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    EU retaliates against Trump tariffs with €26bn ‘countermeasures’

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    The EU has announced it will impose trade “countermeasures” on €26bn (£22bn) worth of US goods in retaliation after Donald Trump’s tariffs on steel and aluminium imports, escalating a global trade war.The president of the European Commission, Ursula von der Leyen, called the 25% US levies on global imports of the metals “unjustified trade restrictions”, after they came into force at 4am GMT on Wednesday.“We deeply regret this measure,” von der Leyen said in a statement, as Brussels announced it would be “launching a series of countermeasures” on 1 April. “The European Union must act to protect consumers and business,” she added.The commission said it would be targeting industrial products in response, including steel and aluminium, as well as household tools, plastics and wooden goods.In addition, the EU measures will affect some US agricultural products, such as poultry, beef, some seafood, nuts, eggs, dairy, sugar and vegetables, provided they are approved by member states.The retaliatory measures will also entail Brussels reimposing the tariffs on US goods including bourbon whiskey, jeans and Harley-Davidson motorbikes that it introduced during the first Trump term.“We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” von der Leyen said.France’s European affairs minister, Benjamin Haddad, said on Wednesday that the EU could “go further” in its response to the US tariffs. The measures “are proportionate”, Haddad told TF1 television. “If it came to a situation where we had to go further, digital services or intellectual property could be included,” he said.Britain would not issue its own immediate measures in response to the US tariffs but was going to “reserve our right to retaliate”, a UK minister said.The exchequer secretary to the Treasury, James Murray, told Times Radio the levies were disappointing but “we want to take a pragmatic approach, and we’re already negotiating rapidly toward an economic agreement with the US, with the potential to eliminate additional tariffs”.Asked by Sky News whether Britain’s response to the levies could be called weak in comparison with Brussels, Murray said the UK was in a “very different position than the EU” and does not want to be “pushed off course” as it pursues a trade deal with Washington.“We think the right response is to continue pragmatically, cool-headedly, without a knee-jerk response, but toward our economic agreement that we’re negotiating with the US to secure, because that’s in the best interests of the UK,” he said.skip past newsletter promotionafter newsletter promotionHis comments came after the prime minister, Keir Starmer, said on Tuesday that Britain would not respond with its own counter-tariffs, after last-ditch efforts to persuade Trump to spare British industry from his global tariffs appeared to have failed.The UK steel industry warned that Trump’s tariffs “couldn’t come at a worse time”, and said the move would have “hugely damaging consequences for UK suppliers and their customers in the US”.Gareth Stace, the director general of the trade association UK Steel, called the Trump administration’s move “hugely disappointing”. He said: “President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape.”The introduction of EU measures came after a day of drama on Tuesday, when Trump threatened to double tariffs on Canadian steel and aluminium in response to Canadian threats to increase electricity prices for US customers.The US president backed off from those plans after the Ontario premier, Doug Ford, agreed to suspend his province’s decision to impose a 25% surcharge on electricity exports to the states of Minnesota, Michigan and New York. More

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      ACLU warns pro-Palestinian activist’s arrest meant ‘to intimidate and chill speech’ – live

