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    Trump’s Tariffs by Whim Keep Allies and Markets Off Balance

    On Tuesday, Commerce Secretary Howard Lutnick went on Fox Business to reassure nervous allies and even more twitchy investors that the Trump administration was negotiating a deal to avoid tariffs on goods from Mexico and Canada, and that the president is “gonna work something out with them.”“It’s not gonna be a pause” for Mr. Trump’s on-again, off-again tariffs, he insisted. “None of that pause stuff.”On Thursday, the world got what the president characterized as more of that pause stuff.Mr. Trump’s announcement that he had a good conversation with Mexico’s president, and would delay most tariffs until April 2, was only the latest example of the punish-by-whim nature of the second Trump presidency. A few hours after the Mexico announcement, Canada got a break too, even as Mr. Trump on social media accused its departing prime minister, Justin Trudeau, of using “the Tariff problem” to “run again for Prime Minister.”“So much fun to watch!” he wrote.Indeed, it appears that Mr. Trump is having enormous fun turning tariffs on and off like tap water. But others are developing a case of Trump-induced whiplash, not least investors, who sent stock prices down again on Thursday amid the uncertainty over what Mr. Trump’s inconstancy means for the global economy. (A later rise in stock futures pointed to rosier expectations for Friday.)When the White House finally released the text of Mr. Trump’s orders on Thursday evening, it appeared that some of the tariffs — those covered in the U.S.-Mexico-Canada trade agreement that Mr. Trump negotiated and celebrated in his first term — were indeed permanently suspended. Other tariffs were merely paused.Most everyone involved was confused, which may well have been the point.As Mr. Trump hands down tariff determinations and then pulls them back for a month or so, world leaders call to plead their case, a bit like vassal states appealing to a larger power. Chief executives put in calls as well, making it clear that Mr. Trump is the one you need to deal with if you are bringing in car parts from Canada or chips from China.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump administration briefing: Trump changes tack on tariffs – again – as US plans to close consulates

