HEADLINES

National Bank of Canada Quarterly Earnings Rise On Back of Broad Growth

National Bank of Canada logged a jump in earnings in the latest quarter thanks to growth in each of its business segments and despite a rise in credit-loss provisions.

Net income rose for the third quarter to C$1.31 billion, or C$3.25 a share, from C$1.07 billion, or C$2.58 a share, a year earlier.

Excluding items related to a pair of acquisitions that have expanded National Bank's footprint in Canada, adjusted earnings were up 26% at C$3.39 a share for the three months to July 31, ahead of the C$3.21 mean estimate of analysts polled by FactSet.

Shares fell 4.2% to C$213.18.

Enbridge in $600 Million Deal for Oil-Gathering Business, Expanding Foothold in Permian Basin

Enbridge is extending deeper into America's prolific Permian oil patch with a $600 million deal to buy Salt Creek Midstream's crude-gathering business.

The Canadian energy company said it struck a definitive cash deal to buy the business, which includes about 500 miles of oil-gathering infrastructure in the core of the Delaware Basin, one of the most competitive crude-producing regions in North America. The acquisition will provide a direct connection between oil production in the Permian Basin and the Enbridge Ingleside Energy Center, North America's largest crude export terminal.

The deal comes amid a flurry of consolidation in the U.S. shale industry as oil and gas producers seek to grow their foothold or snap up assets that large energy companies look to sell after mergers.

Ford Calls on Ottawa to do More to Help Tariff-hit Steel and Auto Sectors

Ontario Premier Doug Ford said Ottawa needs to do more to help his province's tariff-hit steel and auto sectors weather the trade war with the U.S., and should exempt them from federally required carbon taxes while also ending tailpipe emissions standards, The Globe and Mail reported.

Speaking to reporters in Vaughan, Ontario, north of Toronto, Ford also denied that his opposition to a tentative deal last week - and his refusal agree to a U.S. precondition to end his ban on U.S. liquor and wine sales - amounted to a veto that scuppered negotiations.

And despite publicly trading personal insults with the U.S. president this week, Ford urged Ottawa to get back to the bargaining table, saying Prime Minister Mark Carney and Donald Trump need to speak by phone to restart talks.

Carney to Address EU Parliament in Push to Grow Non-U.S. Ties

Mark Carney will address the EU Parliament next month in Strasbourg, France, as the prime minister makes efforts to expand Canada's ties with other partners amid trade tensions with the United States, The Globe and Mail reported.

The Prime Minister's Office said in a statement that Carney's trip will also include attending the European Union's annual State of the Union address by European Commission President Ursula von der Leyen, scheduled for Sept. 16.

TALKING POINT

Detroit Needs Canada More Than Rest of the U.S. Does

By Ryan Felton and Christopher Otts

The reignited trade war between the U.S. and its northern neighbor hit a fever pitch this week after President Trump proclaimed, "We don't need Canada, they need us."

The American auto industry, however, views things differently.

Detroit's carmakers in particular could see some of their most profitable products walloped if Trump follows through on a threat to double tariffs on cars and auto parts from Canada to 50% from 25%.

Stellantis assembles the Chrysler brand's popular Pacifica minivan just across the border in Windsor, Ontario. General Motors produces pickup trucks at a factory in Oshawa, Ontario. Ford is set to begin making F-Series Super Duty trucks later this year at a plant near Toronto in Oakville, in addition to at a factory in Kentucky. And Ford and GM each produce engines in Canada for trucks and SUVs sold in the U.S.

Canada-the U.S.'s second-largest trading partner-accounted for 8% of North American vehicle production in 2025, according to industry-data provider Omdia. While that is down from about 13% a decade ago as jobs and production have moved to Mexico and the U.S., the country remains a key maker of cars and parts-not to mention a buyer of them. Canada is the biggest export market for larger American trucks.

UBS analysts said Honda and Toyota would be most exposed to increased tariffs, with Canadian imports accounting for roughly one out of every 10 vehicles the companies sell in the U.S.