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      The Trump administration’s decision to have immigration authorities arrest pro-Palestinian activist Mahmoud Khalil for alleged support of Hamas is an attack on free speech, the American Civil Liberties Union warned.“This arrest is unprecedented, illegal, and un-American,” said Ben Wizner, director of the American Civil Liberties Union’s Speech, Privacy, and Technology Project.“The federal government is claiming the authority to deport people with deep ties to the U.S. and revoke their green cards for advocating positions that the government opposes. To be clear: the first amendment protects everyone in the US. The government’s actions are obviously intended to intimidate and chill speech on one side of a public debate. The government must immediately return Mr Khalil to New York, release him back to his family and reverse course on this discriminatory policy.”House minority leader Hakeem Jeffries rejected Republicans’ go-it-alone strategy to avert a government shutdown, saying Democrats would not back their plan to fund federal agencies through the rest of the fiscal year.“It is not something we could ever support,” Jeffries told reporters on Capitol Hill. “House Democrats will not be complicit in the Republican effort to hurt the American people.”“The House Republican so-called spending bill does nothing to protect Social Security, Medicare and Medicaid. Quite the opposite,” he said, adding that the bill would “quite dramatically” cut health benefits and nutritional assistance programs for children and American families.Jeffries did not take questions and it remains unclear whether any House Democrats will support the GOP spending bill, which could come up for a vote as early as Tuesday. House Republicans hold a wafer-thin majority and can only afford to lose a handful of votes in order to pass the measure.Congress must act by midnight on Friday to avoid a partial government shutdown.Los Angeles district attorney Nathan Hochman says that he opposes the resentencing of Lyle and Erik Menendez, who were convicted for the 1989 killing of their parents, Jose and Kitty Menendez. In a press release on Monday, Hochman’s office said that after reviewing thousands of pages of records and transcripts and hundreds of hours of video, he found that the brothers lied during their testimony and tried to get others to lie on their behalf.
      As a full examination of the record reveals, the Menendez brothers have never come clean and admitted that they lied about their self-defense…“The Court must consider such lack of full insight and lack of acceptance of responsibility for their murderous actions in deciding whether the Menendez brothers pose an unreasonable risk of danger to the community,” Hochman said in a statement.
      The brothers were sentenced for the killings in 1996 and sentenced to life sentences without the possibility of parole.Read the rest of Hochman’s rationale here.Protests are underway in New York following the arrest of Mahmoud Khalil, a Palestinian activist who helped lead Columbia University’s pro-Palestinian protests last year. Khalil, a permanent US resident with a green card who is a recent Columbia graduate, was arrested over the weekend by immigration authorities.Today’s final numbers from Wall Street are out and the three main indices have continued to drop. The S&P 500 fell 2.7%, the Dow Jones dropped 2%, and the tech-heavy Nasdaq dropped 4% as investors sold shares in the so-called “magnificent seven” – Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia and Tesla. Tesla’s shares had their worst day since September 2020, falling 15%.The fall came a day after Trump skirted around questions about a potential recession on Sunday. Asked if he expected a recession, Trump said: “There is a period of transition, because what we’re doing is very big … It takes a little time, but I think it should be great for us.”Kevin Hassett, the head of the national economic council, told CNBC on Monday that any uncertainty around Trump’s trade policies would be resolved by early April and that the policies were “creating jobs in the US”.We’re about 10 minutes away from the market’s close and things are not looking good on Wall Street.Traders have been rattled for days by fears that Donald Trump’s tariffs against China, Canada and Mexico, and vow to impose “reciprocal” levies against countries worldwide next month, will send the US economy into recession.The terror has been particularly bad today, leading to steep sell offs in the three main indices. The broad-based S&P 500 is currently down 2.5%, while the benchmark Dow Jones Industrial Average has lost 1.9%. Over at the tech-heavy Nasdaq, the bleeding has resulted in a 4% loss.Needless to say, this is not what a president who touts the stock market as a barometer of their economic success would like to see.National intelligence director Tulsi Gabbard has announced that she has revoked the security clearances of several former members of Joe Biden’s administration, as well as critics of Donald Trump.