HEADLINES

Factory Sector Expanded in June on Rising Output, New Orders

Canada's manufacturing sector maintained growth in June, with factory owners increasing their payrolls due to rising production and new orders.

The Canada-specific data released Thursday from S&P Global also carried warnings about inflation.

The S&P Global Canada manufacturing purchasing managers index edged upward to 53.0 in June, from 52.9. This marks the third straight month above the 50 threshold--which signals expansion among the country's manufacturers.

The report should provide comfort to Canadian policymakers that the economy is rebounding after two straight quarters of negative growth. Data this week indicated a jump in economic output for April, positioning Canada for growth of more than 2% annualized in the second quarter.

Canada Pledges Billions of Dollars to Ease Trade at Vancouver Port

Canada will provide billions of dollars to help upgrade infrastructure and clear congestion at the country's biggest port in Vancouver, British Columbia, Prime Minister Mark Carney said.

The money is meant to address warnings that constraints at Canada's ports posed a sizable hurdle in the Carney-led Liberal government efforts to reduce dependence on crossborder trade with the U.S. to drive growth.

Carney said his government would provide the equivalent of $7 billion to expand capacity at the Vancouver Fraser Port Authority. At a press conference in the Pacific Coast city, he said the infrastructure upgrades would help unlock over $70 billion in new trade capacity and add over $2 billion in output.

Canada to Keep Pacific Coast Tanker Ban As Alberta Mulls New Pipeline

Canada agreed on Thursday to maintain a ban on oil-tanker traffic off the northern Pacific Coast, which is likely to force the province of Alberta to seek a different route for its proposed new crude-carrying pipeline.

Prime Minister Mark Carney and Alberta Premier Danielle Smith were scheduled to hold a press conference late Thursday regarding Alberta's proposed new energy corridor. Prior to that, Carney struck a deal with the British Columbia government whereby the Canadian leader committed to keep the tanker ban in place, despite calls from Alberta for its removal.

Smith had pushed for a new pipeline to British Columbia's northern coast. A spokesman for Smith did not respond to a request for comment. At a press conference in Vancouver, Carney skirted questions about the proposed pipeline's route, saying those would be addressed at a separate announcement on Thursday.

Agnico Eagle Temporarily Suspends Quebec Mine Pit Operations After Wall Movement

Agnico Eagle Mines has temporarily suspended operations at a portion of its mine in Quebec after a rock mass movement, with no casualties reported.

The miner said the rock mass movement occurred Wednesday along the north wall of the Barnat open pit at its Canadian Malartic complex.

Agnico said Thursday that there were no injuries or damage to equipment, and no environmental impact, but that it has chosen to temporarily suspended mining operations in the Barnat open pit as a precautionary measure.

Agnico shares fell 1% to C$218.10.

Agnico Eagle Mine Halt Puts Pressure on OR Royalties

Peter Ballantyne Cree Nation Drops Legal Challenge to Denison's Uranium Mine Project

Peter Ballantyne Cree Nation has abandoned its legal challenge to Denison Mines' Wheeler River, a uranium mining project in Saskatchewan.

Denison said that PBCN withdrew the judicial review application it previously filed regarding environmental assessment approval from the Province of Saskatchewan for the project's Phoenix in-situ recovery uranium mine.

The application, filed last year, sought an order that would set aside the environmental assessment approval to allow Denison to proceed with the construction of the new uranium mine and processing plant, and remit the decision back to the Saskatchewan Minister of the Environment for reconsideration. PBCN's application argued that the Government of Saskatchewan breached its duty to consult with PBCN over the project. In addition to the application's withdrawal, PBCN also formally provided its consent to and support for the development and operation of the Wheeler River Project, Denison said.

Denison shares rose nearly 4% to C$4.52.

Kraken Robotics Boosts Outlook After Closing Covelya Deal

Kraken Robotics raised its guidance for this year after closing its acquisition of Covelya Group, a deal that significantly expands the company's subsea-technology portfolio and scale.

With the deal now complete, the Canadian maker of subsea-intelligence and underwater robotics systems said it expects 2026 revenue of C$290 million to C$320 million. That is up from previous expectations of C$165 million to C$175 million. Kraken generated C$102.2 million of revenue in 2025.

The company also revised its projections for adjusted earnings before interest, taxes, depreciation and amortization to C$65 million to C$75 million, plus or minus C$25 million. Last year the company generated C$24.7 million in adjusted Ebitda.

ADF Group Plans C$10 Million Loan Agreement with Investissement Quebec for Plant Expansion

ADF Group plans to enter into a loan agreement of up to C$10 million with Investissement Quebec to fund a facility expansion for its subsidiary, Groupe LAR.

