President Trump axes trade talks with Canada

Summary

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Marketplace Morning Report: President Trump Axes Trade Talks with Canada

Date: October 24, 2025 | Host: William Lee Adams (BBC World Service)

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Overview

This episode centers on the abrupt termination of trade negotiations between President Trump and Canada following a political dispute over tariffs and an Ontario-sponsored anti-tariff ad. The show explores the wide-reaching economic implications for both countries, sheds light on the volatility of gold prices, and wraps up with cultural business news, highlighting a new milestone for Netflix and the toy industry.

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Key Discussion Points & Insights

1. Trump Terminates US-Canada Trade Talks

[01:01 – 02:10]

• President Trump suddenly ended all trade talks with Canada as retaliation for an anti-tariff commercial aired in Ontario, featuring a critical clip of Ronald Reagan.
• This move is significant because Canada exports about 75% of its goods to the US, and those goods now face tariffs up to 35%.
• The US-Canada relationship is described as "vital," with Canada being America’s second-largest trading partner after Mexico.
• Past years featured robust free trade agreements, but the Trump administration has reversed some policies with substantial tariffs on cars, aluminum, and steel.

Quote:

"It's a vital economic relationship. Canada's America's second largest trading partner after Mexico... There used to be lots of free trade agreements. Donald Trump's been looking to reverse that."
– Nick Marsh, Business Reporter [01:39]

2. Economic Impacts of Trump's Trade Policy

[02:10 – 03:00]

• Gillian Tett (Provost, King's College; FT Columnist) outlines the immediate effects:
  • Increased US Treasury income from tariffs offers minor deficit relief, benefiting market stability.
  • Some firms are reshoring manufacturing to the US, aligning with the administration’s goals.
  • However, these policies cause global disruption, erode trust, and are likely to fuel inflation.

Quote:

"It's been incredibly disruptive. It smashed trust in America around the world and we're likely to see an inflationary impact."
– Gillian Tett [02:46]

3. Gold Prices: Record Highs and Sudden Drop

[03:00 – 05:25]

• Earlier in the week, gold hit a record high above $4,300/oz before plunging 6% in a single day (the largest drop since 2013), ending a nine-week rally.
• Ola Hanson (Saxo Bank, Denmark) attributes this to surging gold demand ahead of India’s Diwali, then a sharp falloff as celebrations began and buyers exited.
• Turbulent gold prices reflect today’s “unstable world”: rising geopolitical risk, soaring debt, and shifting central bank priorities.

Quotes:

"We've had a non stop nine week rally... and as that now got into the swing, we saw that demand taper off, just simply a market that had run out of buyers."
– Ola Hanson [03:35]

"Gold... has proven its worth for hundreds, if not thousands of years as a store of wealth. And the importance of that has gained even more traction in recent years."
– Ola Hanson [05:00]

4. Global Markets Update

[05:29 – 06:19]

• Intel shares jumped 7% in after-hours following strong Q3 profits and cost cuts.
• Sanofi (French drugmaker) saw shares up 5.2% due to demand for its asthma treatment.
• Aluminum prices hit a three-year high.

5. Netflix’s “K Pop Demon Hunters” Breaks Records & Toy Industry News

[06:19 – 07:00]

• "K Pop Demon Hunters," Netflix’s most-watched film ever, is getting official toy lines via an unprecedented deal with Mattel and Hasbro as co-master licensees.
• Darren Garnham (Toy Kido CEO) praises the fast, industry-first agreement and sees it as evidence of Netflix’s growing clout in family entertainment.

Quote:

"It's a cracking deal for both companies... This is a great example of a breakout brand new IP in the industry is always exciting... it really for me solidifies them up along the majors."
– Darren Garnham [06:36]

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Notable Quotes & Moments

• On Trade Disruption:
  “It smashed trust in America around the world and we're likely to see an inflationary impact.”
  – Gillian Tett [02:46]

• On Gold’s Enduring Role:
  “It has proven its worth for hundreds, if not thousands of years as a store of wealth.”
  – Ola Hanson [05:00]

• On Netflix’s Success:
  “It's also rare the speed it's happened in the industry for everyone to be jumping on something that's blown up so quickly. It’s pretty unprecedented.”
  – Darren Garnham [06:24]

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Timestamps for Important Segments

• [01:01] – Canada trade talks canceled; background and immediate reaction
• [01:39] – The importance of US-Canada trade, overview of tariffs imposed
• [02:24] – Gillian Tett discusses broader global implications of US policy
• [03:00] – Gold’s rollercoaster week; insights from Saxo Bank
• [05:29] – Global stock and commodity market updates
• [06:19] – Netflix's "K Pop Demon Hunters" toy deal and its significance

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Episode Tone & Takeaways

This episode balances sober reporting on high-level economic and geopolitical disruption with lighter coverage of business trends in global markets and pop culture. The tone is factual, brisk, and occasionally punctuated by industry insider enthusiasm—particularly in the toy segment.

Bottom Line:

• President Trump's unpredictable trade maneuvers are creating immediate and widespread economic disturbances, both for close partners like Canada and the global market at large.
• Gold’s recent fever and correction signal a period of economic anxiety and adjustment, while market updates highlight shifting fortunes in tech and pharma.
• The convergence of streaming media and the toy industry underscores rapid brand-building and new business models in family entertainment.

