US to Impose 100% Tariffs on Non-US Film Industry, Targeting Netflix, Disney, and Amazon

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3710-1.3940

Euro                 1.5530-1.5770

Sterling            1.8330-1.8750

WTI Oil (opening level) $58.31

The CAD/USD is opening at 1.3817 ( 0.7237 )

Headlines

• China’s Caixin services PMI fell to 50.7, the lowest in seven months, as US tariff impact bites.

·    Trump announced he would impose 100% tariffs targeting the non-US film industry, impacting companies such as Netflix, Disney, and Amazon.

·    US rejected Japan's request for full exemption from 'reciprocal' tariffs but may lower the 14% Japan-specific tariff. US officials told Japan's negotiator that only a cut in the 14% tariff, suspended until early July, is negotiable. The US may extend the suspension or reduce the tariff based on negotiation progress, according to sources.

·    The US ISM Services PMI rose to 51.6 in April 2025 from 50.8 in March, surpassing expectations of 50.6. New orders and inventories increased, while business activity stayed in expansion (53.7 vs 55.9). Employment contracted less sharply (49 vs 46.2). Supplier delivery slowed (51.3 vs 50.6), and price pressures hit their highest since February 2023 (65.1 vs 60.9).

·    S&P Global Canada Services PMI increased slightly to 41.5 in April from 41.2, marking a fifth consecutive contraction. New business and output fell near five-year lows due to uncertainty over US tariffs and the upcoming election. Firms faced job losses for the fourth month amid excess capacity.

Key Points

·    Equities: US breaks winning streak; DAX climbs; tariff worries linger; Fed meeting eyed

·    Volatility: VIX and short-term volatility elevated; cautious sentiment ahead of Fed

·    Digital assets: Bitcoin slightly lower; Strategy boosts BTC holdings; VanEck files BNB ETF; Solana patches security flaw

·    Fixed Income: A quiet market after the recent sharp backup in US Treasury yields.

·    Currencies: USDCNH sell-off fails to find fresh momentum, USD choppy ahead of FOMC meeting tomorrow.

·    Commodities: China reopening drives fresh gold demand; Crude recoup Monday’s losses