After imposing sweeping tariffs, Trump announces talks with Canada and Mexico

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People look on as empty shelves remain with signs "Buy Canadian Instead" after the top five US liquor brands were removed from sale at a B.C. Liquor Store in Vancouver, on February 2, 2025, as part of a response to US President Donald Trump's 25% tariffs on Canadian goods. (Reuters)
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Updated 03 February 2025
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After imposing sweeping tariffs, Trump announces talks with Canada and Mexico

  • China, Mexico and Canada are the top three US trade partners and all have vowed to retaliate when the tariffs take effect Tuesday
  • Experts warn that Trump’s tariffs could reduce US economic growth and throw Canada and Mexico into recession
  • Says Americans may feel economic “pain” from his tariffs, but argued it would be “worth the price” to secure US interests

WASHINGTON: President Donald Trump said he will discuss the punishing tariffs he has levied on Canada and Mexico with both countries on Monday, after arguing that Americans may feel economic “pain” from the 25 percent duties but that it will be “worth the price.”
Speaking to reporters after he flew back to Washington Sunday evening from a weekend in Florida, Trump said he was “speaking with Prime Minister (Justin) Trudeau tomorrow morning, and I’m also speaking with Mexico tomorrow morning.”
“I don’t expect anything very dramatic,” he added.
Trump has also hit China with a 10-percent tariff in addition to levies already in place.
A fervent supporter of tariffs, Trump had always maintained that their impact would be borne by foreign exporters, without being passed on to American consumers, contradicting the opinion of a broad range of experts.
Earlier Sunday he acknowledged, in a series of messages on his Truth Social network, that Americans may feel economic “pain” from his tariffs, but argued it would be “worth the price” to secure US interests.
China, Mexico and Canada are the top three US trade partners and all have vowed to retaliate when the tariffs take effect Tuesday.
“Will there be some pain? Yes, maybe (and maybe not!)” Trump wrote Sunday morning in all-caps on his Truth Social media platform.
“But we will Make America Great Again, and it will all be worth the price that must be paid.”
Analysts expect the trade war to slow US growth and increase prices, at least in the short term, something the president had resisted acknowledging after frustration over rising costs was seen as a major factor in his 2024 election win.
Seeking to limit a spike in fuel prices, Trump has put the levy on energy imports from Canada at only 10 percent.
The president has cited illegal immigration and the trafficking of the deadly opioid fentanyl as reasons for the “emergency” measures.
But on Sunday he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the United States.
“The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the ‘Stupid Country’ any longer,” he wrote.
The tariffs announcements capped an extraordinary second week of Trump’s new term, with the president facing the worst US aviation disaster in years — even as his administration moved to drastically overhaul the government in actions decried by critics as illegal.

While some economies believe the levies are likely to be temporary, the outlook is unclear because the White House set very general conditions for their removal.
A White House fact sheet gave no details on what the three countries would need to do to win a reprieve.
Trump vowed to keep them in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the United States ends. China left the door open for talks with the United States. Its sharpest pushback was over fentanyl.

Canada hits back
In a separate social media post, Trump took particular aim at Canada, repeating his call for America’s northern neighbor to become a US state.
Claiming the United States pays “hundreds of billions of dollars to SUBSIDIZE Canada,” Trump said that “without this massive subsidy, Canada ceases to exist as a viable Country.”
“Therefore, Canada should become our Cherished 51st State,” he said, reiterating the expansionist threat against one of his country’s closest allies.
The US Census Bureau says the 2024 trade deficit in goods with Canada was $55 billion.
Canadian backlash was swift, with video posted to social media showing fans at a Toronto Raptors game Sunday booing during the US national anthem.

