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      Trump says ‘no room left’ for deal that avoids tariffs on Mexico and Canada

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      The US will press ahead with steep tariffs on Canada and Mexico from Tuesday, Donald Trump has said, setting the stage for a trade war with his country’s two largest economic partners.Hours before his administration was due to hit America’s closest neighbors with sweeping import duties, the US president claimed there was “no room left” for a deal to avoid their imposition. The announcement led to a sharp sell-off on Wall Street.All Mexican exports to the US are set to face a levy of 25% under the plans. Most Canadian exports will face a 25% tariff, with energy products facing a 10% duty.Trump also indicated that an additional 10% levy on China – on top of the 10% introduced last month – will also be introduced. Tariffs are a “very powerful weapon”, he told reporters at a news conference.The action is set to prompt swift retaliation. “We’re ready,” said the Canadian foreign minister, Mélanie Joly.Wall Street fell sharply after Trump’s remarks, with the S&P 500 down 1.7%, the Dow Jones industrial average down 1.5%, and the tech-heavy Nasdaq dropping over 2.6%.The tariffs will affect $900bn in annual imports from Canada and Mexico. The Ford CEO, Jim Farley, has warned they threaten to “blow a hole” in US industry.Trump has reluctantly conceded in recent weeks that higher tariffs could lead to higher prices in the US, but suggested the impact would be worth the cost. He has brushed off calls to tread carefully, escalating threats to go further.“Tariffs are easy, they’re fast, they’re efficient, and they bring fairness,” Trump said. He described the levies as a “a powerful weapon” that other presidents had not used because “they were dishonest, stupid or paid off in some other form”.Trump even took a swipe at Republican hero and staunch free-trader president, Ronald Reagan. “I’m a huge fan of Ronald Reagan but he was very bad on trade,” said Trump.Tariffs are “an act of war, to some degree”, the billionaire investor Warren Buffett warned recently. “Over time, they are a tax on goods,” he told CBS News. “I mean, the Tooth Fairy doesn’t pay ’em!”skip past newsletter promotionafter newsletter promotionOn Monday, Trump also pledged to impose tariffs on overseas agricultural goods within weeks. He claimed his administration would introduce tariffs on farm products from 2 April.A string of such deadlines – including vows to hit Canada and Mexico with tariffs in January, and then February – have been delayed, however, as economists and business leaders urge caution.“To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States,” Trump wrote on Truth Social, his social network, on Monday. “Tariffs will go on external product on April 2nd. Have fun!” More

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      What Trump did during week 6: Gaza AI video and Zelenskyy meeting meltdown

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      During his sixth week back in office, Donald Trump and the vice-president, JD Vance, hosted Ukrainian president for what devolved into a shocking and explosive meeting.Trump accused Volodymyr Zelenskyy of “gambling with world war three” while Vance berated the Ukrainian president in a storm of accusations and falsehoods about Russia’s invasion of Ukraine.Elsewhere in the Trump administration, Elon Musk again demanded that federal workers send an email detailing their recent accomplishments.Here’s what else happened last week.2 March 2025Day 42The fallout continued from Trump and Zelenskyy’s disastrous Oval Office meeting, as the Ukrainian leader sought to recalibrate and insisted a minerals deal was ready to be signed during a diplomatic visit to London. While Europe rallies behind Ukraine, Trump’s Republican allies, including the House speaker, Mike Johnson, said Zelenskyy may have to resign, a suggestion Senator Bernie Sanders called “horrific”. The Democratic senator Chris Murphy said Trump’s White House had in effect become “an arm of the Kremlin”.Also on Sunday:

      The health and human services secretary, Robert F Kennedy Jr, urged Americans to get the MMR vaccine in response to a growing measles epidemic in Texas, days after Kennedy, who has long sowed skepticism with his endorsement of anti-vaccine conspiracy theories, downplayed the situation as “not unusual”.
      1 March 2025Day 41A federal judge in Washington blocked Trump from ousting the leader of a federal watchdog agency, ruling that the effort to terminate the official without cause was “unlawful”. The decision by the US district judge Amy Berman Jackson in Washington allows Hampton Dellinger to remain the head of the office of special counsel, which protects federal whistleblowers. In her ruling, Jackson wrote that upholding the president’s ability to fire Dellinger would give him “a constitutional license to bully officials in the executive branch into doing his will”. The case is likely to be decided by the supreme court. View image in fullscreenAlso on Saturday: 

      Musk renewed his demand that every federal employee send an email detailing their recent accomplishments, a week after the original demand sparked chaos and confusion across the government workforce.

