Group 1 - Canada will eliminate the 25% retaliatory tariffs on U.S. goods that comply with the USMCA starting September 1, as a response to the U.S. reducing tariffs on Canadian products [1] - The Canadian government has imposed retaliatory tariffs on U.S. goods three times since the trade war began, including tariffs on $60 billion CAD worth of U.S. products [1] - The Canadian small business sector is significantly affected, with 58% reporting impacts from retaliatory tariffs and 67% stating they have absorbed the full cost of U.S. import tariffs [2][3] Group 2 - The Canadian government is focusing on industries facing high tariffs, such as steel, aluminum, automotive, and lumber, while preparing for a formal review of the USMCA by the U.S. government [1] - The Canadian International Trade Commission reported that 34% of Canadian exports to the U.S. met USMCA criteria in January, rising to nearly 57% by June [2] - The Canadian steel and aluminum tariffs will remain in effect, with Canada being the largest supplier of these materials to the U.S. [4] Group 3 - The Canadian small business community faces challenges in obtaining USMCA product certification, with many businesses reluctant to pursue it due to high costs and workload [3] - The Canadian legal expert warns that maintaining retaliatory tariffs could jeopardize Canada's exemptions under the USMCA, especially as other allies have reached agreements with the U.S. [5] - The cancellation of retaliatory tariffs represents a shift for Canada, which previously took a strong stance against U.S. tariffs during the election [5]

Tariff Benefits - The European Union has extended the suspension of countermeasures against the US until August 1 to allow for further negotiations, following threats from President Trump to impose a 30% tariff on EU goods [4][5][6] - The EU has prepared a countermeasure list involving approximately €210 billion ($245 billion) of US goods, with an additional list of about €720 billion ready if necessary [4] - Mexico is confident in reaching an agreement with the US to avoid the proposed 30% tariffs, with ongoing negotiations aimed at finding alternatives to tariffs [7] A-Share Market Benefits - Multiple listed companies have announced significant profit increases for the first half of 2025, with Li Min Co. expecting a net profit of ¥260 million to ¥280 million, a year-on-year increase of 719.25% to 782.27% [10] - Weilan Lithium expects a net profit of ¥300 million to ¥360 million, reflecting a year-on-year growth of 79.29% to 115.15% due to increased sales in lithium battery business [10] - Lanke Technology anticipates a revenue of approximately ¥2.633 billion, a year-on-year increase of about 58.17%, with net profit expected to rise by 85.50% to 102.36% [10] - Other companies like Chunqiu Electronics and Zijin Mining also project substantial profit growth, with Chunqiu expecting a net profit increase of 236.05% to 310.72% and Zijin projecting an increase of approximately 54% [11][12]