Canada said on Sunday it will take legal action under the relevant international bodies to challenge the tariffs.
Prime Minister Justin Trudeau also encouraged Canadians on Sunday to boycott their longtime ally after ordering retaliatory tariffs against $155 billion of US goods, from peanut butter, beer and wine to lumber and appliances.
Canadian officials said they were preparing measures to help business who might be hurt by the trade war.
Trudeau vowed Saturday to hit back with 25 percent levies on select American goods worth Can$155 billion ($106.6 billion), with a first round on Tuesday followed by a second one in three weeks.
Leaders of several Canadian provinces have already announced retaliatory actions as well, such as the immediate halt of US liquor purchases.
The White House has not publicly announced what actions could end the tariffs.
“It’s hard to know what more we can do, but we’re obviously open to any other suggestions that come our way,” Canada’s ambassador to the United States Kirsten Hillman told ABC News on Sunday.

Mexico, China push back
Mexican President Claudia Sheinbaum said she, also, was awaiting Trump’s response to her proposal for dialogue.
She said she had directed her economy minister to “implement Plan B,” which includes unspecified “tariff and non-tariff measures,” promising to detail Monday the steps she intends to take.
Trump said Sunday he also planned to hit the European Union with tariffs “pretty soon,” to which the EU said earlier it would “respond firmly.”

“Fentanyl is America’s problem,” China’s foreign ministry said, adding that China has taken extensive measures to combat the problem.
Mexican President Claudia Sheinbaum, raising her fist in the air in a speech outside the capital, vowed resilience.
She accused the United States of failing to tackle its fentanyl problem and said it would not be solved by tariffs.
Sheinbaum said she would provide more details on Monday of the retaliatory tariffs she ordered this weekend.

Warnings of inflation, recession

EY Chief Economist Greg Daco said Trump’s tariffs could reduce US economic growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” — high inflation, stagnant economic growth and elevated unemployment — at home.
Trump’s move was the first strike in a what could be a destructive global trade war that Paul Ashworth of Capital Economics said would lead to a surge in US inflation that would “come even faster and be larger than we initially expected.
US crude oil futures jumped more than $2 to hit $75 per barrel, while stock futures fell. The S&P 500 E-mini futures were down 2 percent, while Nasdaq futures were down 2.75 percent.

The Trump tariffs, outlined in three executive orders, are due to take effect 12:01 a.m. ET (0501 GMT) on Tuesday. Markets were awaiting developments with anxiety, but some analysts said there was some hope for negotiations, especially with Canada and China.
“The tariffs look likely to take effect, though a last-minute compromise cannot be completely ruled out,” Goldman Sachs economists said in a note Sunday.

The tariff announcement made good on Trump’s repeated 2024 campaign threat, defying warnings from economists that a trade war would erode growth and raise prices for consumers and companies.
Trump declared a national emergency under two laws, the International Emergency Economic Powers Act and the National Emergencies Act, which give the president sweeping powers to impose sanctions to address crises.
Trade lawyers said Trump could face legal challenges for testing the limits of US laws. Democratic lawmakers Suzan DelBene and Don Beyer decried what they called a blatant abuse of executive power. Others warned about rising prices.
“No matter which way you slice it: costs are going to climb for consumers,” Senate Democratic Leader Chuck Schumer said, vowing to try to “undo this mess.”
Republicans welcomed Trump’s action.
A Reuters/Ipsos poll released last week showed Americans were divided on tariffs, with 54 percent opposing new duties on imported goods and 43 percent in support, with Democrats more opposed and Republicans more supportive.

Investors look ahead
Investors were considering the effects of additional tariffs promised by Trump, including those related to oil and gas, as well as steel, aluminum, semiconductor chips and pharmaceuticals. Trump has also vowed actions against the European Union.
A European Commission spokesperson said the EU “would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.” Europe’s biggest carmaker, Volkswagen, said it was counting on talks to avoid trade conflict.
Automakers would be particularly hard hit, with new tariffs on vehicles built in Canada and Mexico burdening a vast regional supply chain where parts can cross borders several times before final assembly.
Trump imposed only a 10 percent duty on energy products from Canada after oil refiners and Midwestern states raised concerns. At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all US imports from Canada, according to US Census Bureau data.
White House officials said Canada specifically would no longer be allowed the “de minimiz” US duty exemption for shipments under $800. The officials said Canada, along with Mexico, has become a conduit for shipments of fentanyl and its precursor chemicals into the US via small packages that are not often inspected by customs agents.
 


