As the US 50 percent tariff decision on the Canadian automotive sector shook markets, the dollar rose and the Canadian dollar fell.

The US administration's announcement that it will raise tariffs on Canadian-origin vehicles to the 50 percent level escalated the trade war between Washington and Ottawa. Following the decision, Ford and Stellantis shares in the automotive sector fell by 4 percent, while General Motors shares also declined. In the foreign exchange market, the US dollar recorded limited gains while the Canadian dollar depreciated. Businesses in Canada point out that this new tension in trade relations with the US creates downside pressures and uncertainties.

In the bond market, traders in prediction markets are skeptical that Bessent’s bond interventions will be successful in lowering yields. Speculators predict that bond yields will reach new peaks in 2026 and complete the year above current trading levels. On the other hand, it is noted that inflation is rising again in the markets.

In the technology transformation of the financial sector, a warning from within Goldman Sachs stood out. As the institution continues to adopt artificial intelligence technologies, a senior technology leader warned that AI replacing bankers' judgment could weaken the decision-making abilities of future bankers.

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