Canada Doubles Tariffs on US Steel Products up to 50% | Balance of Power 08/25/2026

Watch on YouTube ↗  |  August 25, 2026 at 23:15  |  49:47  |  Bloomberg Markets
Speakers
Doug Ford — Premier of Ontario
Ted Cruz — Senator (R-TX)
Kathy Warden — Chair, CEO and President, Northrop Grumman
Michael Faulkender — Former Deputy Secretary of the U.S. Treasury
Norah Mulinda — Market Reporter, Bloomberg

Summary

The episode covers the intensifying US-Canada tariff fight, with Ontario Premier Doug Ford calling for a fair deal and warning of damage to the integrated auto sector. Senator Ted Cruz sees tariffs as leverage for more trade and supports AI/data center buildout. Former Treasury Deputy Secretary Michael Faulkender discusses Fed policy, US debt, and Iran sanctions, while Northrop Grumman CEO Kathy Worden makes a bullish case for global defense demand.

  • Canada doubles counter tariffs on US steel and aluminum products up to 50%.
  • Doug Ford says Ontario will answer tariff-for-tariff and warns the auto sector is already hit by $110 billion.
  • Ted Cruz expects a US-Canada deal and more US farm exports; he says tariff threats should open markets.
  • Cruz supports data center buildout and views China as funding anti-data-center efforts to win the AI race.
  • Michael Faulkender says Warsh should reinforce the 2% inflation goal and should not hike rates on energy-driven inflation.
  • Faulkender flags US debt service crossing $1 trillion and calls Treasury buybacks marginal.
  • Kathy Worden says global defense demand is the strongest in years, with bipartisan US funding and Europe/Middle East/Asia growth.
Ideas
Doug Ford Premier of Ontario 5:01
Tariff war hurts North American autos.
The escalating US-Canada tariff war is already hurting the deeply integrated North American auto sector, which Ford says has been hit by $110 billion. Because Canada is the largest export market for US vehicles, autoworkers in Texas, Kentucky, Michigan, Illinois, and Ohio would lose jobs if trade friction continues, making the sector unattractive until a fair deal is reached.
XLI MED
Ted Cruz Senator (R-TX) 14:09
US-Canada deal lifts farm exports.
Cruz argues the tariff threat should be used to open markets rather than keep tariffs high, and he expects a US-Canada deal to result in more American exports of beef, corn, soybeans, other goods, and American booze, supporting US farm commodity demand.
CORN SOYB COW MED
Ted Cruz Senator (R-TX) 15:40
Support US data center/AI buildout.
Cruz says it is critical that America win the AI race and warns that Chinese money is funding opposition to US data center construction in order to cede AI leadership to China. He supports data center buildout with guardrails on water and power costs, making the data center/AI infrastructure theme a positive policy setup.
DTCR MED
Michael Faulkender Former Deputy Secretary of the U.S. Treasury 29:46
Rising US debt pressures Treasury bonds.
Faulkender highlights that federal debt service has surged from about $300 billion annually to over $1 trillion in six years, deficits are not projected to improve, and neither party is serious about the 3% deficit target. He believes the market is finally focused on US debt, implying long-term Treasury bonds remain pressured by fiscal risks.
TLT MED
Michael Faulkender Former Deputy Secretary of the U.S. Treasury 34:26
Iran sanctions target Chinese oil buying.
Faulkender says the US is shifting from military strikes to economic sanctions against Iran and signals that China will have to stop being the primary purchaser of Iranian oil or face consequences beyond targeting teapot refineries, creating an event-driven supply-risk setup for crude oil.
WTI MED
Kathy Warden Chair, CEO and President, Northrop Grumman 35:14
Global defense demand strong; Northrop benefits.
Northrop Grumman sees the strongest defense demand environment in a long time, with bipartisan US defense appropriations, Europe's sustained security spending after Russia's invasion of Ukraine, elevated Middle East demand, and growing Asia demand. International defense investments are opening opportunities for Northrop and the defense sector.
NOC ITA HIGH
Up Next
24:49
You Can’t Fire a VC From Your Board: Here’s Why | Wilson Sonsini Startup Legal Basics
This Week in Startups · Aug 25
1:35:23
POR QUE TANTAS EMPRESAS ESTÃO PEDINDO RECUPERAÇÃO JUDICIAL? | Market Makers #404
Market Makers · Aug 25
31:21
NVIDIA Earnings D-1, 'This' is More Important Than the Numbers... AI Semiconductor Demand Hasn't Broken Yet | Kim Jang-yeol, Head of Research Center, Unistory Asset Management [Global Interview]
3PRO TV (삼프로TV) · Aug 25
5:02
Investor Peter Boockvar sees merit to Druckenmiller’s WSJ op-ed bashing Bessent’s bond ploys
CNBC · Aug 25
1:11:41
Five Reasons the Bubble Will Burst in 2027 | WAYT?
The Compound News · Aug 25

This Bloomberg Markets video, published August 25, 2026, features Doug Ford, Ted Cruz, Michael Faulkender, Kathy Warden discussing XLI, CORN, SOYB, COW, DTCR, TLT, WTI, NOC, ITA. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Doug Ford, Ted Cruz, Michael Faulkender, Kathy Warden  · Tickers: XLI, CORN, SOYB, COW, DTCR, TLT, WTI, NOC, ITA