The steel superstructure manufacturer said that the proposed loan would support the C$40 million project that includes enlarging the plant and adding new equipment at the Metabetchouan-Lac-a-la-Croix, Saguenay-Lac-Saint-Jean, part of a broader capital program aimed at boosting the company's steel-fabrication capacity in Quebec. Groupe LAR operates in the machining, welding, and industrial mechanics sectors.

Investissement Quebec is the provincial government's economic development agency which provides loans, financing programs and investment support to help companies expand, modernize and carry out capital projects across the province.

TALKING POINT

U.S. Doesn't Renew USMCA Trade Pact in Current Form. What That Means for Canada, Mexico.

By Reshma Kapadia, Barron's

The U.S. Trade Representative's office on Wednesday decided not to renew the U.S.-Mexico-Canada trade pact, or USMCA, in its current form after a virtual meeting with trade officials with the other counties. That keeps the pact alive but kicks off annual reviews of the deal, a new form of trade limbo for America's biggest trading relationship.

One reason the U.S. trade representative opted against renewal of USMCA, which was struck during the first Trump administration, was because it didn't control the trade deficit, a senior administration official told reporters Wednesday. It also didn't deliver on market access issues, especially related to corn or energy, the official added.

Most analysts expected the U.S. would pick a middle ground rather than rubber stamp USMCA or withdraw from the pact that governs roughly $1.6 trillion in trade between the neighbors and underpins critical supply chains.

Trump has for months voiced a preference for bilateral deals. While the U.S. has held formal bilateral negotiations with Mexico, with another meeting planned July 20, relations have been more fraught with Canada.

The official said the president's tariffs and trade policies have "already subsumed USMCA" but the U.S. trade representative plans to continue negotiating with both countries. The official added that it is in no one's interest to drag this on for a decade, noting that there could be an agreement reached within Trump's term.

The U.S. would like to see tighter rules of origin, not just in autos but for broader industrials-increasing the amount of content coming from the U.S. or its partners to get USMCA tariff treatment. The Canadians and Mexicans are seeking a reduction in sectoral tariffs. The administration official said it would be up to Trump to see if an adjustment would be warranted.

While some of the issues the U.S. trade representative has outlined to Congress are trilateral issues-related to autos, aluminum, steel, and rules of origin-there are also specific issues with each country like dairy and digital issues with Canada and investment-related concerns with Mexico.

Kelly Ann Shaw, an international trade lawyer and partner at Akin Gump who worked in the first Trump administration, expects the U.S. to eventually maintain USMCA but have extra bilateral protocols on top with each trading partner.

Though it isn't the worst-case scenario of ripping up the pact that governs more than $1.6 trillion in trade between the neighbors and underpins interwoven supply chains for everything from agriculture to autos, this period of limbo isn't great news for either Canada or Mexico.

In a note to clients, Carlos Capistran, BofA's Latam and Canada economist, said this default situation of annual reviews and a pact that expires in 2036 unless the trio find a way to extend it isn't good for investment confidence and is likely to keep a lid on economic growth.

"We don't believe the market is adequately pricing in the risk of extended negotiations heading into the winter or even 2027," said John Aiken, an analyst at Jefferies in a note to clients on Wednesday. Rolling annual reviews "effectively institutionalizes a state of permanent trade negotiation," Aiken says. That state of long-term planning limbo could chip away capital investment, delay near-shoring and hurt operating margins for cross-border logistics, he said.

Others note that the uncertainty of annual reviews and the threat of tariffs rising could dampen hawkishness out of the Bank of Canada, which may stay poised to cut rates even as it deals with inflation from the Iran war disruptions.

Until a deal emerges, Mexico is relatively well-positioned versus exporting rivals even though uncertainty will keep much-needed investment on the sideline, according to Capital Economics. If Mexico emerges with a bilateral pact, that could offer a catalyst for its economy, a laggard in the region with 2026 growth expected at just 1.3%, and the market.

Write to Reshma Kapadia at [reshma.kapadia@barrons.com]

Expected Major Events for Friday

00:30/JPN: Jun Japan Services PMI

06:00/RUS: Jun Russian Services PMI

06:45/FRA: May Industrial production index

07:45/ITA: Jun Italy Services PMI

07:50/FRA: Jun France Services PMI

07:55/GER: Jun Germany Services PMI

08:00/ITA: May Retail Sales

08:30/UK: Jun UK Official Reserves

08:30/UK: Jun S&P Global UK Services PMI

12:30/US: U.S. Weekly Export Sales

All times in GMT. Powered by Onclusive and Dow Jones.

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This article is a text version of a Wall Street Journal newsletter published earlier today.