Canada

Just days after the US Commerce Department imposed duties averaging 20% on Canadian softwood lumber, accusing Chinese timber companies of getting an unfair government subsidy, on Thursday round two of the trade war between the US and Canada broke out when Boeing asked the U.S. Commerce Department to investigate dumping, subsidies and unfair pricing for Canadian planemaker Bombardier's new CSeries airplane, a competitor to the Boeing 737, confirming that the trade tensions between the two neighboring countries are set to get far worse.

In one of the most striking reversals for President Trump to date, as reported earlier, just hours after the White House said the president is contemplating terminating NAFTA before his 100th day, sending the loonie and peso crashing, Trump reversed his position and as Bloomberg put it, made a "huge U-turn" in his NAFTA stance, allowing the trade agreement to continue after he spoke with the presidents of Mexico and Canada about ways to renegotiate the accord.

European shares are lower, pressured by disappointing results by Deutsche Bank and ending a six-session gain, as Asian equities and S&P futures were little changed after a record-setting rally in world stocks which pushed the MSCI World index to over $50 trillion yesterday, fizzled after Trump released unconvincing tax cut plans prompting traders to "sell the news" while caution set in as the ECB met.

One day after Trump slammed Canada with a lumber tariff, somehow managing to send lumber future prices limit down on the CME, he is faced with another, far more credible crisis: the terrible guidance just released by US Steel in particular, and the fate of the US Steel industry - and China's adverse impact - in general.

Here is the bloodbath just reported by US Steel:

While Trump tried to downplay concerns about a trade with with Canada, after his administration slapped tariffs on Canadian softwood lumber, he may have succeeded in fanning the flames when on Tuesday Trump told reporters that “No,” he does not fear a trade war with Canada adding "they have a tremendous surplus with the United States. Whenever they have a surplus, I have no fear."

President Trump says he does not fear that there will be a trade war with Canada https://t.co/SwAdMO9hyX