      Trump signed an executive order establishing English as the official language of the US.

      Supporters of Ukraine protested against the Trump administration across the US, including a Vermont ski resort where Vance was vacationing with his family.
      28 February 2025Day 40In an explosive Oval Office meeting, Trump and his vice-president, JD Vance, assailed and berated Zelenskyy in a storm of accusations and falsehoods about Russia’s invasion of Ukraine. The tense exchange ended with Zelenskyy leaving the White House early, without signing a controversial minerals deal that was seen as key to unlocking US security guarantees for European peacekeepers in Ukraine. During the exchange, which played out publicly on live TV, Trump said Zelenskyy was “gambling with world war three” and told the Ukrainian president to come back “when he is ready for peace”. Hours later, Zelenskyy sought to de-escalate the situation in an interview on Fox News, but Trump appeared unmoved as he departed Washington for his Mar-a-Lago resort. View image in fullscreenAlso on Friday: 

      European leaders and Democrats rallied around Zelenskyy, voicing continued support for Ukraine, while Trump’s Republican allies demand the Ukrainian leader apologize.

      The White House said that classified documents seized by the FBI from Mar-a-Lago in 2022 had been returned to Trump.

      The White House press secretary, Karoline Leavitt, said that Trump had “asked Zelenskyy and the Ukrainians to depart the White House” after their contentious exchange in the Oval Office. 

      The Democratic party sued Trump over a recent executive order it says violates federal election law by giving him too much power over the independent federal election commission.
      27 February 2025Day 39Keir Starmer, the British prime minister, arrived at the White House bearing a letter from King Charles as he quietly appealed to Trump not to abandon Ukraine as the US president searches for a speedy end to Russia’s brutal invasion of the country. In remarks, Starmer praised Trump for “changing the conversation” and making peace possible in Ukraine while Trump denied calling Zelenskyy a dictator, despite having done so, and suggested Vladimir Putin could be trusted. En route to Washington, Starmer pledged to raise the country’s defense spending, a commitment seen as a way to persuade Trump to provide a “backstop” for European security in Ukraine. And in a major relief for the British premier, Trump indicated that he would not slap harsh tariffs on the UK. View image in fullscreenAlso on Thursday: 

      A federal judge found that the mass firings of probationary employees as part of the Trump administration’s government downsizing effort were likely unlawful.

      The ruling came on the same day that the Trump administration moved to terminate hundreds of workers at the National Oceanic and Atmospheric Administration (Noaa), the US’s pre-eminent climate research agency housed within the Department of Commerce.

      Senate Democrats publicly – and some Republicans privately – raised concerns over the Trump administration’s freeze on foreign aid and cuts to USAid. 
      26 February 2025Day 38Donald Trump used the first full cabinet meeting of his second term to heap praise on Elon Musk and his billionaire ally’s mission to dramatically reduce the size of the federal government. Though not a member of Trump’s cabinet, Musk attended and took center stage as the secretaries sat mostly silently for the hourlong meeting. The tech mogul defended Doge’s actions, which have stoked confusion and backlash, but conceded that the team would make mistakes, citing a decision to cancel an Ebola prevention effort that was “quickly” reinstated. During the summit, Trump also threatened to slap 25% tariffs on the European Union and announced that the Ukrainian president, Volodymyr Zelenskyy, would visit the White House to sign a minerals deal with the US.View image in fullscreenAlso on Wednesday: 

      A new White House memo instructed federal agencies to submit plans for “a significant reduction” in their staff by 13 March, potentially setting the stage to shrink the government workforce by tens of thousands more in the coming weeks. A top Senate Democrat warned that Trump may be pursuing a mineral rights deal with Vladimir Putin and Russia as well as Zelenskyy and Ukraine.

      A Pentagon memo filed in court on Wednesday said transgender service members would be separated from the US military unless they receive an exemption.

      The supreme court handed the president his first victory, granting the Trump administration’s request to pause a lower court’s deadline for the government to resume nearly $2bn in foreign aid payments.
      25 February 2025Day 37In a dramatic vote, House Republicans unified behind a budget blueprint, taking a major step toward advancing Donald Trump’s “big BEAUTIFUL” tax cut and immigration agenda. But vulnerable Republicans face a brewing backlash over the plan, which would almost certainly require significant reductions to social safety net programs that serve the poor. House Democrats plan to hammer Republicans over their support for the measure and the potential cuts to Medicaid required to pay for it as they plot a return to power in next year’s midterms. But Trump’s fiscal plan is far from guaranteed: Republican negotiators from both the House and Senate must now reconcile their competing budget blueprints to move forward.Also on Tuesday: 

      The White House said it would pick which media outlets are allowed to participate in the presidential press pool, drawing sharp condemnation from the White House Correspondents’ Association, which warned: “In a free country, leaders must not be able to choose their own press corps.”

