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      Trump’s Tariff Threat Pits Canada Against Mexico

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      If President-elect Donald J. Trump’s threat of hefty tariffs on Canada and Mexico was intended as a divide-and-conquer strategy, early signs show that it might be working.After his missive on Monday, in which he said he planned to impose a 25 percent tariff on all imports from both of the United States’ neighbors, Ottawa and Mexico City followed starkly different approaches.Mexico took a tough stance, threatening to retaliate with its own tariffs on U.S. goods. Canada, instead, emphasized that it was much closer aligned to the United States than Mexico.The trade agreement between the three North American nations has been carefully maintained over the past three decades through a delicate balance between the United States and its two key allies.As Mr. Trump prepares to take office, his willingness to tear that up to pressure the two countries on migration could open the door to the United States-Mexico-Canada agreement being replaced by separate bilateral deals with the United States.Chrystia Freeland, Canada’s finance minister, has tried to show that Canada is aligned with Mr. Trump’s hawkish attitude toward China.Blair Gable/ReutersWe 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’s Tariff Threat Roils Global Markets

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      The dollar gained and investors sold off stocks after the president-elect promised to levy new restrictions on the United States’ biggest trade partners. President-elect Donald Trump’s economic policy is already roiling global markets.Brendan McDermid/ReutersThe other Trump trade Investors and policymakers are getting a dose of Trumponomics déjà vu this morning.Global stocks are falling, and the dollar is climbing. The volatility comes after President-elect Donald Trump’s vow to impose tariffs on the United States’ biggest trading partners — Canada, China and Mexico — on Day 1 in office in an apparent effort to clamp down on the flow of cross-border drugs, like fentanyl, and migrants.The latest:Trump wants to impose 25 percent tariffs on Canada and Mexico “on ALL products coming into the United States,” he said on Truth Social. He also wants an “additional” 10 percent tariff on imports from China, which Trump blames for the fentanyl crisis, a charge that Beijing has repeatedly disputed.The Canadian dollar and Mexican peso fell sharply against the dollar. Europe, Japan and South Korea weren’t even mentioned in Trump’s announcement, but stocks have fallen there, too. That suggests rising fears that a new trade war could scramble global supply chains and dent profits.Automakers are some of the hardest hit stocks, with Volkswagen, Stellantis and Nissan, which run manufacturing operations in Mexico, all down.Today’s losses have reversed some of yesterday’s “Bessent bounce” rally. Investors were relieved after Trump picked Scott Bessent, the market-friendly hedge fund mogul, to run the Treasury Department.But the reverberations show that it’s Trump calling the shots. The president-elect has made no secret of his desire to use tariffs to further his America-first agenda, and he has yet to announce his pick to be U.S. Trade Representative. (Another tariff supporter, Robert Lighthizer, is in the running.)Trump’s latest threats may be just a negotiating tactic. That’s the belief of some Trump backers, including Bill Ackman, the billionaire financier. But they are a reminder of how Trump set off alarm bells across diplomatic channels and international markets during his first term often via social media posts. “Waking up to check the tweets for any policy announcements could become the norm,” Mohit Kumar, an economist at Jefferies, wrote in a note this morning.Prime Minister Justin Trudeau of Canada spoke to Trump about trade and border security after the president-elect’s announcement, The Times reported. China pushed back. “No one will win a trade war,” a spokesman for the Chinese Embassy in Washington said in a statement.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’s Dramatic Tariff Plan, and a Cease-Fire Takes Shape in Lebanon

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      Listen to and follow “The Headlines”Apple Podcasts | Spotify | Amazon Music | YouTube | iHeartRadioSalman Masood and Jessica Metzger and On Today’s Episode:Trump Plans Tariffs on Mexico, Canada and China That Could Cripple Trade, by Ana Swanson, Matina Stevis-Gridneff and Simon RomeroJack Smith Seeks Dismissal of Two Federal Cases Against Trump, by Alan Feuer, Charlie Savage and Devlin BarrettTop Trump Aide Accused of Asking for Money to ‘Promote’ Potential Appointees, by Maggie Haberman and Jonathan SwanNetanyahu Signals Openness to Cease-Fire With Hezbollah, Officials Say, by Ronen Bergman, Patrick Kingsley and Jack NicasPakistan Deploys Army in Its Capital as Protesters and Police Clash, by Salman MasoodOzempic Could Crush the Junk Food Industry. But It Is Fighting Back, by Tomas WeberWho Needs Congress When You Have Cameo?, by Joseph BernsteinPresident-elect Donald J. Trump said that he would impose tariffs on all products coming into the United States from Canada, Mexico and China on his first day in office.Edmund D. Fountain for The New York TimesTune in, and tell us what you think at theheadlines@nytimes.com. For corrections, email nytnews@nytimes.com.For more audio journalism and storytelling, download the New York Times Audio app — available to Times news subscribers on iOS — and sign up for our weekly newsletter. More

