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    Canada’s Political Landscape Upended by Trump, Trudeau and Tariffs

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    After nearly a decade in power, the Liberal Party seemed destined to be swept out on a wave of anti-incumbency sentiment. Then events took a surprising turn.Until January, polls suggested that the Conservative Party would handily regain power from the Liberals in any Canadian election held this year.Two things overturned that expectation: the resignation of Justin Trudeau as prime minister and President Trump’s trade war with Canada, along with his threat to annex the country and make it the 51st state by sowing economic chaos.Trump’s Trade WarWhile Mr. Trump pulled back from his initial threat of tariffs on everything imported from Canada, he has imposed several measures that hit key sectors of Canada’s economy: a 25 percent tariff on automobiles, aluminum and steel, and a similar one on Canadian exports that do not qualify as North American goods under the United States-Mexico-Canada Agreement, which he signed during his first term in office. An auto parts tariff of 25 percent is scheduled to take effect on Saturday. Last week, Mr. Trump suggested that the automobile tariffs, which are reduced based on their U.S.-made content, could be increased. He offered no specifics.Autos and auto parts are Canada’s largest exports to the United States, outside oil and gas. Canada Hits BackUnder Mr. Trudeau, Canada placed retaliatory tariffs on U.S. goods coming into Canada that are expected to generate 30 billion Canadian dollars, about $22 billion, in revenue over a year.After becoming prime minister in March, Mark Carney imposed an additional 8 billion Canadian dollars, about $5.7 billion, in tariffs, including a 25 percent levy on autos made in the United States — but not on auto parts. Automakers with assembly lines in Canada will still largely be able to bring in American-made cars of those brands duty free.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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      China Girds for Economic Stress of Trump’s Tariffs

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      The economy grew steadily from January through March, but U.S. tariffs pose a risk for China in the coming weeks and months.President Trump’s tariffs have been good for China’s economic growth. At least they were over the first three months of the year, as the country’s factories raced to ship exports ahead of the trade restrictions.China’s National Bureau of Statistics reported on Wednesday that the country’s gross domestic product grew 1.2 percent from the last three months of 2024. If that pace continues, the Chinese economy will expand at an annual rate of 4.9 percent.But whether China can maintain that growth is shrouded in uncertainty.Pinned down by tariffs that threaten to freeze trade with its biggest customer, China’s economy is facing one of its greatest challenges in years.Growth in the early months of this year was propelled by rapidly rising exports and the manufacturing investment and production necessary to support those exports. Sales of electric cars, household appliances, consumer electronics and furniture were also strong because of ever-widening government subsidies for buyers.Then on April 2, Mr. Trump started escalating tariffs, which reached an extraordinary 145 percent for more than half of China’s exports to the United States.Mr. Trump’s first two rounds of tariffs on Chinese goods, 10 percent in February and again in March, had little immediate effect on exports. China’s overall exports in March rose 12.4 percent in dollar terms from a year earlier, as some exporters appeared to rush shipments to docks before tariffs could go even higher.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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      UK Cuts Tariffs on Dozens of Products as Global Trade Tensions Rise

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      British officials also announced more financing for exporters as the country sought to protect firms hurt by tariffs.The British government ramped up actions to help protect businesses and households from some of the economic tumult created by President Trump’s decision to raise tariffs and upend the norms of global trade.The government said on Sunday it would suspend tariffs on 89 products for about two years to help businesses and consumers save money. The products include those for construction, such as plywood and plastics, and everyday household items, such as pasta and fruit juices.Officials will also increase financing support for exporters by 20 billion pounds ($26 billion), through partial loan guarantees, and give small businesses access to loans of up to £2 million.As Mr. Trump raises tariffs on most imports, including those from Britain, to a 10 percent base line and even higher for certain goods like cars and steel, the British government has sought to calm anxieties at home. Officials have said they want to move quickly to support companies as they try to sustain fragile economic momentum.“This week, we witnessed the uncertainty of a changing world,” Rachel Reeves, the chancellor of the Exchequer, wrote in The Observer, a Sunday newspaper. In response, the government “must rise to meet the moment,” she wrote.The announcements on Sunday followed other interventions by the government in recent days to bolster protections for firms affected by tariffs. On April 6, the government eased rules on electric vehicle sales after Mr. Trump imposed a 25 percent tariff on cars imported into the United States. British officials also relaxed regulations to speed up timelines for clinical trials to support the life sciences sector with Mr. Trump also expected to impose levies on the pharmaceutical industry.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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      Southeast Asia, With Little Leverage, Seeks to Placate Trump on Trade