    Donald Trump has performed another reversal on tariffs, delaying duties on many goods from Canada and Mexico again. Trump said the reversal has “nothing to do” with turbulence in the stock market in recent days, as investors weighed his economic plans. On Wall Street, the S&P 500 fell 1.8% on Thursday. “I’m not even looking at the market,” he claimed.It was also a day where the focus fell on the power wielded by Elon Musk and the president’s plans for US consulates in Europe. Trump shelves Canada-Mexico tariffs – for a timeDonald Trump pulled back from his trade war with Canada and Mexico on Thursday, temporarily delaying tariffs on many goods from the two countries once again. Two days after imposing sweeping tariffs on all imports from his country’s closest trading partners, the US president announced that duties on a wide range of products would be shelved until April.Read the full storyElon Musk says he isn’t to blame for mass firings of federal workersElon Musk is telling Republican lawmakers in private meetings that he is not to blame for the mass firings of federal workers that are causing uproar across the country, while Donald Trump reportedly told his cabinet secretaries on Thursday that they are ultimately in charge of hiring and firings at their agencies – not billionaire aide Musk.The men appeared to be making parallel efforts to distance Musk from radical job slashing made over the last two months. This despite the tech entrepreneur boasting about cuts, recommending the US “delete entire agencies” and taking questions on the issue alongside the US president, then wielding a chainsaw at an event to symbolize his efforts – all amid legal challenges and skepticism from experts.Trump said on Thursday he has instructed department secretaries to work with Doge but to “be very precise” about which workers will stay or go, using a “scalpel rather than a hatchet”.Read the full storyUS plans to close European consulates and cut state department workforceThe US state department is preparing to shut down a number of consulates that are mainly in western Europe in the coming months and looking to reduce its workforce globally, multiple US officials said on Thursday.The state department is also looking into potentially merging a number of its expert bureaus at its headquarters in Washington that are working in areas such as human rights, refugees, global criminal justice, women’s issues and efforts to counter human trafficking, the officials said.Reuters reported last month that US missions around the world had been asked to look into reducing US and locally employed staff by at least 10% as Donald Trump and his billionaire aide Elon Musk have unleashed an unprecedented cost-cutting effort across the US federal workforce.Read the full story‘Not a king’: Trump is told firing of labor chief is illegalA federal court ruled that Trump’s abrupt firing of a former senior official at the top US labor watchdog was illegal, and ordered that she be reinstated. Gwynne Wilcox was the first member of the National Labor Relations Board to be removed by a US president since the board’s inception in 1935.The framers of the US constitution “made clear that no one in our system of government was meant to be king – the president included – and not just in name only”, the judge Beryl A Howell, wrote in the ruling.Read the full storyMusk and Texas governor celebrate after worker fired over pronounsThe Texas governor, Greg Abbott, and, later, Elon Musk showed support on Wednesday for the firing of a state employee who refused to remove his pronouns from his work email signature. Frank Zamora, 31, was let go from his job as a program manager at the Texas real estate commission.Abbott celebrated the move on X. Musk then replied to Abbott’s post with two fire emojis.Read the full storyUS attorney threatens top law school over DEIA Trump-appointed US attorney has told Georgetown – one of the country’s top law schools – to immediately end diversity, equity and inclusion (DEI) efforts, warning that his justice department office will not hire students or other affiliates associated with a university that utilizes DEI.In an extraordinary letter sent to the dean, the recently appointed interim US attorney for the District of Columbia, Ed Martin, said he was investigating the academic institution after it had come to his “attention reliably” that they were teaching and promoting DEI.Read the full storyDoJ investigating California universities over alleged antisemitismThe US Department of Justice is investigating the University of California system for possible antisemitic discrimination after demonstrations against Israel’s war in Gaza took place on campuses last year.Read the full storyDemocrats join in censure of Al GreenThe House voted on Thursday to censure Al Green for disrupting Trump’s joint session address, with a handful of Democrats voting to condemn the Democratic Texas representative along with Republicans.The House voted 224-198, with 10 Democrats voting in favor of the censure, which accuses Green of a “breach of proper conduct”.Read the full storyCanadians protest against US toxic wasteThe proposed expansion of a Quebec landfill that accepts hazardous waste from the United States has ignited a turf war between the Quebec provincial government and local leaders, who say they oppose putting US trash into a local peat bog. Local leaders are protesting against the move – saying the province is capitulating to a US company in the midst of a tariff war between Canada and the United States.Read the full storySmall US agency stands up to MuskMembers of Elon Musk’s so-called “department of government efficiency” (Doge) unit were barred from entering a small, independent federal agency promoting economic development in Africa on Wednesday after a tense standoff with federal staff they had been sent to fire.Workers at the US African Development Foundation (USADF), which Donald Trump has ordered to be closed, refused to allow Doge operatives to enter after they arrived at its Washington headquarters.Read the full storyWhat else happened today:

    In an escalation of his pressure campaign, Trump said the US will not fight for Nato allies who don’t spend enough on their own defense. “I think it’s common sense,” the president said. “They don’t pay, I’m not going to defend them.”

    The state department is hunting for evidence that foreign students who express support for Palestinians under Israeli occupation while studying in the US are “pro-Hamas”, and can have their visas revoked, based on an AI review of their social media accounts, Axios reports.

