U.S. tariffs and Canadian elections

Summary

Marketplace Morning Report: Detailed Summary

Episode Title: U.S. Tariffs and Canadian Elections
Host: David Brancaccio
Release Date: April 29, 2025

---

U.S. Tariffs Influence Canadian Election Outcomes

David Brancaccio opens the episode by highlighting the significant impact of U.S. tariffs on Canadian imports, which has become a pivotal issue in the recent Canadian elections. The trade tensions between the United States and Canada are cited as a primary reason why Canadian voters opted to retain the Liberal Party in power, despite the Conservative Party's strong polling efforts leading up to the election.

Kimberly Adams, Marketplace's correspondent, reports from Ontario, where she observed that tariffs were a major concern among voters.

[00:42] Kimberly Adams: "It was certainly top of mind for a lot of the voters I talked to yesterday. Almost everybody brought it up at those several polling places I visited in various electoral districts, which they call ridings here, by the way."

Voters express anxiety over the tariffs, fearing job losses and economic slowdowns:

[01:00] Voter Priscilla Gima: "Honestly, it's the tariffs. It's causing all of us grief because of the trade war. A lot of people are scared for their job. And now because of the trade war, everything is slowed down."

The election outcome reflects voters' desire for a leadership that can navigate the strained U.S.-Canada relations effectively. They are seeking a prime minister who can safeguard Canada’s sovereignty and economic stability amid international pressures.

[01:34] Kimberly Adams: "I definitely heard about wanting action on domestic issues like crime, immigration and housing. But again, the relationship with the U.S. and how Canada's new prime minister will manage it came up a ton."

Leadership Transition: Mark Carney Takes the Helm

Following the election, Mark Carney, renowned for leading central banks in both Britain and Canada, emerges as the new leader of the Liberal Party and is poised to head the next Canadian government. His approach to dealing with U.S. President Donald Trump, who has been in office for 100 days, is under scrutiny.

During his victory speech, Carney emphasized Canada’s need to become more self-reliant and strengthen alliances beyond North America:

[02:26] David Brancaccio: "President Trump is trying to break us so that America can own us. That will never, that will never ever happen."

Carney articulated a strategy focused on diversifying Canada’s trade relationships, particularly with European allies, to mitigate the adverse effects of the ongoing trade war with the United States.

Market Movements: General Motors and DoorDash Developments

Transitioning to market news, Brancaccio notes minor movements in S&P futures and a notable dip in General Motors' stock despite the company surpassing profit expectations. The uncertainty surrounding tariffs led GM to retract its outlook on future performance.

In the tech sector, Samantha Fields reports on DoorDash’s strategic acquisition of the UK-based delivery company, Deliveroo, for $3.6 billion. This move aims to consolidate DoorDash’s dominance in the third-party delivery market across different regions.

[03:24] Samantha Fields: "Buying Deliveroo is all about growth."

Experts like Gad Alon from the Wharton School highlight the necessity for app-based delivery companies to continuously seek growth to sustain their low-margin business models. DoorDash’s acquisition is seen as a strategic step to expand its global footprint and meet the increasing demand among younger consumers.

[03:38] David Brancaccio: "Third party delivery is particularly important to the younger generation. It's the right move to be making to have a global footprint in an industry that's in increasingly high demand."

Legislative Update: Regulating Deepfake Content

A significant development in tech regulation is discussed, where a bipartisan bill has passed both the House and Senate. This legislation mandates platforms like TikTok and Meta to erase deepfake videos of a sexual nature that manipulate real individuals’ likenesses using artificial intelligence. The bill empowers federal regulators to enforce compliance, marking a rare instance of government intervention in content regulation.

Amazon's Space Ambitions: Project Kuiper vs. SpaceX's Starlink

Novo Safo delves into Amazon’s recent launch of approximately three dozen low Earth orbiting (LEO) satellites under its initiative, Project Kuiper. This move positions Amazon to compete directly with SpaceX’s Starlink, which currently operates around 7,000 satellites. The competition aims to provide broadband Internet and phone services from space, particularly targeting remote and rural areas.

