The ceremony was delayed nearly an hour because Trump was talking to Canadian Prime Minister Justin Trudeau about pausing tariffs on the country, as he did with Mexico.
Trump made repeated references to Panthers owner Vinnie Viola being a friend. Viola was briefly Trump’s nominee to be Secretary of the Army in 2016 before withdrawing from consideration.
Trusted news and daily delights, right in your inbox
See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories.
The team had a red customized “Trump 45-47” jersey framed for him. He was also presented a “Trump 47” jersey and a gold stick by Viola, Finnish captain Aleksander Barkov and American forward Matthew Tkachuk.
The Panthers made their White House visit before facing the Eastern Conference-leading Washington Capitals on Tuesday night.
President Trump welcomed the Stanley Cup champion Florida Panthers to the White House today, but notably avoided discussing tariffs or trade issues during his meeting with the team.
Instead, Trump stuck to talking about hockey, praising the Panthers for their impressive season and congratulating them on their championship win. He even took the time to shoot a few pucks on the White House lawn with some of the players.
While some critics may have expected Trump to use the visit as an opportunity to discuss his administration’s trade policies, the president seemed content to leave those topics off the agenda for the day. Instead, he focused on celebrating the Panthers’ success and enjoying a lighthearted moment with the team.
It was a refreshing change of pace for Trump, who is known for his outspoken views on trade and tariffs. Perhaps he just wanted to take a break from those contentious issues and enjoy a moment of sportsmanship with the Stanley Cup champions.
Mexico has agreed to deploy 10,000 troops to the U.S.-Mexico border in exchange for a one-month delay on President Donald Trump’s threatened tariffs, Mexican President Claudia Sheinbaum said Monday.
Sheinbaum made the announcement on social media Monday morning, roughly 12 hours before the tariffs were set to take effect. Trump and Sheinbaum spoke on Monday and agreed that Mexico will do more to combat drug trafficking into the U.S., and that the U.S. will step up efforts to block the flow of firearms into Mexico.
Sheinbaum also said officials with the U.S. and Mexico were beginning talks on wider trade and security issues.
Trump confirmed the deal in his own post on Truth Social, describing the call with Sheinbaum as a “very friendly conversation.”
Mexican President Claudia Claudia Sheinbaum spoke with President Donald Trump on Monday and came to an agreement regarding tariffs and the U.S.-Mexico border.(Getty Images)
“I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” Trump wrote.
“We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” he added.
Mexico will send 10,000 national guard troops to help secure the U.S.-Mexico border against drug trafficking and illegal immigration.(Qian Weizhong/VCG via Getty Images)
The deal comes just days after Trump announced 25% tariffs on both Mexico and Canada, as well as 10% tariffs on China. Trump says he spoke with Canadian Prime Minister Justin Trudeau on Monday, but the pair did not reach an agreement. He says they will speak again later Monday.
The tariffs are set to take effect at midnight on Tuesday.
Canadian Prime Minister Justin Trudeau slighted the U.S. by encouraging Canadians to “buy Canada” in response to the tariffs.
Canada Canadian Prime Minister Justin Trudeau called on citizens to “buy Canada” in response to Trump’s threat of tariffs.(AP/Adrian Wyld/The Canadian Press)
“Now is the time to choose products made right here in Canada,” Trudeau wrote on X. “Check the labels. Let’s do our part. Wherever we can, choose Canada.
During Sunday’s exchange with reporters, Trump also discussed the prospect of cutting off aid to South Africa after its president signed a controversial land seizure measure.
Anders Hagstrom is a reporter with Fox News Digital covering national politics and major breaking news events. Send tips to Anders.Hagstrom@Fox.com, or on Twitter: @Hagstrom_Anders.
In a recent development, Mexico has agreed to deploy 10,000 troops to the US border in exchange for a pause on tariffs threatened by President Donald Trump. This agreement comes after weeks of tense negotiations between the two countries over the issue of immigration.
The decision to deploy troops to the border is aimed at curbing the flow of migrants crossing into the United States illegally. This move is seen as a significant step towards addressing the issue of illegal immigration, which has been a major point of contention between the two countries.
President Trump had threatened to impose escalating tariffs on Mexican goods if the country did not take action to curb the flow of migrants. However, with this new agreement, the tariffs have been put on hold, providing some relief to both countries.
The deployment of troops to the border is expected to begin immediately and will continue until the issue of illegal immigration is brought under control. This move is seen as a positive step towards addressing a complex and contentious issue that has strained relations between the US and Mexico.
Overall, this agreement represents a significant development in the ongoing efforts to address the issue of illegal immigration and demonstrates the importance of diplomacy and cooperation between nations.
