TSX, U.S. markets jump as U.S. and China call 90-day truce in trade war

TSX, U.S. markets jump

Photo: The Canadian Press

Financial numbers flow on the digital ticker tape at the TMX Group in Toronto's financial district on May 9, 2014.  

Canada's main stock index was up nearly 200 points in early trading after the U.S. and China called a 90-day truce in their trade war and lowered tariffs on trade between the countries.

The S&P/TSX composite index was up 196.94 points at 25,554.68.

In New York, the Dow Jones industrial average was up 1,026.33 points at 42,275.71. The S&P 500 index was up 143.08 points at 5,802.99 while the Nasdaq composite was up 606.25 points at 18,535.17.

The Canadian dollar traded for 71.51 cents US compared with 71.80 cents US on Friday.

The U.S. has agreed to drop its tariff rate on Chinese goods to 30 per cent from 145 per cent, while China has agreed to lower its rate on U.S. goods to 10 per cent from 125 per cent.

The move came after U.S. and Chinese officials met in Switzerland.

Ensign Energy Services reports Q1 profit compared with a loss a year ago

Energy company Q1 profit

Photo: The Canadian Press

The Ensign Energy Services Inc. logo is seen in this undated handout photo.

Ensign Energy Services Inc. reported a profit in its latest quarter compared with a loss a year ago as its revenue edged up.

The oilfield services company says its net income attributable to common shareholders amounted to $3.7 million or two cents per diluted share for the quarter ended March 31.

The result compared with a loss of $1.2 million or a penny per diluted share in the same quarter last year.

Revenue for the first quarter of 2025 was $436.5 million, up from $431.3 million a year earlier.

The company's drilling operations reported 7,924 operating days for the quarter, down from 8,205 a year earlier, while its well servicing business recorded 36,519 hours in the quarter, down from 38,177 in the same quarter last year.

Ensign says its funds flow from operations amounted to 52 cents per diluted share for its latest quarter, down from 59 cents per diluted share in the first quarter of 2024.

This report by The Canadian Press was first published May 12, 2025.

Companies in this story: (TSX:ESI)

US and China take a step back from sky-high tariffs, agree to pause for 90 days

US, China pause tariffs

Photo: Jean-Christophe Bott/Keystone via AP

U.S. Trade Representative Jamieson Greer, left, and U.S. Secretary of the Treasury Scott Bessent take part in a press conference after two days of closed-door discussions on trade between the United States and China, in Geneva, Switzerland.

U.S. and Chinese officials said Monday they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war for more talks on resolving their trade disputes.

Stock markets rose sharply as the globe's two major economic powers took a step back from a clash that has unsettled the global economy.

U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, while China agreed to lower its rate on U.S. goods by the same amount to 10%.

Greer and Treasury Secretary Scott Bessent announced the tariff reductions at a news conference in Geneva.

The two officials struck a positive tone as they said the two sides had set up consultations to continue discussing their trade issues. Bessent said at the news briefing after two days of talks that the high tariff levels would have amounted to a complete blockage of each sides goods, an outcome neither side wants.

“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said. “And what had occurred with these very high tariff ... was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade."

"We want more balanced trade. And I think that both sides are committed to achieving that."

The delegations, escorted around town and guarded by scores of Swiss police, met for at least a dozen hours on both days of the weekend at sun-baked 17th-century villa that serves as the official residence of the Swiss ambassador to the United Nations in Geneva.

At times, the delegation leaders broke away from their staffs and settled into sofas on the villa’s patios overlooking Lake Geneva, helping deepen personal ties in the effort to reach a much-sought deal.

China’s Commerce Ministry said the two sides agreed to cancel 91% in tariffs on each other’s goods and suspend another 24% in tariffs for 90 days, bringing the total reduction to 115 percentage points.

The ministry called the agreement an important step for the resolution of the two countries’ differences and said it lays the foundation for further cooperation.

“This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world,” a ministry statement said.

China hopes the U.S will stop “the erroneous practice of unilateral tariff hikes” and work with China to safeguard the development of their economic and trade relations, injecting more certainty and stability into the global economy, the ministry said.