Building fire kills 17, injures others in southern India

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Building fire kills 17, injures others in southern India

  • Fires are common in India, where building laws and safety norms are often flouted by builders and residents
HYDERABAD, India: At least 17 people were killed and several injured in a fire that broke out at a building near the historic Charminar monument in southern Hyderabad city, officials said Sunday.
Several people were found unconscious and rushed to various hospitals, according to local media. They said the building housed a jewelry store at ground level and residential space above.
“The accident happened due to a short circuit and many people have died,” federal minister and Bharatiya Janata Party leader G Kishan Reddy told reporters at the site of the accident.
Director general of Telangana fire services Y Nagi Reddy told reporters that 21 people were in the three-story building when the fire started on the ground floor early on Sunday.
“17 people, who were shifted to the hospital in an unconscious state, could not survive. The staircase was very narrow, which made escape difficult. There was only one exit, and the fire had blocked it,” he said.
The fire was brought under control.
Prime minister Narendra Modi announced financial compensation for the victims’ families and said in a post on X that he was “deeply anguished by the loss of lives.”
Fires are common in India, where building laws and safety norms are often flouted by builders and residents.

PM seeks election win as Portugal campaigning ends

Updated 18 May 2025
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PM seeks election win as Portugal campaigning ends

LISBON: Portugal’s general election campaign ends on Friday for a vote that Prime Minister Luis Montenegro is expected to win, but with no guarantee he can form a more stable government.
Montenegro’s center-right Democratic Alliance (AD) coalition is tipped to win 34 percent of the ballot, ahead of the Socialist Party (PS) on 26 percent, according to a poll by the Portuguese Catholic University published by local media on Friday.
The upstart far-right Chega (“Enough“) party could take 19 percent of the vote — almost the same as it did in March 2024 elections — to consolidate its position as Portugal’s third political force and kingmaker.
Montenegro, as a result, risks finding himself again at the head of a minority government, caught between the PS, in power from 2015 to 2024, and Chega, with which he has refused to govern.
“People are fed up with elections, people want stability,” the premier, a 52-year-old lawyer, said during a final rally in Lisbon as he urged voters to give him a stronger mandate this time around.
Sunday’s early election will be Portugal’s third in just over three years.
It was called in March after Montenegro lost a confidence vote in parliament following accusations against him of conflicts of interest stemming from his consulting firm’s business.
As such, “staying in power would already be a good result” for the prime minister, who took a “calculated risk” in the hope of strengthening his parliamentary seat, political commentator Paula Espirito Santo told AFP.
Opinion polls appear to indicate an AD majority is unlikely but Montenegro could win the support of the Liberal Initiative party, which is predicted to secure 6.4 percent of the vote.