VANCOUVER, British Columbia (AP) — Chrystia Freeland, the former finance minister who is running to replace Justin Trudeau as Canada’s prime minister, said Monday Canada needs to release a “retaliation list” of goods the country would target if U.S. President Donald Trump makes good on his threat to slap 25% tariffs on Canadian goods.
A list of products worth $200 billion Canadian dollars (US$139 billion) would send a message to U.S. exporters about the harm tariffs would cause them, Freeland said in a statement.
“Being smart means retaliating where it hurts,” she said. “Our counterpunch must be dollar-for-dollar — and it must be precisely and painfully targeted: Florida orange growers, Wisconsin dairy farmers, Michigan dishwasher manufacturers, and much more.”
“Now is the moment when Canada must make clear to Americans the specific costs that will accompany any tariff measures by the Trump administration.”
Trump has said he will use economic coercion to pressure Canada to become the nation’s 51st state. He continues to erroneously cast the U.S. trade deficit with Canada — a natural resource-rich nation that provides the U.S. with commodities like oil — as a subsidy.
Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.
John Ries, senior associate dean at the University of British Columbia Sauder School of Business, said Canada should retaliate against any tariffs but warned against publicizing a list in advance, citing the risk of antagonizing Trump — and making it harder for him to back off on his threats.
“He always wants to win,” said Ries. “He doesn’t want to show any weakness.”
Freeland said Monday that if she wins the leadership race and become prime minister she would also prohibit American companies from bidding on Canadian federal procurement (excluding defense).
She also said she would convene an international summit with the leaders of Mexico, Denmark, Panama, and the president of the European Union to “coordinate a joint response to challenges to our sovereignty and our economies.”
Some lawmakers have suggested Canada could stop energy shipments to the United States, a move opposed by Daniele Smith, the premier of Canada’s oil-rich province of Alberta.
Former central banker Mark Carney, who is also running for the Liberal leadership, said over the weekend that cutting off Quebec’s hydro exports to the U.S. should remain an option on the table in a trade fight with Trump.
It was Freeland’s abrupt resignation as finance minister last month that forced Trudeau to say he is resigning as prime minister and party leader.
Trudeau is to remain prime minister until a new Liberal Party leader is chosen on March 9.
The next Liberal leader could be the shortest-tenured prime minister in the country’s history. All three opposition parties have vowed to bring down the Liberals’ minority government in a no-confidence vote after parliament resumes on March 24. An election is expected this spring.
In a recent press conference, Canadian Prime Minister hopeful, Sarah Thompson, unveiled her bold plan to combat President Trump’s looming tariff threats “where it hurts.” Thompson, a seasoned diplomat and former trade negotiator, outlined a multi-faceted approach to safeguarding Canada’s economic interests and standing up to the unpredictable actions of the Trump administration.
Central to Thompson’s strategy is a focus on diversifying Canada’s trade partnerships and reducing its reliance on the United States. She emphasized the importance of strengthening relationships with emerging markets in Asia, Europe, and South America, in order to mitigate the impact of potential tariffs on Canadian exports.
Additionally, Thompson proposed targeted retaliatory measures to counteract any unjust tariffs imposed by the United States. These measures would specifically target industries and sectors that are vital to the American economy, in order to put pressure on the Trump administration to reconsider its trade policies.
In a bold move, Thompson also announced plans to challenge the legality of any tariffs imposed by the United States through international trade organizations, such as the World Trade Organization. She emphasized the importance of upholding the rules-based international trading system and holding the United States accountable for its actions.
Overall, Thompson’s plan represents a proactive and strategic approach to dealing with President Trump’s tariff threats, and signals a shift towards a more assertive and independent trade policy for Canada. As the Canadian election approaches, it remains to be seen whether Thompson’s vision will resonate with voters and position her as a strong leader on the international stage.
The tariff standoff between the US and Canada is heating up, and Tesla finds itself squarely in the crosshairs. Chrystia Freeland, Canada’s former finance minister and current Liberal Party leadership contender, has proposed a bold countermeasure: slapping 100% tariffs on select American goods, including Teslas, in direct response to President Trump’s threatened tariffs on Canadian and Mexican imports.
In an interview with The Canadian Press, Freeland made her intentions clear. “We need to be very targeted, very surgical, very precise,” she said. The strategy isn’t just about economic retaliation — it’s personal. Tesla’s inclusion stems from CEO Elon Musk’s financial and operational backing of Trump, which Freeland didn’t shy away from addressing. “We need to look through and say who is supporting Trump and how can we make them pay a price for a tariff attack on Canada.”
