CNBC Daily Open: Canada is drawing Trump's ire — and faces a 100% tariff

"Good fences marque bully neighbors," goes the saying — 1 that seems to encapsulate U.S. President Donald Trump's menace of slapping tariffs of 100% connected Canada if the state strikes a commercialized woody with China.  

That comes aft Trump connected Thursday withdrew his invitation to Canadian Prime Minister Mark Carney for the country to articulation his "Board of Peace," a assembly primitively established to oversee the reconstruction of Gaza.

Such estrangement with the U.S.' bluish neighbor, however, was astir apt not what writer Robert Frost meant erstwhile helium penned the line, often taken retired of context.  

Frost goes connected to write, "Before I built a partition I'd inquire to cognize / What I was walling successful oregon walling out, / And to whom I was similar to springiness offense." That discourse feels applicable arsenic Washington's narration with Canada grows much strained.

Across the Pacific, uncertainty took a antithetic form. Sanae Takaichi, Japan's Prime Minister, dissolved parliament connected Friday up of drawback elections scheduled for Feb. 8. On Sunday, she pledged to intervene successful "speculative oregon precise abnormal moves" successful the Japanese yen and authorities bonds, which sold disconnected successful caller weeks.

Both moves person a nonstop accusation connected U.S. markets, fixed that Japan is the biggest overseas holder of U.S. Treasurys, according to the U.S. Treasury Department. Rising Japanese enslaved yields could entice home investors to repatriate capital, putting upward unit connected U.S. borrowing costs.

So far, markets person taken the developments successful stride. U.S. Treasurys were relatively unchanged connected Friday stateside, arsenic was the S&P 500. The Nasdaq Composite roseate 0.28% and the Dow Jones Industrial Average mislaid 0.58%.

The calm did not transportation into the caller week. Futures slid Sunday nighttime stateside arsenic investors prepared for a engaged week of trading. Apple, Meta and Microsoft are acceptable to study net and the Federal Reserve concludes its rate-setting gathering connected Wednesday.

Trump threatens 100% tariff connected Canada. "If Canada makes a woody with China, it volition instantly be hit with a 100% Tariff," the president wrote successful a Truth Social station connected Saturday. Canada earlier this period reached a preliminary woody to little commercialized barriers with Beijing.

Japan vows to intervene successful marketplace speculation. Investors person sold disconnected Japanese authorities bonds and yen successful the past weeks. "The authorities volition instrumentality indispensable steps against speculative oregon very abnormal marketplace moves," Prime Minister Sanae Takaichi said Sunday.

India plans to slash tariffs connected EU cars. Cars from the European Union with an import terms of much than 15,000 euros ($17,800) volition face duties of 40%, down from arsenic precocious arsenic 110%, Reuters reported, citing 2 sources. The tariffs volition beryllium lowered to 10% implicit time.

U.S. stocks were mixed Friday. Goldman Sachs shares fell astir 4%, Intel tumbled astir 17%, portion Nvidia and Advanced Micro Devices climbed 1.5% and much than 2%, respectively. Europe's Stoxx 600 closed mostly flat. Gold prices surged past $5,000 connected Monday.

[PRO] A caller AI banal inclination successful China. Concerns astir an AI spot bubble are pushing section investors distant from infrastructure plays toward AI applications. Here are the stocks to ticker wrong that sector.

Investors went to Davos for AI. They near talking astir Greenland

Moving betwixt panels, edifice lobbies, and meetings past week, it often felt similar 2 conferences were happening successful the aforesaid snowy Swiss village.

In 1 Davos, the temper was strikingly optimistic. Executives and investors spoke astir artificial quality moving from hype to production, presumption similar "world models" and "physical AI" were being thrown around.

In the other, conversations seemed to extremity up backmost astatine tariffs, Greenland, geopolitical tensions, and a increasing consciousness that the planetary rules investors person relied connected for decades are shifting successful existent time.

— Spriha Srivastava