The PS candidate, Pedro Nuno Santos, a 48-year-old economist, has accused Montenegro of having engineered the elections “to avoid explaining himself” about his consultancy firm to a parliamentary inquiry.
“We need a change, a prudent one that will guarantee the political stability which Luis Montenegro can no longer provide,” the Socialist candidate said at a final Lisbon rally on Friday.
Faced with the risk of persistent instability, analysts and voters criticized a political class out of touch with voters who are unenthused by the prospect of another ballot.
“I’ve really had enough of all these political games. They don’t do anything for us,” said Maria Pereira, a 53-year-old saleswoman in a working-class district of Lisbon.
“Normally I vote for the small parties but this time I’m not going to waste my time going to vote.”
But Paula Tomas, a 52-year-old dentist, said Montenegro had won her confidence.
“He has the ability to get things done, but he needs time,” she said at an AD rally, waving a white-and-orange ruling party flag.
Under the Socialist Party, Portugal became one of Europe’s most open countries, but Montenegro’s government has since strengthened immigration policy.
Between 2017 and 2024, the number of foreigners living in Portugal quadrupled, reaching about 15 percent of the total population.
Immigration and suspicions about the prime minister might be fertile ground for the far right.
But Chega has also faced embarrassment, including claims that one of its lawmakers in the Azores stole luggage from airport carousels.
Its campaign was interrupted on Tuesday and Thursday when its president, 42-year-old former football commentator Andre Ventura, fell ill while campaigning and was rushed to hospital both times.
He was resting and will not longer appear at the party’s final rally. Instead he released a video message where he once again called for “an end to corruption and uncontrolled immigration.”
All political campaigning has to stop at midnight (2300 GMT Friday) before Sunday’s poll.


World Health Organization looks ahead to life without the US

Updated 18 May 2025
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World Health Organization looks ahead to life without the US

LONDON/GENEVA: Hundreds of officials from the World Health Organization will join donors and diplomats in Geneva from Monday with one question dominating their thoughts — how to cope with crises from mpox to cholera without their main funder, the United States.
The annual assembly, with its week of sessions, votes and policy decisions, usually showcases the scale of the UN agency set up to tackle disease outbreaks, approve vaccines and support health systems worldwide.
This year — since US President Donald Trump started the year-long process to leave the WHO with an executive order on his first day in office in January — the main theme is scaling down.
“Our goal is to focus on the high-value stuff,” Daniel Thornton, the WHO’s director of coordinated resource mobilization, told Reuters.
Just what that “high-value stuff” will be is up for discussion. Health officials have said the WHO’s work in providing guidelines for countries on new vaccines and treatments for conditions from obesity to HIV will remain a priority.
One WHO slideshow for the event, shared with donors and seen by Reuters, suggested work on approving new medicines and responding to outbreaks would be protected, while training programs and offices in wealthier countries could be closed.
The United States had provided around 18 percent of the WHO’s funding. “We’ve got to make do with what we have,” said one Western diplomat who asked not to be named.
Staff have been getting ready — cutting managers and budgets — ever since Trump’s January announcement in a rush of directives and aid cuts that have disrupted a string of multilateral pacts and initiatives.
The year-long delay, mandated under US law, means the US is still a WHO member — its flag still flies outside the Geneva HQ — until its official departure date on January 21, 2026.
Trump — who accused the WHO of mishandling COVID, which it denies — muddied the waters days after his statement by saying he might consider rejoining the agency if its staff “clean it up.”
But global health envoys say there has since been little sign of a change of heart. So the WHO is planning for life with a $600 million hole in the budget for this year and cuts of 21 percent over the next two-year period.

CHINA TAKES LEAD
As the United States prepares to exit, China is set to become the biggest provider of state fees — one of the WHO’s main streams of funding alongside donations.
China’s contribution will rise from just over 15 percent to 20 percent of the total state fee pot under an overhaul of the funding system agreed in 2022.
“We have to adapt ourselves to multilateral organizations without the Americans. Life goes on,” Chen Xu, China’s ambassador to Geneva, told reporters last month.
Others have suggested this might be a time for an even broader overhaul, rather than continuity under a reshuffled hierarchy of backers.
“Does WHO need all its committees? Does it need to be publishing thousands of publications each year?” said Anil Soni, chief executive of the WHO Foundation, an independent fund-raising body for the agency.
He said the changes had prompted a re-examination of the agency’s operations, including whether it should be focussed on details like purchasing petrol during emergencies.
There was also the urgent need to make sure key projects do not collapse during the immediate cash crisis. That meant going to donors with particular interests in those areas, including pharmaceutical companies and philanthropic groups, Soni said.
The ELMA Foundation, which focuses on children’s health in Africa with offices in the US, South Africa and Uganda, has already recently stepped in with $2 million for the Global Measles and Rubella Laboratory Network known as Gremlin — more than 700 labs which track infectious disease threats, he added.
Other business at the assembly includes the rubber-stamping a historic agreement on how to handle future pandemics and drumming up more cash from donors at an investment round.
But the focus will remain on funding under the new world order. In the run up to the event, a WHO manager sent an email to staff asking them to volunteer, without extra pay, as ushers.


