As U.S. trade tensions bear down on the economy, Canada will need to boost business confidence and investment if it wants to maintain recent upward momentum, Deloitte says in its latest outlook.

The firm’s fall economic report, released Tuesday, revised its 2026 GDP forecast up 0.2 percentage points to 0.9 per cent based on Canada’s ability to navigate the turbulence caused by “an unstable trading relationship with the U.S. and elevated energy prices.”

However, the strong 3.3 per cent GDP gain in the second quarter could be the last “highlight” for a while, Deloitte chief economist Dawn Desjardins said.

Trade continues to be the “dominant downside risk” to the economy, the report said. The latest flare-up in tensions, including new U.S. 50 per cent tariffs on roughly $20 billion worth of Canadian imports, led Deloitte to shave 0.4 percentage points off next year’s forecast. It now predicts GDP will grow 1.6 per cent in 2027.

“As we go forward, we’ll probably see a slowing pace of economic activity as Canadian companies and Canadian consumers really adjust to this new operating environment,” said Desjardins.

The report identified business non-residential investment is the “most prominent weak spot” in Canada’s economy as the money companies spend on workers and government spends on infrastructure continues to lag.

However, Desjardins said Deloitte also expects investment to creep up by 1.6 per cent in 2026 and 3.5 per cent in 2027 as businesses respond to policy changes aimed at improving competitiveness, including reducing interprovincial trade barriers, accelerating zoning and permitting timelines, and the proposed new Productivity Mega Deduction tax incentive.

Increased government spending on infrastructure, defence, energy, artificial intelligence and transportation could also open the door to “a quicker and deeper increase in private sector spending,” the report said.

“That’s also part of the story that restores confidence for businesses,” said Desjardins. “They see things that are moving in a direction that opens markets to them and really increases their ability to sell.”

Renewed trade tensions with the U.S. have “deteriorated” Canada’s trade outlook and will continue to put pressure on goods exports, the report said.

While Deloitte expects exports to rise 2.6 per cent in 2026, that number masks a “sharp weakening” over the course of the year with exports predicted to fall 0.9 per cent in the third quarter of 2026 and five per cent in the fourth quarter.

Deloitte forecasts exports will increase just 0.3 per cent in 2027, which Desjardins said reflects a combination of Canadian businesses needing time to reposition supply chains and establish new export markets and tariffs weakening overall demand.

“We’re starting to see a softening in that demand from U.S. buyers who are saying, ‘Well, I can’t really do it. The tariff is too high,’” said Desjardins.

Further complicating the country’s economic outlook are inflation risks stoked by high energy prices.

“The longer energy prices stay high and tariffs remain in place, the greater the risk of pass-through to other goods,” the report said.

Assuming a baseline scenario where risks to the economy dominate and high energy prices don’t bleed into other areas, Deloitte expects the Bank of Canada to hold its benchmark interest rate at 2.25 per cent for the rest of the year. However, the central bank could change course based on Canadian households’ views on price pressures.

“When we see more survey results, it will certainly suggest whether or not Canadians are more nervous that prices will continue to rise,” said Desjardins. “And if (the Bank of Canada) should see inflation expectations pick up, I wouldn’t say it’s out of the question that they won’t raise the policy rate this year.”

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Bed Bath & Beyond is returning to Canada after Canadian operations were wound up in early 2023.

From Tuesday, Canadians can shop at the New Jersey-based home goods retailer’s Canadian website. It said the digital-first launch is the first step in the brand’s return to Canada, with the brick-and-mortar store openings set to follow in late 2027.

“This marks the beginning of a new chapter for the iconic home retailer,” the company said. “Now Canadian owned and led, the brand returns with a reimagined vision built specifically for the Canadian market.”

The e-commerce site launched with around 6,000 products from over 80 brands across eight categories, spanning bed, bath, kitchen, dining, décor, organization, baby, seasonal and more.

The company said the assortment has been intentionally built for the Canadian market, bringing together global brands and Canadian favourites, alongside the return of select internationally recognized home brands.

“Bed Bath & Beyond has long held a special place in Canadian homes, and we’re excited to welcome it back for a new generation,” said Bed Bath & Beyond Canada president Carol Deacon. “This homecoming isn’t about looking backward. It’s about taking a name Canadians already know and trust forward.”

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Bed Bath & Beyond’s Canadian operations went out of business in February 2023, after the retailer quickly raised cash to stave off a bankruptcy in the United States.