Tesla’s electric vehicles sold in Canada are primarily manufactured in the US and China. Imposing tariffs would inevitably hike their prices, potentially steering Canadian EV buyers toward other automakers. This could be a significant blow to Tesla, which dominates Canada’s EV market with its Model Y and Model 3 leading in sales.
Freeland, who resigned from her finance minister post last year partly over disagreements on handling Trump’s economic threats, is now using this issue to define her leadership campaign. “One of the characteristics of the Trump administration is they like to traffic in uncertainty,” she remarked. “There are lots of reports about there being internal debates in the US (administration), so let’s use that to our advantage. And let’s put some cards on the table and be very clear that if they hit us, we will hit them back.”
The stakes are high. Canada’s EV adoption rate is outpacing that of the US, with nearly 17% of new cars sold in the third quarter of 2024 being fully electric, compared to just 8% in the US. Quebec’s aggressive EV incentives have fueled this growth, making Tesla’s dominance even more pronounced — and vulnerable.
As Trump’s policies ripple across borders, Canada’s response is no longer confined to diplomatic channels. It’s taking direct aim at the businesses tied to his political machinery, and Tesla is at the forefront of that retaliation.
In a bold move, Canada has decided to target Tesla, the electric car company owned by Elon Musk, in the ongoing tariff war with the United States. This decision comes as retaliation against the Trump administration’s recent tariffs on Canadian steel and aluminum.
Elon Musk, often referred to as President Trump’s ‘first friend’ in the business world, has been a vocal supporter of the current administration’s policies. However, this alliance seems to have backfired as Canada aims to make Tesla pay for the trade tensions created by the US government.
The Canadian government has announced plans to impose a 25% tariff on all Tesla vehicles imported into the country, a move that is sure to hit Musk’s company hard. This decision is seen as a way to send a strong message to both Tesla and the Trump administration that Canada will not back down in the face of unfair trade practices.
As the tariff war between the US and Canada continues to escalate, it remains to be seen how this will impact Tesla’s bottom line and Musk’s relationship with the Trump administration. Stay tuned for updates on this developing story. #MakeThemPay #TariffWar #CanadaVsTesla
US President Donald Trump on Friday threatened to impose 100 per cent tariffs against BRICS nations if the group tried to move away from the dollar in international trade. Congress MP Shashi Tharoor has since deemed it a seemingly ‘empty’ threat as there was no such plan in the works.
“I don’t think there is any particular plan whatsoever to do that. And therefore, the threat of the president seems a bit empty because it’s only if there is an actual proposal that comes up and that countries like India are taking forward seriously. I don’t see any support in the Indian government for such a proposal. So, until that happens, why should we worry,” he said.
Tharoor noted that there had been “some discussion” on the issue with localised examples — such as Rupee-Ruble trade with Russia or Rupee-Riyal trade with Iran. The Congress lawmaker also said that the dollar remained a “practical convenience” for most countries.
What is BRICS and does it want a new currency?
BRICS is an intergovernmental organisation comprising 10 countries including India. The other member nations are Russia, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. Trump has repeatedly threatened to impose tariffs against the grouping and warned against de-dollarisation.
Recent years have seen some of the member nations — in particular Russia and China — seeking an alternative to the US dollar or a new BRICS currency. India remains against the move with External Affairs Minister S Jaishankar reiterating in December that there was no such proposal.
What has Donald Trump said?
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy. They can go find another sucker Nation,” Trump insisted in a social media post.
The strongly worded remarks were made through his Truth Social platform. He also assured that there was “no chance that BRICS will replace the US Dollar in International Trade”. Any country that tried such a move, he insisted, would soon find itself “saying hello to Tariffs, and goodbye to America!”
(With inputs from agencies)
Shashi Tharoor responds to Donald Trump’s 100% tariff warning for India: ‘His threat seems a bit empty because…’
In a recent interview, Indian politician and author Shashi Tharoor weighed in on US President Donald Trump’s threat to impose a 100% tariff on Indian exports. Tharoor, known for his eloquence and wit, did not hold back in his response.
“His threat seems a bit empty because, let’s face it, India is not a small player in the global economy,” Tharoor said. “We have a strong manufacturing base, a growing consumer market, and a burgeoning tech industry. Trump may think he can bully us with tariffs, but I think he underestimates India’s resilience and potential.”
Tharoor went on to highlight the long-standing trade relationship between the two countries, noting that India is one of the largest importers of US goods and services. He also pointed out the strategic importance of maintaining a positive relationship with India, particularly in light of rising tensions with China.
“Trump’s protectionist policies may have worked for him in the past, but I don’t think they will be as effective when it comes to dealing with India,” Tharoor added. “We are a sovereign nation with our own interests and priorities, and we will not be bullied into submission.”