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      Southeast Asian leaders, their export-driven economies in peril, are trying to placate the president. “We may have to comply,” Thailand’s finance minister said.They were hit by some of President Trump’s most punishing tariffs, in one case as high as 49 percent. The new levies threatened to cripple their economies, which have prospered by making sneakers and tech goods for American consumers.So Southeast Asian countries like Cambodia and Vietnam rushed to appease Mr. Trump. They promised not to retaliate, unlike China and Europe. And they proposed to reduce or even eliminate their own tariffs on American imports.On Thursday, the region woke up to the good news that Mr. Trump had paused his “reciprocal” tariffs. The president suggested he had reversed course because of the market turmoil they had caused. Still, Southeast Asia is sticking with its conciliatory approach.In a statement on Thursday, the economic ministers of the Association of Southeast Asian Nations, known as Asean, said the 10-country bloc was “united in the opinion that retaliation is not an option.” (The ministers were in Kuala Lumpur, Malaysia, for a meeting that had been previously scheduled.)Despite Mr. Trump’s 90-day pause, the anxiety here is palpable. His tariffs, the Asean statement said, are “introducing uncertainty and undermining trust in the global trade system.” Millions of livelihoods in the region are on the line. Thailand’s finance minister, Pichai Chunhavajira, acknowledged that the White House had leverage over his nation in matters of trade.“This is how you negotiate,” Mr. Pichai said in an interview. “You start with an extreme measure and then ease your demand along the way. We may have to comply.”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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      Inside Trump’s Reversal on Tariffs: From ‘Be Cool!’ to ‘Getting Yippy’

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      Economic turmoil, particularly a rapid rise in government bond yields, caused President Trump to reverse course on the steep levies.For the past week, President Trump has been urging calm in the face of the financial chaos that he created and resisting calls for him to rethink his approach.“I know what the hell I’m doing,” he told Republicans on Tuesday as the massive tariffs he had imposed sent global markets into a tailspin. “BE COOL!” he said in a social media post on Wednesday morning. “Everything is going to work out well.”At 9:37 a.m. Wednesday, the president was still bullish on his policy, posting on Truth Social: “THIS IS A GREAT TIME TO BUY!!!”But in the end, it was the markets that got him to reverse course.The economic turmoil, particularly a rapid rise in government bond yields, caused Mr. Trump to blink on Wednesday afternoon and pause his “reciprocal” tariffs for most countries for the next 90 days, according to four people with direct knowledge of the president’s decision.Asked to explain the decision, Mr. Trump told reporters: “Well, I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.”Behind the scenes, senior members of Mr. Trump’s team had feared a financial panic that could spiral out of control and potentially devastate the economy. Treasury Secretary Scott Bessent and others on the president’s team, including Vice President JD Vance, had been pushing for a more structured approach to the trade conflict that would focus on isolating China as the worst actor while still sending a broader message that Mr. Trump was serious about cracking down on trade imbalances.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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      Britain Lost Out on Euro Disney. Now It’s Getting a Universal Theme Park.

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      A yet-to-be-named Universal Studios theme park will be the country’s largest tourist attraction when it opens in 2031. But studio executives have not yet said which characters will be featured.Universal Studios will build its first European theme park in Bedfordshire, England, studio officials said Wednesday, previewing a sprawling resort that could combine iconic American brands like “Jurassic Park” with classic British characters like Paddington Bear, Dr. Who and Harry Potter.Set to open in 2031, British officials said the yet-to-be-named theme park would be Britain’s largest single tourist attraction. Executives at Comcast, Universal’s parent company, said the 476-acre complex would include themed lands, rides, a 500-room hotel, shops and dining.Keir Starmer, the British prime minister, hailed the announcement as a boost for his country’s sluggish economy and an example of his government’s attempt to cut through the red tape that has long made it costly and difficult to complete complex projects in Britain.“Today we closed the deal on a multibillion-pound investment that will see Bedford home to one of the biggest entertainment parks in Europe,” Mr. Starmer said in a statement, adding that the project would create around 28,000 jobs.The theme park, which Mr. Starmer said would generate nearly $64 billion (£50 billion) in revenue for the area by 2055, is a rare bright spot at a moment when the British economy has been barely growing.But it will be years before the doors open to the public as the company transforms what is a bare piece of land about 35 minutes north of London by train. That delay creates the kind of uncertainty that has sometimes doomed previous theme park efforts.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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      U.K. Boosts Military Spending and Cuts Welfare in ‘Uncertain World’