The Canadian division, which became insolvent, operated 54 Bed Bath & Beyond stores and 11 Buybuy Baby stores.

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Canada’s real gross domestic product remained flat in July following three months of expansion, an early sign that economic growth may have slowed in the third quarter following a second-quarter rebound.

Gains in construction, 1.3 per cent, and utilities, 1.7 per cent, were offset by decreases in the manufacturing and mining sectors in July, as well as quarrying and oil and gas extraction — which contracted by 0.9 per cent and 0.5 per cent month over month, respectively. Contractions in retail and wholesale trade also offset some increases in services-producing industries, weighing on economic growth.

Overall, only 10 out of 20 subsectors expanded in July.

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July’s flat growth came after the economy expanded by 0.4 per cent month over month in June and 0.3 per cent in May.

Flash estimates suggest the economy expanded by 0.2 per cent in August, led by increases in mining and quarrying as well as retail trade that were partially offset by decreases in oil and gas extraction.

“The numbers are a mixed bag, and there’s a lot of things happening under the hood when you look at the monthly GDP numbers. It took a break in July, but it was in line with what’s going on,” said LJ Valencia, an economist with Desjardins.

“The weakness was pretty broadbased, but it was offset by some of the strength that we’re seeing.”

Economists largely expect growth to slow in the third quarter of 2026 due to economic uncertainty from escalating trade tensions with the United States, after the economy rebounded and grew by 3.3 per cent on an annualized basis in the second quarter.

Deloitte Canada’s latest economic outlook suggests the recent levies are expected to sharply weaken growth in the final quarter of 2026 and into early 2027. Forecast tables predict the Canadian economy will expand by 0.9 per cent on an annualized basis in 2026 and by 1.6 per cent in 2027.

Household and business confidence will also remain subdued due to the persistent threat of tariffs and additional trade measures, the report said.

“The past monetary tightening cycle and successive rounds of trade tensions have taken a toll on the Canadian economy. The most prominent weak spot in our economy continues to be business non-residential investment,” wrote Dawn Desjardins, Deloitte Canada’s chief economist.

Abbey Xu, an economist with RBC Economics, said she isn’t putting too much weight on a single month’s data, especially since flash estimates suggest a rebound in August.

Part of the decline in July also seems temporary, she noted, referencing some unplanned downtime at a southwestern Ontario oil refinery that led to a decrease in production.

RBC is still forecasting 1.8 per cent annualized growth for the third quarter of 2026.

“We need to see persistent weakness for a few months before calling it a broader deteriorating economy. So far, everything is pretty consistent with a gradual recovery story for Canada,” Xu said.

Most economists say the Bank of Canada will likely stay on the sidelines for now before hiking rates in 2027.

“The U.S. tariffs and the counter-tariffs that were introduced in the beginning of September will have modest upward pressure on prices. Energy prices are still elevated, and there’s no certainty to when that conflict will actually end,” Valencia said.

“If real GDP growth comes out stronger than what we expected, that could put pressure on the Bank of Canada to change its interest rate sooner than our current call, but that’s if things stay where they are,” he said.

Xu said the full impact of the tariffs likely won’t show up until September’s data and they still pose a downside risk for economic growth. However, the broader macroeconomic impacts will likely be contained because the levies will only significantly affect a small handful of sectors.

Core inflation measures are also sitting near the two per cent target, which means higher energy prices haven’t spilled over to broader inflation just yet, despite the elevated overall inflation rate at three per cent, she added.

“I don’t think today’s report materially changed the Bank of Canada story … Our base case is still that the Bank of Canada will remain on hold for the remainder of 2026 before gradually hiking at the start of 2027.”

• Email: ptran@postmedia.com

Canada’s economy likely continued to grow in the third quarter, though economists say that growth could stall in the final quarter of the year as new United States tariffs bite.

Economists estimated the economy expanded by two per cent on an annualized basis in the third quarter, beating the Bank of Canada’s outlook for 1.5 per cent.

Those calls came after Statistics Canada on Tuesday said gross domestic product in July was flat month over month, but expanded 0.2 per cent in August, according to a flash estimate. The agency also revised June’s GDP figure to 0.4 per cent from 0.3 per cent.

Here’s what economists think the latest GDP data means for the economy, the Bank of Canada and interest rates.