      The Trump administration announced that immigrants in the US without authorization could face fines and prison time if they fail to submit their personal data to a government registry while the president floated the creation of a “gold card” visa that would give wealthy foreigners a pathway to citizenship for a $5m fee.
      24 February 2025Day 36The US office of personnel management told agency officials that federal workers were not required to respond to billionaire Elon Musk’s demand that they defend their recent accomplishments or risk being fired, even as Donald Trump indicated support for the ultimatum. The email sparked widespread chaos and confusion amid ongoing turmoil Musk’s Doge has inflicted on the federal workforce. After government departments gave their employees differing instructions as to whether they should respond to the message, OPM, which manages the federal workforce, announced that compliance with the email was voluntary and that failing to do so by midnight would not be considered a resignation, as Musk had warned.Also on Monday: 

      France’s president, Emmanuel Macron, warned Donald Trump against a “surrender” of Ukraine during a visit to the White House, as the US president said Vladimir Putin would accept European peacekeepers in Ukraine as part of a potential deal to end the conflict. (The Kremlin has pushed back on this.)

      Earlier in the day, the US joined Russia, Belarus and North Korea in voting against an EU-Ukrainian resolution condemning Russia on the third anniversary of its full-scale invasion, another sign of Trump’s sharp turn toward Putin.  
      The Guardian is tracking the presidency’s first 100 days. Find days 1-35 in our full guide. More

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      China promises ‘countermeasures’ after Trump threatens additional 10% tariff

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      Donald Trump has threatened China with an additional 10% tariff on its exports to the US, prompting a promise of “countermeasures” from Beijing and setting the stage for another significant escalation in the two governments’ trade war.The US president also claimed he planned to impose tariffs on Canada and Mexico starting next Tuesday, having delayed their imposition last month after talks with his counterparts.Posting on Truth Social on Thursday, Trump said illicit drugs such as fentanyl were being smuggled into the US at “unacceptable levels” and that import taxes would force other countries to crack down on the trafficking.“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the Republican president wrote. “China will likewise be charged an additional 10% Tariff on that date.”If Trump makes good on this latest threat, the move would further strain relations between the US and its largest trading partners.In response, China’s commerce and foreign ministries on Friday vowed to retaliate if Chinese companies were affected by the tariffs, accusing the US of using fentanyl as a “pretext” to threaten China.“Such behaviour is purely ‘shifting blame and shirking responsibility,’ which is not conducive to solving its own problems,” a commerce ministry spokesperson said. “If the US insists on proceeding with this course of action, China will take all necessary countermeasures to safeguard its legitimate rights and interests.”Canada and Mexico have promised to retaliate if the US imposes tariffs on their exports. China hit back swiftly when Trump imposed a 10% tariff on its exports earlier this month.The Trump administration has repeatedly raised the threat of tariffs, vowing to rebalance the global economic order in the US’s favor. A string of announced measures have yet to be introduced, however, as economists and businesses urge officials to reconsider.The duties on imports from Canada and Mexico have been repeatedly delayed; modified levies on steel and aluminum will not be enforced until next month, and a wave of “reciprocal” tariffs, trailed earlier this month, will not kick in before April.This week, the US president vowed to slap 25% tariffs on the EU, claiming the bloc was “formed to screw the United States”, although details remain sparse. Duties will be applied “generally”, Trump said, “on cars and all other things”.The prospect of escalating tariffs has already thrown the global economy into turmoil – with consumers expressing fears about inflation worsening and the auto sector possibly suffering if the US’s two largest trading partners in Canada and Mexico are slapped with taxes.The prospect of higher prices and slower growth could create political blowback for Trump.Associated Press contributed reporting More

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      Trump administration briefing: hundreds fired from US climate agency as Americans feel economy getting worse

