U.S. Stocks Rally on Resumption of Trade Talks with Canada
(MENAFN) US stocks surged Monday, driven by investor optimism following Canada's decision to withdraw its digital services tax (DST), paving the way for renewed trade discussions with the US.
The Dow Jones Industrial Average gained 0.63%, or 275.5 points, ending at 44,094.77, while the Nasdaq Composite rose by 0.48%, climbing 96.28 points to close at 20,369.73. The S&P 500 saw a 0.52% increase, or 31.88 points, closing at a new record high of 6,204.95—marking another milestone after reaching a peak just days earlier.
In a surprise move late Sunday, Canada revealed it would rescind its DST, with plans to restart negotiations aimed at reaching a trade agreement with the US by July 21.
“Today’s announcement will support a resumption of negotiations toward the July 21, 2025 timeline set out at this month’s G7 Leaders’ Summit in Kananaskis,” Canadian Prime Minister Mark Carney said in a statement.
He added, “In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses.”
Meanwhile, US President Donald Trump’s top economic advisor, Kevin Hassett, confirmed Monday that trade talks with Canada were "immediately" resuming following Canada's decision to halt the DST.
The shift in talks comes after Trump’s declaration on June 27 to end trade discussions over the controversial DST. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump had stated at the time.
On a separate note, Trump also ramped up pressure on Japan, threatening to impose higher tariffs, citing Japan’s refusal to import US rice while facing a “massive” domestic rice shortage.
He stated that the US would be sending Japan a letter, which he had previously indicated would outline tariff demands and trade conditions.
With the July 9 tariff deadline approaching, investors remain on edge, awaiting further announcements regarding trade deals.
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