The joint statement issued by the two countries said China also agreed to suspend or remove other measures it has taken since April 2 in response to the U.S. tariffs.

China has increased export controls on rare earths including some critical to the defense industry and added more American companies to its export control and unreliable entity lists, restricting their business with and in China.

The full impact on the complicated tariffs and other trade penalties enacted by Washington and Beijing remains unclear. And much depends on whether they will find ways to bridge longstanding differences during the 90-day suspension.

But investors rejoiced as trade envoys from the world’s two biggest economies blinked, finding ways to pull back from potentially massive disruptions to world trade and their own markets.

Futures for the S&P 500 jumped 2.6% and for the Dow Jones Industrial Average was up 2%. Oil prices surged more than $1.60 a barrel and the U.S. dollar gained against the euro and the Japanese yen.

“This is a substantial de-escalation,” said Mark Williams, chief Asia economist at Capital Economics. But he warned “there is no guarantee that the 90-day truce will give way to a lasting ceasefire.”

Jens Eskelund, president of the European Union Chamber of Commerce in China, welcomed the news but expressed caution. The tariffs only were suspended for 90 days and there is great uncertainty over what lies ahead, he said in a statement.

“Businesses need predictability to maintain normal operations and make investment decisions. The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences, and avoid taking measures that will disrupt global trade and result in collateral damage for those caught in the cross-fire," Eskelund said.

Trump last month raised U.S. tariffs on China to a combined 145% and China retaliated by hitting American imports with a 125% levy. Tariffs that high essentially amount to the two countries boycotting each other’s products, disrupting trade that last year topped $660 billion.

The announcement by the U.S. and China sent shares surging, with U.S. futures jumping more than 2%. Hong Kong’s Hang Seng index surged nearly 3% and benchmarks in Germany and France were both up 0.7%

The Trump administration has imposed tariffs on countries worldwide, but its fight with China has been the most intense. Trump’s import taxes on goods from China include a 20% charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States.

Bell launches campaign calling on Ottawa, CRTC to reverse wholesale fibre policy

Bell launches campaign

Photo: The Canadian Press

Bell Canada signage is pictured in Ottawa on Wednesday Sept. 7, 2022. Bell Canada is renewing its push for the federal telecommunications regulator to block competitors from being able to resell fibre internet service on its network.  

Bell Canada is renewing its push for the federal telecommunications regulator to block competitors from reselling fibre internet service on its network.

The company has launched a new campaign called Build, Connect and Grow Canada, targeting a February decision by the CRTC allowing telecom giants to sell internet service in regions where they don't own fibre networks by paying the local incumbent to use their infrastructure.

Bell opposes the policy — which the CRTC has said it will re-evaluate this summer after further study — saying it discourages major providers from investing in their own infrastructure.

It responded to the February decision by cutting $500 million in investment plans this year and slowing down its fibre network build by 1.5 million locations it had intended to connect.

Its rival Telus Corp. is in favour of the policy, arguing its entrance into regional markets where it doesn’t have its own network infrastructure promotes competition, improving affordability for customers.

Bell says it's the right time to "eliminate regulatory uncertainty and unlock billions worth of nation-building investments that are critical to transform and protect Canada’s economy."

At least 10 people sickened in US listeria outbreak linked to prepared foods

Listeria cases in US

Photo: The Canadian Press

FILE - This 2002 electron microscope image made available by the Centers for Disease Control and Prevention shows a Listeria monocytogenes bacterium. (Elizabeth White/CDC via AP, File)

At least 10 people in the U.S. have been sickened in a listeria outbreak linked to ready-to-eat food products, and a producer is voluntarily recalling several products, federal officials said.

The U.S. Food and Drug Administration said Saturday that federal, state and local officials are investigating the outbreak linked to foods produced by Fresh & Ready Foods LLC of San Fernando, California. The FDA says the 10 people who fell ill were in California and Nevada, and required hospitalization.

The agency said the products were sold in Arizona, California, Nevada and Washington at locations including retailers and food service points of sale, including hospitals, hotels, convenience stores, airports and by airlines.

