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Trump plans 25% tariffs on Mexico and Canada on Feb. 1. (00:24) Belgium said to begin probe into DRC’s allegations of Apple using conflict minerals. (02:02) Costco union workers vote in favor of strike. (02:58)
This is an abridged transcript.
President Trump threatens to levy tariffs on Mexico and Canada as early as February 1, 2025.
He said to the members of the press in the Oval Office, “We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in, and fentanyl to come in.”
Canada and Mexico are the United States’ two largest trading partners.
Last year, the US imported $475 billion worth of goods from Mexico and $418 billion from Canada, collectively accounting for 30% of the value of all the goods the US imported last year, according to federal trade data.
Meanwhile, the US exported $354 billion worth of goods to Canada last year and $322 billion to Mexico, accounting for a third of the value of all goods the US exported last year.
Canada has created an initial list of $105B (C$150B) in goods made in the U.S. that will be subject to tariffs should the Trump administration hit Canadian products with import tariffs.
(USD:CAD) +0.74% to $1.44165. The greenback increased after Trump announced tariffs on Mexico and Canada.
The President also signed his first executive orders at the Capitol, after he took the oath of office on Monday, including revoking 78 executive actions from the Biden administration.
Trump’s executive actions is the top story in the Wall Street Breakfast newsletter, our daily one-page news summary. You can find a link to sign up for the newsletter in show notes.
Belgium is moving ahead with its investigation into allegations by the Democratic Republic of Congo that Apple (NASDAQ:AAPL) uses conflict minerals from the African country in its supply chain.
The Financial Times reported that Belgium has appointed an investigative magistrate to oversee the case.
In December the DRC filed criminal complaints against Apple’s (NASDAQ:AAPL) subsidiaries in France and Belgium over the alleged use of “blood minerals” sourced in sub-Saharan Africa. France has yet to proceed on the case.
They claimed the use of such minerals “fueled a cycle of violence and conflict by financing militias and terrorist groups, and have contributed to forced child labor and environmental devastation.”
These so-called 3TG minerals – tin, tantalum, tungsten and gold – are used in different products including smartphones and computers.
Apple (AAPL) said it “strongly disputes” the DRC’s claims.
Teamsters members at Costco (NASDAQ:COST) have voted to authorize a strike by an 85% margin.
The current labor contract, which covers more than 18,000 Costco (NASDAQ:COST) workers, will expire on January 31. The final week of negotiations began on Monday.
Teamsters general president Sean O’Brien said, “From day one, we’ve told Costco (COST) that our members won’t work a day past January 31 without a historic, industry-leading agreement. Costco’s greedy executives have less than two weeks to do the right thing.”
Costco’s (COST) unionized workers held practice pickets nationwide last week in preparation for a potential strike, including Long Island and San Diego.
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Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is down 1.1% at $75/barrel. Bitcoin is down 4.5% at $102,000.
In the world markets, the FTSE 100 is flat and the DAX is down 0.1%.
The biggest movers for the day premarket: Innovate (VATE) shares jumped 22.7% after it got approval from FDA for MediBeacon TGFR for the assessment of kidney function in patients with normal or impaired renal function.
On today’s economic calendar: