Markets on Edge: Trump’s Trade War, Canada’s Revenge & EV Competition Intensifies

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Dear Money Master,

This week, we’re diving into TSMC & Trump’s massive $100 billion semiconductor investment, fresh Eurozone inflation data, and the ongoing EV boom led by Chinese automakers. But the biggest market shake-up? Canada’s aggressive response to Trump’s new tariffs—with C$155 billion in counter-tariffs hitting U.S. goods.

In our Deep Dive, we break down the rising trade war, who gets hurt, who benefits, and what investors should watch next. 🚢📉

📰 Your Daily Financial Digest - March 5th, 2025

🌍 Economics & Finance:

1. BlackRock Leads $23B Takeover of Panama Canal Ports 🚢
   A BlackRock-led consortium is acquiring key Panama Canal port assets, gaining control of vital shipping routes. The deal boosts trade efficiency and expands BlackRock’s influence in global infrastructure. Read More

2. Trump and TSMC unveil $100B plan for five new U.S. chip factories 🏗️
   The investment aims to boost domestic semiconductor production, reducing reliance on Asia. Arizona is expected to be a major beneficiary of this expansion. Read More

3. US Mortgage Demand Surges 20% as Rates Drop 🏡
   The average 30-year fixed mortgage rate fell to 6.73%, the lowest since December 2024, sparking a 20% jump in applications. Refinancing surged 24% as borrowers seized lower costs. Read More

4. Trump tariffs hit Canada, Mexico, and China 📦
   Tariffs on steel, aluminum, and auto parts from these countries have officially kicked in. Industries relying on imports could see increased costs. Read More

💻 Technology:

1. Xpeng delivers over 30,000 EVs for the fourth straight month 🚗
   The Chinese automaker continues its strong sales momentum, outpacing rivals like Nio and Li Auto in the competitive EV market. Read More

2. Samsung gears up to launch ‘Project Moohan’ AR headset 🕶️
   Samsung’s upcoming AR/VR device aims to rival Apple Vision Pro, featuring advanced spatial computing and a custom Exynos chip. Read More

3. BYD raises $5.59 billion in Hong Kong’s biggest share sale in four years 💰
   The EV giant’s capital raise will fund global expansion and next-gen battery tech, solidifying its lead over Tesla in China. Read More

4. Qualcomm Touts ‘Huge Delta’ Over Apple with New Modem 📶
   Qualcomm’s CEO claims its latest modem outperforms Apple’s, offering faster speeds, better efficiency, and superior connectivity. The chip giant aims to maintain dominance as Apple develops in-house alternatives. Read More

💹Earnings:

1. Saudi Aramco reports a decline in full-year profit, cuts dividend 📉
   Lower oil prices led to a drop in earnings, forcing the oil giant to scale back shareholder payouts. Read More

2. Best Buy earnings surpass expectations 💻
   The retailer beat revenue and EPS estimates, with strong demand for AI-powered devices despite ongoing economic uncertainty. Read More

3. Target earnings reflect cautious consumer spending 🛒
   Sales were weaker than expected, with shoppers focusing on essentials rather than discretionary items. Read More

4. CrowdStrike Crushes Q4 Estimates, Stock Jumps 🚀 
   The cybersecurity firm reported $845 million in revenue, a 33% YoY increase, and EPS of $0.95, beating expectations. Strong demand for AI-powered security drove growth. Read More

5. Okta Surges on Strong Q4 Earnings 📈
   The identity management company posted revenue of $667 million, up 19% YoY, and EPS of $0.63, exceeding analyst forecasts. Improved customer retention boosted its outlook. Read More

🔍 Deep Dive: Canada Strikes Back – The Tariff War Escalates 🚢

What Happened?

With Trump’s new tariffs on Canadian steel, aluminum, and auto parts officially in place, Canada is striking back. Prime Minister Justin Trudeau announced C$155 billion (US$107 billion) in retaliatory tariffs targeting U.S. goods, hitting key sectors of the American economy. Mexico is also preparing countermeasures against Trump’s 25% tariffs on all its imports.

Canada’s Retaliatory Tariffs 📉

🔹 Effective Immediately – A 25% tariff on C$30 billion worth of American imports, including industrial materials (e.g., steel, machinery), agricultural products (e.g., beef, pork, grains), and consumer goods (e.g., beer, wine, appliances).
🔹 In 21 Days – The remaining C$125 billion in tariffs will target additional U.S. products like energy exports (e.g., oil, natural gas), motor vehicles, and lumber, escalating the trade standoff.

Mexico’s Response 🇲🇽

🔹 Pending Retaliation – President Claudia Sheinbaum plans retaliatory tariffs on U.S. goods like agricultural exports (e.g., corn, soybeans) and manufactured products (e.g., electronics, vehicles), with details due by March 9 if talks with Trump on March 6 fail.

Who Gets Affected?

🔹 U.S. Manufacturers: Higher Canadian and Mexican tariffs could reduce exports of steel, vehicles, farm goods, and tech, hurting American businesses reliant on cross-border trade.
🔹 Canadian Consumers: Prices may rise for U.S. imports like food staples, electronics, and building supplies.
🔹 Investors: Stocks in automotive, agriculture, and energy sectors could see volatility, with retaliatory actions spreading to Mexico and China.

What’s Next?

As tensions rise, more retaliatory tariffs from Canada, Mexico, and potentially China could escalate this into a broader trade war, disrupting North American supply chains, driving inflation, and pressuring corporate profits. Markets will be watching how negotiations unfold. 📉

The Supply Chain Crisis Is Escalating — But This Tech Startup Keeps Winning

Global supply chain chaos is intensifying. Major retailers warn of holiday shortages, and tech giants are slashing forecasts as parts dry up.

But while others scramble, one smart home innovator is thriving.

Their strategic move to manufacturing outside China has kept production running smoothly — driving 200% year-over-year growth, even as the industry stalls.

This foresight is no accident. The same leadership team that saw the supply chain storm coming has already expanded into over 120 BestBuy locations, with talks underway to add Walmart and Home Depot.

At just $1.90 per share, this resilient tech startup offers rare stability in uncertain times. As investors flee vulnerable companies, this window is closing fast.

SECURE YOUR POSITION BEFORE PRICES RISE

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To your financial empowerment, The Money Masters Team

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Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.