[05:40] Priscilla Gima: "Amazon has positioned its satellite Internet plan, called Project Kuiper, as an effort to bring broadband Internet to remote and rural areas."

While SpaceX's Starlink has secured multiple government contracts and played a crucial role in Ukraine’s defense efforts against Russian invasion, Amazon’s ambitious investment of $10 billion to deploy 3,200 satellites underscores the competitive landscape of the satellite internet market. However, executives like Jeff Bezos acknowledge the high costs and uncertain profitability associated with building and maintaining such extensive networks.

[05:40] Novo Safo: "Amazon's executive chairman Jeff Bezos told Reuters that there's plenty of broadband satellite business to go around, but building a network orbiting Earth is expensive and profits are not guaranteed."

The proliferation of satellites has also sparked public debate regarding the visibility of these devices in the night sky, with some appreciating the technological advancements and others concerned about light pollution.

Conclusion

David Brancaccio wraps up the episode by tying together the intertwining themes of international trade tensions, technological advancements, and regulatory measures shaping the current economic and political landscape. The episode underscores the intricate connections between policy decisions, market dynamics, and technological innovation, providing listeners with a comprehensive overview of the key issues influencing the global economy.

---

This summary encapsulates the main discussions, insights, and conclusions from the "Marketplace Morning Report" episode on April 29, 2025, focusing on U.S. tariffs, Canadian elections, market updates, tech acquisitions, legislative developments, and advancements in satellite internet services.

Transcript

[David Brancaccio]

Tariffs, sovereignty, and Canada's big election. I'm David Brancaccio in Los Angeles. More now on how the trade war is cited as a key reason Canadians have now voted to keep Liberals in power after rival Conservatives had been polling so strongly until recently. It has to do with the policies of a leader south of the Canadian border who's been in office for exactly 100 days now. Marketplace's Kimberly Adams went to polling places in the province of Ontario yesterday and joins us this morning. Hey, Kimberly.

[Kimberly Adams]

Good morning, David.

[David Brancaccio]

The US Putting import duties on stuff from Canada that had been a close U.S. trade partner. It's on voters minds, but would you say top of mind, Kimberly?

[Kimberly Adams]

It was certainly top of mind for a lot of the voters I talked to yesterday. Almost everybody brought it up at those several polling places I visited in various electoral districts, which they call ridings here, by the way. And here's a bit of what folks said when I actually asked them about their top issue influencing their vote.

[David Brancaccio]

Honestly, it's the tariffs. It's causing all of us grief because of the trade war. A lot of people are scared for their job. And now because of the trade war, everything is slowed down. Like clearly we have some threats from the US that we're not used to and that's not only threatening our sovereignty, but also threatening our economy.

[Kimberly Adams]

Voters Priscilla Gima, Ruchir Patel and Doug Lee there.

[David Brancaccio]

So under Canada's parliamentary system, you vote for a member of parliament for your district, you're riding, but then that adds up to the leader of the country. What did voters tell you they want in a new leader?

[Kimberly Adams]

I definitely heard about wanting action on domestic issues like crime, immigration and housing. But again, the relationship with the U.S. and how Canada's new prime minister will manage it came up a ton.

[Priscilla Gima]

I would hope we have a strong.

[David Brancaccio]

Leader who can stand up for the foolishness that he's putting forward.

[Priscilla Gima]

If he goes to the war with.

[David Brancaccio]

The whole world, at least China, he.

[Priscilla Gima]

Needs some friends, the best friends he's got here.

[David Brancaccio]

But he is making everything not to have friends.

[Kimberly Adams]

Talking about Trump there, obviously voices of Canadian voters, Karene White, a nurse, and Christopher Wolney, a retiree.

[David Brancaccio]

Now, Mark Carney, who on his resume had led central banks in both Britain and Canada, is the leader of the Liberals now set to lead the next Canadian government. What's his trade and Trump approach going to be?

[Kimberly Adams]

He spent a lot of his victory speech last night talking about exactly this.