    Trump told reporters in the Oval Office that he will “probably” extend TikTok’s deadline to find a US buyer or face a ban.
    Catching up? Here’s what happened on 5 March. More

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    Cheap goods ‘not essence of American dream’, Trump official says amid tariff price fears

    Buying cheap products is “not the essence of the American dream”, Donald Trump’s top economic official has declared, amid warnings that the US president’s trade wars risk increasing prices.The US treasury secretary, Scott Bessent, defended the new administration’s aggressive trade strategy on Thursday, two days after it imposed sweeping tariffs on Canada and Mexico and hiked duties on China.Top retail CEOs have cautioned the move would swiftly lead to higher prices for US consumers. Trump, too, has acknowledged there would be “a little disturbance” as a result.During an appearance at the Economic Club of New York on Thursday, Bessent conceded there could be what he referred to as “a one-time price adjustment” as a result of Trump’s tariffs.“Access to cheap goods is not the essence of the American dream,” he said. The American dream was “the concept that any citizen can achieve prosperity, upward mobility, economic security”, he added. “For too long, designers of multilateral trade deals have lost sight of this.”It comes a few days after Bessent said he was “laser-focused” on high prices in the US. At the weekend, he announced the treasury would recruit an “affordability czar” to help address the issue.“I think President Trump said that he’ll own the economy in six or 12 months, but I can tell you that we are working to get these prices down every day,” Bessent told Face the Nation on CBS.The US president has already watered down key parts of this week’s US trade onslaught, suspending tariffs on Mexico and Canada for carmakers on Wednesday, before temporarily halting tariffs on many other goods from the two countries on Thursday.Trump has repeatedly pledged to rapidly bring down prices for consumers, and declared during a joint address to Congress on Tuesday evening that he was “fighting every day” to “make America affordable again”. More

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    Trump temporarily spares carmakers from US tariffs on goods from Canada and Mexico

    Donald Trump has temporarily spared carmakers from sweeping US tariffs on goods from Canada and Mexico, one day after an economic strike on the US’s two biggest trading partners sparked warnings of widespread price increases and disruption.The US president extended his aggressive trade strategy at midnight on Tuesday by targeting the country’s two closest neighbors with duties of 25%.US retail giants predicted that prices were “highly likely” to start rising on store shelves almost immediately, raising questions about Trump’s promises to “make America affordable again” after years of heightened inflation.After a call with top executives at General Motors, Ford and Stellantis, however, Trump approved a one-month exemption from tariffs on “any autos coming through” the US, Mexico and Canada, the White House press secretary, Karoline Leavitt, announced on Wednesday.The exemption has been granted “at the request of the companies”, Leavitt told reporters, “so they are not at an economic disadvantage”.While Trump has claimed tariffs will embolden US industry by forcing global firms to build factories in the US, Ford CEO Jim Farley publicly cautioned last month that imposing steep tariffs on Canada and Mexico could “blow a hole” in the country’s auto industry.Shares in large carmakers rose sharply, with GM up 7.2%, Ford up 5.8% and Stellantis up 9% in New York. The benchmark S&P 500 increased 1.1% on Wall Street.A separate call between Trump and Justin Trudeau, the Canadian prime minister, did not lead to any larger breakthrough, however. Trudeau “largely caused the problems we have with them because of his Weak Border Policies”, Trump declared on his Truth Social platform after they spoke. “These Policies are responsible for the death of many people!”Trudeau insisted there had been improvements at the border, the US president claimed, adding that he told him this was “not good enough”.During Trump’s joint address to Congress on Tuesday evening, he acknowledged that tariffs would cause disruption. There will be “a little disturbance, but we’re OK with that”, he said.He blamed cost of living challenges on his predecessor, Joe Biden, from whom he claimed to have inherited “an economic catastrophe and an inflation nightmare”.The US economy has, in fact, remained resilient in recent years, and inflation has fallen dramatically from its peak – at the highest level in a generation – three years ago.“Among my very highest priorities is to rescue our economy and get dramatic and immediate relief to working families,” said Trump. “As president, I am fighting every day to reverse this damage and make America affordable again.”skip past newsletter promotionafter newsletter promotionTrump spoke on Wednesday with Trudeau. “Even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau told Trump publicly after the US imposed tariffs this week.Trump had initially pledged to target Canada and Mexico with tariffs on his first day back in office. Upon his return, however, he said he was considering imposing the tariffs at the start of February. Last month, he offered Canada and Mexico a one-month delay at the 11th hour.Trump and his allies claim that higher tariffs on US imports from across the world will help “Make America great again”, by enabling it to obtain political and economic concessions from allies and rivals on the global stage.But businesses, both inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US. More

