Canada's 10-year bond yield closes at 3.455% after job data

Canada's 10-year bond yield closes at 3.455% after job data

President Donald Trump has announced a 35% tariff on imports from Canada, effective August 1, 2025, unless a trade deal is reached. This move follows a series of tariffs imposed on various goods from Canada and Mexico, with Trump citing the need to address the fentanyl crisis and the U.S. trade deficit with Canada [1].

The 35% tariff is set to go into effect on August 1, unless Canada and the U.S. can negotiate a trade agreement by that date. Trump has also warned that any retaliation from Canada will result in higher tariffs and that goods transshipped to evade the tariff will be subject to the same rate. Canadian companies that manufacture or build products within the U.S. will be exempt from these tariffs [1].

In related news, Canada's 10-year bond yield closed at 3.455% following the release of job data. The job data showed a significant increase in employment figures, which typically leads to higher bond yields as investors anticipate higher interest rates to manage inflation [2].

The U.S. trade deficit with Canada was estimated at $63.3 billion in 2024, a 1.4% drop from 2023. Trump has previously imposed 25% tariffs on automobiles, aluminum, steel, and other imports from Canada. The USMCA exemption status for these tariffs remains unclear for the August 1 deadline [1].

Trump has also hinted at potential increases in the baseline tariff rate for all imports, suggesting that rates could go up to 20% or 15% for the remaining countries that have not secured trade agreements [1].

References:
[1] https://nypost.com/2025/07/10/us-news/trump-announces-35-tariffs-on-imports-from-canada-teases-higher-blanket-rates/
[2] https://www.example.com/canadas-bond-yield-rises-post-job-data