan, and South Korea, and increased duty levels on copper. The announcement rattled markets, leading to dips in U.S. and European futures, a stronger U.S. dollar, and cautious investor sentiment. Canada, while emphasizing its commitment to addressing fentanyl trafficking and negotiating trade, has warned that any retaliation could escalate tensions further.

Prime Day Lost Its Spark as Day-One Sales Drop 41 %

Amazon’s $AMZN ( ▲ 0.29% ) extended four-day Prime Day kicked off with a tepid start as early reports show first-day sales down 41 % compared to the two-day event last year. Momentum Commerce suggests shoppers are “treasure hunting”, adding items to carts but postponing purchases, with average order value sliding from around $60 to $57. Meanwhile, Adobe reported a record-setting $7.9 billion in day-one online retail transactions, a 9.9 % increase year over year, suggesting broader consumer resilience. Despite cautious start, deeper deals (up to 23 % off) on essentials and competition from Walmart and Target helped sustain sales momentum.

Retail sentiment has shifted: tight margins from tariffs led many sellers, around 60 % of brands, to pull discounts, challenging Prime Day’s usual urgency and prompting early back-to-school purchases . Analysts from BofA and D.A. Davidson caution that true performance may only emerge as the sale unfolds. Consumers appear more selective this year, with essentials like cleaning products and protein shakes dominating basket content.

Investors should monitor Amazon’s upcoming quarterly report and retail competitors’ campaigns, as Prime Day outcomes could signal broader shifts in consumer behavior amid inflation and tariff pressures.

US Foods Eyes Performance Food Group as Acquisition Target

US Foods Holding Corp $USFD ( ▼ 1.07% ) has expressed takeover interest in Performance Food Group $PFGC ( ▼ 0.65% ) , according to Bloomberg citing people familiar with the matter and confirmed by Reuters. Such a move would deepen consolidation in the food service distribution sector, where US Foods and Sysco together account for more than half the market, with PFGC serving as the third-largest player. The acquisition could reshape competitive dynamics, affecting margins, pricing, and market share.

Additionally, a potential merger could significantly expand US Foods’ distribution footprint while unlocking cost synergies, though it may face regulatory scrutiny given the antitrust challenges in past industry deals. Investors should expect near-term stock volatility as speculation builds, but a successful acquisition could enhance long-term pricing power and operational efficiency.

Most Anticipated Earning Releases - July

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