“Per @POTUS directive, I have revoked security clearances and barred access to classified information for Antony Blinken, Jake Sullivan, Lisa Monaco, Mark Zaid, Norman Eisen, Letitia James, Alvin Bragg, and Andrew Weissman, along with the 51 signers of the Hunter Biden ‘disinformation’ letter. The President’s Daily Brief is no longer being provided to former President Biden,” Gabbard wrote on X.The decision to revoke the security clearance of Blinken, the former secretary of state, appears to have been announced last month. Trump earlier withdrew the clearances of Biden and former joint chiefs of staff chairman Mark Milley.Beyond the Biden administration, Gabbard targeted James, who has pursued a civil fraud suit against the Trump Organization, and Manhattan district attorney Bragg, who successfully prosecuted the president on felony business fraud charges.A former top social security administration official accused Elon Musk’s “department of government efficiency” of lying about alleged fraud discovered in the agency, the Guardian’s Martin Pengelly reports:A former chief of staff at the US Social Security Administration (SSA) described how agents of the so-called “department of government efficiency” (Doge) – Elon Musk’s government cost-cutting operation – were imposed on the agency, assailing senior staff with questions “based on the general myth of supposed widespread fraud” and acting with dangerous disregard for data confidentiality.In a declaration filed with a lawsuit on Friday and referring to the Doge agents Mike Russo and Akash Bobba, Tiffany Flick said: “We proposed briefings to help Mr Russo and Mr Bobba understand the many measures the agency takes to help ensure the accuracy of benefit payments, including those measures that help ensure we are not paying benefits to deceased individuals.“However, Mr Russo seemed completely focused on questions … based on the general myth of supposed widespread social security fraud, rather than facts.”Flick also said she was “not confident” Doge agents had “the requisite knowledge and training to prevent sensitive information from being inadvertently transferred to bad actors”, given its agents have “never been vetted by SSA or trained on SSA data, systems or programs”.“In such a chaotic environment, the risk of data leaking into the wrong hands is significant,” Flick said.The Trump administration’s decision to have immigration authorities arrest pro-Palestinian activist Mahmoud Khalil for alleged support of Hamas is an attack on free speech, the American Civil Liberties Union warned.“This arrest is unprecedented, illegal, and un-American,” said Ben Wizner, director of the American Civil Liberties Union’s Speech, Privacy, and Technology Project.“The federal government is claiming the authority to deport people with deep ties to the U.S. and revoke their green cards for advocating positions that the government opposes. To be clear: the first amendment protects everyone in the US. The government’s actions are obviously intended to intimidate and chill speech on one side of a public debate. The government must immediately return Mr Khalil to New York, release him back to his family and reverse course on this discriminatory policy.”Activists were arrested while disrupting the CERAWeek fossil fuel conference on Monday, chanting “people over profit”.The protesters blocked the street outside the conference hotel in Houston, where energy secretary Chris Wright and top brass from energy companies including Shell and Exxon spoke on Monday.Among those arrested was local organizer Yvette Arellano of Texas environmental justice group Fenceline Watch.“Human rights, not sacrifice,” she chanted as the police escorted her away.As the CERAWeek oil and gas conference convened fossil fuel bigwigs in Houston on Monday, hundreds of activists staged a protest down the street.“We need clean air, not another billionaire,” they chanted.Among the featured speakers at the rally was Yvette Arellano, founder and director of Fenceline Watch, a Houston-based environmental justice organization. Last year, she was barred from attending CERAWeek despite raising $8,500 for a ticket.“Unfettered” fossil fuel expansion, she said, is taking a toll on the climate while polluting vulnerable communities in Texas and beyond.“It’s our communities that are being harmed,” she said.Other activists hail from communities as far flung as Appalachia and the Standing Rock Indigenous reservation in North Dakota.A story to watch this week is Congress’s scramble to pass spending legislation and avert a shutdown that will begin Friday at midnight. These things often come down to the wire, but the Guardian’s Joseph Gedeon reports that Donald Trump is on board with the House GOP’s proposal to keep the government open. Whether enough of their lawmakers are remains to be seen:Republican lawmakers are scrambling to avert a government shutdown set to begin on Saturday, with Donald Trump’s backing for a temporary funding measure having suddenly silenced the usual conservative opposition.The stopgap funding bill, known as a continuing resolution (CR), would maintain government operations at current funding levels through 30 September, the end of the fiscal year. Republican US House speaker Mike Johnson said he plans to hold a procedural vote on Monday, aiming for a passage vote on Tuesday before sending lawmakers home for recess.Trump instructed reluctant fellow Republicans to fall in line behind the stopgap bill that would fund the government through September. “All Republicans should vote (Please!) YES next week,” the president wrote on Saturday on his Truth Social platform.Maryam Alwan, a Palestinian American senior at Columbia who has protested alongside Mahmoud Khalil, told Reuters she was “horrified for my dear friend Mahmoud, who is a legal resident, and I am horrified that this is only the beginning”.Columbia issued a revised protocol for how students and school staff should deal with federal immigration agents seeking to enter private school property, Reuters reports, saying they could enter without a judicial arrest warrant in “exigent circumstances”, which it did not specify.