With Nvidia's earnings due tomorrow, the tariff war between the United States and Canada is intensifying. Canada has decided to impose retaliatory tariffs of up to 50% on approximately $20 billion worth of U.S. goods, while the United States has warned that it will raise tariffs on Canadian vehicles and auto parts to 50%. Broad impacts are expected, particularly across the automotive industry.
As the North American tariff war expands, the Canadian government has decided to impose retaliatory tariffs of up to 50% on approximately $20 billion worth of U.S. products from 8 September. In response, U.S. President Donald Trump warned that tariffs on Canadian vehicles, trucks and auto parts would be raised to 50% from 1 January next year.
Canada announced retaliatory tariffs of 15%, 25% and 50% on 700 categories of U.S. goods. The 50% rate will apply to some products, while household appliances and dairy products will face tariffs of 25% and certain sectors will face tariffs of 15%. The government also introduced an additional support package worth $7.5 billion.
In the automotive industry, Ford is investing $3 billion in its Oakville plant in Canada and moving forward with plans to produce 100,000 vehicles annually, but its price competitiveness is expected to decline as tariffs rise. Many of GM's Canadian-produced models will be affected, while Stellantis faces the combined headwinds of subsidy issues and higher tariffs. The companies' shares fell on the day of the announcement.
Market attention is turning to Nvidia's quarterly earnings announcement. The Investing-based consensus forecast calls for revenue of $91.9 billion and EPS of $2.08, representing potential year-on-year growth of approximately 90%. Guidance, profitability and GPU shipment plans will be key areas of focus.