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      The changes come as President Trump’s tariff threats have disrupted global trade and added pressure to the British government’s already strained budget.The British government on Wednesday laid out plans for higher military spending and cuts to social benefits, as it sought to keep the nation’s finances on track in what it called a “more uncertain world.”Rachel Reeves, the chancellor of the Exchequer, said there would be an extra 2.2 billion pounds ($2.8 billion) for defense in the fiscal year that begins next month. And she reiterated recently announced reductions to the benefits system that were expected to save about £5 billion by 2030.The changes come as President Trump’s economic policies have disrupted the global economy, putting more demands on the British government’s already stretched budget. Like many other European countries, Britain has pledged to spend more on defense to support Ukraine against Russia. At the same time, the threat of a global trade war is lurking and interest rates have increased, pushing up government borrowing costs.“Our task is to secure Britain’s future in a world that is changing before our eyes,” Ms. Reeves said in Parliament on Wednesday.“The job of a responsible government is not simply to watch this change,” she added. “This moment demands an active government.”Adding to the hurdles, the British economy slowed in the second half of last year, and the Office for Budget Responsibility, an independent watchdog, halved its forecast for growth this year to 1 percent from 2 percent.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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      UK Aims to Cut Billions in Welfare Amid Budget Crunch

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      Changing disability allowances is a particularly contentious move within Prime Minister Keir Starmer’s center-left Labour Party.Britain’s center-left government outlined plans on Tuesday to curb spiraling welfare costs as it attempts to juggle a difficult set of competing objectives: saving public money, incentivizing work and protecting the most vulnerable.The announcement follows weeks of tense internal debate within the governing Labour Party, led by Prime Minister Keir Starmer, about how to cut Britain’s spending on welfare, which has risen sharply since the Covid-19 pandemic.“The status quo is unacceptable but it is not inevitable,” Liz Kendall, the work and pensions secretary, said in Parliament, promising “decisive action” to get those who can work into employment, protect those who cannot, and save five billion pounds (about $6.5 billion) by 2030.For Labour, a party that sees itself as the creator and guardian of Britain’s post-World War II welfare state, cutting support for some of the most vulnerable in society is especially contentious.But Britain, with a total population of about 68 million, now has more than 9.3 million people of working age across England, Scotland and Wales who are not employed, a rise of 713,000 since 2020. Of those, 2.8 million receive long-term sickness payments or related welfare, according to the government, which expects the number to grow to more than four million if nothing is done. The government spent £65 billion on sickness payments last year.Facing mounting pressure to increase military spending, at a time when public services including the health system are badly underfunded, and economic growth is sluggish, Britain’s Treasury is searching for cuts to public programs.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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      China Outlines Plan to Bolster Consumption in Face of Trump Tariffs

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      Beijing’s leaders are ordering fiscally strapped local governments to spend more to help workers, consumers and businesses.The Chinese government and the Communist Party jointly issued a lengthy list of planned initiatives on Sunday to get people to spend more, in yet another move by Beijing to offset potential harm from its escalating economic warfare with Washington.The road map for economic stimulus included larger pensions, better medical benefits and higher wages — measures that could bolster China’s lagging domestic consumption. But it assigned many of these tasks to the country’s local governments, many of which are struggling under enormous debts and plummeting revenues from the sale of state land.The action comes as China’s leaders are searching for ways to rebalance the economy away from its current dependence on an ever-rising trade surplus, which reached almost $1 trillion last year. President Trump has already imposed 20 percent tariffs on China’s shipments to the United States. Countries in Europe, Latin America, Africa and the Middle East are also raising tariffs on China’s flood of manufactured-goods exports.Part of the document released on Sunday seemed aimed at reassuring the Chinese public that their investments were safe, so that they would start spending money again. The authorities promised to undertake “multiple measures to stabilize the stock market” and to underpin the real estate market, which has been marred by falling property prices.A housing market crash has wiped out much of the savings of China’s middle class in the past three years. Chinese households have responded by curtailing their spending on hotels, restaurants and other services and stuffing savings into bank deposits that pay very little interest.One bright spot of late for China has been its stock markets. In the United States, the tariffs and uncertainty caused by Mr. Trump’s policies dragged the S&P 500 last week into a correction, down more than 10 percent from its peak. But China’s markets are positive, partly on enthusiasm for the country’s progress in developing its own artificial intelligence programs. Hong Kong’s stock market, where many Chinese companies trade, is up about 20 percent since Mr. Trump’s inauguration.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