“By allowing ICE on campus, Columbia is surrendering to the Trump administration’s assault on universities across the country and sacrificing international students to protect its finances,” the Student Workers of Columbia said in a statement.The move to arrest and detain Palestinian student activist Mahmoud Khalil comes after the Trump administration announced last week that it would revoke about $400m in federal grants and contracts from Columbia University.The Trump administration alleges that the university has not done enough to stop antisemitism on campus.“Universities must comply with all federal antidiscrimination laws if they are going to receive federal funding. For too long, Columbia has abandoned that obligation to Jewish students studying on its campus,” education secretary Linda McMahon said in a statement on Friday.Mahmoud Khalil’s arrest is the first publicly known deportation effort under Trump’s promised crackdown on students who joined protests against the war in Gaza that swept college campuses last spring, the Associated Press reported Sunday.The Trump administration has claimed participants forfeited their rights to remain in the country by supporting Hamas.Before Trump addressed Mahmoud Khalil’s arrest, free speech organizations and advocates are expressing outrage over his detention over the weekend.Khalil, a permanent US resident with a green card, was taken into custody by federal immigration authorities on Saturday night, who reportedly said that they were acting on a state department order to revoke his green card.Read the full story:In a post on Truth Social, president Donald Trump confirmed the arrest of Mahmoud Khalil, a prominent Palestinian activist and permanent US resident with a green card.“This is the first arrest of many to come,” Trump said.The president said Ice took Khalil, who led protests at Columbia University during his time as a student there, into custody after his executive order and claimed, without evidence, that similar activists on college campuses are paid agitators, not students.Here’s the text of Trump’s full post:
      Following my previously signed Executive Orders, ICE proudly apprehended and detained Mahmoud Khalil, a Radical Foreign Pro-Hamas Student on the campus of Columbia University. This is the first arrest of many to come. We know there are more students at Columbia and other Universities across the Country who have engaged in pro-terrorist, anti-Semitic, anti-American activity, and the Trump Administration will not tolerate it. Many are not students, they are paid agitators. We will find, apprehend, and deport these terrorist sympathizers from our country — never to return again. If you support terrorism, including the slaughtering of innocent men, women, and children, your presence is contrary to our national and foreign policy interests, and you are not welcome here. We expect every one of America’s Colleges and Universities to comply. Thank you!
      Ontario premier Doug Ford announced a 25% tax on exports of electricity to New York, Minnesota and Michigan in retaliation for the tariffs Donald Trump imposed on Canada last week, the Associated Press reports.Trump has since exempted many Canadian products from the 25% levies, but Ford refused to back down and warned he may increase the surcharge or even cut off electricity exports entirely if the United States escalates its tariffs.Here’s more, from the AP:
      “I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto.
      “Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”
      Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty. Quebec is also considering taking similar measures with electricity exports to the U.S.
      Ford’s office said the new market rules require any generator selling electricity to the U.S. to add a 25% surcharge. Ontario’s government expects it to generate revenue of $300,000 Canadian dollars ($208,000) to CA$400,000 ($277,000) per day, “which will be used to support Ontario workers, families and businesses.”
      The new surcharge is in addition to the federal government’s initial CA$30 billion ($21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
      Secretary of state Marco Rubio announced that USAid had cancelled the majority of its programs, while the rest will be folded into the state department. The decision was reportedly made early, and after many of the shuttered aid agency’s partners believed they had more time to request to preserve their programs. It was also met with approval from Elon Musk, after reports emerged last week that he squabbled with Rubio at a cabinet meeting attended by Donald Trump. Meanwhile, the arrest of pro-Palestinian activist and US green card holder Mahmoud Khalil by immigration agents has sparked concerns that the Trump administration is looking to retaliate against speech it does not approve of. The homeland security department said Khalil’s detention was in line with an executive order targeting “activities aligned to Hamas”.Here’s what else has happened today so far:

      Wall Street fell significantly as traders grew concerned over the possibility that Trump’s trade war will send the US economy into a recession.

      A top state department official has a history of insulting his boss in social media posts, among many other questionable statements.

      Trump will sign more executive orders at 3pm, though the White House did not say what they will concern. More

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

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      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

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      “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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      China and Canada retaliate after Trump trade tariffs come into effect

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      China and Canada unveiled retaliatory measures against the US after Donald Trump imposed his sweeping tariffs plan at midnight US time, despite warnings it could spark an escalating trade war.US tariffs have come into force of 25% against goods from Canada and Mexico, the US’s two biggest trading partners, and 20% tariffs against China – doubling the levy on China from last month.The duties will affect more than $918bn-worth (£722bn) of US imports from Canada and Mexico.China on Tuesday said it would impose fresh tariffs on a range of agricultural imports from the US next week. Its finance ministry said additional 15% tariffs would be imposed on chicken, wheat, corn and cotton, with further 10% tariffs on sorghum, soya beans, pork, beef, aquatic products, fruits, vegetables and dairy products.The Canadian prime minister, Justin Trudeau, said Ottawa would respond with immediate 25% tariffs on C$30bn-worth ($20.7bn) of US imports. He said previously that Canada would target US beer, wine, bourbon, home appliances and Florida orange juice.Tariffs will be placed on another C$125bn ($86.2bn) of US goods if Trump’s tariffs were still in place in 21 days.“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.Mexico’s president, Claudia Sheinbaum, was expected to announce her response on Tuesday morning, the country’s economy ministry said.Asian markets were down – after sharp falls in US markets on Monday – as Japan’s Nikkei fell 1.6%, Taiwan’s benchmark TWII index was off 0.5% and Hong Kong’s Hang Seng was down 0.$%.The Canadian dollar and the Mexican peso fell to their lowest levels in a month on Tuesday.In Europe, the FTSE 100 dropped by 57 points, or 0.65%, at the start of trading to 8,813 points, a day after rising more than 8,900 points for the first time. France’s CAC 40 fell 0.9% and Spain’s Ibex was down 0.8%.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.Businesses, 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.skip past newsletter promotionafter newsletter promotionWhile he slapped a 10% tariff on China last month, Trump has repeatedly delayed the imposition of tariffs on Canada and Mexico. The president has pledged to bring down prices in the US, but economists have warned that consumers in the country could be aversely affected by his trade plans.A 25% tariff on Canada and Mexico and a 10% levy on China would amount to “the largest tax increase in at least a generation”, according to the Peterson Institute for International Economics, a thinktank, which estimated such a move would cost the typical US household more than $1,200 each year.Trump has vowed to go further, threatening to introduce “reciprocal” tariffs on countries that have their own duties on goods made in the US. He has said these will come into effect as soon as next month.China’s finance ministry said in a statement: “The US’s unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US.”The ministry said products shipped from the US to China that departed before 10 March and arrived before 12 April would not be subject to the tariffs.Trump has said the tariffs on China are because the government has failed to stop illicit fentanyl entering the US, which Beijing says is a “pretext” to threaten China.“China opposes this move and will do what is necessary to firmly safeguard its legitimate interests,” a foreign ministry spokesperson, Lin Jian, said.Chris Weston, an analyst at the brokerage Pepperstone, said: “Market anxiety levels have been dialled up, and we see traders having to react aggressively and dynamically to the deluge of headlines and social posts confirming that tariffs on China, Mexico and Canada are to be implemented in full and as threatened.” More