Poles vote for a new president as security concerns loom large

Updated 18 May 2025
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Poles vote for a new president as security concerns loom large

WARSAW: Poles are voting Sunday in a presidential election at a time of heightened security concerns stemming from the ongoing war in neighboring Ukraine and growing worry that the US commitment to Europe’s security could be weakening under President Donald Trump.
The top two front-runners are Warsaw Mayor Rafał Trzaskowski, a liberal allied with Prime Minister Donald Tusk, and Karol Nawrocki, a conservative historian with no prior political experience who is supported by the national conservative Law and Justice party.
Recent opinion polls show Trzaskowski with around 30 percent support and Nawrocki in the mid-20s. A second round between the two is widely expected to take place on June 1.
The election is also a test of the strength of other forces, including the far right.
Sławomir Mentzen, a hard-right candidate who blends populist MAGA rhetoric with libertarian economics and a critical stance toward the European Union, has been polling in third place.
Ten other candidates are also on the ballot. With such a crowded field and a requirement that a candidate receive more than 50 percent of the vote to win outright, a second round seemed all but inevitable.
Polling stations opened at 7 a.m. (0500GMT) and close at 9 p.m. (1900GMT). Exit polls will be released when voting ends, with results expected by Tuesday, possibly Monday.
Polish authorities have reported attempts at foreign interference during the campaign, including denial-of-service attacks targeting parties in Tusk’s coalition on Friday and allegations by a state research institute that political ads on Facebook were funded from abroad.
Although Poland’s prime minister and parliament hold primary authority over domestic policy, the presidency carries substantial power. The president serves as commander of the armed forces, plays a role in foreign and security policy, and can veto legislation.
The conservative outgoing president, Andrzej Duda, has repeatedly used that power over more than the past year to hamper Tusk’s agenda, for example blocking ambassadorial nominations and using his veto power to resist reversing judicial and media changes made during Law and Justice’s time in power from 2015 to late 2023.
A Trzaskowski victory could be expected to end such a standoff. He has pledged to support reforms to the courts and public media, both of which critics say were politicized under Law and Justice. Tusk’s opponents say he has also politicized public media.
Nawrocki, who leads a state historical institute, has positioned himself as a defender of conservative values and national sovereignty.


Indian space agency’s satellite mission fails due to technical issue in launch vehicle

Updated 18 May 2025
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Indian space agency’s satellite mission fails due to technical issue in launch vehicle

  • The EOS-09 Earth observation satellite took off on board the PSLV-C61 launch vehicle from the Sriharikota space center in southern India on Sunday morning

NEW DELHI: The Indian space agency’s mission to launch into orbit a new Earth observation satellite failed after the launch vehicle encountered a technical issue during the third stage of flight, officials said Sunday.
The EOS-09 Earth observation satellite took off on board the PSLV-C61 launch vehicle from the Sriharikota space center in southern India on Sunday morning.
“During the third stage ... there was a fall in the chamber pressure of the motor case, and the mission could not be accomplished,” said V. Narayanan, chief of the Indian Space Research Organization.
Active in space research since the 1960s, India has launched satellites for itself and other countries, and successfully put one in orbit around Mars in 2014.
After a failed attempt to land on the moon in 2019, India became the first country to land a spacecraft near the moon’s south pole in 2023 in a historic voyage to uncharted territory that scientists believe could hold reserves of frozen water. The mission was dubbed as a technological triumph for the world’s most populous nation.