Ontario Hits Back at US Tariffs

Travel Tuesday: Madrid

Madrid is home to one of the first skyscrapers in Europe, the Telefónica Building, located on Gran Vía. Completed in 1929, it stood as the tallest building in Europe at the time. This iconic structure is a blend of American and Spanish architectural styles and remains a significant landmark in Madrid.

Population 6.8 million people in its metropolitan area.

Location Situated in the centre of Spain on the Manzanares River, at an elevation of about 650 meters (2,130 feet) above sea level.

Culture & Landmarks Museo Nacional del Prado, Royal Palace of Madrid, and El Retiro Park. The city is known for its vibrant arts scene, historical squares like Plaza Mayor, and lively neighbourhoods.

Coat of Arms The coat of arms of Madrid features a bear leaning against a strawberry tree, surrounded by seven stars. This symbol represents the city's strength and resilience.

Historical Significance Madrid has a rich history dating back to the 9th century, originally known as Mayrit. It became a significant town in the Crown of Castile and later developed as an administrative centre when the court of the Hispanic Monarchy was settled there in 1561.

Football Home to one of the most famous football rivalries, the Madrid Derby, between Real Madrid and Atlético Madrid. This rivalry is deeply embedded in the city's identity and is known for its intense matches.

Ontario Hits Back at US Tariffs

Ahead of Mark Carney being sworn in as Canada’s next Prime Minister and promising to go firm on Trump’s tariffs by issuing reciprocal polices, retaliatory tariffs are already being at the Canadian provincial level.

Yesterday, Douglas Robert Ford Jr – the premier of Ontario and leader of the Progressive Conservative Party – announced that the province would issue a retaliatory 25% surcharge on any electricity being exported to the US.

The former businessperson turned politician said that "President Trump's tariffs are a disaster for the U.S. economy” and criticised how “they're making life more expensive for American families and businesses".

According to Ford, the measures will rise costs by some $10 per megawatt-hour for US customers, and its understood that the policy will most affect the states of Michigan, New York and Minnesota.

Ford has been particularly outspoken against Trump, and earlier this month warned that “if [the tariffs] go further into April, then we'll cut off their electricity”. He has also pursued a hawkish stance towards US firms in light of recent developments, prohibiting some US companies from bidding on infrastructure plans across the province.

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BRC: UK Retail Sales Miss Expectations

?The BRC Retail Sales Index fell well shy of expectations this morning, rising by just 1.1% on an annualised basis.

With the market consensus projecting a 2.4% print, the BRC noted that growth was flat across non-food sales as consumer confidence remained cautious.

?Here, the CEO of the BRC Helen Dickinson said that “This weak performance makes many retailers uneasy, especially as they brace for ￡7bn of new costs from the Budget and packaging levy in 2025, as well as the potential impact of the Employment Rights Bill.

With the UK’s retail sector accounting for ￡112.8 billion of economic output in 2023 (or around 4.9% of the country’s GDP), today’s figures reveal the scale of the challenges still facing this major part of the economy.

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Is US Exceptionalism Over?

US equity markets experienced one of its largest one-day wipe-outs since November 2022 on Monday. This followed a press conference with President Donald Trump where he was scrutinised for his recent contentious geopolitical affairs. During the interview he stated that America was in “a state of transition” when questioned about the potential recession that the US may face on the back of his latest flurry of tariffs. Mr Trump appeared to actively avoid questions about recession concerns saying that he “hate(s) to predict things like that”.

Following Trumps comments, the already tentative US equity investors from the previous week rapidly divulged into a state mass exodus as recession fears proliferated across Wall Street.

The Standard & Poor Index of the top 500 companies in the US fell 2.7% on the day, the Dow Jones Industrial average dropped 2% and the Nasdaq ended the day 3.84% down.

In just the Nasdaq alone, a dizzying $1.1 trillion was wiped clean off the table.

It is evident that US relative strength is beginning to be syphoned away and redirected elsewhere. One notable beneficiary has been Asian equities.

According to Bloomberg, China’s version of the ‘Mag 7’, that includes tech heavyweights like Alibaba and Tencent, have rallied as an index more than 30% this year. The US equivalent has lost 15% over the same period. “US exceptionalism is starting to unravel – you want to preserve capital in this environment” said Kelly Wood, Schroders Plc.

President Trumps recent policies, press conferences, interviews, and ‘strategic’ diplomatic consultations with world leaders, if anything, has spurred a shift away from US assets. This directly contradicts his 'America first' mantra.". The irony is palpable.?