In conclusion, Tharoor emphasized the need for diplomacy and dialogue in resolving trade disputes, rather than resorting to threats and ultimatums. “It’s time for both countries to come to the table and find a mutually beneficial solution,” he said. “After all, we are both democracies that value freedom and open markets. Let’s not let petty politics get in the way of progress.”
NEW DELHI: Congress MP Shashi Tharoor dismissed US President Donald Trump‘s tariff threats against Brics nations, labeling them “a bit empty”, citing the absence of plans to introduce an alternative to the US dollar. Tharoor described the dollar as a “practical convenience” for most nations, indicating that Brics has not made a substantial proposal to establish an alternative currency. Addressing Trump’s tariff threats, Tharoor said, “I heard this comment by President Trump. But, the fact is there is no serious proposal for the Brics to come up with an alternative currency to the dollar. The dollar is a practical convenience for most countries in the world.” “There may have been some discussion, and we certainly have in the past had some examples of Rupee-Rubel trade with Russia, Rupee-Riyal trade with Iran, and so on. So, that’s not impossible. An alternative international currency. I don’t think there is any particular plan whatsoever to do that. And therefore, the threats of the president seem a bit empty because it’s only if there is an actual proposal that comes up and that countries like India are taking it seriously. I don’t see any support in the Indian government for such a proposal. So, until that happens, why should we worry,” he added.
Tharoor’s comments come after Trump’s renewed warnings to Brics nations regarding potential currency alternatives. Trump warned on Truth Social: “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is over. We are going to require a commitment from these seemingly hostile Countries that they will neither create a new Brics Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy. They can go find another sucker Nation. There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!” This statement reinforced Trump’s position on maintaining the dollar’s dominance in global trade, suggesting significant economic repercussions for nations seeking alternatives. At the Oval Office signing ceremony, Trump declared, “As a Brics nation… they’ll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they’ll give it up immediately.” Responding to former President Biden’s comments, Trump asserted American dominance, stating: “It’s not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, No, we have them over a barrel. And there’s no way they’re going to be able to do that.” These warnings follow Trump’s previous statements before becoming the 47th President, threatening 100 per cent tariffs on Brics nations’ imports if they introduced a new currency. During the 15th Brics Summit in 2023, Russian President Vladimir Putin advocated for de-dollarisation, suggesting BRICS nations should increase national currency settlements and strengthen banking cooperation. In June 2024, Brics foreign ministers convened in Russia’s Nizhny Novgorod, supporting increased use of local currencies in trade and financial transactions between member countries.
Shashi Tharoor, a prominent Indian politician and former diplomat, recently commented on US President Donald Trump’s threats to impose tariffs on Brics nations, including India. Tharoor downplayed the impact of these threats, stating that the Brics countries have faced similar challenges in the past and have the resilience to overcome them.
In a tweet, Tharoor wrote, “Brics nations have faced down tougher challenges than Trump’s tariff threats. We’ve been through worse and come out stronger. Let’s not overreact to his bluster.”
Tharoor’s comments come amidst growing concerns over the escalating trade tensions between the US and its trading partners, including India. Trump has repeatedly threatened to impose tariffs on imports from countries like India, China, and Brazil, in an effort to reduce the US trade deficit.
However, Tharoor believes that the Brics nations, which include Brazil, Russia, India, China, and South Africa, have the economic strength and unity to weather these challenges. He urged his fellow leaders to remain calm and focused on finding solutions to the trade disputes.
While Trump’s tariff threats may have sparked fears of a trade war, Tharoor’s reassuring words suggest that the Brics nations are well-equipped to handle whatever comes their way. As the world watches and waits to see how this situation unfolds, it seems that Tharoor’s message of resilience and strength is a timely reminder for all.
U.S. Coast Guard Boat Transits A Canadian Lock in the Great Lakes
U.S. Coast Guard
For the U.S. and Canada, a looming Canada tariff fight threatens the Great Lakes, posing the biggest threat to Great Lakes trade since the War of 1812.
In America, President Donald Trump has repeatedly threatened to impose a stiff 25% tariff on Canadian imports. Time is short. As America’s February 1 deadline looms, resolution seems unlikely. If this bitter trade war gets underway and escalates, the integrated flow of Great Lakes maritime trade—a critical economic engine for both countries–is at real risk of a breakdown unseen since Great Britain and America fought for control of Lake Ontario and Lake Erie.
For both allies, an ugly, no-holds-barred trade dispute is uncharted territory. If, as both sides have warned, “everything is on the table,” the prospect of wider economic contagion—even a virtual shut-down of Canada-U.S. collaboration on the Great Lakes—is within the realm of the possible.
The conditions for an uncontrolled escalation cascade are in place.
