Business
Trump claims that a striking agreement between the US and Canada has temporarily halted tariffs.
US President Donald Trump announced late on Tuesday night that he was putting a three-day pause on new 50% tariffs set to go into effect on Canadian goods on Wednesday, saying the two countries had reached an agreement.
The pause was “based on the fact that Canada and the USA, subject to the finalisation of documents, have a DEAL,” Trump said in a post on Truth Social.
An hour later, Canadian Prime Minister Mark Carney said in a statement that “substantial progress has been made, although there is important work still to be done.”
Trump added in his social media post that the Keystone XL Pipeline – a project cancelled by former President Joe Biden in 2021 after years of indigenous and environmental opposition – “may be awoken from the grave,” but did not provide details.
Trump’s post came after he spoke with Canadian Prime Minister Mark Carney on Tuesday afternoon, their second conversation this week, and after weeks of intense, opaque negotiations.
Existing US auto tariffs had been a sticking point, two industry sources familiar with the talks said earlier.
The new US tariffs would have covered about $20 billion worth of imports and applied regardless of whether Canadian goods qualify for preferential treatment under the US-Mexico-Canada trade agreement, which has shielded much of Canadian industry from earlier US tariffs.
‘Billions of dollars at stake’
Trade experts and industry officials say new tariffs could lead to job losses and business closures in vulnerable sectors, including lumber, wine and dairy. They also warn the dispute could complicate broader USMCA negotiations.
“There are billions in goods per year that were not impacted before, but now are at risk of being impacted significantly,” said Candace Laing, CEO of the Canadian Chamber of Commerce.
“Businesses have been doing a high-wire act for well over a year, holding off on hiring, investment and growing in Canada,” she said.
Canada’s minister responsible for US trade, Dominic LeBlanc, and chief trade negotiator Janice Charette have been in Washington since last week for talks.
On Monday, the Canadian officials met for nearly two hours with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Greer has repeatedly cited Canada’s tariffs that followed initial US tariffs, some provinces’ refusal to stock US liquor and Canada’s dairy supply management system among US grievances.
Two sources said one of the main sticking points was US tariffs on Canadian vehicles.
The sides have discussed cutting US Section 232 tariffs on Canadian vehicles to 15% from 25%, with further reductions based on the amount of US content in each vehicle, the sources said.
The details of the deal touted by Trump remained unclear.
Counting tariff deductions
A major point of contention was how tariff deductions based on content should be calculated, with Washington demanding that only US-produced content be counted. Canada pushed for all North American content, including Canadian and Mexican parts, to be counted, the sources said.
Earlier on Tuesday, the US Commerce Department released new rules for automakers exporting from Canada and Mexico to certify their current levels of US content for tariff deductions, reducing the complicated exercise to once per year from twice.
But the Federal Register notice said automakers must re-certify vehicles’ American content by September 30 for them to claim deductions in the new annual cycle starting December 1.
A Canadian government source said last week that all options remained on the table if the new tariffs take effect, including government support for affected domestic industries and a possible suspension of bilateral trade talks, but the source expressed hope that the US was keen to reach a deal.
Business
Pakistan sees 66pc drop in terrorist attacks over five weeks: Report
The security forces have conducted effective operations in Khyber Pakhtunkhwa and Balochistan which have resulted in a steep drop in the number of terrorist strikes.
The Pakistan Institute for Conflict and Security Studies (PICSS) said in a new report that terrorist assaults had fallen by about sixty-six percent in a five week period.
The report claimed attacks reduced to 21 between October 16 and 22, from 61 registered between September 18 and 24.
There was also a week-on-week drop of 38 per cent in militant attacks from October 16-22. In such attacks, the number of people injured fell from 20 in the previous week to 11 in the same period, a fall of 45 percent.
PICSS said security forces have conducted 10 operations in which 33 insurgents were killed.
The research also looked at the effect of an internal leadership struggle in Fitna al-Hindustan and changes in the propaganda approach of Fitna al-Khawarij on the militant scene.
The data show that insurgent activity has gone down throughout the review period, but security challenges continue in regions of the country.
Business
FinMin says Pakistan has sufficient oil, energy supplies until Nov
Finance Minister Muhammad Aurangzeb said that Pakistan’s crude oil and other energy supplies are satisfactory. He said the government has made sufficient provisions to cover the country’s energy needs till November and further efforts are being taken to secure supply during winter.
Aurangzeb remarked while addressing a ceremony at a private university in Lahore that Pakistan has not had an energy shortage and there were no queues at gas stations or law and order issues due to an energy crisis.
He did acknowledge, however, that more had to be done to satisfy the country’s gas and liquefied natural gas (LNG) needs.
Talking about the economic performance of the country, the finance minister said that the information technology (IT) export services of Pakistan increased from one billion dollars to 4.6 billion dollars. “We expect IT exports to reach $5.5 billion in the current fiscal year,” he continued.
Aurangzeb said foreign exchange reserves were sufficient to cover more than three months of imports and had reached a record high. He recalled that at one time the reserves had dropped to the equivalent of only two weeks’ imports.
Pakistan’s credit rating has improved three times since April last year and the administration had taken major steps to recover access to international financial markets, he said.
Pakistan carried out a private placement in April this year, tapped the international markets by the issuing of Panda bonds and issued bonds worth three billion euros in the first week of September, the minister said.
Investors from Asia, the Middle East, Europe and the United States showed interest, he said, adding that orders received from investors for Pakistan’s euro bonds were twice the amount offered.
Aurangzeb also said that international investors were reviewing Pakistan’s economic outlook after its interaction with the International Monetary Fund (IMF). The current IMF program is due to expire in October next year, he noted.
On energy supplies, the minister said Pakistan had taken adequate measures for energy procurement and supplies in spite of regional crises. Arrangements were made to meet requirements until November and preparations were in hand for the winter season.
The finance minister said the administration has opted for targeted subsidies instead of blanket subsidies so that the assistance reaches the deserving part of the community.
He said that motorbikes, three wheelers and automobiles with engines below 800cc were given targeted incentives. So far, the relief had reached around 12 million distinct beneficiaries, while an estimated 40 to 50 million people across the country had benefited altogether.
“Pakistan is continuing structural reforms along with efforts to maintain economic stability, and reforms have moved beyond the planning stage and are now being implemented,” Aurangzeb added.
Business
Gold prices drop for fifth day as global rates fall below $4,000
Gold prices in Pakistan continued to tumble on Saturday, recording a fifth straight day of losses as international bullion prices fell below the critical $4,000 per ounce threshold.
The All Sarafa Association said the continued decrease drove gold to a five-month low in both domestic and international markets.
In the local market, the price of 24-carat gold declined by Rs2,500 per tola to Rs422,036. The price of 10 grams also decreased by Rs2,144 to Rs361,686.
The current cut is the latest in a run of sustained deterioration in bullion prices with the domestic market mirroring the slide in foreign rates.
World prices
International gold prices also saw another downturn, dropping by $25 per ounce to $3,995. The move sent bullion below the psychologically important $4,000 barrier, boosting pressure on local prices.
Gold prices fell for the fifth consecutive day in global and domestic markets. The group said the latest numbers “show the scale of the recent retreat” with prices dropping to their lowest in five months.
The jewellery markets in Pakistan observe the international bullion movements closely as global price changes affect local rates, alongside currency fluctuations and other market considerations.
Silver drops
Also prices of silver also came down in domestic trade. Silver prices decreased by Rs7 per tola to Rs5,858.
The simultaneous fall in gold and silver is a reflection of the wider weakness seen across the local precious metals market.
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