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      Trump says US won’t give Ukraine security guarantees ‘beyond very much’ ahead of Starmer meeting – UK politics live

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      Good morning. Keir Starmer is in Washington where later today he will have his first meeting with President Trump since the inauguration. With Trump aligning with Moscow even more explicitly than he did during his first administration, and threatening to wind down the Nato guarantees that have underpinned the security of western Europe since the second world war, the stakes could not be higher. Starmer, despite leading a party whose activists mostly loathe Trump and everything he represents, has managed to establish a warm relationship with the president and today will give some clues as to what extent he can sustain that, and protect the UK from the tariff warfare that Trump is threatening to unleash on the EU. But Starmer is one of three European leaders in Washington this week (Emmanuel Macron was there on Monday, Volodymyr Zelenskyy is there tomorrow) and today’s meeting is also part of a wider story about the fracturing of the US/Europe alliance. It is definitely in trouble; but what is not yet clear is whether after four years of Trump it will still be functioning effectively.Starmer spoke to reporters on his flight to the US yesterday. Pippa Crerar, the Guardian’s political editor, was on the plane and, as she reports, Starmer said he wants Trump to agree that, in the event of a peace settlement in Ukraine, the US will offer security guarantees that will make it durable. He has already said that Britain would contribute troops to a European so-called “tripwire” peace-keeping force, there to defend Ukraine and deter Russia. But European soldiers would need US air and logistical support to be effective, and Starmer is looking for assurances on this topic.But the backdrop is not promising. As Starmer was flying across the Atlantic, Trump wsa holding a televised cabinet meeting where, Soviet-style, his ministers laughed heartily at his jokes as they all congratulated each other on how brilliantly they were doing. In the course of the meeting, on the subject of Ukraine, Trump said:
      I’m not going to make security guarantees beyond very much. We’re going to have Europe do that.
      Starmer is due to arrive at the White House shortly after 5pm UK time and the press conference is meant to start at 7pm. We will, of course, be covering it live. It should be fascinating. During Trump’s first term, Theresa May managed to get the first foreign leader invite to the White House and her visit, during which she offered the president a state visit, was deemed a success. But it did not stop Trump treating her very badly later during the presidency, regularly patronising when they spoke in private, and sometimes in public too, and openly suggesting at one point that Boris Johnson would make a better replacement.Here is the agenda for the day.9.30am: The Home Office publishes its latest asylum, resettlement and returns figures.9.30am: Lisa Nandy, the culture secretary, takes questions in the Commons.After 10.30am: Lucy Powell, the leader of the Commons, makes a statement to MPs about next week’s parliamentary business.11.30am: Downing Street holds a lobby briefing.Around 5.15pm (UK time): Keir Starmer is due to arrive at the White House for his meeting with President Trump.Around 7pm (UK time): Starmer and Trump are due to hold a press conference.And at some point today Heidi Alexander, the transport secretary, is expected to announce that she is approving a decision to expand Gatwick.If you want to contact me, please post a message below the line or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn. The Guardian has given up posting from its official accounts on X but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog. More

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      Trump threatens 25% tariffs on foreign cars and semiconductor chips

