Canada Says “We’re at War” Over Tariffs & IndyCar Race Rips Through Washington DC

marketers tell us if this sounds familiar you invest in something that seems incredible like millions of views but then don't see any revenue instead invest in what looks good to your cfo linkedin ads generates the highest ROAS of all major ad networks spend $250 on your first campaign on linkedin ads and get a $250 credit just go to linkedin.com slash mbd that's linkedin.com slash mbd terms and conditions apply good morning brood daily show i'm neil freiman and i'm toby howell today canada says it's at war with the u.s after this latest tariff barrage then start your engines there is an indycar race in washington dc this weekend it's monday august 24th let's ride good morning and welcome back to the week you're listening to the indycar show and i'm neil freiman and i'm toby howell today canada says it's at war with the u.s after this latest tariff barrage then start your engines there is an indycar race in washington dc this weekend it's monday august 24th let's ride heads up your office might be a little emptier than usual because today august 24th has been deemed the sickest day in america it is the single most common day for employees to call out of work according to an analysis from flamingo not that you're actually fooling anyone with that manufactured cough given the mild weather it's almost certainly not true that more people get sick on a random day in late august for a more believable reason it might be the final opportunity to take the kids for a ride or check off that hike you've been putting off all summer to be proud of us for clocking into work today i thought you meant sickest as in like cool august 24 is one of the coolest days out there i'm not 16 anymore i get the weather argument because it is great weather but isn't this pretty late to be going back to school i was always early august because i lived in florida but when did you go back to school after labor day i know that's in the northeast that's when we went back to school it's crazy it was crazy to learn that in the south texas florida they're they're already back in school in august i'm like what where's your school i'm like where's your school i'm like where's your summer i find it hard to believe though that august 24th is actually the sickest day though because the second sickest is february 13th which is the day after the super bowl and that is always famously you know the super bowl hangover so i need to look a little bit further into this data well i think that is why it's not the sickest day because if this is the first one that's the second one perhaps there's other factors going on than the flu and now a word from our sponsor american express neil where's the most memorable place you've ever made a business purchase business everywhere these days like planes trains or even during a friend's really long wedding ceremony well you should know the american express business platinum card can reward your business journey you can earn 5x membership rewards points 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signature is written in pencil it's a stunning breakdown in relations between the two longtime neighbors whose friendship has deteriorated since trump took office for his second term and began bullying canada around as the 51st state earlier this summer trump announced a fresh round of tariffs on canada 50 on 20 billion dollars worth of goods and retaliation for unfair treatment of american immigrants particularly alcohol by canadian provinces it looked like an agreement was about to be reached on friday but discussions fell apart with both sides blaming each other on last second curveballs thrown into the deal now it looks like this trade war is heating way back up with implications for both the canadian and american economies in response to trump's tariffs carney said that he would target american goods dollar for dollar beginning on september 8th the tuesday after labor day trump is not backing down either writing on social media canada wants the benefits of being a state-owned company and canada wants the benefits of being a state-owned company and without being one they've also charged our great farmers for many years massive amounts of tariffs no more toby are you ready to take up arms against canada no i like i like my syrup but too much but this is a risk for mark carney and canada one that he thinks is a calculated one the risk is that 72 percent of canadian goods exports went to the u.s last year we are the canada's biggest trading partner by far so the fact that you're engaging in a trade war here means that you are going to take on some economic risks the reason he feels emboldened to do so is because he's got a lot of support he has very high approval ratings more than 75 percent in one poll said he was right to walk away and nearly 90 percent worried about the economic costs so basically you're seeing people are saying that hey we are concerned that the economic costs are coming but we support the fact that you are doing so just 18 wanted canada to make concessions to get a deal done so that is why at least in the short term we're going to take on some economic risks the reason he feels emboldened to make concessions to get a deal done so that is why at least in the short term we're going to take on some economic risks the reason he feels emboldened people are willing to eat some of that economic pain just to stand up to trump in america so what are these what are these tariffs what is the u.s putting tariffs on in canada it is 20 billion