If President Donald Trump imposes a 25% tariff on Canadian imports, an irked Canada seems set to respond in kind, potentially tariffing Canadian exports of oil and other critical goods to the United States. Complicating matters, President Trump is in something of a box, unable to back down without some sort of escape hatch, and he seems unlikely to de-escalate if confronted.
A tough response from Canada will be painful for the American public. If swing voters in the Republican Party’s midwestern strongholds are suddenly confronted with massive gas price hikes, energy disruption and other trade-tariff-driven perturbances, the Trump Administration will be tempted to lash out. A brief—and quickly resolved–spat with Colombia over alien repatriation almost immediately led to a punishing tariff, visa processing disruptions, and threatened the imposition of crippling sanctions.
Further escalation with Canada, if it comes, will be hard to contain to tariffs. Spillover of trade-tariff contagion into other areas of the once-solid U.S.-Canada relationship carries enormous risks as the tightly integrated collaborative functions that tie the two countries together start fraying.
Take the Great Lakes. The Great Lakes Marine Transportation System is a sprawling economic engine that powers both countries. The shared, 2,300-mile deep-draft inland navigation system is the longest in the world. The combined economic yield from Great Lakes maritime cargo operations, as ships wind through the massive maritime border zone, is massive.
According to a 2023 study by the Great Lakes Saint Lawrence Seaway Corporation, the Great Lakes St. Lawrence Seaway network supports 241,286 jobs and $36 billion in economic activity annually.
Uninterrupted trade through the Great Lakes has gone on for so long and with so little fuss, “America First” border theorists risk taking the benefits of this massive shared maritime highway for granted. It is worth cautioning the economic shock-and-awe advocates in Washington that the Great Lakes economic engine is fragile, and it only turns a profit if both Canada and the United States work together.
Canadian and U.S. ships work together to break out a cargo vessel
Associated Press
Canada Tariff Fight Threatens Great Lakes
The Great Lakes catapulted into economic significance after World War II. In 1959, America and Canada opened the first modern locks of the Saint Lawrence Seaway, a deep-water channel to the Great Lakes. The massive building project offered a way for oceangoing cargo ships to enter and transit the inland lake system, opening raw materials, agricultural commodities and manufactured goods from the North American heartland to a global market.
Successful management of the Great Lakes Saint Lawrence Seaway is a complex enterprise, involving close collaboration between the U.S. and Canadian Coast Guards. A long-standing cooperative ice-clearing response system was on full display just days ago, when American and Canadian ice breakers worked together to free a Canadian-flagged cargo ship.
U.S.-Canada collaboration on the Great Lakes is continually evolving, spanning from collaborative law enforcement, spill response and emergency efforts. In late 2024, Canadian and U.S. representatives began work on a Cooperative Vessel Traffic Service (CVTS) system, “to improve collaboration in data exchange, augment situational awareness, and reduce risk of human error across the Great Lakes Marine Transportation System.”
But all this could go away very quickly.
The risk for the United Stats is that few analysts realize the United States is a disproportionate economic beneficiary from Great Lakes commerce.
The numbers don’t lie.
While Canada gets $9.6 billion in economic activity from Great Lakes trade, the United States gets $26.3 billion, with the Republican strongholds of Indiana, Ohio and Michigan serving as the primary economic beneficiaries. Disrupting Great Lakes commerce will wreak particular havoc on Indiana, which extracts $15.1 billion dollars of economic activity from the Great Lakes-St. Lawrence Seaway System.
With a number of choke-points on inland waterways, Canada can shut down the Great Lakes. Five Canadian and two American locks facilitate the movement of ships from Quebec to Lake Ontario. Eight Canadian-run locks on the Welland Canal connect Lake Ontario to Lake Erie. An American-run lock controls transit between Lake Superior and Lake Huron.
Disruption of Great Lakes transit through any—or all—of these locks poses a real hazard. If Canada decided to simply take a half-measure, and close the Welland Canal to U.S. ships or refuse to allow ships planning to call on U.S. harbors passage through the locks, that would put an immediate stopper on 78% of the Seaway’s economic activity. That’s not trivial–in 2022, 3152 vessels transited those locks. Iron ore, steel, road salt, coal and petroleum coke made up the primary industrial cargoes, while wheat, soybeans and corn dominated the agricultural cargoes.
There are a lot of ways for a Great Lakes trade standoff to play out. In Quebec, Canada could stopper the entrance to the St. Lawrence Seaway, denying entrance to any ships they wish. In October 2023, an eight-day strike at the locks delayed 150 ships, inflicting some $100 million dollars in economic damage a day.