Automakers, for now, view the Jan. 1 deadline set by Trump as a sign that the higher levies are less a threat and more of a negotiating tactic with Canada, people familiar with the companies' thinking say. Most are waiting to see how the talks develop before considering reassessing their production strategies, the people said.

Ford, Stellantis, Honda, Toyota and GM declined to comment.

Still, there is reason for concern. Stephen Beatty, a former vice president at Toyota's Canada division, said one of Canada's most effective responses would be to ratchet up tariffs on full-size U.S. pickups, such as Ford's F-150, if Trump follows through with his threat.

"Canada is not without its options here," Beatty said. "Hopefully, we don't get to that point."

Thomas Kowal, chief executive of Michigan auto parts maker Leggera Technologies, said his company could benefit from the proposed tariffs, since its magnesium parts compete with aluminum from Canada.

"My greater concern is the broader manufacturing industry," Kowal said, citing years of disruptions from the Covid pandemic, inflation and tariffs. "I worry about how much additional pressure the industry can absorb."

The prospect of tariffs doubling on vehicle imports from Canada also is happening amid talks of overhauling the North American trade deal, known as the U.S.-Mexico-Canada Agreement, or USMCA, a pact that is crucial to the U.S. auto industry's day-to-day business.

"We urge U.S. and Canadian negotiators to reach a deal that enhances North American auto competitiveness and brings about a successful USMCA review," said Matt Blunt, head of the American Automotive Policy Council, a trade group that represents GM, Ford and Stellantis.

Trump first hit Canadian imports with tariffs, including steel and vehicles, early in his second term, prompting Canada to levy retaliatory duties on American-made cars and metal products. Cars and parts from Canada, which cross borders several times before being put inside a vehicle, are currently subject to a 25% tariff, with some relief on parts that comply with stringent USMCA requirements.

Detroit's automakers have responded to tariff ups and downs by planning to onshore production of certain vehicles and parts to the U.S. Most recently, Stellantis has indicated it is eyeing the sale of a Toronto-area factory, following pressure from Trump for companies to relocate more operations to the U.S., a union representing Canada's auto workers said this month.

However, moving auto production from one factory to another is neither quick nor easy. Reshoring efforts can take years-a daunting prospect when tariff rates fluctuate often.

Barclays analyst Dan Levy said that Canadian production accounts for about 6% of U.S. auto sales, so a 50% tariff on vehicles is "likely manageable." But a key question remains on whether parts compliant with the USMCA, the trilateral trade pact, would continue to be exempt from levies, Levy wrote in a note Monday. "We believe there is a significant lack of clarity on this point."

The U.S. declined to renew the USMCA in July, prompting a review of the trade pact. Trump then threatened to hit $20 billion worth of Canadian goods with 50% tariffs, in part to force the Canadian government to the negotiating table.

Trump said last week that a deal was close that would result in tariffs on Canadian vehicles dropping to 15%. However, Canadian Prime Minister Mark Carney said talks fell apart after U.S. officials sought to deny tariff relief to medium- and heavy-duty vehicles, which would make the country's auto industry less competitive over time.

United Auto Workers President Shawn Fain, a supporter of Trump's existing automotive tariffs, said the latest threat against Canada is misguided and suggested tougher trade action against other countries.

"If we're going to increase tariffs anywhere, it should be on countries where automakers continue to offshore jobs because they can pay workers $3 an hour, force them to work in unsafe conditions, and crack down on independent unions," Fain said Tuesday.

Warren Browne, an industry consultant, said car sales would likely fall next year if the tariff increase goes into effect, assuming automakers respond with increases in sticker prices and shipping charges.

"The U.S. and Canada will both face serious hardship if this scenario becomes policy," Browne, a former GM executive, said Tuesday in a note.