‘Much more resilient’: Bank of Nova Scotia

“Canada’s economy is proving to be much more resilient in the third quarter than negative nellies feared after a strong second quarter that itself was revised to be stronger this morning,” Derek Holt, vice-president of Scotiabank Economics, said in a note.

Statistics Canada boosted GDP’s second-quarter annualized growth to 3.8 per cent from 3.6 per cent.

Holt estimates third-quarter GDP will now come in at two per cent annualized.

Slack in the economy — what it is producing versus its capacity to produce — is tightening and “will likely close in 2027,” he said.

Holt said inflation will likely “overwhelm” any remaining economic slack, which might force the Bank of Canada to start hiking interest rates.

But he swept aside the threats posed by a new round of U.S. tariffs that took effect this month, saying U.S. President Donald Trump has gifted Canada high commodity prices and an “undervalued” Canadian dollar.

Because interest rate changes take a while to filter through the economy, he is calling for the Bank of Canada to start hiking at its meeting on Oct. 28.

“The Bank of Canada had better get on with it,” he said.

‘Robust over the summer’: Charles St-Arnaud

“Overall, the GDP number suggests the Canadian economy was robust over the summer,” Charles St-Arnaud, chief economist at Servus Credit Union, said in a note, but added that growth could slow in September due to the imposition of more tariffs by the U.S.

He said growth isn’t the priority of the Bank of Canada, which is more concerned with rising inflation from higher oil prices and the risk that poses to the economy.

“So far, there is no evidence the situation is causing broader inflationary pressure,” he said.

That should allow the Bank of Canada to keep rates on hold for the rest of the year, he said, though the central bank could still pull the trigger and hike if inflation breaks free.

‘Calm before the storm’: CIBC

“Today’s data points to a slower, but still solid, pace of growth in the third quarter to follow the surge seen in the second quarter,” Andrew Grantham, a senior economist at CIBC Capital Markets, said in a note, adding that CIBC is calling for third-quarter growth of two per cent annualized.

But he said the latest GDP results could represent the “calm before the storm” due to the new U.S. tariffs.

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He also said the flash GDP estimate for August by Statistics Canada could be flattering as businesses sought to front-run the new tariffs, which Trump first announced on July 20.

Grantham said GDP could slow to less than one per cent annualized in the fourth quarter because of the tariffs and their impact on consumer and business confidence.

CIBC is calling for the Bank of Canada to hold interest rates through the remainder of 2026 before hiking in early 2027.

• Email: gmvsuhanic@postmedia.com

Canada’s Competition Bureau is sounding the alarm over policies that it says are keeping lower prices out of reach for Canadians.

The bureau on Monday said it was “concerned that grocery deals are being kept from Canadians” when they use use grocery flyers, apps and online promotions to find deals.

It said that stores aren’t always allowed to advertise their lowest prices because of supplier policies or deals negotiated between suppliers and retailers. Such policies set the lowest price at which a retailer can advertise a product.

The grocery sector uses minimum advertised pricing policies that can prevent retailers from advertising lower prices, even when those are offered in-store, it said.

“Canadians expect grocery stores to be able to advertise their best deals,” said interim competition commissioner Jeanne Pratt. “We’re concerned that policies that prevent this make it harder for grocers to compete, and for consumers to access lower prices.”

Minimum advertised pricing policies can address “free-riding,” or when customers use services at one store for free and then buy the same product at a lower price from another retailer. Such policies would limit the ability of retailers that do not make these investments to attract customers solely by advertising a lower price.

Another is by preserving retail margins, minimum advertised pricing policies may encourage retailers to carry and promote products from newer or less established suppliers that would otherwise struggle to gain distribution and visibility.

The competition bureau said in industries like retail grocery, where a few large companies dominate the retail landscape, such policies can make it harder for retailers, including discount grocers, to offer lower prices and compete for customers.

It said some retailers may remove in-store discounts entirely if they cannot advertise lower prices under those policies.

The bureau is now looking for input from consumers, retailers and suppliers about those policies’ impact on grocery pricing . It said input will support its ongoing examination of the food supply chain, building on a previous retail grocery market study. That study found that greater competition in retail grocery would help lower prices and deliver more choice and innovation for Canadians.

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• Email: dpaglinawan@postmedia.com

The Canadian dollar has been under pressure this month, losing more than two per cent to fall below 71 U.S. cents as the U.S. Federal Reserve raised interest rates and the greenback gained.