dollars worth of goods which is a small fraction of what the overall trade uh volume between these two countries is it's five percent of canada's exports to the u.s but it's some interesting categories some seem a little random alcohol is prominent uh alcohol is one of the uh goods that is being targeted by the u.s and why i think it's a good thing that we're seeing is that we're seeing alcohol is important is this is one of the main grievances that the u.s has with canada because in response to the first volley of tariffs eight of canada's 10 provinces restrict u.s wine and spirits from their government-owned liquor distribution system and stores so if you go to eight of the 10 provinces and look for jack daniels or tito's vodka you won't see it so alcohol is being targeted dairy products as well that's been a major grievance of the united states from canada because the canada has these quotas that are being targeted and they're being targeted to protect their dairy farmers we also have clothing and textiles and then the final one is articles bit of a grinch here articles for christmas festivities ornaments not of glass or wood toys including ones for bikes fishing rods hockey sticks skates and festive carnival or other entertainment articles so if you're planning a christmas party you look at the tag it probably won't say made in canada i feel like you're actually missing some of the bigger ones okay partial wigs false beards and eyebrows are also so it just goes to show how uniquely specific there are actually another one too that we we haven't mentioned is the list contains 36 different types of plywood and wood is actually a very big sticking point between the u.s and canada because u.s home builders say hey we do not have enough domestic supply we need to have stuff coming in from canada so it's going to throw a wrench in the home building as well one other thing to look at is just how uniquely strained the relationship between the u.s and canada is is that a lot of people don't have enough domestic supply a lot of canadians are retaliating on their own we've talked a lot about how canadian travel to the u.s has fallen sharply we are seeing that manifest in the fact that the u.s lost around two and a half billion dollars in travel revenue last year and a lot of it is tied to boycotting american alcohol as well as you mentioned so this is a trade war that we're seeing playing out officially but also unofficially we are seeing canadians push back against america in more than one ways moving on if you have any questions please feel free to post them in the comments and i'll see you in the next video you can also have chat gbt send messages on your behalf which will bring a lot more m dashes to your fantasy football group chat this year the backlash was swift with many lamenting that this plugin could start to ruin texting one of the last distinctly human forms of digital communication we have left as ai slop takes over the rest of the internet plus many see the plugin as a massive privacy red flag game theorist live burry called it a deranged invasion of privacy writing that neither you or anyone in your contacts consented to years of old private messages being fed into an ai many too scratch their heads on how the notoriously privacy focused apple let open ai into the hen house especially as the two tussle in federal court over stealing trade secrets neil some practical use cases for sure but a lot of question marks too let's start with why this might be helpful why someone might want to let chat gpt into their i message and maybe one reason is that your messaging inbox has become these days as messy as your email inbox it's almost email at this point i've got politicians texting me i've got brands texting me it would be very nice for i've got toby text do you have any friends i would be very nice to have chat gbt with a simple query say go through my text messages uh you'll get all like flag all the spam for me get rid of all the stuff that i randomly signed up for and maybe actually tell me if there's somebody that i've missed that sent me a happy birthday message last week uh and i haven't replied to them so basically it does the idea is that your iMessage inbox has become as unwieldy as your Gmail inbox, it might be helpful to have some AI as a filtration layer to make life easier for you. But again, a lot of people just went off against this because in the one camp, it was that people think that humanity should be still texting. Like when I'm texting Neil, I want to know that I'm texting Neil. And I'm just going to read some of the quote tweets of this rollout on X. If I find out that AI has been texting me on your behalf, I will never speak to you again. One called it an open book. Are you an idiot test? And then another said, if anyone AI emails or text me, I hope you know you're effectively dead to me. So that it's again, it's about that trust factor that we've talked about before, about how you want to know there's a human on the other side of communications, especially something as personal as texting. So that's the one camp. But there's also the other privacy focus camp that is very wary about giving chat GPT full disk access to their computer. And then there's also the other privacy focus camp that is very wary about giving chat GPT full disk access to their computer. But there's also the other privacy focus camp that is very wary about giving chat GPT full disk access to their computer, which they feel like is a step too far when it comes to letting AI into your personal business. And open AI has emphasized