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Here are five things you need to know this morning

A strong jump in tariff-driven exports fueled Canada’s growth in the first quarter of the year, offsetting domestic weakness in other parts of the economy. Gross domestic product grew at an annualized pace of 2.2 per cent. The increase in exports, which may not be sustainable, was probably driven by businesses trying to front run tariffs.

U.S. stock futures turned down and oil dropped nearly US$1 a barrel as fears return that U.S. President Donald Trump’s trade war will gut corporate profits. A federal appeals court offered Trump a temporary reprieve from this week’s ruling by the U.S. Court of International Trade that threatened to throw out the bulk of his tariff agenda. Trump aides have insisted that the president will not be denied his trade push.

Strathcona Resources , headed by Canadian oil tycoon Adam Waterous, is taking its $5.9 billion takeover offer for MEG Energy Corp. directly to shareholders after the company’s board spurned an earlier approach. Strathcona is offering 0.62 of a share and $4.10 in cash for each MEG share.

Shares in clothing seller Gap shares slumped 15 per cent in premarket trade. The company predicted a tariff hit of as much as US$300 million, and revealed stubborn weakness at two of its smaller brands, Banana Republic and Athleta. However, the Old Navy and Gap brands did better, with comparable-store sales rising three per cent and five per cent, respectively.

Bloomberg says Wall Street is worried about Trump’s plan to hike taxes on returns that foreign investors earn on U.S. assets if their home country has the temerity to impose taxes Washington doesn’t like. That includes taxes on U.S. internet giants such as Canada’s digital tax. Dow Jones quotes RBC Economist Eric Lascalles as saying he believes countries with digital levies are likely to abandon them.

“I think if President Trump had just a minute more, if you go back into the room behind the Oval, he’s got all his hats and things over there, and he has a hat which is the accurate response to what that person said, which is ‘Trump always wins,’” Hassett said. “If you go look, a lot of people are wearing that hat, ‘Trump always wins’ and ‘Trump was always right.’”

Hassett claimed that Trump’s tariffs had forced other countries to “come to the table with massive concessions, opening up their markets to our products, and lowering their tariffs on us.” So far, only Israel, India, and Vietnam have moved to slash tariffs on U.S. products. Negotiations with other trading partners, such as the European Union, are still ongoing.

Hassett insisted that Trump’s volatile tariff policies had been “really, really effective for the American people, and it’s unfortunate that people would attack it, as the journalist did or the way the judges just did, that these activist judges are trying to slow something down in the middle of really important negotiations.”