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      Donald Trump stood firm against warnings that his threatened trade war risks derailing the US economy, claiming his administration could hit foreign cars with tariffs of around 25% within weeks.Semiconductor chips and drugs are set to face higher duties, Trump told reporters at a news conference on Tuesday.The White House has repeatedly raised the threat of tariffs since Trump returned to office last month, pledging to rebalance the global economic order in America’s favor.A string of announced tariffs have yet to be introduced, however, as economists and business urge the Trump administration to reconsider.Duties on imports from Canada and Mexico have been repeatedly delayed; modified levies on steel and aluminum, announced last week, will not be enforced until next month; and a wave of so-called “reciprocal” tariffs, also trailed last week, will not kick in before April.Tariffs are taxes on foreign goods. They are paid by the importer of the product – in this case, companies and consumers based inside the US – rather than the exporter, elsewhere in the world.Asked on Tuesday if he had decided the rate of a threatened tariff on cars from overseas, Trump said he would “probably” announce that on 2 April, “but it’ll be in the neighborhood of 25%”.Upon being asked the same question about threatened tariffs on semiconductors and pharmaceuticals, Trump replied: “It’ll be 25% and higher, and it’ll go very substantially higher over the course of a year.”The ramp-up, he explained, was designed to lure manufacturers to the US. “When they come into the United States, and they have their plant or factory here, there is no tariff.”Executives have cautioned that the administration’s plan for tariffs risks harming the US economy. A 25% tariff on Mexico and Canada “will blow a hole in the US industry that we have never seen”, Jim Farley, the Ford CEO, told an investor conference in New York last week. More

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      UK marketplace sellers face ‘second Brexit’ hit from Trump’s US import rules

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      Many UK-based independent sellers on marketplaces such as eBay and Amazon could suffer a significant hit to US sales from planned changes to import rules under Donald Trump, with experts comparing the impact to a second Brexit.The new rules, which mean all parcels originating or made in China and being sold into the US must pay import duty – of as much as 15% on fashion items – and an additional 10% tariff, are also expected to impact bigger online clothing retailers such as Asos and Boohoo.The changes were introduced at the start of February in an attempt to protect US retailers from a surge in competition from the likes of Chinese online marketplaces Shein and Temu, but were indefinitely paused after the US customs service struggled to cope with the massive increase in parcels requiring checks last week.However, they are expected to be implemented within the coming months, potentially driving up prices for US consumers and hitting sales for online retailers.Before the change, parcels with a value of less than $800 (£635) shipped to individuals in the US were exempt from import tax and did not pass through the usual customs checks. That scheme, originally designed to help smooth online shopping, is being revoked after it emerged that the number of shipments under the “de minimis” rules had ballooned to more than 1bn, valued at $54.5bn by 2023 – most of them from China or Hong Kong via firms including Shein and Temu.“You are looking at an increase of $30 to $50 per consignment [group of parcels],” said Brad Ashton at the advisory firm RSM. “It is creating a perfect storm for online retailers putting goods into the US market. It has a lot of the hallmarks of Brexit in terms of its potential impact on small traders.“Businesses will see their margins eroded because costs will increase. We may get to a point where the changes make a UK business uncompetitive in selling to the US.”The widespread use of Chinese factories for many British brands, particularly in fashion, means businesses such as Asos and Boohoo will be drawn in, as well as many UK independent marketplace sellers.It will not just affect goods made in China and then sent from the UK, but potentially a much wider array, as any package containing even one product made in China may have to pay import tax and pass through customs checks, further increasing costs, according to experts.There is also an expectation that the de minimis rules will eventually be scrapped for all imports, no matter their origin.About $5bn worth of parcels were exported to the US from the UK under de minimis rules in 2021, according to a Congressional Research Service analysis of data from US Customs and Border Protection. About 80% of that was estimated to be related to online retail, with fashion likely to be a large proportion of it.Chris White, at the logistics company Fulfilmentcrowd, said that during the brief period when the rules were in place in early February, one-third of the parcels it shipped to the US from the UK were found to be of Chinese origin and subject to the new taxes.Fast-fashion specialists Asos and Boohoo sell about £300m of clothing a year to the US. Both are already struggling to compete with the rise of Shein and high street retailers, which have revived after the Covid pandemic. John Stevenson, a retail analyst at Peel Hunt, said Asos and Boohoo would have to “adjust prices or take a view on [the] profitability of operating in the US”.As well as the higher tax charges, customs checks required after the rule change will add as much as two days to the processing of orders, making UK retailers less competitive with US-based operators on the speed of delivery.skip past newsletter promotionafter newsletter promotionStevenson said the hit to Asos and Boohoo was “not business-critical” in the way it could be for Shein or Temu, which he believed were heavily reliant on the tax benefit, but that it would have an impact.In the short term, online sellers will probably have lower sales because of uncertainty among US shoppers over possible taxes. White said that during the period when the new rules were in place, similar parcels were loaded with different levels of duty as local customs officers made different decisions.He said a further element of the rule change might be to expose brands that were “trading on an image of being British or European” as being “made in China and not Savile Row”, potentially damaging their appeal.There would be “lots of crossed fingers and puzzled faces” over the changes in legislation, with retailers potentially opening more US warehousing or, longer term, to switch sources of supply, White added.Boohoo closed its US warehouse earlier this year, and Asos is scheduled to close its facility there in November. However, a reversal could be on the cards if the de minimis rules are confirmed. Many fast-fashion companies have already diversified their supply chains – making more in India, Bangladesh or Turkey. Trump’s tax changes could accelerate this further.Shein is reportedly incentivising Chinese suppliers to set up in Vietnam, according to a report by Bloomberg.It is not clear when the new rules might be implemented as the US tries to put the technology and workforce in place to handle the new system. Experts say it could take weeks or months.While there is a chance that Trump will change his mind, as he has done on tariffs with Canada and Mexico, no business can bet on which way the US might jump. More

