• Markets: Wall Street will get a temperature check on inflation, the AI market, and Iran sanctions this week (more on those later), all while investors keep an eye on the bond market following the US Treasury Department’s intervention. Those bond worries have given gold some of its luster back as investors search for safe havens. The metal hit its highest level in three months last Friday.

Mad aboot tariffs

Joe Raedle/Getty Images

Canada may be renowned for its maple syrup and its friendliness, but it’s ditching the sweetness as trade tensions with the US escalate. After talks to avert steep new US tariffs collapsed on Friday, Canada has vowed to slap retaliatory tariffs on US goods on Sept. 8. Both sides blame the other and appear to be digging in for a trade war.

He said, he said:

• “You’re at war when you get attacked,” Canadian Prime Minister Mark Carney said. “We got attacked.”
• Meanwhile, President Trump said on Truth Social, “Canada wants the benefits of being a State, without being one!!!”

Where we are now

Because no deal was reached, the US made good on its threat to slap new 50% tariffs on $20 billion worth of Canadian goods. Canada’s exports to the US are typically worth $382 billion annually. While the new import taxes primarily target the forestry, alcohol, dairy, and textile industries, the impacted items also include everything from hockey sticks to dog leashes and fake mustaches.

Canada hasn’t yet released the list of goods it will tariff in response, but Carney pledged to match the US levies dollar for dollar. He said Canada’s tariffs would target similar industries.

How did we get here?

Well, that depends on whom you’re asking since the US and Canada each assert that the other introduced impossible last-minute conditions after a deal appeared close earlier in the week. Sticking points reportedly included tariffs on trucks and on products made with steel.

But even before this, there was enough drama to fuel an entire season of Degrassi: The US and Canada have a long history as allies and trade partners, but when Trump imposed sweeping global tariffs, Canada was one of the few countries to retaliate, going “elbows up” and imposing retaliatory tariffs, while Canadians boycotted US booze and travel. Trump used a never-before tested legal authority to impose the latest tariffs, and has also repeatedly referenced making Canada the 51st state.

Looking ahead…the USMCA—a trade deal President Trump negotiated with Canada and Mexico during his first term is up for review—and the current trade spat suggests that’s going to be contentious.—AR

      

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World

Tour de headlines

Kent NISHIMURA / AFP via Getty Images

🏁 DC hosts IndyCar race as part of US’ birthday celebration. Things were really moving in Washington, DC, yesterday, and not just through committee, after President Trump waved a green flag to kick off an IndyCar race in the nation’s capital. The Freedom 250 Grand Prix, which consisted of 147 laps around the National Mall, was part of the larger celebration of this summer’s 250th anniversary of the US that also included a UFC fight at the White House. The race was organized by IndyCar owner Penske Corp. and a Trump-aligned group. Penske expected the event to bring ~$210 million to the area in tourist spending, per Bloomberg. Florida native Kyle Kirkwood was the winner.

🎬 Paramount to talk settlement with California in antitrust fight. Representatives for Paramount Skydance and California Attorney General Rob Bonta are reportedly scheduled to meet today to discuss the possibility of settling the case Bonta brought with 11 other state AGs challenging Paramount’s $111 billion takeover of Warner Bros. Discovery. But it’s not necessarily a wrap, as the talks are preliminary, and may or may not result in a deal. Bonta has said any settlement would require “robust structural remedies.” However, the pressure is on both sides to come to an agreement. For Paramount, letting the litigation drag on creates costly delays to closing the deal (which a judge put on hold pending the case). And Bonta is facing calls from California’s governor, the Directors Guild of America, and others to resolve the case.

🤖 Humanoid robot beats Usain Bolt’s 100m record. Sure, it’s probably easier to run fast when you don’t need to breathe and are powered by a motor—but it’s still impressive that a Chinese ⁠robot named Lightning ran 100 meters in 9.32 seconds, smashing the ​9.58 second world record set 17 years ago by Usain Bolt. The robot, manufactured by Chinese smartphone maker Honor, was competing in the World Humanoid Robot Games in Beijing, which are continuing through Wednesday with various events for humanoids to show off their skills. Unlike Bolt, Lightning ended his triumph by running directly into a wall (you can see the whole thing here). China has prioritized humanoid development, and robot maker Unitree recently soared in its Shanghai trading debut.—AR

Downstream effects

David McNew/Getty Images

After years of interstate bickering over the Colorado River’s water supply, the federal government unveiled a new plan on Friday, though the situation remains…fluid.

The plan, which proposes cuts to three states’ water usage, comes after years of drought and overuse. This has left two of the Colorado River’s largest reservoirs, Lake Mead and Lake Powell—which help provide drinking water and power for millions of residents—at record lows. (Not to mention, what’s been uncovered by low water levels may scare you off swimming for good.)