Listeria symptoms usually start within two weeks of eating contaminated food. Mild cases can include fever, muscle aches, nausea, tiredness, vomiting and diarrhea, while more severe symptoms may include headache, stiff neck, confusion, loss of balance and convulsions.

Federal officials said they started investigating the recent outbreak last year but didn't have enough evidence to identify a source of the infections. They said the investigation was reopened in April when FDA investigators found listeria in samples collected from Fresh & Ready Foods that matched the strain from the outbreak.

Fresh & Ready Foods said in a news release that it took immediate corrective actions including removing equipment to address the issue.

The FDA found that six of the 10 people who got sick had been hospitalized before becoming ill with listeria. The FDA found that items made by Fresh & Ready Foods had been served in at least three of the health care facilities where the patients had been previously treated.

The Centers for Disease Control and Prevention said that the test samples from sick patients were collected from December 2023 to September 2024.

Fresh & Ready voluntarily recalled several products, which can be identified by “use by” dates ranging from April 22 to May 19 of this year under the brand names Fresh & Ready Foods, City Point Market Fresh Food to Go and Fresh Take Crave Away.

Drug companies to pay Hawaii $700 million to settle Plavix blood thinner lawsuit

Drug companies to pay up

Photo: File photo

Drug Companies to pay Hawaii $700 million

Pharmaceutical companies have agreed to pay Hawaii $700 million to settle its lawsuit over the efficacy and safety of the blood thinner Plavix, the state attorney general's office announced Friday.

A court ruling last year ordered Bristol Myers Squibb Company and three U.S.-based subsidiaries of French pharmaceutical company Sanofi to pay a combined $916 million.

But before an appeal was decided, a settlement was reached for the lower amount, the attorney general's office said.

In a joint statement, the companies said they “are pleased to resolve this litigation, and to continue their companies’ focus on discovering, developing, and delivering innovative medicines to patients.”

“Plavix has helped millions of people with cardiovascular disease around the world for nearly 30 years and it continues to be endorsed as a first-line therapy by leading treatment guidelines across the globe,” the statement added.

First Circuit Court Judge James Ashford found that there was a risk that about 30% of patients, particularly non-Caucasians, might have a “diminished response” to Plavix but the companies did not update their labels, Attorney General Anne Lopez said last year.

Neither company has admitted wrongdoing.

Gov. Josh Green called it a “landmark settlement” and a “major victory” for the state.

The settlement divides the $700 million equally between Bristol Myers Squibb and Sanofi, with the funds to be paid by wire transfer by June 9, the attorney general's office said.

Two dolls instead of 30? Toys become the latest symbol of Trump's trade war

Two dolls instead of 30?

Photo: The Canadian Press

A collection of Barbie dolls are placed into a cart in Bowling Green, Ky., on Tuesday, Dec. 7, 2021. (Grace Ramey/Daily News via AP, File)

President Donald Trump's tariffs crusade has taken aim at a number of foreign goods, from European wines and car parts from Mexico to films made abroad. Lately, the president's wandering ire has found another rhetorical poster child: toy dolls.

Trump asserted that children will be fine having two dolls — perhaps three or five — instead of 30 if U.S. import taxes increase consumer prices. The response on social media included memes of him portrayed as the Grinch and photos of a young Barron Trump’s child-sized Mercedes convertible.

“COMPLETELY out of touch," The Loyal Subjects CEO Jonathan Cathey, whose collectible toy company in Los Angeles produces Strawberry Shortcake and Rainbow Brite dolls, wrote on Linkedin. "If that ain’t a ‘Let them eat cake’ moment shot through the echoes of history? Love how toys and dolls have become THE martyr metaphor for this nonsensical trade war incoherence.”

The president's comments also touched a nerve with parents, both ones who took offense at the casual way he hypothesized that perhaps “two dolls will cost a couple bucks more” and those who acknowledged their own kids have more toys than they need.

Either way, the U.S. toy industry has a lot riding on a possible deescalation of the tariff standoff between the Trump administration and the government in Beijing. Nearly 80% of the toys sold in the U.S. come from China.

