{"id":66741,"date":"2026-08-18T23:08:16","date_gmt":"2026-08-19T03:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-trump-pauses-canada-tariffs-amid-deal-hopes-rba-warns-of-rate-hikes\/66741\/"},"modified":"2026-08-18T23:08:16","modified_gmt":"2026-08-19T03:08:16","slug":"global-markets-update-trump-pauses-canada-tariffs-amid-deal-hopes-rba-warns-of-rate-hikes","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-trump-pauses-canada-tariffs-amid-deal-hopes-rba-warns-of-rate-hikes\/66741\/","title":{"rendered":"Global Markets Update: Trump Pauses Canada Tariffs Amid Deal Hopes; RBA Warns of Rate Hikes"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Donald Trump has paused 50% tariffs on Canadian goods for three days<\/strong>, citing a tentative trade agreement reached late Tuesday night.<\/li>\n<li><strong>RBA Deputy Governor Andrew Hauser warned of potential interest rate hikes<\/strong> if Australian inflation remains persistent or upside risks crystallize.<\/li>\n<li><strong>Canada and the U.S. have reportedly reached a deal &quot;subject to finalization,&quot;<\/strong> which may include the revival of the <strong>Keystone XL Pipeline<\/strong>.<\/li>\n<li><strong>Indonesia&#39;s Jakarta Composite Index (JCI) reversed earlier losses to rise 0.3%<\/strong>, despite ongoing concerns regarding MSCI index removals.<\/li>\n<li><strong>China&#39;s Ministry of Finance auctioned 1-month deposits at a 1.62% yield<\/strong>, as the country continues to manage domestic liquidity.<\/li>\n<\/ul>\n<h2>Trump Pauses 50% Canada Tariffs Following Last-Minute Deal<\/h2>\n<p>U.S. President <strong>Donald Trump<\/strong> announced via Truth Social late Tuesday that he is pausing the implementation of <strong>50% tariffs<\/strong> on Canadian imports for a three-day period. The levies, which were set to take effect at 12:01 a.m. Wednesday, were halted after the President declared that the U.S. and Canada (<a href=\"\/stock\/EWC\">EWC<\/a>) have reached a deal, subject to the finalization of documents.<\/p>\n<p>The agreement follows intense negotiations between President Trump and Canadian Prime Minister <strong>Mark Carney<\/strong>. While full details of the pact have not been released, Trump explicitly linked the breakthrough to the potential revival of the <strong>Keystone XL Pipeline<\/strong>, a project previously canceled by the Biden administration. The U.S. Trade Representative (USTR), <strong>Jamieson Greer<\/strong>, had earlier warned that the tariffs would affect nearly <strong>$20 billion<\/strong> in Canadian goods, including dairy, alcohol, and automotive products.<\/p>\n<h2>RBA Signals Hawkish Stance Amid Inflation Risks<\/h2>\n<p>In Australia, Reserve Bank of Australia (<strong>RBA<\/strong>) Deputy Governor <strong>Andrew Hauser<\/strong> delivered a hawkish message on Wednesday, stating that another interest rate hike remains possible. Speaking at an event in Queensland, Hauser emphasized that inflation is still &quot;too high&quot; and that the central bank is prepared to act if price pressures do not subside as expected.<\/p>\n<p>Hauser noted that the Australian economy is facing a <strong>slowdown rather than a recession<\/strong>, but stressed that monetary policy must remain restrictive to curb demand. The RBA recently held its cash rate at <strong>4.35%<\/strong>, but Hauser\u2019s comments suggest that the &quot;higher for longer&quot; narrative remains firmly in place as the board monitors upside risks to the 2\u20133% inflation target range.<\/p>\n<h2>Asian Markets: Indonesia Rebounds, China Auctions Deposits<\/h2>\n<p>Asian markets showed mixed resilience on Wednesday. The <strong>Jakarta Composite Index (JCI)<\/strong> managed to reverse early losses, climbing <strong>0.3%<\/strong> to reach approximately <strong>6,450 points<\/strong>. The recovery comes despite a recent <strong>MSCI<\/strong> index review that saw the removal of several Indonesian constituents, including GoTo Gojek Tokopedia (<a href=\"\/stock\/GOTO\">GOTO<\/a>), which has weighed on local sentiment.<\/p>\n<p>Meanwhile, <strong>China&#39;s Ministry of Finance<\/strong> successfully auctioned one-month deposits with a yield of <strong>1.62%<\/strong>. This move is part of Beijing&#39;s broader effort to manage banking system liquidity and stabilize the offshore yuan yield curve. Investors continue to eye Chinese government bonds, with the 10-year yield recently easing toward <strong>1.67%<\/strong> amid ongoing domestic economic adjustments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Donald Trump has paused 50% tariffs on Canadian goods for three days, citing a tentative trade agreement 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