U.S. President Donald Trump speaks to reporters over the North Atlantic as he returns to Washington from the World Economic Forum (WEF) in Davos, Switzerland, aboard Air Force One, U.S., January 22, 2026. <\/p>\n
Jonathan Ernst | Reuters<\/p>\n
“Good fences make good neighbors,” goes the saying \u2014 one that seems to encapsulate U.S. President Donald Trump’s threat of slapping tariffs of 100% on Canada if the country strikes a trade deal with China. \u00a0<\/p>\n
That comes after Trump on Thursday withdrew his invitation<\/a> to Canadian Prime Minister Mark Carney for the country <\/strong>to join his “Board of Peace,” a council originally established to oversee the reconstruction of Gaza.<\/p>\n Such estrangement with the U.S.’ northern neighbor, however, was probably not what poet Robert Frost meant when he penned the line, often taken out of context. \u00a0<\/p>\n Frost goes on to write, “Before I built a wall I’d ask to know \/ What I was walling in or walling out, \/ And to whom I was like to give offense.” That context feels relevant as Washington’s relationship with Canada grows more strained.<\/p>\n Across the Pacific, uncertainty took a different form. Sanae Takaichi, Japan’s Prime Minister, dissolved parliament on Friday<\/a> ahead of snap elections scheduled for Feb. 8. On Sunday, she pledged to intervene in “speculative or very abnormal moves” in the Japanese yen and government bonds, which sold off in recent weeks. <\/p>\n Both moves have a direct implication on U.S. markets, given that Japan is the biggest foreign holder of U.S. Treasurys, according to the U.S. Treasury Department. Rising Japanese bond yields could entice domestic investors to repatriate capital, putting upward pressure on U.S. borrowing costs.<\/p>\n So far, markets have taken the developments in stride. U.S. Treasurys were relatively unchanged on Friday stateside<\/a>, as was the S&P 500<\/a>. The Nasdaq Composite<\/a> rose 0.28% and the Dow Jones Industrial Average<\/a> lost 0.58%.<\/p>\n The calm did not carry into the new week. Futures slid Sunday night stateside as investors prepared for a busy week of trading. Apple<\/a>, Meta<\/a> and Microsoft<\/a> are set to report earnings and the Federal Reserve concludes its rate-setting meeting on Wednesday.<\/p>\n What you need to know today<\/p>\n Trump threatens 100% tariff on Canada.\u00a0<\/strong>“If Canada makes a deal with China, it will immediately be\u00a0hit with a 100% Tariff<\/a>,” the president wrote in a Truth Social post on Saturday. Canada earlier this month reached a\u00a0preliminary deal to lower trade barriers<\/a> with Beijing.<\/p>\n Japan vows to intervene in market speculation. <\/strong>Investors have sold off Japanese government bonds and yen in the past weeks. “The government will take necessary steps against speculative or very abnormal market moves<\/a>,” Prime Minister Sanae Takaichi said Sunday.<\/p>\n India plans to slash tariffs on EU cars. <\/strong>Cars from the European Union with an import price of more than 15,000 euros ($17,800) will face duties of 40%,<\/a> down from as high as 110%, Reuters reported, citing two sources. The tariffs will be lowered to 10% over time.<\/p>\n U.S. stocks were mixed Friday.\u00a0<\/strong>Goldman Sachs<\/a> shares fell nearly 4%, Intel<\/a> tumbled roughly 17%, while Nvidia<\/a> and Advanced Micro Devices<\/a> climbed 1.5% and more than 2%<\/a>, respectively. Europe’s Stoxx 600<\/a>\u00a0closed mostly flat<\/a>. Gold prices surged past $5,000<\/a> on Monday.<\/p>\n [PRO] A new AI stock trend in China.\u00a0<\/strong>Concerns about an AI chip bubble are pushing local investors away from infrastructure\u00a0plays toward AI applications. Here are the\u00a0stocks to watch within that sector<\/a>.<\/p>\n And finally…<\/p>\n