A cargo stoppage on the Great Lakes would be an economic catastrophe. But, as the Joni Mitchell song goes, sometimes “you don’t know what you got till it’s gone.” It is worth wondering if, after two hundred years of peaceful, organized commerce along the largest inland deep-draft waterway on the planet, the brash “American First” analysts are undervaluing that quiet legacy of friendship. Due the risk posed by Trump’s distaste for incremental, collaborative economic gains, the Canada tariff threat is the biggest hazard to Great Lakes commerce since the War of 1812.
In a shocking development that has sent shockwaves throughout the Great Lakes region, Canada’s recent announcement of imposing tariffs on goods from the United States has been dubbed the biggest threat to the region since the War of 1812.
The move by Canada, in response to the U.S. imposing tariffs on Canadian steel and aluminum, has raised concerns about the impact it will have on the economies of both countries, as well as the delicate balance of trade that exists between them.
The Great Lakes, which are a vital transportation route for goods and services between the two countries, are now facing uncertainty and potential disruptions as a result of this escalating trade war.
Many fear that the tariffs will not only harm the economies of both countries, but also damage the environment of the Great Lakes, which are already under threat from pollution and invasive species.
The situation is a stark reminder of the importance of maintaining strong diplomatic relations and open trade between Canada and the United States, and the need for both countries to find a resolution to this dispute before it escalates further.
As residents of the Great Lakes region, we must work together to protect our shared resources and ensure that the prosperity and well-being of our communities are not jeopardized by these tariffs. The stakes are high, and the time for action is now.
WASHINGTON (AP) — Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday.
But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with what they say would be self-inflicted wounds from the tariffs.
“The potential for such sizable economic impacts ought to act as enough of a deterrent that Trump will not end up implementing these higher tariffs,” said Matthew Martin, senior U.S. economist at the consultancy Oxford Economics.
Trump has repeatedly insisted that tariffs are coming on Canada and Mexico, despite both countries seeking to address his stated concerns about illegal border crossings and the smuggling of fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to “respect” the United States.
“We’re going to immediately install massive tariffs,” Trump said in a Monday speech, adding, “Colombia is traditionally a very, very strong-willed country,” but it backed down rather than face import taxes.
Tariffs are a risk, but the Trump White House says it’s looking at the big picture
Multiple economic analyses show that universal tariffs against Canada and Mexico risk more inflation and an economic slowdown. It’s a much larger play than Trump’s moves against Colombia, which accounts for roughly 0.5% of U.S. imports. By contrast, nearly 30% of all U.S. imports hail from Canada and Mexico, amplifying the risk that tariffs could fuel inflation and undermine Trump’s campaign promises to get prices under control.
Trump’s director of the White House National Economic Council, Kevin Hassett, dismissed these concerns. He said the skeptical analyses of tariffs don’t look at the totality of Trump’s promises.
“When the people who are trying to cause panic over President Trump’s trade policy simulate what it’s going to do, they don’t account for all the other policies,” Hassett said in a Monday interview on the Fox Business Network. “So President Trump is drill, baby, drill, and deregulate and tax cuts and reduce spending.”
Mexico and Canada are ready to respond
After Trump’s initial threat of 25% tariffs in November, Mexican President Claudia Sheinbaum suggested Mexico could retaliate with tariffs of its own. Since then, she has been more measured, choosing to emphasize the strong bilateral relationship and willingness to engage in dialogue as the number of detentions at the U.S.-Mexico border has plunged.
Sheinbaum pointed out in November that drugs were a U.S. problem, but in December the Mexican military seized more than a ton of fentanyl pills in two raids, calling it the biggest catch of synthetic opioids in Mexico’s history.
On Monday, Sheinbaum applauded the agreement reached by the Trump administration and Colombia.
“I believe the important thing, as I said on the first day, is to always act with a cool head, defending each country’s sovereignty and the respect among nations and peoples,” she said.
Top Canadian ministers said last week that Canada was prepared to retaliate if Trump imposed import taxes, even as Canadian Foreign Minister Mélanie Joly said they “will continue to work on preventing tariffs.” The working theory in Canada appears to involve being ready for anything that the U.S. president might do.
Tariffs could slow the economy and hurt the oil and auto sectors
On Monday, the economics division of the insurance company Nationwide estimated that Trump’s proposed tariffs on Canada and Mexico would increase inflation by as much as 0.5 percentage points and pull down growth by 0.7 percentage points.
The analysis noted it did not “account for potential retaliatory tariffs from Canada or Mexico, which could amplify the deleterious impact on inflation and GDP growth.”
Trump has made lower gasoline prices one of his key strategies for tackling inflation, but tariffs on Canada could drive up prices at the pump unless Trump creates carveouts in his plan.