The Toy Association, a trade group, has lobbied for an immediate reprieve from the 145% tariff rate the president put on Chinese-made products. Some toy companies warn the likelihood of holiday shortages increases each week the tariff remains in effect.

Here's a snapshot of the doll debate and how tariffs are impacting toys:

How much is the US doll market worth?

From Barbie, Bratz and Cabbage Patch Kids to Adora baby dolls, American Girl and Our Generation, dolls are a big business in the U.S. as well as beloved playthings.

The doll category, which includes accessories like clothes, generated U.S. sales of $2.7 billion last year compared to $2.9 billion in 2023 and $3.4 billion in 2019, according to market research firm Circana.

Consumers splurged on toys during the height of the COVID pandemic to keep children and themselves occupied, but sales flattened as inflation seized the economy.

Younger girls becoming more interested in buying makeup and skincare also has cooled the demand for dolls, Marshal Cohen, Circana's chief retail advisor, said.

What are toy companies doing to navigate tariffs?

The nation's largest toy maker, Mattel, said this week it would have to raise prices for some products sold in the U.S. to offset higher costs related to tariffs.

The company, whose brands include Barbie and American Girl, said the increases were necessary even though it’s speeding up the expansion of its manufacturing base outside of China.

Smaller toy companies are expected to have a harder time than Mattel and Hasbro, which makes the eating, drinking and diaper-wetting Baby Alive. Cathey said he paused The Loyal Subjects' shipments from China in April because he couldn't pay the stratospheric tariff they would have incurred.

“Nobody insulates themselves with that much cash,” he said.

With about four months' worth of inventory on hand, Cathey said his ability to secure holiday stock depends on a break in the U.S.-China trade standoff happening in the next two weeks since it would take time for cargo operations to resume.

Cepia, a Missouri company that was behind the 2009 holiday season hit Zhu Zhu Pets, launched a line of 11-inch fashion dolls called Decora Girlz last year. CEO James Russell Hornsby said he was working to relocate some production but the move won't happen in time to replace the orders he planned to get from China.

Hornsby described himself as a Trump supporter and said he understands the administration's desire to reduce trade imbalances.

“Let's just get the deals done and stop all this because (Trump's) disrupting Christmas,” he said.

What goes into making a doll?

Although American Girl launched in 1986 with a line based on fictional historical characters, the dolls never were domestic products. They were made in Germany before production eventually moved to China.

Toy experts say that in addition to lower costs, Chinese factories have developed techniques and expertise that are not easily replicated.

“We don’t have any capacity in the U.S. to make rooted doll hair. And then you’ve got things like the faces. Some of them are hand-painted, others are done with a Tampo (printing) machine,” James Zahn, editor-in-chief of industry publication The Toy Book, said of doll-making.

Hornsby said rooting the synthetic hair onto the heads of Decora Girlz dolls is carried out by skilled workers at factories in Guangzhou and Dongguan, China.

“It's not just sticking into a machine and it automatically does it," he said. ”You have to know what you’re doing in order to make that doll look like it’s got a full set of hair when literally maybe only 60% of the head is filled with hair."

Are toys from China safe?

White House Deputy Chief of Staff Stephen Miller said last week that he assumes consumers would prefer to pay more for American-made products. Dolls made in China might have lead paint in them, he said.

Teresa Murray, consumer watchdog director at the U.S. Public Interest Research Group, said the picture is more complicated.

Products for children ages 12 and under require third-party testing and certification from labs approved by the U.S. Consumer Product Safety Commission, the agency tasked with enforcing lead levels in toys, Murray said.

The rules apply to all products sold in the U.S. Toys by major brands such as Fisher-Price, Mattel, Hasbro and Lego, which have long outsourced manufacturing to China, are usually in compliance, she said.

But the rise of online shopping, including e-commerce platforms that ship directly to U.S. consumers from overseas, has posed a challenge, according to Murray. When valued at less than $800, such parcels entered the U.S. duty-free and were not subject to the same scrutiny as bulk imports, she said.

The White House eliminated the customs exemption starting May 2 for low-value parcels that originated in mainland China and Hong Kong. U.S Customs and Border Protection expects additional oversight will make it easier to flag problems.