The 10-year proposal, which replaces an expiring framework, sets new water limits that will be revisited every two years. According to Sarah Porter, director of the Kyl Center for Water Policy at Arizona State University, under the proposed terms:

• California will have to reduce water use by 10%.
• Nevada by 16%.
• Arizona by 27%.

Currently, upstream states (that’s Colorado, Utah, New Mexico, and Wyoming) won’t have to make any cuts. Downstream negotiators have said they hope to reach a longer-term deal involving all seven states—and states might sue each other or the federal government.

Ripple effect: The agriculture industry uses the majority of the river’s water, and nearly half of that is for growing crops used for animal feed, per the New York Times. An uncertain water supply could also threaten real estate development.—BC

      

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Calendar

The week ahead

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Kingvidia holds court: AI chipmaker Nvidia, the world’s most valuable public company, will report earnings on Wednesday. Nvidia—which somehow has both too many vowels in its name and not enough—is a touchstone for the broader AI market, and investors will be especially interested to hear more about its recent $500 billion financing deal with Wall Street. Analysts expect strong numbers, but don’t bank on a guaranteed stock pop. The company’s share price has fallen the day after every quarterly earnings report in the past year.

Digging for clues in Jackson Hole: The Kansas City Fed’s yearly symposium in Jackson Hole, Wyoming, will run from Thursday through Saturday. It’ll be Kevin Warsh’s first time making a speech at the event as chairman, and investors will be listening closely for any sort of policy guidance—something Warsh has intentionally been relatively quiet about since he took over as chair in May. In other news for Fed watchers this week: The central bank’s favorite inflation measure, the personal consumption expenditures report, will be released on Wednesday.

Open season: Grab a Honey Deuce and settle in: The US Open, tennis’s fourth and final Grand Slam event of the year, is ramping up this week. Qualifying rounds are taking place today, with the main draw set to begin on Sunday. Top-ranked Jannik Sinner is sitting out the event due to injury, but rival Carlos Alcaraz will return to defend his men’s singles title. Alcaraz will also participate in mixed doubles, teaming up with Serena Williams, who’s on a comeback run of her own.

But wait, there’s more:

• US Treasury Secretary Scott Bessent is scheduled to hold a press conference this afternoon to offer some details on new economic measures against Iran.
• The waits are almost over: Netflix and YouTube will offer an extended look at the soon-to-be-released Grand Theft Auto VI video game on Thursday. Meanwhile, the previously shelved film Coyote vs. Acme will land in theaters on Friday.

Reader Poll

Brendan’s Got Good News

College soccer has a new top dog, attendance-wise

UGA Soccer via Twitter

Mondays are bad enough, so the Brew’s own Brendan Cosgrove scoured the internet for a positive news story to help you start the week off right.

These truly are the Dawg days of summer: Despite sweltering heat, 25,433 fans showed up to watch the University of Georgia women’s soccer team beat James Madison 6–0 last Thursday, breaking the 46-year-old record for the most-attended college soccer game ever (men’s or women’s).

Sanford and sun: In order to accommodate the record crowd, the match was held at Sanford Stadium, where the Bulldogs play their football games. Admission was free, but fans paid a physical price: The temperature at kickoff was 98 degrees.

The game coincided with the 30-year anniversary of the US women’s national team’s gold-medal win over China in the 1996 Summer Olympics—a match that was also held in Sanford.

Ain’t nothing finer: UGA Coach Keidane McAlpine called the game “one of the best moments in women’s soccer ever.”—BC

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News

What else is brewing

• Authorities urged 90,000 people to evacuate their homes as a human-caused wildfire approached Reno, NV.
• Shein is looking to raise up to $1.8 billion in its Hong Kong IPO, according to a prospectus the fast-fashion retailer filed.
• Nvidia reportedly warned some of its biggest customers that it would be hiking the prices for its AI chips by more than 15%.
• A copyright lawsuit accused Taylor Sheridan of stealing the idea for Yellowstone from a TV writer. Sheridan did not immediately comment to news outlets.
• Harvard Business School is charging $699 for a bootcamp for entrepreneurs that includes AI avatars of its professors, which listen and give feedback to pitches.
• Dr. Dre called AI a “new tool for creativity” in an interview with the New York Times, with the hip-hop legend saying “the only people that see it as a threat are the people who have trouble creating.”

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• Tools to reset your nervous system and reduce anxiety.
• This video will teach you the trick to chefing up perfect pasta sauce.
• Two behaviors you can practice to make yourself charismatic.
• A book chronicling California’s storied fishing industry and its impact on culture and geopolitics.**

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Play

Turntable: Your central letter for the week is T, surrounded by I, V, O, E, C, and L. Can you make 49 words from those? Give it a spin and play Turntable here.

Speedy trivia

What’s the fastest speed limit in the US?

Answer

85 mph (in Texas)

Word of the Day

Today’s Word of the Day is: contentious, meaning “likely to cause disagreement or argument.” Thanks to Lauren from Atlanta for a suggestion we can’t argue with. Submit another Word of the Day here.