But it’s not just a strong U.S. dollar story this time, said Douglas Porter, chief economist of BMO Capital Markets. The loonie has also been losing ground against other currencies.

For the first time since 2018, the Canadian dollar is at parity with the Australian dollar on a sustained basis, he said. Just last year, the loonie was worth A$1.12, but then Donald Trump launched a trade war.

Since then the two countries’ economies have diverged “sharply,” with Canada’s gross domestic product slumping to 1.6 per cent and Australia’s storming ahead to 3.3 per cent, more than double.

Today, the Reserve Bank of Australia raised its rate to 4.6 per cent, taking borrowing costs to the highest level in 15 years to cool inflation. Tuesday’s hike takes tightening this year to a full percentage point.

As for the Canadian dollar, things are getting worse, before they get better, said CIBC economists Avery Shenfeld and Katherine Judge.

The Fed is expected to follow up its September move with another hike in October, which will widen the gap with the Bank of Canada’s rate and put more pressure on the loonie.

Unlike the markets, CIBC does not think Canada’s central bank will rush to follow. They say the latest flareup in the trade war will weaken the economy and likely push the unemployment rate to 6.6 per cent, offsetting the risk of higher inflation from oil prices.

“That will leave CAD under pressure in the near term,” said the economists who expect the currency to average about 70.42 U.S. cents in the last quarter of the year.

They are more upbeat about the loonie in 2027. They speculate that Trump will be more willing to make concessions for an Iran deal after the midterm elections, which would put an end to Fed hiking.

They also expect Canada’s trade negotiations with the United States to result in Trump rolling back his Section 338 tariffs and calling off plans to double penalties on the auto industry in the new year.

“We are therefore more optimistic for the loonie in 2027, when prospects for an economic expansion tied to a trade deal with the U.S. could prompt the BoC to hike rates early in the year.”

By the middle of next year, the Canadian dollar should be back to almost 73 U.S. cents, they said.

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Canada’s population target is looking increasingly out of reach, say economists.

Desjardins Group says if current immigration levels and natural population growth trends hold, the number of non-permanent residents (NPRs) in Canada would have to fall by about 905,000 by the end of next year. That’s about double the government’s previously estimated decline.

Because cuts so far focused mainly on students, future restrictions may target other categories such as temporary foreign workers unless changes are made to the goal.

Read more about Canada’s population here

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Is the so-called Mortgage Renewal Cliff making a comeback? MortgageLogic.news strategist Robert McLister says with bond yields rising and markets betting on Bank of Canada rate hikes, mortgage borrowers could once again be facing big increases when they renew. Read more on how you should prepare.

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

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U.S. President Donald Trump announced over the weekend that he is still looking “very seriously” at implementing a U.S. ban on diesel exports to combat high prices, a move analysts have warned would just fan the flames of the global energy shortage.

Republicans are under pressure to ease high diesel prices for farmers ahead of the midterm elections after a run-up that has pushed the fuel to historic highs.

Most analysts agree a ban on exports would be at best self-defeating.

Resource researcher Wood Mackenzie warns that not only would a U.S. ban draw down diesel stocks worldwide, it would also force U.S. refineries to cut production and raise gas prices.

Its analysis estimates that a ban on exports would fill storage in the United States within weeks and force producers to cut the volume of oil going to refineries.

“The irony of a U.S. diesel export ban is that it would likely increase costs for American consumers,” said Alan Gelder, a commodities researcher at Wood Mackenzie.

“Cutting crude runs to manage the oversupply would shift the cost burden from diesel to gasoline, meaning a policy designed to bring relief at the diesel pump could end up driving prices higher at the gasoline pump.”

U.S. diesel exports to other countries, especially Europe, have risen in the past six months as the Iran war cut off Middle East supplies and Russia initiated its own export ban to cope with domestic shortages.

A U.S. ban would accelerate stock drawdowns across global markets at a time when Europe’s share of U.S. diesel exports is almost 50 per cent, up from 30 per cent last year.

“A ban on U.S. diesel exports would increase competition for non-U.S. barrels in an already tightly supplied market,” said Gelder.

“China is currently the only country with material spare refining capacity that could cover the loss of U.S. refinery throughputs. However, China may well decide it is not in its interest to do this.”

David Oxley, chief climate and commodities economist at Capital Economics, said the scale of the economic shock that could stem from a complete ban on U.S. diesel exports would be comparable to the natural gas crisis in Europe in 2022.