[David Brancaccio]

President Trump is trying to break us so that America can own us. That will never, that will never ever happen.

[Kimberly Adams]

Carney said Canada will need to learn to rely more on itself and also forge stronger ties with other allies, especially Europe. In light of this new dynamic Marketplace's.

[David Brancaccio]

Senior Washington correspondent Kimberly Adams in Ontario, Canada this morning. Thank you very much, Kimberly.

[Kimberly Adams]

You're welcome, David.

[David Brancaccio]

I see S and P futures are up just slightly, but General Motors stock is down more than 2% premarket after its quarterly profits today beat expectations. But it withdrew its assessment of the company's road ahead, suggesting the effect of tariffs is too hard to predict. DoorDash wants to buy a UK based company that does the same thing for $3.6 billion. The logic is clear. DoorDash is big in the US and Canada. Deliveroo does Europe and beyond. Marketplace's Samantha Fields has that for DoorDash.

[Samantha Fields]

Buying Deliveroo is all about growth.

[David Brancaccio]

All these firms, their valuation are built on growth, growth and margin.

[Samantha Fields]

Gad Alon at the Wharton School at Penn says because app based delivery is a low margin business, companies have to.

[David Brancaccio]

Keep growing and after a while there is a limit how much you can actually grow. In the US people can only order that many times breakfast, lunch and dinner.

[Samantha Fields]

DoorDash started out doing restaurant delivery, but you can also use it to get things from grocery stores and pharmacies now. David Portolatin at Cerkana says the company makes 54% of all third party app deliveries in the U.S. they're already the.

[Priscilla Gima]

Dominant player there and they're already growing within that space.

[Samantha Fields]

So how would you accelerate that one way? Acquire a competitor and expand into other countries? Alex Susskind at Cornell says it's a future driven move.

[David Brancaccio]

Third party delivery is particularly important to the younger generation. It's the right move to be making to have a global footprint in an.

[Samantha Fields]

Industry that's in increasingly high demand. I'm Samantha Fields for Marketplace.

[David Brancaccio]

A bill with wide bipartisan backing and support from the industry it regulates has sailed through the House and the Senate. It forces platforms like TikTok and Meta to erase deep fakes videos of a sexual nature created by artificial intelligence, faked to look like real identifiable people. The measure, if signed by the president, authorizes federal regulators to crack down on companies that don't comply and is a rare concession by tech companies to the notion of content regulation by the government. Are you okay with more artificial lighting in the night sky? In return for a competing broadband Internet and phone service from space, Amazon has just launched about three dozen low earth orbiting communications satellites, the first of thousands to compete with the StarLink system from SpaceX. Starlink already has about 7,000 of these devices in orbit in the right position. At night you can see trains of them even without binoculars, which annoys some and delights others. Marketplace's Novo Safo has more.

[Priscilla Gima]

Amazon has positioned its satellite Internet plan, called Project Kuiper, as an effort to bring broadband Internet to remote and rural areas. The company says it will spend $10 billion and launch 3,200 satellites into orbit. SpaceX's Starlink service has some 7,000 satellites. They beam Internet to mobile antenna terminals that look like square or rectangular plastic slabs. Amazon's Kuiper will have a similar setup. Starlink has received multiple government contracts, and its terminals have been instrumental in Ukraine's war effort to expel Russia's invasion. Amazon's executive chairman Jeff Bezos told Reuters that there's plenty of broadband satellite business to go around, but building a network orbiting Earth is expensive and profits are not guaranteed. Bloomberg last year said Starlink regularly spends more money than it brings in because of the costs of launching satellites and replacement satellites into space. I'm Nova Safo for Marketplace.

[David Brancaccio]

All this rhymes with hyper, but it's K U I P E R after Gerard Kuiper, legendary Dutch American Planetary In Los Angeles, I'm David Brancaccio. You're listening to the Marketplace Morning Report from apm, American Public Media.

[Jannelli Espinal]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Jannelli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined Wherever you get your podcasts.