“For example, 60% of oil and gas imports come from Canada,” said Oxford Economics’ Martin. “A 25% tariff would lead to higher gasoline, diesel, and petroleum product prices for households and firms, especially in the Midwest and Rocky Mountain regions, where refineries are connected to Canada by pipeline.”
The tax services firm PwC looked at the possible impact of 25% tariffs and found that companies importing from Canada could have to pay $106 billion more annually in import taxes and those importing from Mexico could owe $131 billion more.
“When we think about hardest-hit industries, we think about transportation and automotive,” said Chris Desmond, a principal at PwC’s international trade practice. “The amount of companies that have operations in Mexico and Canada in that industry with components and parts as well, including even airplanes, that’s going to be a huge hit.”
Desmond estimates that taxes paid on imports in the transportation sector from all of Trump’s tariff plans, which include new taxes on China and other countries, could increase from $4 billion a year to $68 billion. It’s unclear how companies would absorb those costs or possibly pass them along to consumers.
None of those analyses is at the forefront of Trump’s public thoughts. His argument is that tariffs would make the U.S. wealthy by sheltering it from competition and safer because they could be tools to force other countries to reduce illegal immigration.
“Tariffs, I told you, most beautiful word in the dictionary,” Trump said Monday as he recalled his campaign speeches praising the import taxes. He reminisced in that speech how he was criticized for praising the term, prompting him to conclude that tariff is, in fact, the fourth most beautiful word after “God, love, religion.”
President Trump’s recent threat to impose tariffs on Colombian goods seems to have achieved its intended effect, with Colombia agreeing to take measures to combat drug trafficking. However, his plans to impose tariffs on Canada and Mexico could carry much higher stakes for the United States.
The threat of tariffs on Colombian goods was used as leverage to push the country to crack down on the production and trafficking of illegal drugs. This tactic seems to have worked, as Colombia has now pledged to take stronger actions to combat drug trafficking.
On the other hand, Trump’s plans to impose tariffs on Canada and Mexico could have far-reaching consequences. The United States has strong economic ties with both countries, and imposing tariffs could lead to retaliatory measures that could harm American businesses and consumers.
Additionally, Canada and Mexico are key allies in trade negotiations and security issues. By imposing tariffs on these countries, Trump could jeopardize ongoing efforts to renegotiate NAFTA and address other important issues.
Overall, while Trump’s tariff threat may have worked in the case of Colombia, his plans for Canada and Mexico carry much higher stakes and could have serious implications for the United States’ economy and international relationships.
Audio recording is automated for accessibility. Humans wrote and edited the story. See our AI policy, and give us feedback.
Sign up for The Brief, The Texas Tribune’s daily newsletter that keeps readers up to speed on the most essential Texas news.
WASHINGTON — President Donald Trump’s vow to levy punishing taxes on the country’s top trading partners is already having the Texas business community on edge, with even Republicans who support the president acknowledging it could cause pain in the state.
Trump threatened to implement 25% tariffs on goods imported from Canada and Mexico and an additional 10% tariff on China, which he subjected to tariffs under his first presidency. Mexico and Canada have threatened to levy retaliatory tariffs on the United States.
Mexico is by far Texas’ largest trading partner, followed by Canada with China coming closely behind. Free-trade advocates warn that tariffs on goods will be passed onto consumers — meaning higher prices for Texans. Any positive benefits such as bringing manufacturing back to the country may not appear for years.
“There would undeniably, indisputably be a negative economic impact if tariffs were to be enacted,” said Glenn Hamer, president and CEO of the Texas Association of Business, a group that supports many of Trump’s other domestic policies.
Texas prides itself in having one of the fastest growing economies in the country and one of the largest economies on earth, due largely to its looser regulatory environment and free exchange with other high value markets. Texas is the largest exporting state in the U.S. — a point of pride for Gov. Greg Abbott and that Abbott said aligns with Trump’s values for making the U.S. an exporting powerhouse. The state exports over $88.6 billion in goods to Mexico alone, and a further $23.4 billion to Canada.
Trump floated a Saturday target date to implement the tariffs, but there is still uncertainty over how — or if — they will be implemented. Since he first floated tariffs during his campaign, several of his defenders have posited that the focus on tariffs could be a negotiating tactic.
Trump threatened the tariffs, saying he wants to pressure Mexico and Canada to invest more in preventing illegal border crossings. He made a similar move on Colombia after it rejected deportation flights from the United States. Within hours of Trump threatening 25% tariffs on Colombia in retaliation, the country allowed deportation flights to resume.
“Let’s wait and see what the president actually does on tariffs,” said Sen. Ted Cruz, who chairs the Senate Commerce Committee. “In the first term, President Trump used very similar threats of tariffs to force Mexico to cooperate in securing our border, and it produced tremendous results.”