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      The Trump administration has fired hundreds of workers at the National Oceanic and Atmospheric Administration (Noaa), the US’s pre-eminent climate research agency housed within the Department of Commerce, the Guardian learned on Thursday.“This will cost American lives,” said Democratic congresswoman and ranking member of the House science, space and technology committee, Zoe Lofgren, in a written statement. Her comments were issued alongside congressman Gabe Amo’s, the ranking member of the subcommittee on environment, after news of the firings broke.“By firing essential staff who work tirelessly on behalf of the American people, President Trump and Elon Musk are playing politics with our national security and public safety,” Amo said. “Leaving Noaa understaffed will inevitably lead to additional chaos and confusion – I call on them to rehire these public servants immediately before preventable tragedy strikes.”Trump fires hundreds at US climate agency NoaaOn Thursday afternoon, the US commerce department sent emails to Noaa employees saying their jobs would be cut off at the end of the day. Other government agencies have also seen huge staffing cuts in recent days.The firings specifically affected probationary employees, a categorization that applies to new hires or those moved or promoted into new positions, and which makes up roughly 10% of the agency’s workforce.“The majority of probationary employees in my office have been with the agency for 10+ years and just got new positions,” said one worker who still had their job, and who spoke to the Guardian under the condition of anonymity for fear of reprisal. “If we lose them, we’re losing not just the world-class work they do day to day but also decades of expertise and institutional knowledge.”Read the full storyTrump vows additional 10% tariff on China in trade war escalationDonald Trump has threatened China with an additional 10% tariff on its exports to the US, setting the stage for another significant escalation in his trade war with Beijing. The US president also claimed that he plans to impose tariffs on Canada and Mexico starting next Tuesday, having delayed their imposition last month after talks with his counterparts.Read the full storyTrump says Putin would keep his word on a Ukraine peace dealDonald Trump has insisted that Vladimir Putin would “keep his word” on a peace deal for Ukraine, arguing that US workers extracting critical minerals in the country would act as a security backstop to deter Russia from invading again.During highly anticipated talks at the White House with the prime minister, Keir Starmer, the US president said that Putin could be trusted not to breach any agreement, which could aim to return as much of the land as possible to Ukraine that was seized by Russia during the brutal three-year conflict.Read the full storyWhite House demands agencies identify hundreds of thousands of potential layoffsThe Trump administration is pushing for federal agencies to carry out a large-scale slashing of the federal workforce, demanding plans for hundreds of thousands of possible cuts within weeks. A White House memo gave officials until 13 March to submit a plan identifying “agency components and employees performing functions not mandated by statute or regulation who are not typically designated as essential” during government shutdowns.Read the full storyCanceled meeting on flu shots fuels anti-vax concernsThe Trump administration has cancelled a meeting of scientific experts called to discuss next winter’s flu shots in a move that has underscored fears of emerging anti-vaccine polices under the new health secretary, Robert F Kennedy Jr.Read the full storyMexico releases 29 high-level organized crime operatives into US custodyMexico has extradited 29 high-level organised crime operatives to the US, as it faces intense pressure from the Trump administration to show that it is tackling fentanyl trafficking.The extraditions come as Mexico tries to convince the US to postpone 25% tariffs on all Mexican imports. Donald Trump has tied the tariffs to results on fentanyl trafficking and migration, without setting any specific targets.Read the full storyJudge temporarily blocks Trump’s mass firings at federal agenciesA federal judge in California has temporarily blocked the Trump administration from ordering the US defense department and other agencies to carry out the mass firings of some employees.Read the full storyFunding cut for program fighting HIV/AidsThe Trump administration has terminated its funding of the joint United Nations program on HIV/Aids, known as UNAids, delivering another devastating blow to the global fight against the disease.Read the full storyEducator coalition sues to block Trump anti-diversity ordersA coalition of educators has filed a lawsuit to block the US Department of Education from enforcing new Donald Trump-imposed civil rights guidelines that target a range of practices related to diversity, equity and inclusion.Read the full storyMajority of Americans believe economy getting worseExclusive: The majority of Americans believe the economy is getting worse rather than better, even as Republican views on the nation’s finances have performed a dramatic backflip since Donald Trump’s re-election, according to a poll conducted for the Guardian.Read the full storyWhat else happened today:

      The Trump administration has taken down the online application form for several popular student debt repayment plans, causing confusion among borrowers and likely creating complications for millions of Americans with outstanding loans.

      The Social Security Administration is expected to lay off at least 7,000 people from its workforce of 60,000, the Associated Press reported. The workforce reduction could be as high as 50%, according to a person who spoke on the condition of anonymity. Those seeking payment plans are unable to access the applications for income-driven repayment plans (IDRs), which cap what borrowers must pay each month at a percent of their earnings, as well as the online application to consolidate their loans on the US Department of Education website.

