Finance Evening: Trump to Raise Canada Auto, Steel Tariffs to 50% as New Fed Chair Faces Jackson Hole Test

📊 Today's North American Markets

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New Fed chair faces critical test at Jackson Hole as inflation fears mount

Source: The Guardian

New Federal Reserve chair Kevin Warsh faces a critical test this week amid anxiety in government bond markets over inflation and Donald Trump's tax and spending plans. As the world's most powerful central bank prepares for its annual Jackson Hole conference, bond traders will be looking for signals from Warsh over his commitment to fighting inflation.

Appointed by Trump, Warsh has previously signalled reluctance to "spoon-feed" markets over its interest-rate plans. Analysts warn that offering less commentary on the rate path could inject more volatility into an already febrile bond market. Warsh is expected to deliver a highly anticipated speech on Friday at Jackson Hole.

Selling pressure is intensifying in the roughly $30 trillion US government debt market, with US national debt surpassing $40 trillion for the first time and long-term Treasury yields rising back toward their highest levels since 2007.

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Trump: US tariffs on Canadian autos and steel to rise to 50%

Source: Xinhua Finance

US President Donald Trump said in a social media post on Aug. 24 that the United States will raise import tariffs on Canadian automobiles, steel and other products to 50% starting Jan. 1, 2027.

According to the Xinhua Finance report from Washington, the new 50% tariff rate will apply to multiple categories including Canadian autos and steel, effective Jan. 1, 2027.

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Trump's economic war escalates, with China the biggest test

Source: 加美财经

The Trump administration is escalating its "economic war" on Iran, threatening "massive economic consequences" for any country that continues to provide trade, financial or transport support to Tehran. As China has long been Iran's biggest oil buyer, the warning puts Beijing at the center of the new US sanctions push.

Treasury Secretary Scott Bessent on Monday launched an "economic exile operation," sanctioning nearly 60 individuals, companies and vessels linked to Iran's oil, nuclear, missile, cyber and transport networks, and warning foreign financial institutions of possible secondary sanctions. Washington has so far not imposed sweeping sanctions on China's major banks or systemically important firms.

The US Treasury estimated in April that China buys roughly 90% of Iran's oil exports. Chinese foreign ministry spokesperson Lin Jian said Beijing opposes unilateral sanctions lacking basis in international law and UN Security Council authorization; on Aug. 24 the ministry again said it would take necessary measures to protect its legitimate interests.

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Fortune: Scott Bessent's bond-market intervention is pointless

Source: Fortune

Treasury Secretary Scott Bessent has doubled US Treasury buybacks to at least $4 billion in an effort to lower long-term rates, but a Fortune commentary argues this "Operation Twist"-style intervention is pointless. The Treasury is buying long-term debt to keep longer-term yields down while selling an equal amount of short-term debt.

The piece reviews three past attempts: the US in 1961-65 and 2011, and the Bank of Japan's yield curve control from 2016 to 2024. It argues such operations can only succeed when supported by monetary growth.

Author Steve Hanke notes that US broad money grew at near double-digit rates in the first half of 2026, which will "torpedo" Bessent's intervention. For long-term rates to actually fall, the Fed must tighten monetary policy and slow money-supply growth.

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Spot gold nears $4,659, up over 13% this month

Source: 同花顺

Spot gold traded near $4,659 an ounce in European trading on Monday (Aug. 24), up 0.81% on the day and hitting an intraday high of $4,659, the highest since mid-May. This week gold broke above the $4,600 mark, with a monthly gain of more than 13%.

Analysts attribute the rally to several drivers: the US Treasury's announcement last week that it would double long-term bond buybacks triggered doubts about debt management, sending the 30-year Treasury yield lower and the dollar index down 0.83% in a single day, making gold a haven. Central banks have also added to gold reserves for 14 consecutive months.

Near term, gold's upward momentum remains strong, with a tug-of-war at the $4,650 level; a decisive break could open the way toward $4,800. Markets are watching this week's PCE inflation data, a key signal for the Fed's next policy path.