Natural gas prices in the eurozone then averaged about US$240 a barrel, peaking at more than US$400 per barrel in August of 2022.

Capital Economics believes that some form of export restriction is likely to be announced in coming weeks, as politicians will want to be seen doing something on fuel prices before the midterms.

“This would further complicate the outlooks for energy markets and fuel price inflation,” said Oxley.

On the bright side, since a ban won’t solve anything and could make things worse, “we suspect that it would be short-lived.”

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Wondering what’s driving bond yields to disturbing heights lately?

BMO chief economist Douglas Porter said growing concern about government debt is one factor and the higher yields go, the bigger interest payments on that debt get.

Canada’s interest payment to revenue ratio peaked above 35 per cent in the 1990s, triggering austerity measures. By the early 2020s it was down to 6 per cent, but since the pandemic it has risen to almost 11 per cent.

That is still better than south of the border. In the United States federal debt interest has climbed to the post-war high of almost 20 per cent of revenues.

“Given still-rising debt loads and that maturing debt is rolling off into higher rates, this ratio is poised to push even higher in coming years — possibly above 25 per cent in 10 years,” said Porter in a note.

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Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here.

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

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This week, FP Video looks at Donald Trump’s brief dalliance with Belarussian potash , Canadian stocks to watch following the investment summit and Alberta suspending its tax at the pump. We also talk to the experts about Canada-United States trade talk difficulties, the Bank of Canada’s next rate decision, and how drones and robots are changing the the pipeline industry.

Can Trump replace Canadian fertilizer with supplies from Belarus?

U.S. President Donald Trump says his administration is in talks to source potash from Belarus — at better prices than what Canadian firms charge. The U.S. relies on Canada for most of its potash, a key ingredient in fertilizer. Is this bluster or a real threat to a key Canadian export?

TSX stocks to watch after Canada investment summit

Greg Taylor, chief investment officer at PenderFund Capital Management, talks to Financial Post’s Larysa Harapyn about which companies will benefit the most from Ottawa’s investment summit and major project push.

Alberta suspends provincial fuel tax

The Alberta government says it will suspend provincial fuel taxes from Oct. 1 until the end of the year. Prices at the pump will fall by 13 cents a litre. Watch to see how some Albertans feel about the changes.

Can Trump dump CUSMA? Yes he can, says trade lawyer

Mark Warner, Principal of MAAW Law, talks about the difficulties Canada will have in reaching a trade deal with the U.S. after Canada’s Prime Minister Mark Carney walked away from negotiations. Meanwhile, U.S. talks with Mexico are advancing.

Why Bank of Canada can afford to stay on sidelines for now

Randall Bartlett, deputy chief economist at Desjardins Group, talks about the Bank of Canada’s next move as central banks around the world start to raise interest rates.

The role of drones and robots in oil pipelines

When Canadians talk about oil and gas pipelines, the conversation tends to focus on debates around routes, approvals and climate policy. But there’s also a whole lot of tech working behind the scenes. Watch to learn about drones, robots and other inspection tools involved on the ground and in the sky.

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BlackBerry Ltd.’s QNX software is continuing to drive the company’s business forward as the Canadian tech pioneer beat analysts’ expectations in the second quarter and raised its full-year revenue outlook.

The Waterloo, Ont.-based company said Thursday that revenue grew 26 per cent year over year in the three months ended Aug. 31 to US$163 million — above analysts’ forecasts of US$145 million — on the strength of QNX, a real-time operating system used in commercial and passenger vehicles, medical devices, industrial equipment, aerospace and defence systems.

“Our view for some time has been that QNX is really the entire story at BlackBerry,” Canaccord Genuity analyst Kingsley Crane said in a note.

On a call with analysts, BlackBerry chief executive John J. Giamatteo said QNX’s core auto business helped the unit deliver record quarterly revenue of US$80.3 million, up 27 per cent from the same period last year.

“That strength is being supported by the auto industry’s transition towards software-defined vehicles and more centralized compute architectures,” Giamatteo said.

Revenue in BlackBerry’s secure communications unit, which provides encrypted communications and crisis management tools for governments and other organizations, increased two per cent year-over-year to nearly US$61 million.