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Transcript

[A]

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[B]

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[C]

Canada feels Trump's wrath after the President terminates trade negotiations Live from the UK this is the Marketplace Morning Report from the BBC World Service. I'm William Lee Adams. Good morning. Canada is waking up to some difficult news. President Trump has abruptly cut off all trade talks with its northern neighbor. Mr. Trump was responding to an anti tariff ad paid for by the province of Ontario, which featured a clip of former American President Ronald Reagan speaking negatively. Tariffs about three quarters of Canada's exports go to the U.S. many now face a 35% levy. Here's our business reporter Nick Marsh.

[D]

It's a vital economic relationship. Canada's America's second largest trading partner after Mexico, Canada buys more American goods than any other country in the world. There used to be lots of free trade agreements. Donald Trump's been looking to reverse that to a certain extent. He's put big tariffs on things like cars, aluminium, steel. So there's tension there already. We don't really know how much progress was being made on those trade talks. There's a long list of countries that the United States is having talks with, but for now they are not happening.

[C]

So how is this sometimes erratic approach to trade negotiations by President Trump working for the US and its relations with the rest of the trading world? Gillian Tett is provost of King's College at Cambridge University and a Financial Times.

[E]

COLUMNIST well, what's clear is two things are happening because of tariffs. Firstly, the US treasury is collecting more income tariffs and that's playing a small part in cutting the deficit at the moment. And that's pretty important in terms of keeping bond markets calm. Secondly, there are signs that a number of companies are moving operations to America or building factories in America. So that's the good news for President Trump. The bad news, of course, is that it's been incredibly disruptive. It smashed trust in America around the world and we're likely to see an inflationary impact.

[C]

Gillian Tet Gold reached a record high of more than $4,300 earlier this week, only to plunge by more than 6% a day later, its biggest drop since 2013. It's now on course to snap a nine week winning streak, dropping by more than 3% for the week. So what does the rollercoaster pricing tell us about the precious metal and the world economy? Ola Hanson from Saxo bank in Denmark joins me now. Ola, hi.

[F]

Hi. Good morning.

[C]

Gold broke record after record week on week. But now we've got this sharp correction. Why the sudden drop?

[F]

Since August, we've had a non stop nine week rally, both gold, silver and some of the other investment metals. And something had to give sooner or later. And what really gave this week was the beginning of the Diwali festive season in India and across Asia. We've seen a phenomenal strong amount of demand for physical gold and silver in the run up to this festival. And as that now got into the swing, we saw that demand taper off, just simply a market that had run out of buyers and in desperate in need of a consolidation.

[C]

And what does this turbulence, this turnaround tell us about the global economy?

[F]

Well, I suppose it tells us a little bit about hope that the upcoming negotiations between the US And China may yield some kind of a breakthrough. It's also, I think, a reflection of the fact that the rally we've seen in precious metals has basically touched the nerve across the world in recent months. So everyone by now is really fully aware that we've had a phenomenal run this year in gold, up more than 50%. And that does obviously highlight an unstable world we live in right now. Geopolitical risks, debt levels going through the roof. And right now we have probably central banks less focused on inflation, which potentially also could add some support to precious metals.

[C]

We often talk about gold as a safe haven. Do you think in the future gold will remain that safe? Haven't?

[F]

Oh, absolutely. I would still call it the ultimate safe haven. There has been a lot of focus in recent years about the emergence of cryptocurrencies and their ability to do the same. But I think also the last couple of weeks have shown us that when we do see a wobble in some of the other financial markets, especially the stock market and cryptos tends to be just another financial product. It has proven its worth for hundreds, if not thousands of years as a store of wealth. And the importance of that has gained even more traction in recent years.

[C]

Ola, thanks for joining us on Marketplace.

[F]

My pleasure. Thanks very much.

[C]

Let's do the numbers. Intel shares rose 7% in after hours trading. The chip maker beat third quarter profit expectations amid major cost cutting measures. Shares in the French drug maker Sanufi jumped as much as 5.2%, driven by demand for its skin and asthma drug. And aluminum hit its highest level in more than three years. And finally, something else that's been hitting records. It's K Pop Demon Hunters, the most watched film on Netflix, Netflix ever. And it's now being turned into toys. The streaming platform has signed what it's called an industry first deal. Mattel and Hasbro have been named as global co master licensees for the film which follows a K pop girl group that secretly hunts demons. Darren Garnham is CEO of Toy Kido, which creates toys and collectibles for some of the world's biggest franchises.

[G]

It's a cracking deal for both companies. It is rare for both to have a global master toy. It's also rare the speed it's happened in the industry for everyone be jumping on something that's blown up so quickly. It's pretty unprecedented. So it sort of hats off to everybody involved to get it to the table and signed and announced. The challenge they're going to have now is just the production cycles and getting things to market as quickly as they can. This is a great example of a breakout brand new IP in the industry is always exciting. And the other piece is is this is a breakout family entertainment success for Netflix and it really for me solidifies them up along the majors.

[C]

Now Darren Garnham, that is all for today. On behalf of the entire team, thank you for joining us in the UK And Demon Free. I'm William Lee Adams with the Marketplace morning report from the BBC World Service.

[H]

Hey everyone, it's Bridget, host of Million Bazillion, a podcast from Marketplace. You've probably heard about the government shutdown, but if you're anything like our young caller Esme, whose dad is a federal worker, you might still have questions.

[G]

I've noticed that my dad hasn't been going to work and I don't know when the government shutdown will stop and my dad can go back to work.

[H]

We can help tune into our recent episode where we explain what you and the young ones in your life need to know about government shutdowns. Listen to Million Bazillion on your favorite podcast.

[G]

Apparently.