Write to Ryan Felton at ryan.felton@wsj.com and Christopher Otts at christopher.otts@wsj.com

Expected Major Events for Thursday

06:00/GER: Sep GfK consumer climate survey

06:45/FRA: Jul PPI

08:30/UK: Jul Capital issuance statistics

08:59/JPN: Aug Monthly Economic Report

12:30/CAN: Jun Payroll employment, earnings and hours, and job vacancies

12:30/CAN: 2Q Balance of Payments

12:30/US: 08/22 Unemployment Insurance Weekly Claims Report - Initial Claims

12:30/US: U.S. Weekly Export Sales

12:30/US: Jul Advance Economic Indicators Report

13:00/RUS: Weekly International Reserves

14:30/US: 08/21 EIA Weekly Natural Gas Storage Report

15:00/US: Aug Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing

20:30/US: Federal Discount Window Borrowings

20:30/US: Foreign Central Bank Holdings

23:30/JPN: Aug CPI (Tokyo), CPI ex-Food (Tokyo)

23:30/JPN: Jul Labour Force Survey

23:50/JPN: Aug Provisional Trade Statistics for 1st 10 days of Month

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Thursday Affirm Holdings Inc (AFRM) is expected to report $0.35 for 4Q.

Autodesk Inc $(ADSK)$ is expected to report $1.97 for 2Q.

Aviat Networks Inc $(AVNW)$ is expected to report $0.30 for 4Q.

Best Buy Co Inc $(BBY)$ is expected to report $1.38 for 2Q.

Build-A-Bear Workshop Inc (BBW) is expected to report $0.63 for 2Q.

Burlington Stores Inc $(BURL)$ is expected to report $2.16 for 2Q.

Canadian Imperial Bank of Commerce (CM,CM.T) is expected to report $1.63 for 3Q.

Canadian Solar Inc $(CSIQ)$ is expected to report $-0.19 for 2Q.

Dollar General Corp $(DG)$ is expected to report $2.00 for 2Q.

Dollar Tree Inc $(DLTR)$ is expected to report $1.16 for 2Q.

Elastic NV (ESTC) is expected to report $-0.13 for 1Q.

Excellon Resources Inc (EXN.T) is expected to report for 2Q.

Forgent Power Solutions Inc $(FPS)$ is expected to report for 4Q.

GLG Life Tech Corp (GLG.H.V,GLGLF) is expected to report for 2Q.

Gap Inc $(GAP)$ is expected to report $0.49 for 2Q.

HealthEquity Inc (HQY) is expected to report $0.76 for 2Q.

Hormel Foods Corp $(HRL)$ is expected to report $0.36 for 3Q.

Key Tronic (KTCC) is expected to report for 4Q.

Lifevantage Corp $(LFVN)$ is expected to report $0.12 for 4Q.

Lucky Strike Entertainment Corp (LUCK) is expected to report $-0.05 for 4Q.

Malibu Boats Inc - Class A (MBUU) is expected to report $0.61 for 4Q.

PagerDuty Inc $(PD)$ is expected to report $0.09 for 2Q.

Royal Bank of Canada (RY,RY.T) is expected to report $2.88 for 3Q.

Rubrik Inc $(RBRK)$ is expected to report for 2Q.

Sangamo Therapeutics Inc (SGMOQ) is expected to report $-0.25 for 2Q.

SentinelOne Inc (S) is expected to report $-0.24 for 2Q.

Southern Cross Gold Consolidated Ltd (SXGC.T) is expected to report for 4Q.

TAG Oil Ltd (TAO.V,TAOIF) is expected to report for 2Q.

Titan Machinery (TITN) is expected to report $-0.36 for 2Q.

Toronto-Dominion Bank (TD,TD.T) is expected to report $2.43 for 3Q.

Ulta Beauty Inc $(ULTA)$ is expected to report $6.20 for 2Q.

VVT Med Inc (VVTM.V) is expected to report for 2Q.

Winchester Equity Corp (WEC.V) is expected to report for Interim.

Workday Inc (WDAY) is expected to report $1.03 for 2Q.

Powered by Factset and Dow Jones.

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https:\\newsplus.wsj.com/ subscriptions.

This article is a text version of a Wall Street Journal newsletter published earlier today.