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      Trump Plans Tariffs on Canada, China and Mexico That Could Cripple Trade

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      President-elect Donald J. Trump said on Monday that he would impose tariffs on all products coming into the United States from Canada, Mexico and China on his first day in office, a move that would scramble global supply chains and impose heavy costs on companies that rely on doing business with some of the world’s largest economies.In a post on Truth Social, Mr. Trump mentioned a caravan of migrants making its way to the United States from Mexico, and said he would use an executive order to levy a 25 percent tariff on goods from Canada and Mexico until drugs and migrants stopped coming over the border.“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” the president-elect wrote.“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem,” he added. “We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!”In a separate post, Mr. Trump also threatened an additional 10 percent tariff on all products from China, saying that the country was shipping illegal drugs to the United States.“Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through,” he said.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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      Crony Capitalism Is Coming to America

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      It’s late 2025, and Donald Trump has done what he said he would do: impose high tariffs — taxes on imports — on goods coming from abroad, with extremely high tariffs on imports from China. These tariffs have had exactly the effect many economists predicted, although Trump insisted otherwise: higher prices for American buyers.Let’s say you have a business that relies on imported parts — maybe from China, maybe from Mexico, maybe from somewhere else. What do you do?Well, U.S. trade law gives the executive branch broad discretion in tariff-setting, including the ability to grant exemptions in special cases. So you apply for one of those exemptions. Will your request be granted?In principle, the answer should depend on whether having to pay those tariffs imposes real hardship and threatens American jobs. In practice, you can safely guess that other criteria will play a role. How much money have you contributed to Republicans? When you hold business retreats, are they at Trump golf courses and resorts?I’m not engaging in idle speculation here. Trump imposed significant tariffs during his first term, and many businesses applied for exemptions. Who got them? A recently published statistical analysis found that companies with Republican ties, as measured by their 2016 campaign contributions, were significantly more likely (and those with Democratic ties less likely) to have their applications approved.But that was only a small-scale rehearsal for what could be coming. While we don’t have specifics yet, the tariff proposals Trump floated during the campaign were far wider in scope and, in the case of China, far higher than anything we saw the first time around; the potential for political favoritism will be an order of magnitude greater.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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      Steel Maker ThyssenKrupp to Slash 11,000 Jobs in Germany

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      The venerable steel producer, which has been struggling against high energy prices at home and growing competition from abroad, is the latest company in Europe to cut its work force.ThyssenKrupp, the largest steel maker in Germany, said Monday that it would eliminate up to 11,000 jobs by 2030, a decision that comes as the country struggled to overcome economic weakness that has hindered growth for nearly two years.The overhaul is aimed at returning ThyssenKrupp to profitability in the face of pressure from Asian competitors and high energy prices. Compounding the challenges, President-elect Donald J. Trump has threatened to impose tariffs on all goods imported to the United States. ThyssenKrupp was among those hurt by the tariffs Mr. Trump imposed on steel and aluminum during his first term in office.ThyssenKrupp said that it would reduce the amount of steel it produced each year down to no more than 10 U.S. tons, from the current level, 12.6 U.S. tons, which would allow it to eliminate 5,000 jobs. Another 6,000 jobs will be cut through the sale of business activities or turning to external providers, the company said without elaborating.“Urgent measures are required to improve ThyssenKrupp Steel’s own productivity and operating efficiency and to achieve a competitive cost level,” the company said in a statement.On Tuesday, ThyssenKrupp reduced the value of its steel division by 1 billion euros, or $1.04 billion, after posting a yearly net loss of €1.4 billion, or $1.2 billion. The company has been struggling for years to decarbonize its steel production, as the price of powering its existing coking plants has soared.Germany, Europe’s largest economy, has not had significant growth in the past two years. On Friday, the economy recorded 0.1 percent growth from July to September, but it was forecast to contract over the entire year. Economists do not expect to see a return to growth in 2025, unless the government can make significant changes quickly.Dozens of companies have announced plans over the past few months to reduce their work forces in Germany. On Friday, the auto supplier Bosch said it would cut 5,500 jobs beginning in 2027. Ford Motor said Wednesday it would eliminate 4,000 jobs in Europe, primarily in Germany.Workers at Volkswagen, Germany’s biggest automaker, are planning to begin staging warning strikes in the coming days, as they fight management plans to reduce their numbers and close up to three of the company’s 10 factories in Germany. In October, Volkswagen reported a 42 percent drop in quarterly profit and warned of an “urgent need” to cut costs amid growing competition from Chinese automakers. More