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    ‘The relationship is broken’: Canadians respond to Trump’s tariffs

    “Since Donald Trump began his tariff threats against Canada and his ‘jokes’ about making Canada the 51st US state, I have not bought a single product originating in the US,” said Lynne Allardice, 78, a retired business owner from New Brunswick, Canada.“Not a single lettuce leaf or piece of fruit. I have become an avid reader of labels and have adopted an ‘anywhere but the US’ policy when shopping. I will not visit the States while Trump remains in office, and most of the people I know have adopted the same policy.”Acquaintances, Allardice added, were selling US holiday properties they had owned for many years.View image in fullscreenMany Canadians have responded to Trump’s economic tariffs and political messaging with a consumer boycott of US products and services – no more California wines or American Bourbon; local shopping instead of Amazon Prime; analogue entertainment and cable TV instead of Netflix; holidays in the Kootenays instead of Disney World.Hundreds of people from across Canada shared with the Guardian their reactions to Washington’s political and economic gear change, and how they may be affected personally.Many expressed defiance and anger over what they saw as a hostile new US administration that was no longer an ally and, voicing economic fears and a sense of permanent loss, said they would no longer buy US goods nor cross the border again – at least while Trump was in office.Pam, a 64-year-old retired woman from British Columbia, said she and her husband had cancelled a five-week trip to Palm Springs, losing their $5,000 (£3,900) deposit. They were planning, she said, to buy a Honda truck now instead of a Ford.Many said their local supermarkets had displayed labels marking Canadian products and that they were happy to pay significantly more for non-US goods, for example 50% more for Mexican lemons; others said they hoped Canadian companies would expand offerings and services after cancelling Amazon Prime and streaming platform subscriptions.One woman from British Columbia who lives a 10-minute drive from the US border and is participating in the boycott pointed to the irony of having joined several Facebook groups promoting Buy Canadian campaigns – one of which had now ballooned to 1.2 million members.View image in fullscreenAmid fiery pledges to stand up to the US government, hundreds of Canadians shared grave concerns about the impact of the trade tariffs on their personal finances.Many said they were anxious about their retirement savings amid the market turmoil and economic uncertainty that have followed what they referred to as Trump’s “economic warfare”.Scores said hiring and budget freezes were already happening in the companies they worked for, while a number of business owners highlighted a loss of sales since Trump’s election that was likely to worsen.People working in sectors including hospitality, tourism, retail, entertainment, the wider service industry, manufacturing, the auto industry, aviation, property and construction, agriculture, marketing and financial services, among others, shared concerns about their business or line of work being negatively affected by the tariffs and resulting economic uncertainty.Ian Hallett, the owner of an architectural bureau, from Seaforth, Ontario, said: “With steel, wood and aluminum tariffs, the construction industry will be hit hard and fast, which means a slowdown in building. We will likely have to lay off staff.”The owner of a landscaping business in Calgary, Alberta, said his sector would be “highly impacted” by the tariffs. “People won’t spend money to maintain or redesign their lawn. I may have to reduce my workforce and potentially shut down the season early. This will have a domino effect,” he said.View image in fullscreenAdrian, a business owner from Northern Ontario, said: “The tariffs have created chaos, anxiety and depression, a loss of hope. My US sales have dropped and if the tariffs [stay in place], I will have to close my business, as American customers are half my sales.”A 65-year-old support worker at an elementary school from Toronto said: “I’m worried my husband may lose his manufacturing job because the company he works for has a lot of American customers. Tariffs may make the building materials products his company makes too expensive.”Various business owners who were expecting a collapse in North American sales predicted that it would be impossible to make up the difference by increased exports to Europe or other parts of the world, where the markets were either saturated or shipping was too expensive.“I’m stressed about my investments and the financial markets, and I’m concerned about prices going up,” said Susan, an accountant from Toronto, mirroring the fears of many.While most of those who got in touch were outraged by Trump’s America First protectionism, scores of Canadians signalled an appetite for an isolationist approach for Canada, too.