Hello Capitalists,

Markets today appeared unconcerned by President Trump’s major tariff threat to Canada, further leveraging trade terms to get a better deal for the American people.

• DOW: 44314.17- (⬇️0.75)🔴

• S&P: 6258.08 - (⬇️0.36) 🔴

• NASDAQ: 20613.37 - (⬇️0.08) 🔴

• CBOE VIX Volatility Index: 16.51 (⬆️0.72) ⚠️⬆️

Here’s everything you need to be following today:

Trump hammers Canada with a 35% tariff after they failed to curb drug smuggling

President Donald Trump announced a 35% tariff on Canadian imports starting Aug. 1, escalating trade tensions with Canada and citing its retaliatory tariffs and failure to curb fentanyl smuggling as reasons for the new levies, according to a letter posted on Truth Social.

• Fentanyl Concerns: Trump linked the tariff increase to Canada’s alleged failure to stop the flow of fentanyl into the U.S., noting 43 pounds seized at the northern border in 2024 and 58 pounds in 2025 so far, with a possible tariff adjustment if Canada cooperates.

• Trade Retaliation: The tariffs are separate from existing sectoral tariffs on Canadian steel (50%), aluminum (50%), and autos (25%), with Trump warning of higher levies if Canada continues retaliatory measures.

• Context of Trade Talks: The announcement comes amid ongoing trade negotiations, with Canadian Prime Minister Mark Carney aiming for a new economic deal by a revised Aug. 1 deadline, following earlier U.S. tariffs and exemptions under the USMCA.

Bitcoin is a rocket ship right now and all crypto is following it straight up

Bitcoin surged to a record high above $118,000 as institutional investors poured billions into cryptocurrency exchange-traded funds, fueling a rally that lifted ether and other altcoins while triggering massive short liquidations across the market.

• Bitcoin's Record High: Bitcoin ETFs, recorded their biggest day of 2025 with $1.18 billion in inflows.

• Ether and Altcoin Gains: Ether ETFs saw their second-largest inflow day at $383.1 million, with altcoins like Solana, Dogecoin, Cardano, XRP, and Litecoin gaining 2-5%, reflecting renewed market enthusiasm.

• Short Liquidations Fuel Rally: The price surge triggered over $650 million in bitcoin short liquidations in an hour and $215 million for ether in the past 24 hours, amplifying upward price momentum as traders closed leveraged positions.

• Market Sentiment and Regulation: Optimism stems from anticipated regulatory progress, including potential stablecoin legislation, and corporate bitcoin buying, with stocks like Mara Holdings, Riot Platforms, MicroStrategy, Coinbase, and Robinhood seeing gains of 1-3%.

Trump’s budget chief is out for Powell’s head over the Fed’s $2.5B “renovation”

Russell Vought, President Donald Trump's budget chief, intensified criticism of Federal Reserve Chair Jerome Powell on Friday, vowing to investigate alleged mismanagement of a $2.5 billion renovation of the central bank's headquarters, escalating tensions in Trump's ongoing campaign to pressure Powell into lowering interest rates or resigning.

• Vought's Accusations: Vought accused Powell of "gross mismanagement" and misleading Congress about a $2.5 billion renovation project for the Fed’s headquarters, which he claims is $700 million over budget and includes lavish features like VIP dining rooms and rooftop terraces.

• Investigation Pledge: During a CNBC "Squawk Box" interview, Vought promised to press an investigation into the renovation of the Marriner S. Eccles Federal Reserve building, citing cost overruns and potential non-compliance with federal oversight regulations, with new National Capital Planning Commission members poised to scrutinize the project.

• Trump's Feud with Powell: The accusations mark a new front in President Trump’s ongoing campaign against Powell, whom he has criticized for not cutting interest rates, with Trump and Vought suggesting Powell’s fiscal decisions reflect systemic mismanagement at the Fed.

• Powell’s Defense: Powell, in prior Senate testimony, denied the inclusion of extravagant features like new marble or special elevators in the renovation, calling such descriptions inaccurate, while the Fed has attributed cost increases to rising raw material and labor costs.

Gold steadies after its two day climb over tariff concerns

Gold prices steadied after a two-day climb as investors weighed President Donald Trump’s tariff threats and the outlook for U.S. monetary policy, with market focus on upcoming economic data and potential trade disruptions.

• The precious metal’s stability reflects market anticipation of U.S. monetary policy developments, particularly as Federal Reserve officials remain divided on interest rate outlooks and President Donald Trump’s proposed 25% tariffs on goods from Japan and South Korea, set to begin August 1, 2025.

• Trump’s decision to delay some tariff implementations eased concerns about immediate global trade disruptions, slightly reducing haven demand for gold.

• Gold has rallied significantly in 2025, supported by central-bank accumulation and economic uncertainty, with physically backed gold ETFs recording their largest semi-annual inflow since 2020.

Trump ends education benefits for illegal immigrants with sweeping cuts

The Trump administration announced Thursday it will end taxpayer-funded benefits for illegal immigrants in postsecondary education programs to align with federal law restricting such aid to U.S. citizens and legal residents only.

• The Department of Education, under Secretary Linda McMahon, has revoked a Clinton-era policy that allowed undocumented immigrants to access taxpayer-funded benefits for postsecondary education programs, effective August 9, 2025.

• The policy change aligns with the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, which limits federal public benefits to U.S. citizens, permanent residents, and certain qualified aliens, correcting what the DOE called an erroneous exemption.

• The new interpretive rule ensures that programs like Pell Grants, student loans, and career, technical, and adult education initiatives are restricted to legally present individuals, prioritizing American taxpayers’ resources.

• This move follows President Trump’s February executive order to end federal funding for programs supporting undocumented immigrants, part of a broader effort to redirect taxpayer resources to American citizens.

Brazil’s president threatens retaliation after Trump cranks tariffs to 50%

Brazilian President Luiz Inácio Lula da Silva vowed to retaliate against President Donald Trump's proposed 50% tariff on Brazilian imports, rejecting Trump's demand to halt the trial of former President Jair Bolsonaro.

• Trump's Tariff Threat: U.S. President Donald Trump announced a 50% tariff on all Brazilian imports starting August 1, 2025, citing Brazil's prosecution of former President Jair Bolsonaro as a "witch hunt" and alleging an unfair trade relationship.

• Bolsonaro’s Trial: Bolsonaro, a Trump ally, faces trial for allegedly attempting a coup to overturn his 2022 election loss to Lula, with Trump demanding Brazil drop the charges or face economic consequences.

• Brazil’s Response: President Lula rejected Trump’s demands, defending Brazil’s judicial independence and sovereignty, and warned of reciprocal tariffs if the U.S. follows through, escalating fears of a trade war.