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      Here’s How Trump Could Lose the Coming Trade War

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      The good news: I don’t think Donald Trump will cause a global trade war.The bad news: The reason I say that is I believe that a trade war would be coming even if Trump had lost the election, largely because China is refusing to act like a responsible economic superpower. Unfortunately, Trump may be the worst possible person to guide U.S. policy through the turmoil that’s probably ahead.He won’t be the reason we have a trade war, but he may well be the reason we lose it.China is the greatest economic success story in history. It used to be very poor; there are still many people alive who remember the great famine of 1959-61. But after the reforms that began in 1978 its economy soared. Even now, China is only a middle-income country, with G.D.P. per capita substantially lower than ours or in Western Europe. But China has a huge population, so by some measures it is now the world’s largest economy.However, all indications are that China’s era of torrid economic growth is behind it. For decades, Chinese growth was fueled mainly by two things: a rising working-age population and rapid productivity growth driven by borrowed technology. But the working-age population peaked around a decade ago and is now falling. And despite some impressive achievements, the overall rate of technological progress in China, which economists measure by looking at “total factor productivity,” appears to have slowed to a crawl.But a growth slowdown doesn’t have to be a catastrophe. Japan went through a similar demographic and technological downshift in the 1990s and has, on the whole, handled it fairly gracefully, avoiding mass unemployment and social unrest.China, however, has built an economic system designed for the high-growth era — a system that suppresses consumer spending and encourages very high rates of investment.This system was workable as long as supercharged economic growth created the need for ever more factories, office buildings and so on, so that high investment could find productive uses. But while an economy growing at, say, 9 percent a year can productively invest 40 percent of G.D.P., an economy growing at 3 percent can’t.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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      Fashion World Fears High Tariffs in Trump Administration

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      President-elect Donald J. Trump has threatened a tax of at least 60 percent on goods from China — a move with the potential to decimate small American brands.In the days after Donald J. Trump won the presidency, several small American fashion designers placed anxious calls to overseas manufacturing partners. Spurred by fears that the president-elect will make good on promises to raise tariffs, thereby upending their operations, they scrambled to find alternatives.The tariffs “would be devastating,” according to Chris Gentile, owner of the Brooklyn-based Pilgrim Surf + Supply, which produces items like padded work coats and fleece zip-ups in China. “I don’t know how we could function.”Throughout his campaign, Mr. Trump threatened to levy a 10 to 20 percent tax on most foreign products and, most significantly, at least a 60 percent tariff on goods from China. The thinking is that sharp taxes would compel companies to begin producing in America again. In conversations with clothing designers over the past week, that logic was met with extreme skepticism.Some designers are not convinced that talk of dizzying tariffs will survive past the campaign trail. But for smaller, independent apparel businesses that rely on the comparative affordability and high quality of Chinese clothing manufacturers, the mere threat of increased taxes on foreign goods was enough to plan for the worst.“We’ve established relationships with these factories,” Mr. Gentile said. “They’ve become almost like family.”A still-scrappy entrepreneur 12 years in, Mr. Gentile doesn’t have an army of supply-chain wonks to ferret out new factories. The task of corresponding with his manufacturers falls largely on him. He’s spent untold hours working with his Chinese production partners on how to set in the sleeves of his shirts just so or how poofy a down jacket should be.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