the privacy aspect of this. They've talked about how many loopholes or hurdles you have to go through to actually get into this particular integration. Like it's not going to be, uh, opt out it's opt in. So you have to check off many different steps to say, yes, I want this. Yes. I want this. Yes. I want this. It's going to, you actually have to go into the Mac system settings app itself. And grant full disk access. So there are many steps you have to take to go through it for chat GPT to be integrated into your iMessage. A very dissimilar to what we saw with meta AI just happening on your Instagram without you asking, but it is an interesting calculation by Apple because chat GPT may not have open AI probably did not coordinate with Apple about this. And previously they've gone after third parties that have accessed iMessage. Remember there was that one app mini beeper beeper mini that, that, went into your iMessage and allowed it to run on Android. People love that. But then Apple decided to crack down because they don't want third parties messing in their walled garden. So there's a lot of back, you know, a lot of history between open AI and Apple. They don't really like each other right now. So it will be interesting to watch how Apple responds. It's winners of the weekend time, the segment where Neil and I pick two stories that had a better weekend than Neil who partied with his aunt Sue for his birthday. I won the pre-show game of who can name more sports teams located in California. So I'm up first. Am I one of the weekend is people who drive above the speed limit in Washington, DC Indy car took the, to the streets of the nation's Capitol yesterday for a 250 mile race in honor of America's 250th birthday. You've probably caught the Indy 500 on TV at some point, but just to refresh your memory, Indy cars have a similar open wheel look to formula one, as opposed to the more traditional looking stock cars driven in NASCAR. The race followed a similar route to your eighth grade class field trip, completing 147 laps. Around the national mall, starting in front of the Lincoln Memorial before racing past the Washington monument, Smithsonian air and space museum in down Pennsylvania Ave there to wave the green flag was president Trump who has made it a priority in his final term to party hard, adding motor sports to summer celebrations that have also included a UFC fight on the white house lawn and fans are turning out. Organizers say they received more than 288,000 ticket requests in just over nine days. While DC mayor Muriel Bauer, a big reason for the big turnout tickets were free. Thanks in large part to the transportation conglomerate Penske who alongside some sponsors footed the roughly $20 million price tag for the race. Also fear, not DC commuters Penske agreed to cover any damage to the roads caused by the cars ripping around at 190 miles per hour. Neil, it feels like every other week there's a sporting event descending upon DC. It was quite surreal to see the Washington monument, which is the monument and then boom race cars. Not sure. This is what Pierre Linfon had in mind when he designed Washington DC originally. If you live there, this must be a bit of a headache. And there were some grumblings about all of the setup, uh, and infrastructure that was required to put on an Indy car race really in downtown DC around the mall. Restaurants were complaining that were, if they were in the security zone, that they had a bunch of disruptions to their business. And I thought this was interesting. You saw concerns by preservationists about the vibrations of the cars, potentially affecting artifacts and paintings in these museums, because where these cars were going around, I mean, they go by the national archives building, the national gallery of art and three different Smithsonian museums, Aaron space, American Indian and American history. They are traveling upwards of 200 miles per hour. So you heard preservations. I didn't realize that the vibrations might affect the art at least 24, less than 24 hours. We haven't heard of, you know, any George Washington paintings falling to the ground. How did the racers enjoy the race? They didn't love the track. Uh, the runner up who finished behind American Kyle Kirkwood said the layout wasn't really the most entertaining and that the bumpy street course doesn't make it much easier physically. I did say some clips of when you're do street racing in Indy car, it is bumpy as heck. Like these cars are almost catching air as they're going through streets, because again, this is not a perfectly, you know, smoothed out oval racetrack. It is the streets of Washington DC. But then he did say every time you're driving past the main street, you're going to see a lot of cars. And I think that's a good thing. The capital is on your right. It's the best scene in the house. So at least the views were good fans also to seemed to love it. One fan traveled from Fox town, Ohio and told USA today with tears in her eyes. This is America. I feel safe. I have not a worry in the world. It just doesn't get any better than this, which is exactly what, you know, Trump is going for with these America two 50 celebrations. There's been criticism that maybe it's a little bread in circuses. There's other things in the world to focus on. Why are we throwing all these big parties? But at least for the fans of IndyCar, they really enjoyed the spectacle. We'll never see a summer like this. I mean, not only did we have the world's cup, but we also had the UFC on the South lawn, which Dana White said cost $30 