Return of the Trade Tariffs - 08/24/26

Just when Wall Street thought the trade war was fading into the rearview mirror...

TARIFFS ARE BACK!

The latest escalation between the United States and Canada has suddenly injected another major dose of uncertainty into the financial markets. After trade negotiations broke down, the U.S. imposed 50% tariffs on roughly $20 billion of Canadian goods, while Canada announced plans for dollar-for-dollar retaliation beginning September 8.

And now the stakes may be getting even higher.

President Trump has threatened 50% tariffs on Canadian-made cars, trucks and auto parts beginning January 1, 2027 if the dispute isn't resolved. That announcement immediately put pressure on automakers and raised new concerns about deeply integrated North American supply chains.

So the big question for investors is:

Are tariffs simply another negotiating tactic—or are we entering a new phase of the trade war that could actually change the outlook for inflation and interest rates?

That's what we're breaking down on today's show.

We'll discuss:

• What happened with Canada? How negotiations went from seemingly close to a deal to a major tariff escalation in a matter of days.
• Why 50% tariffs matter – Which products and industries could feel the greatest impact?
• Canada's retaliation – What happens when tariffs turn into a tit-for-tat trade war?
• The auto industry – Why Ford, GM, Stellantis and their suppliers could become ground zero for this fight.
• Inflation – Do tariffs ultimately get absorbed by companies, or passed along to consumers through higher prices?
• Bond yields – Could renewed inflation pressure push Treasury yields higher?
• The stock market – Which sectors stand to win—and which could get crushed—if the trade dispute continues?
• The U.S. dollar – Currency markets are already reacting, with the Canadian dollar falling sharply following the latest escalation.

But there's another person suddenly thrown right into the middle of this...

Federal Reserve Chairman Kevin Warsh

Warsh already has to navigate inflation, employment, economic growth, oil prices and a complicated interest-rate environment.

Now add tariffs.

Tariffs can create an especially difficult situation for the Federal Reserve because they potentially push prices higher while simultaneously slowing