      Senator Ron Wyden, a Democrat of Oregon and the top Democrat on the Senate finance committee warned that Trump’s tariffs threats are “driving the US economy straight into a wall”.

      Democrats on the Senate foreign relations committee slammed the Trump administration over a decision to eliminate as much as 90% of USAid’s foreign aid contracts. “It is clear that the Trump Administration’s foreign assistance ‘review’ was not a serious effort or attempt at reform but rather a pretext to dismantle decades of US investment that makes America safer, stronger and more prosperous,” the Democrats said in a joint statement. 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

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      Oh, Canada! Can Trump just take it? – podcast

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      Archive: 10 News First, BBC News, CBC News, CTV News, Fox News, NBC News, CNN, CBS News
      Listen to The Audio Long Read on Trump’s tariff plan with China
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      Trump tariffs: what are reciprocal tariffs and how will they affect US consumers?

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      Donald Trump has once again threatened to impose a wave of tariffs on US imports, stepping up his bid to overhaul the global economic order.On Thursday, the US president said he plans to introduce “reciprocal” tariffs, ensuring the US imposes the same taxes on its imports from the rest of the world that American goods face in other countries.“It’s fair to all,” said Trump. “No other country can complain.”The latest announcement follows a string of others from the Trump administration, promising tariffs on both America’s close allies and economic rivals. But most have yet to be enforced.Here’s what we know about Trump’s tariffs so far:What are the tariffs has Trump announced?No new tariffs were announced on Thursday. Instead, the president ordered his officials to investigate which countries the US should target with import duties.The White House has previously said it would place a 25% tariff on goods from Canada and Mexico, introduce a 10% levy on Canadian energy exports, and amend duties on steel and aluminum from all over the world.So far, the only new duty that has come into force under Trump is a a new 10% tariff on goods from China..What is a tariff and why does Trump want to use it against certain countries?A tariff is a tax levied on foreign goods imported into a country. The US is currently the largest goods importer in the world – in 2022, the value of imported goods in the US totalled $3.2tn.Before entering office, Trump threatened tariffs on the US’s three biggest trading partners: China, Mexico and Canada. Specifically, he said he wanted to see a 25% tariff on Mexico and Canada and a 10% tariff on China, until the countries deal with immigrants and illegal drugs coming into the US.Trump sees tariffs as a powerful bargaining chip – but it comes with a high price.Trump frames tariffs as a policy that can apply pressure on US manufacturers and importers to produce goods domestically.“All you have to do is build your plant in the United States, and you don’t have any tariffs,” Trump has said. But the global economy has been intertwined for decades. US farmers, for example, would not be able to produce the number of avocados Mexico produces for many years.What this means is that importers will probably push the cost of tariffs on to consumers, causing prices to rise.What is a reciprocal tariff?On the campaign trail and in the White House, Trump has repeatedly raised the prospect of a wave of “reciprocal” duties: taxing imports from certain countries at the same rate those countries impose on goods from the US.The president and his allies have pitched this as a great rebalancing of the global economy, which they claim has been tilted against the US for too long.How will US consumers be affected by the tariffs?Tariffs on imports often make prices go up.Canada, for example, is a major exporter of crude oil, while Mexico exports many fresh fruits and vegetables. Mexico is also the largest auto parts exporter to the US. China is a major exporter of chips used in electronics like phones and laptops.It’s not just the imports that consumers buy directly. When tariffs push up the price of imports, that includes imported materials used to make other products domestically in the US. Higher prices for materials will eventually make their way to consumers.Americans have been bracing for the impact tariffs will have on prices. In a November Harris/Guardian poll, nearly two-thirds of Americans said they expected prices to go up if Trump implements broad tariffs.Which federal laws give Trump the power to enact tariffs?US federal law gives the president broad powers to enact tariffs without congressional approval.Trump has the power to declare a national economic emergency to enact his tariffs. This would invoke the International Emergency Economic Powers Act (IEEPA), which gives the president the power to manage imports during a national emergency.Trump can also apply tariffs under section 232 of the Trade Expansion Act, which gives the president power to impose tariffs on certain industries. This is what Trump used in 2018, when he hit Canada, Mexico and the European Union with tariffs on aluminum and steel.Have a question about Trump tariffs? Wondering how they affect inflation, prices or the economy? We’re here to help. Email callum.jones@theguardian.com and we may answer your question in a future story More