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      Trump policies make US ‘scary place to invest’ and risk stagflation, says Stiglitz

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      Donald Trump’s tariff threats have made the US “a scary place to invest” and may unleash stagflation, the Nobel prize-winning economist Joseph Stiglitz has said.“It risks the worst of all possible worlds: a kind of stagflation,” Stiglitz said in an interview with the Guardian.He argued that despite optimism about the US economy at the turn of the year, the uncertainty created by Trump’s on-off tariff plans and the president’s apparent contempt for the rule of law would deter investment.“If you’re a corporate in the US or in Europe, do you think you have a global market, or do you have just a European market? Where do you locate your factories?” he said.He highlighted Elon Musk’s efforts to slash government departments without congressional authority, and Trump’s disregard for contracts – including the trade pact he struck with Canada and Mexico in his first term – among damaging signals for investors considering the US as a destination.“The government has a huge number of contracts and we’re just tearing them up. How much risk do you want? The US has become, I would say, a scary place to invest,” he said.Stiglitz argued that the uncertainty was likely to slow economic growth, while at the same time Trump’s tariffs – and retaliation by other countries – would drive up inflation.The prospect of rising inflation in the world’s largest economy has led investors to pare back bets on the US Federal Reserve cutting interest rates since Trump’s return to office, amid mounting concern over the fallout from a global trade war.Stiglitz, a Columbia University professor and former World Bank economist who served as chair of Bill Clinton’s council of economic advisers, said the Fed was “clearly worried” about the inflationary effects of Trump’s policies, which could lead it to raise interest rates.“Almost all economists agree that the tariffs will increase prices. How much it will increase prices is a little bit affected by the magnitude of the appreciation of the exchange rate, but all economists think that the extent of the appreciation of the exchange rate won’t be anywhere near enough to compensate for the tariffs.skip past newsletter promotionafter newsletter promotion“I could certainly see a scenario where we get to stagflation – we get inflation, and a weak economy,” he said. “I cannot see a really robust economy, because I just see the global economy suffering so much from the uncertainty that Trump poses.”Scott Bessent, the US Treasury secretary, has suggested the administration wants to bring down 10-year US Treasury yields, an important interest rate, which would have a knock-on effect across global markets. Lower Treasury yields would make it cheaper for Washington to borrow.But Stiglitz suggested the only way the president’s policies would positively contribute to that goal was by running the US into the ground. “The inflation from the tariffs is going in the wrong way, and the only thing that is going in the right way for Bessent is his efforts to crater the economy,” he said.“In supporting Trump’s economic policies, [Bessent] is helping to get the yield curve down by crashing the US economy – not a good policy, I would say.” More