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Trade Tensions Rise as EU Prepares Retaliation Against U.S. Tariff Hike

The European Union has strongly condemned President Donald Trump's decision to double tariffs on imported steel and aluminum, warning of swift countermeasures that could escalate global trade tensions. Announced Friday near Pittsburgh, Trump raised existing steel and aluminum tariffs from 25% to 50%, aiming to protect U.S. industry and bolster a $14.9 billion Nippon Steel–U.S. Steel deal. The European Commission responded sharply, calling the move a threat to transatlantic economic stability and global supply chains. “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” a spokesperson said. The EU is finalizing consultations on expanded retaliatory tariffs, set to take effect by July 14 unless a negotiated solution is reached. The reaction from global trade partners was swift. Canada’s Chamber of Commerce criticized the tariffs as a threat to North American economic security, while Canada’s Uni...
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Canada’s Labor Market Adds 27,000 Jobs in May, Unemployment Edges Up to 6.2%


Canada’s economy saw a net increase of 26,700 jobs in May, according to Statistics Canada. However, the unemployment rate also ticked up to 6.2 per cent. Here are the details:

Key Points:

  • Job Growth: The increase in jobs was primarily driven by part-time employment, which surged by 62,000 positions. Unfortunately, full-time jobs declined by 36,000 during the same period.
  • Unemployment Rate: The uptick in the unemployment rate reflects the challenge of keeping pace with Canada’s population growth. Despite the modest job gains, the rate rose by a tenth of a percentage point.
  • Wage Growth: Average hourly earnings increased by 5.1 per cent year-over-year, catching the attention of the Bank of Canada. However, officials believe this strength is partly due to wages adjusting for consumer prices.
  • Central Bank’s Stance: The Bank of Canada recently cut interest rates for the first time in over four years, bringing the benchmark rate to 4.75 per cent. The central bank remains vigilant about inflation trends and will decide on further rate adjustments in July.

Outlook: While the rising unemployment rate may prompt further rate cuts, policymakers are closely monitoring economic conditions. Expectations for a rate cut at the Bank of Canada’s next meeting are now less certain.



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