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US debt tops $40 trillion — how to protect your retirement

Source: Yahoo Finance

US federal debt has officially surpassed $40 trillion. Treasury data showed total public debt outstanding reached $40.047 trillion on Aug. 18 — double the roughly $19.95 trillion owed when Trump first took office in January 2017.

The cost is mounting: the federal government spent about $1.1 trillion on interest in the first 10 months of fiscal 2026, surpassing Medicare to become the second-largest expense behind Social Security. The CBO projects annual net interest costs will nearly double from $1 trillion in 2026 to $2.1 trillion in 2036.

Rising long-term Treasury yields feed into mortgage, auto and business borrowing costs. The 30-year Treasury yield recently climbed to about 5.34%, its highest since 2007. Analysts suggest retirement savers consider assets less correlated with stocks and bonds to diversify risk.

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Disney offers executives voluntary early retirement packages

Source: Variety

Disney is offering longtime executives early retirement packages amid larger cost-cutting efforts and ongoing layoffs. The time-limited, company-sponsored Voluntary Early Retirement Offer (VERO) was announced in a memo by Senior EVP and Chief People Officer Sonia Coleman on Monday.

The offer includes separation pay, continued vesting of existing equity awards, healthcare support at active employee rates, and continued Silver Pass access to Disney theme parks. Eligible are US-based employees at director through EVP levels within Disney Entertainment, ESPN and corporate divisions.

On an earnings call earlier in August, CEO Josh D'Amaro and CFO Hugh Johnston indicated more layoffs and cost cuts were coming, with future investment focused on content, technology and experiences.

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GM vehicles under federal scrutiny after hundreds of brake-failure reports

Source: Ars Technica

The US federal government is expanding a safety investigation into GM vehicles after receiving hundreds of reports of brake failure. The problem affects more than 1.1 million cars, including many EVs and models built for Honda and Acura, stemming from a brake-by-wire system GM calls eBoost that can suffer a spindle fracture while driving.

NHTSA has received 227 incident reports, growing to 745 when including reports made to GM; 22 cases resulted in crashes, with six people injured in five crashes and no fatalities.

Affected models include the 2023-2026 Cadillac Lyriq, Chevrolet Colorado and GMC Canyon, as well as the 2024-2026 Buick Enclave, Chevrolet Blazer EV, Equinox EV and others.

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Twitch and Amazon face legal action over using livestreams to train AI

Source: BBC

Amazon is facing a class action lawsuit over its move to train AI models on videos people broadcast on streaming platform Twitch. Brought on behalf of millions of streamers, the suit alleges parent company Amazon used their videos to train AI without permission or proper compensation.

The move drew backlash when announced in August, with users given the option to opt out. Twitch and Amazon have not commented. The suit was brought by Connecticut-based streamer Warren Pandiscia.

Streamers produced more than 215 million hours of content in the first few months of 2026 alone. Amazon bought Twitch for nearly $1 billion in 2014.

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Xpeng carves out robotics business at $6.3 billion valuation

Source: CnEVPost

Xpeng (NYSE: XPEV) plans to carve out its robotics business into standalone company Dogotix and bring in about $900 million in funding commitments. According to a Monday Hong Kong Stock Exchange filing, Dogotix has a pre-money valuation of $5 billion and an implied post-transaction valuation of about $6.3 billion.

Dogotix expects to receive about $900 million, with Xpeng's wholly owned subsidiary investing $200 million, external investors $600 million, and companies controlled by chairman and CEO He Xiaopeng and co-president Brian Gu a combined $100 million. The financing is led by IDG Capital, with Tencent and Alibaba as strategic investors.

Dogotix will remain a controlled subsidiary of Xpeng with results consolidated. Xpeng unveiled its next-generation Iron humanoid robot in November 2025, planning mass production by end-2026 with monthly capacity above 1,000 units.

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