Toy companies and industry experts argue the high tariffs on Chinese imports will tempt price-sensitive shoppers to search for cheap counterfeit toys that carry higher safety risks.

Can children have too many dolls?

Plenty of people agree American consumer culture has gotten out of hand, in large part due to prices kept low through the labor of foreign factory workers who earn much less than they would in the U.S.

Katie Walley-Wiegert, 38, a senior marketer in Richmond, Virginia, and the parent of a 2-year-old son, agrees there’s too much materialism but thinks parents should have choices when deciding what is best for their children. She found the wealthy Trump’s comments off-putting.

“I think it is a small view of what purchase habits and realities are for people who buy toys for kids,” Walley-Wiegert said.

San Francisco resident Elenor Mak, who founded the Jilly Bing doll company after she couldn't find an Asian American doll for her daughter, Jillian, now 5, said the president's remarks upset her because some families struggle to buy even one doll.

The trade war with China “just makes it even more impossible for those families,” Mak said.

White House downplays North American auto industry's concerns about U.K. trade deal

Auto sector rattled by deal

Photo: The Canadian Press

White House press secretary Karoline Leavitt speaks with reporters in the James Brady Press Briefing Room at the White House on Friday, May 9, 2025 in Washington. THE CANADIAN PRESS/AP-Alex Brandon

The White House on Friday downplayed the North American automobile industry's claim that U.S. President Donald Trump's new trade deal with the United Kingdom could make the sector less competitive.

"The idea that an American buyer can now import a Jaguar for less than a Dodge Charger is everything that is wrong with the Trump tariff war on cars," said Flavio Volpe, president of the Automotive Parts Manufacturers' Association in Canada.

The preliminary trade deal with the U.K. announced on Thursday came at a critical time for the Trump administration, as its polling numbers slide and as Americans grow more concerned about rising prices and markets in turmoil.

While the agreement has not been finalized and many details remain unclear, it sent shockwaves across a North American automobile industry already reeling from Trump's tariffs.

American Automotive Policy Council President Matt Blunt said Thursday that "it will now be cheaper to import a U.K. vehicle with very little U.S. content" than to bring in a vehicle from Canada or Mexico that complies with the Canada-U.S.-Mexico Agreement on trade and is half-constructed from American parts.

The council represents the Big Three automakers — Ford, General Motors and Stellantis — which have spent months pressing the Trump administration to drop tariffs.

"We hope this preferential access for U.K. vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors," Blunt said in a media statement.

When asked about the automobile industry's concerns on Friday, White House Press Secretary Karoline Leavitt said the president "wants to put them on the best pedestal to compete." She said if they want to avoid tariffs, they should build their products completely in America.

"I would argue, of any industry, the president has spent more time talking to and listening to the concerns of our auto industry here at home. He hears them. He believes in them," she said. "He wants to see them produce their vehicles here in the United States of America. This is a good deal for them, too."

The Canada-U.S.-Mexico Agreement, also called CUSMA, was negotiated during the first Trump administration and included boosted supports for the North American automobile industry. The industry is now being assaulted on all fronts by the president's tariff regime.

Trump slapped a 25 per cent tariff on all vehicle imports to the United States last month, but later ordered a partial carve-out for vehicles from Canada and Mexico compliant with CUSMA. Those cars only are hit with duties on their non-American components.

The North American automobile sector is deeply integrated and vehicles cross borders multiple times before completion. Experts say most vehicles finished in Canada are made with more than 50 per cent American parts.

After the automotive companies publicly warned that the tariffs would cost them billions of dollars, raise costs for consumers and upend businesses, Trump provided small measures of relief earlier this month, including an order excluding CUSMA-compliant auto parts from the tariffs.

The U.K. trade deal has many in the auto sector worried that the Trump administration's dash to make deals with dozens of other countries could further erode the continental auto industry.

"It's incomprehensible that the United States would strike a trade agreement with the U.K. that provides U.K.-manufactured vehicles with preferential access to the U.S. market over Canada," said Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers' Association.