“I think that we should take a tip from Trump and build our own wall to keep the USA out,” said a 56-year-old single mother from Montreal. Scores of Canadians said they felt Canada needed to strengthen its military.Sarah from Nova Scotia said the Trump administration’s tactics and “threats against sovereignty, water, resources and territory” had “fired people up to be less dependent and integrated economically”.Antoine Delorme, a 43-year-old self-employed heavy machinery mechanic from Montreal, who has to order parts and material from the US every week, appeared to blame globalisation for Canada’s perceived vulnerability.skip past newsletter promotionafter newsletter promotion“With free trade, we lost a lot of economic independence. Many distributors are centralised south of the border [and] no longer need to keep Canadian facilities,” he said. Like many others, he felt Canada was now exposed, economically and militarily. “If the USA turns into a hostile neighbour, no one will be in a position to meaningfully help us,” he said.View image in fullscreenJean Whieldon, a retired journalist from Ontario, said: “We have become too dependent upon America – Trump is right about that. Who can we turn to for help and protection? Nato? The UK? Don’t make me laugh, it hurts too much.”Hundreds of people expressed fury over a perceived lack of solidarity from allied nations and were particularly critical of the British prime minister, Sir Keir Starmer, and King Charles.“Canada’s relationship with the rest of the world has changed for ever,” said Katy, a finance professional from Toronto. “We just came to the stark realisation that allies are an illusion. As we endure the Maga onslaught, our supposed ‘allies’, including Britain, remain silent. Our ‘head of state’, King Charles, remains silent. Nato countries remain silent. We will weather the economic storm, but [I am] not so sure about our relationships with other nations.”Canada, Katy added, could leave international partnerships as it was “blessed with innumerable natural resources”. “If things don’t change, then Canada needs to extricate itself and consider becoming a neutral country. Dismantling the constitutional monarchy is now a must. The Commonwealth is dead.”Hundreds of Canadians reported a palpable, freshly ignited rise of patriotism, as well as a kind of nationalism usually frowned upon in Canada.“Canadians have become much more nationalistic,” said a woman from Ontario. “Some of us have been booing at the US national anthem at hockey games, which is not typical Canadian behaviour. We are furious about the tariffs that will deeply hurt Canadian businesses and quite likely see other companies move their operations south of our border.”View image in fullscreenDonna, a retired woman living in a small city in British Columbia, said: “We have lost our trust in the USA as a friendly country. Patriotism was never something that Canadians celebrated enthusiastically. Today I see more Canadian flags than I have ever seen – in front yards, hanging from porches and hedges, and adorning cars. Both sides of the political spectrum and a majority of citizens are much more united than before.”A woman in her 40s from British Columbia who works in tech agreed: “There’s a huge sense of national unity around the country, and a lot of focused action to build our nation up.” She said she had “quit the US cold turkey”.“This is a shift unlike any I have seen in my lifetime, and unlike anything my parents have seen either. Canada is turning away from the US – if not forever, at least for a long time. Goodbye America, we’ll miss what we had, but not what you have become.”While some people said they were differentiating between the Trump administration and their American neighbours, others shared feelings of personal hostility towards the American population, saying they wanted to “stick it to” their “poorly educated neighbours to the south”, as one woman from British Columbia put it, echoing the remarks of many.Scores of Canadians said they had fallen out with American friends and even family members over the political tensions between the two countries and ideological disagreements over American and Canadian democracy, freedoms and Trump himself.View image in fullscreenA silver lining to the economic upheaval, various people pointed out, were renewed efforts to improve intra-Canadian trade between provinces.Matt, 41, a university employee from Vancouver Island, said: “Having a common opponent in the USA is drawing many people of my vast country together in ways that were seemingly impossible just a year ago. The work being done to dismantle inter-provincial trade barriers, with the potential to add tens to hundreds of billions of dollars to our economy, would never have had the political backing without Canada facing a significant external threat.”Most Canadians who got in touch felt that ties between Canada and the US had been permanently damaged.“The relationship is broken,” said Allardice, the pensioner from New Brunswick. “A great many Canadians hate the USA now. How can you remain on good terms with a neighbour who threatens your economy and jokes about bringing you to your knees?” More