million. And he said, that was fun, but we're never doing it again. This race cost Penske allegedly more than $20 million. I think it's also a one-time deal. The guy's like, I I'm never doing this again. Just one, one hot DC summer, but it's probably good for the nation's capital because we're seeing what people come for this particular race, who knows how many for the UFC as well. So it's a time that a lot of Americans for the country's 250th birthday are getting acquainted with Washington, DC. All right. We're going to take a quick break and come back with a Neal's winner of the weekend, right after this every day, shareholders meet to discuss important matters about the companies you invest in. Now you can easily make your voice heard to Vanguard investor choice makes it easy to set your proxy voting preference for your eligible Vanguard index vote. In just a few clicks, you can have a say on important shareholder topics like executive pay and director elections. Visit Vanguard.com slash investor choice to learn more. It's your shares. It's your voice. It's easy. Vanguard investors own shares of their index funds, and those funds own shares of the companies they invest in Vanguard marketing corporation distributor. Cybersecurity as we know it is dead. It's a figure of speech, but the truth is the old model was built on protection, safety nets, recovery plans, and the like. And it's not designed to withstand the last era and maintain the status quo. The AI era demands confidence that you can secure and accelerate your business operations. So nothing stops your momentum. Rubrik can give you that confidence. Their singular platform is designed to secure your data, control your AI and protect your identity built as one architecture, not stitched together after the fact. To learn more, head to rubrik.com slash MB. That's R-U-B-R-I-K.com slash MB. When it comes to AI's value, the picture is about as clear as swamp water. Case in point, 43% of CEOs report revenue gains or cost reductions from AI, but nearly the same number say they're still stuck. That's why PWC advises a value over volume approach. Many companies gauge AI progress based on how many models or agents are deployed, but impact actually comes from connecting data workflows and decision-making into a coordinated operating model. Learn about turning AI investments into a coordinated operating model at pwc.com slash us slash brew AI. That's pwc.com slash us slash brew AI. My winner is Incheon International Airport in South Korea, because for the first time ever, it just leapfrogged Dubai to become the world's busiest international airport. Talk about a K-pop. Incheon, located about 30 miles west of the capital Seoul, handled 38.39 million international passengers in the first half of this year, vaulting it ahead of London Heathrow and third-place Singapore. Dubai, meanwhile, tanked in the rankings, which should give you a clue about why this leaderboard shakeup took place. The war in Iran, located in the UAE's backyard, decimated travel to and from the Gulf airports, which had established themselves as the main point of transfer between Europe and Asia. Before the war, Emirates, Etihad, and Qatar Airways accounted for about 16% of the world's 417 million connecting passengers. But then, the missiles started flying and the center of aviation gravity shifted east toward places like Seoul, South Korea, that have emerged as key transfer nodes between Europe, North America, and Asia. Let's say you were going on a trip to Vietnam from New York or Paris. Last year, you probably would have transferred through the Gulf. Now, you're much more likely to make a pit stop in Taiwan, Hong Kong, or Seoul. The number of people flying from Europe to Incheon for connections jumped by two-thirds in the first half of 2026. Toby, seems like I'm the only one who hasn't stopped in Seoul this year. It was really, well-positioned for this exact moment. If you go back to 2005, too. It was just 10th globally. It's then slowly climbed up to fifth. And then it's been in the top three in 2024 and 2025. A big reason that I was able to absorb all this extra traffic though, is the fact that they had this big 2024 expansion that increased its annual capacity to over a hundred million passengers. It serves 101 airlines and it flies to 183 different cities. So this is a great airport to be the busiest one in the world. We're also just seeing Asia more broadly benefiting from this Hong Kong international airport. They saw traffic up 11% in the first half. Same thing for Taiwan's international airport up nearly 10%. So Asia is the new Middle East when it comes to connecting passengers, especially to Europe and other places. And the question is, will this last perhaps as hostilities between the US and Iran and other Middle Eastern countries dies down? Because we saw Middle Eastern transportation, transfer traffic on routes between Europe and Western Europe and Asia collapsed by 47% in April year over year. Remember that like there was no Emirates wasn't flying. Qatar Airways was not flying because there were missiles overhead and they have inched back up since over the course of the summer. So the question is whether Asia, Seoul, Taiwan can hang on to this crown or the center of gravity will shift back as peace is restored or violence dies down in that area. Because they all talk about it. Infrastructure, they, these Gulf carriers know exactly what they're doing and they're not going to let Asia take their, take their leader. One, one thing that aviation consultants are already seeing though, is travelers are