Daily Pulse
One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.
Michel Doucet
Vice-President and
Portfolio Manager
April 1, 2025
Canada
Air Canada says demand for flights between Canadian and US cities is weak for the spring and summer months, as Canadians respond to the trade war by avoiding trips south. Bookings for transborder flights were down 10% for the April-to-September period compared with the same period last year, as of mid-March, according to a presentation at the company’s annual meeting. Shares of Air Canada are down 35% since the beginning of the year. Air Canada and WestJet said in separate statements last week that geopolitical tensions are causing some consumers to choose not to take vacations in the US. The shift is part of a larger boycott of American products in response to US President Donald Trump’s tariffs and his repeated statements that he believes Canada should be part of the US.
Gold hit a record at the start of the new quarter due to concerns about the global economy and heightened haven demand. The precious metal has been one of the strongest performing commodities this year, posting its best quarter since 1986 in the opening three months. Holdings in gold-backed exchange-traded funds have climbed more than 6% so far in 2025, following four years of net outflows, and are now at the highest since September 2023.
United States
President Donald Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden, his top spokeswoman said. White House Press Secretary Karoline Leavitt said Monday the announcement would feature “country-based” tariffs. She said the president is also “committed to implementing” sectoral duties but that they were not the focus of the April 2 event and deferred to Trump about the timing of those. Members of Trump’s Cabinet would attend the announcement.
Howard Lutnick may withhold Chips Act grants to push companies to expand their US projects, people familiar said. Lutnick aims to generate tens of billions of dollars in additional investment commitments without increasing the size of federal grants. Donald Trump created a new office to manage the Chips Act’s funds and speed up some investments in the US.
Europe
Ukraine’s top diplomat said officials are pressing ahead with the US toward an “acceptable” economic accord hours after President Donald Trump accused Kyiv of trying to renegotiate the deal. Foreign Minister Andrii Sybiha said a new draft of an agreement on Ukraine’s infrastructure and natural resources has arrived and that Kyiv is prepared to endorse it as talks with US counterparts continue and officials pore over the document. Days after Trump expressed frustration with Russian President Vladimir Putin, the US leader on Monday turned his ire back to Ukraine’s Volodymyr Zelenskiy, blaming the Ukrainian president for seeking new terms for the accord.
Euro-area inflation slowed in March, nearing the ECB’s 2% target and offering central bank officials room to decide whether to continue lowering rates next month.
Asia
China, Japan and South Korea agreed to jointly respond to U.S. tariffs, a social media account affiliated with Chinese state broadcaster CCTV said on Monday. The comments came after the three countries held their first economic dialogue in five years on Sunday, seeking to facilitate regional trade as the Asian export powers brace against U.S. President Donald Trump's tariffs. Japan and South Korea are seeking to import semiconductor raw materials from China, and China is also interested in purchasing chip products from Japan and South Korea. All three sides agreed to strengthen supply chain cooperation and engage in more dialogue on export controls.
US officials will today submit a report on China’s compliance with the 2020 trade deal, potentially escalating tensions as Beijing missed its purchase targets. The review alone may trigger a 10%-20% tariff hike before any new agreement is reached, Citi said.