"We have been building vehicles together for 60 years. We have an existing trade agreement … and the majority of the parts and components in a Canadian-produced vehicle are in fact American."

Kingston said Ottawa must act quickly to get the Trump administration to the table to talk about CUSMA and the integrated North American auto industry — and can't afford to wait while Washington makes deals with other countries.

Leavitt did not rule out lower tariffs on vehicles for other countries but said "all of these deals are going to be tailor-made."

Trump launched, then partially paused, his trade war with the world through "reciprocal" tariffs in April. A 10 per cent universal tariff is in place for most countries, while Trump slapped Chinese imports with a 145 per cent duty.

Trump has said the 90-day pause was meant to allow time to negotiate trade deals — but the United Kingdom's preliminary agreement was the first such announcement. Trump claimed on social media Thursday that he has "Many Trade Deals in the hopper, all good (GREAT!) ones!"

Wall Street drifts as it waits for a highly anticipated US-China meeting on trade

Wall Street drifts

Photo: AP Photo/Richard Drew

Specialist Michael Pistillo, left, works with traders Ryan Falvey, center, and Niall Pawa on the floor of the New York Stock Exchange, Friday, May 9, 2025. 

U.S. stocks are drifting Friday as Wall Street heads toward the end of an unusually quiet week.

The S&P 500 was up 0.4% in morning trading and on track to erase what had been a small loss for the week. This may be the first week in seven where the index at the heart of many 401(k) accounts moves by less than 1.5%, after swinging sharply first on fears about President Donald Trump’s trade war and then on hopes that he’ll relent on some of his tariffs.

The Dow Jones Industrial Average was up 86 points, or 0.2%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.6% higher.

The big event for the week is likely coming on Saturday, when trading will be closed in financial markets. That’s when high-level U.S. and Chinese officials will be meeting in Switzerland for their first talks since Trump launched an escalating trade war between the world’s two largest economies. The fear among investors and economists is that a recession could hit if the United States doesn't reach trade deals that lower tariffs by enough and quickly enough.

Trump on Friday floated the idea of bringing tariffs on Chinese imports down to 80% from their current 145% rate, but he said it’ll be up to Treasury Secretary Scott Bessent, who will be in Switzerland. While that would indeed be a reduction, it would still be high, and Trump’s posting on social media caused a brief jolt in financial markets. Futures for U.S. stocks sank immediately.

But markets later calmed as the wait continued for what U.S. and Chinese officials will say after their meeting.

Trump also talked up the potential for more trade deals that could be on the way, following his announcement the day before on an agreement with the United Kingdom.

“Many Trade Deals in the hopper, all good (GREAT!) ones!” he said on his Truth Social network.

In the meantime, the flow of earnings reports for the start of the year from companies is slowing but still moving the market.

Lyft rallied 20.3% after delivering a stronger profit for the latest quarter than analysts expected, though its revenue fell short. The company said it reached the highest weekly ridership levels in its history during the last week of March.

Taiwan Semiconductor Manufacturing, the chip giant known as TSMC, offered an encouraging report after saying its revenue in April leaped 48.1% from a year earlier. That sent its stock that trades in the United States up 1.8%.

Insulet jumped 15.8% for the biggest gain in the S&P 500 after the medical device company reported stronger results for the latest quarter than analysts expected. The company, which sells tubeless insulin pump technology, also raised its forecast for an underlying revenue trend for the full year.

They helped offset a 7.5% drop for Expedia. The travel website, which owns Vrbo and Hotels.com, reported a stronger profit than analysts expected, but it also said demand was weaker than it expected during the quarter. It highlighted softer-than-expected demand in the United States, as well as a nearly 30% decline in bookings from Canada to its southern neighbor.

Other travel-related companies, including Hilton and Airbnb, have reported a similar softening in travel demand to the U.S. in their recent earnings reports.

In stock markets abroad, indexes were higher in Europe after finishing mixed in Asia.

Stocks rose 0.4% in Hong Kong but fell 0.3% in Shanghai after China reported that its exports rose at a faster-than-expected 8.1% annual pace in April. Exports to the United States dropped more than 20%, however, as Trump’s steep tariff increases took effect. China is the world’s biggest exporter.