Licensing revenue came in well above the company’s expectations at US$22 million. Chief financial officer Tim Foote noted that licensing transactions can vary between quarters and said licensing revenue is expected to return to a more typical level of US$6 million in the second half of the fiscal year.

“The key takeaway is that (BlackBerry’s) headline beat was largely driven by high-margin, non-recurring licensing revenue,” TD Cowen analyst John Shao said in a note. “However, even excluding this benefit, the core QNX business still delivered a decent beat relative to expectations.”

BlackBerry increased its full-year outlook, which was previously US$594 million to US$621 million. For fiscal 2027, the company now expects to earn between US$616 million to US$636 million.

It took a more conservative view on secure communications and lowered the unit’s full-year revenue outlook by $US10 million to US$260 million or US$270 million. Giamatteo said the division has a “substantial footprint” providing services to the U.S. federal government and that the “already dynamic backdrop” in America is being further complicated by recent geopolitical developments, including Canada-U.S. trade tensions.

Giamatteo highlighted a recent deal for Alloy Kore, an automotive operating system co-developed by QNX and Germany’s Vector Informatik GmbH, which he called the “largest design win in QNX’s history.”

On Sept. 22, the companies announced that Coretura AB, a joint venture between Volvo Group and Daimler Truck, will use Alloy Kore as the software foundation platform for the operating system it is currently developing for commercial vehicles.

Giamatteo said the deal could net BlackBerry an estimated US$100 million in future royalties.

“For QNX, we believe the business has a highly attractive setup for (fiscal 2027), with the likelihood of additional Alloy Kore and (general embedded market) wins, which could result in a significant increase in backlog,” CIBC Capital Markets analyst Todd Coupland said in a note.

BlackBerry’s share price has surged over the last year, but Shao from TD Cowen said there were questions around why the market’s reaction was “relatively muted” following the strong Q2 results.

While BlackBerry raised its full-year guidance, its third-quarter revenue projection of US$143 million to US$154 million is lower than the US$163 million it raked in during Q2. Foote said the company continues to take a “measured approach” to its quarterly outlook.

Shao said that while some investors pointed to an implied slowdown in the second half of the year, he believes the updated guidance reflects “management’s conservatism rather than a deterioration in underlying fundamentals.”

“In our view, the stock has likely entered a digestion phase following its 126 per cent YTD rally,” Shao said. “Although the combination of strong results and weak share price performance could weigh on sentiment in the near term, it may ultimately help reduce the volatility and speculative trading patterns seen earlier this year.”

On Thursday’s earnings call, Giamatteo also announced a deal between QNX and Uber Technologies Inc. as the rideshare company expands into robotaxis. Beyond Uber, he sees a growing pipeline of opportunities for QNX in robotics and physical AI.

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QNX’s three growth pillars are its core automotive business, Alloy Kore and expansion into adjacent general embedded markets (GEM), said Giamatteo.

GEM represents about 20 per cent of QNX’s revenues, and the CEO said it’s a growing area that can materially expand QNX’s long-term addressable market.

To punctuate his point, he offered a baseball analogy: “If you think about this as a nine-inning game, I’d say we’re really just about at the beginning of the second inning.”

• Email: jswitzer@postmedia.com

Costco Wholesale Corp. is using refunds from U.S. tariffs to lower prices at its stores.

The company said it received US$184 million in refunds in its fourth quarter after the U.S. Supreme Court struck down tariffs under the International Emergency Economic Powers Act back in February.

The items receiving the discounts include produce, meat, beverages and non-food items.

“We view that as really very much as giving value back to our members for the tariff refunds that we received,” Costco chief financial officer Gary Millerchip said during an earnings call on Thursday.

“Our goal was to make sure that we spread those as we could to items that would have the most impact for members.”

Millerchip said the refunds his company received in the quarter represent about a third of what they are expecting in total, and added that Costco has already received about the same amount this quarter.

“We intend to continue investing the majority of the dollars we received in increased member values,” he said.

Overall, Costco’s total revenue rose 11 per cent to US$95.7 billion, beating expectations of US$94.86 billion.

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During the holiday season last year, tariffs forced Costco to thin down its non-food product line and its Christmas goods as customers were more selective with discretionary purchases.

Costco chief executive Gary Vachris said the tariff-induced product changes died off by the third quarter and this holiday season is expected to be back to normal.

“(I) feel very good about the holidays, feel very good about the buying lineup that our folks have,” he said.

• Email: bcousins@postmedia.com