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    Gaming Out Trump’s Next Tariff Moves

    In his address to Congress, the president made clear that his new trade levies were here to stay, acknowledging it might create “a little disturbance.” Analysts forecast what that might look like.President Trump’s tariffs have jolted global markets and the business world, but he has given no indication he’ll retreat on the levies.Doug Mills/The New York Times“A little disturbance” For months, the debate gripping board rooms, Wall Street and world capitals was whether to take President Trump at his word on tariffs. For a while, the markets rallied as if he were just bluffing.He wasn’t. In an address before Congress last night, Trump said that tariffs would protect American jobs and enrich the nation. He also acknowledged that “there will be a little disturbance. But we’re OK with that.”What might a “a little disturbance” look like? DealBook has taken on the task of gaming out what could happen next. (A warning to free-trade advocates: this could be tough reading.)More tariffs are coming, trade experts say. Few countries, or companies, will be spared. For example, if the tariffs on Canada, Mexico and China stick, then Europe will be next. Such a scenario is “unavoidable,” George Saravelos, the global head of FX Research at Deutsche Bank, said in a research note on Tuesday. European companies are already bracing for the next wave.“Trump has appeared to be less amenable to carve-outs in this second term,” David Seif, chief economist for developed markets at Nomura, told DealBook. That could bode poorly, he added, for Britain, whose prime minister, Keir Starmer, met with Trump at the White House last week where a trade deal was discussed. “I don’t think Keir Starmer should just feel safe right now,” Seif said.Expect more market turmoil. “These tariffs would represent a major negative global growth shock, sufficient to push many economies into recession,” Saravelos wrote, adding that it’s time to stop thinking of them as a negotiating tactic. (The recessionary risk for the United States may be remote, but concerns are growing about the tariffs’ potential stagflationary effects.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Canadians and Wayne Gretzky: Anatomy of a Relationship on Thin Ice

    In tense political times, can “The Great One” be both a Trump supporter and a beloved hero in Canada? Some want him to pick a side. (Preferably the one to the north.)Where have you gone, Wayne Gretzky? A nation turns its lonely eyes to you.In the meantime, a statue of Gretzky would have to do. The puck would drop soon, and outside the main doors to the arena, fans of the Edmonton Oilers swirled around the life-size bronze facsimile of Wayne Gretzky, Canada’s recently tarnished bigger-than-life hero.“I’d like him to be a little more Canadian,” said Rob Munro, a 43-year-old Oilers fan in a 1980s-era Mark Messier jersey. “I’m not anti-Gretzky, by any stretch. It’s just disappointing.”Mr. Gretzky, now 64, has long been frozen as an ideal — the ideal athlete, icon and Canadian. “The Great One,” he is still called, having led the Oilers to four Stanley Cup titles in the 1980s. He has stood as a national avatar for talent and decency for decades. “A true champion and gentleman of dedication and character,” reads a plaque at his bronze skates.Now Mr. Gretzky stands, silently, as a case study for what happens when heroes disappoint — and how quickly even the strongest allegiances can shift when stirred by Trumpian politics.“You were a great Canadian, but now you are not,” said Matthew Iwanyk, chief operating officer and host of Edmonton Sports Talk. “That is the majority sentiment you will get from Edmontonians.”Wayne Gretzky led the Oilers to four Stanley Cup titles in the 1980s, establishing himself as the greatest player in the history of the National Hockey League. David E. Klutho/Sports Illustrated, via Getty ImagesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More