In the bond market, the yield on the 10-year Treasury edged down to 4.36% from 4.37% late Thursday.

Economy adds 7,400 jobs in April as unemployment rate rises to 6.9%

Unemployment rate rises

Photo: The Canadian Press

Signage marks the Statistics Canada offices in Ottawa on July 21, 2010.  

The national unemployment rate ticked up to 6.9 per cent in April as the manufacturing sector started to strain under the weight of tariffs from the United States, Statistics Canada said Friday.

The Canadian economy added 7,400 jobs last month, the agency said, slightly outpacing economist expectations for a gain of 2,500 positions.

But the unemployment rate also rose two tenths of a percentage point in April, topping economists’ call for a jobless rate of 6.8 per cent.

At 6.9 per cent, the unemployment rate is back at its recent high seen in November. Before then, the jobless rate had not hit that level since January 2017, outside the pandemic years.

While the economy did add jobs in April, the rising unemployment rate suggests employers were not hiring as quickly as Canada’s population was growing.

StatCan noted that’s a reversal of earlier this year, when strong employment gains coincided with slowing population growth.

Canada’s manufacturing industry led job losses in April, shedding 31,000 positions, with the bulk of the impact in Ontario.

The hit comes after the United States imposed tariffs starting in March on non-CUSMA compliant imports from Canada as well as sector-specific levies on steel and aluminum and automobiles.

Manufacturing-heavy Windsor, Ont., saw its unemployment rate jump 1.4 percentage points to 10.7 per cent last month, StatCan said.

The agency said the April figures show the first significant decline in manufacturing jobs since November, though employment levels for the industry remain steady year-over-year.

The wholesale and retail trade sector also lost some 27,000 jobs in April.

Offsetting the declines last month was a gain of 37,000 jobs in public administration, which StatCan said was largely temporary work tied to April’s federal election.

Average hourly wages rose 3.4 per cent in April, down slightly from 3.6 per cent in March.

Despite economic uncertainty tied to the U.S. trade dispute, most workers were telling StatCan they felt secure in their jobs.

Some 73.9 per cent of workers aged 15-69 disagreed when asked if they thought they’d lose their job in the next six months, though the proportion of those who felt otherwise was highest in industries reliant on exports to the United States.

Air Canada lowers financial forecast amid declining cross-border travel

Declining U.S. travel

Photo: The Canadian Press

An Air Canada aircraft taxis after landing at Tokyo's Haneda airport on Jan. 4, 2025.  

Air Canada is lowering its financial forecast for the year as travellers shy away from trips to the United States.

The country’s largest airline says it expects adjusted earnings of between $3.2 billion and $3.6 billion in 2025 versus the $3.4 billion to $3.8 billion range laid out earlier this year.

The Montreal-based company is reporting a net loss for the three months ended March 31 of $102 million compared with a loss of $81 million in the same period a year earlier.

Air Canada says first-quarter revenues dipped to $5.20 billion from $5.23 billion the year before.

On an adjusted basis, the airline says it lost 45 cents per diluted share last quarter versus a loss of 27 cents per diluted share a year earlier, beating analysts’ expectations.

Air Canada cut flight capacity to the U.S. over the past two months amid fallout from the tariff war, as Canadians cancelled trips and booked flights to spots outside America.

Telus reports Q1 profit up from year ago, raises quarterly dividend

Telus reports profit up

Photo: The Canadian Press

The Telus offices are seen in Ottawa on Friday, Aug. 4, 2023.  

Telus Corp. raised its quarterly dividend as it reported its first-quarter profit rose compared with a year ago.

The company says it will pay a quarterly dividend of 41.63 cents per share, up from 40.23 cents per share.

The increased payment came as Telus said it earned $321 million in net income attributable to common shares or 21 cents per diluted share for the quarter ended March 31.

The result compared with a profit of $127 million or nine cents per diluted share in the first quarter of 2024.

On an adjusted basis, Telus says it earned 26 cents per share in its latest quarter, the same as a year earlier.

Operating revenue and other income totalled $5.06 billion, up from $4.93 billion.