deciding the discounted fares are good enough that they're willing to accept the geopolitical risk to fly through the Middle East again. So part of the reason why we are seeing traffic inch back up is because people are saying, you know what, we will take the discount, even though there might be some instability in the region. So that compared with the fact that yes, they have established themselves over decades at this point as the central hub of the aviation industry means that Dubai probably will take the crown back at some point. Okay. So you're at trivia later this week or next week and you get the question, which is the classic question. What is the world's busiest airport? Do not say in China. I know you're going to want to say it because you heard us say it here, but it is the world's busiest international airport for international travelers. The world's busiest airport, or is still Atlanta Hartfield Jackson in the United States that has the most passengers go through it. But most of that though, most of those passengers are domestic in the United States. So please, I know that's what I'm saying. Toby, not, this is just international traffic, not total traffic. Atlanta still, still cakes this cake there. All right. It's Monday. So here's what you need to know to stay ahead in the week ahead in markets. We've got a big week with two tentpole events. First NVIDIA earnings, on Wednesday, which is always a key test of demand for AI, you know, the thing propping up the stock market as well as our entire economy. Then on Friday, fed chairman, Kevin Warsh delivers the keynote address at the central bank's annual symposium in Jackson Hole, Wyoming. After last week's bond chaos, that's pitted his tight-lipped approach against Scott Besson's interventionist streak. Everyone is intrigued about what Warsh is going to say. Yeah. Besson is definitely moving in on the feds turf. CNBC wrote that there is no definitive line between where treasury's responsibilities end and the feds begin. So maybe that line will be drawn by Warsh this week because he wants to create a little bit breathing room for the fed. Closing arguments begin in a legal case that has gripped the nation. A mother, Lindsay Clancy, is on trial for killing her three children aged five, three, and eight months. And what she says was a state of postpartum psychosis. You cannot scroll five minutes on social media without commentary on the Lindsay Clancy trial, which the New York Times says has become a Rorschach test. For Americans and how they view the forces behind mental health. Yeah. Clancy and her team do not deny that she killed her children, but as CNN writes, her attorney argues she should not be held criminally responsible for their deaths because she was suffering from that postpartum psychosis. Finally, in the sports world, if you missed watching soccer after the world's cup, do not fear. The English premier league has kicked off last weekend with more games being held this week and on and on until May. It's a very long, long season. So certainly not too late to pick yourself a team and elsewhere. The little league world series continues through Sunday while college football's regular season kicks off on Saturday. Horrible start for Manchester United. We do not need to talk about it. So let's talk about, I guess the little league world series. Neil, have you tuned in? Are there any dark horses to look out for this year or any favorites? New Jersey. I mean, they're right across the river here. Uh, yeah, they, they took down my Massachusetts team. So, I mean, you got to root for the, at least I always root for the Northeast. These teams to do well and they do fine until they have to face like California or Texas or Florida. And then, you know, they're like a foot taller than we are. So, uh, yeah, not, you know, historically, uh, the little league world series hasn't favored our Northeast teams, but I also see myself in them too, because I was a little league player in Massachusetts and I'm like, yeah, I probably couldn't beat these guys throwing 80 either. I was at the gym brag and saw Australia on the TV and I was rooting hard. I don't even know if they won, but it is so watching little league is so funny because they do just copy the professionals so hardcore more than any other sport. And just seeing these little like Aussie kids just being Paul schemes up there was very funny to me. So I got a soft spot in my heart for the Aussies. All right. That is all the time we have. Thanks so much for starting your morning with us. Have a wonderful start to the week to share your thoughts on the episode or anything else. Send an email to morning brew daily at morning brew.com or DM us on Instagram at MB daily show. Let's roll the credits. Emily Milliron is our supervising producer. Raymond Lute is our senior producer. Our producer is Olivia Graham and our associate producer is Olivia Lake technical direction by Nina Miller. Not a surprise hair and makeup called out sick today. Devin Emery is our president and our shows are production of morning brew. Great show today, Neil. Let's run it back tomorrow. Hank joined BJ's wholesale club the day he became a father of 30. I coach football. Now coach Hank saves up to 25% off grocery store prices, 30 pounds of pasta, three cases of protein bars, 75 sports drinks, and that's just pregame. He knows teamwork and BJ's knows savings. This is your home coach home of the save join for just $20 at BJ's.com slash mesquite and save 10 cents per gallon for six months open soon limited time offer new members only BJ's home of the save.