Cruz cited the “Remain in Mexico” policy, under which asylum seekers had to wait out their cases in Mexico in cooperation with the Mexican government. He declined to weigh in on ways to relieve pain if the tariffs are actually implemented.
The other Texas senator also advised a cautious approach. “It’s a little hard to separate the negotiation tactics from reality,” Sen. John Cornyn said. “I think we’re gonna have to see how this happens in practice, and then continue the conversation, because there comes a point at which tariffs add cost to consumers.”
The White House has asserted that the tariffs are happening, at least on Mexico and Canada, with tariffs on China still under consideration. White House Press Secretary Karoline Leavitt assured reporters Tuesday that “the Feb. 1 date for Canada and Mexico still holds.”
Free trade advocates still see positives in the president’s trade position. During his first term, Trump negotiated the US-Mexico-Canada Agreement, colloquially known as the USMCA, to update trade agreements among the three countries. Hamer, of the Texas business group, said that many members of the business community feel “incredible optimism” about Trump after four years under President Joe Biden, who many of Texas’ largest industries felt constrained them with regulations. Members of both parties in Texas protested when Biden issued pauses on liquefied natural gas export permits, which they asserted unfairly targeted Texas’ energy sector.
The US-Mexico-Canada Agreement “is the best trade deal ever signed into law in the United States,” Hamer said. “And we want to see the USMCA continue and to be enhanced in ways that will increase trade between our three countries.”
Hamer said the impact of tariffs would be impossible to fully quantify before they are implemented. But the uncertainty of the tariffs is already beginning to impact the state’s economy, particularly in South Texas where trade with Mexico is a lifeblood.
Andrew Lawson Carranco, chair of the Government Affairs Council at the Laredo Chamber of Commerce, said the uncertainty of the tariffs and how they would be executed puts the business community in the city in a precarious situation. The city is home to the biggest port in the country, handling more than $300 billion worth of goods a year passing between the United States and Mexico. He said the city has seen increased exchange across the border to get goods through before they’re charged punishing new rates.
“Of course, we’ve heard a date on the implementation of tariffs, but no one’s really quite sure they’re actually going to be implemented,” Lawson Carranco said. “So we’re left with more questions than answers.”
Leaders in the manufacturing industry in the Rio Grande Valley agree that the immediate effects of tariffs would be devastating increases in prices to consumers. Joaquin Spamer, the president of Border Trade Alliance Mexico, said Mexico would likely retaliate with their own tariffs on farm products they import from the U.S.
“There is a very long list of U.S. agricultural products that are sold in Mexico,” Spamer said. “They know that the border base for Trump is the agricultural communities, that’s why they increase the tariffs immediately there.”
South Texas made a historic swing toward supporting Trump in last year’s elections, with the president winning every South Texas congressional district in the traditionally Democratic stronghold.
Spamer also pointed out that some products cross the border multiple times before being sold to consumers. This can apply to clothes that are manufactured in Mexico using cotton or polyester that was imported from the U.S. It’s unclear if goods will be subject to tariffs on final delivery or each time they cross the border.
“It’s not going to have a 25% tariff, it’s going to have a 25% tariff on the cotton and a 25% tariff on the final product,” Spamer said. “We’re calculating over 40% actual price increase.”
Companies could theoretically offset the costs to consumers by reducing their profit margins or renegotiating prices with foreign suppliers, but prices would increase regardless, said Jorge Torres, a licensed customs broker who is president of Interlink Trade Services. Either way, Torres said “it will be something that will be negative.”
Torres’ own business has a lot on the line. As a customs broker, he provides warehousing along the border that caters to cross-border transactions between Mexico and the U.S. The proposed tariffs would likely cause his own business to experience a downturn with less demand for warehouse space.
Trump has previously used tariffs to bring more manufacturing to the United States, and he’s vowed to make a similar pivot, particularly with semiconductors, a major industry in Texas. Texas lawmakers from both parties have tried to attract semiconductor manufacturing through generous subsidies in a bid to increase competitiveness with Asia, but Trump said he favors a more punitive approach.
He also implemented tariffs on Chinese goods during his last presidency that the Biden administration maintained. Trump offered subsidies for Texas’s agriculture sector at the time to help it weather the trade conflict with China, and Brooke Rollins, a Texan who is his pick for secretary of Agriculture, said she would support similar moves this time.
Still, if tariffs attract more U.S. manufacturing, the benefits will likely come much later than the immediate price hikes. Setting up factories and other elements of the supply chain requires planning and investment that can take years.
“These types of investments in factories and opening facilities, they don’t happen overnight,” Torres said. “We might see some that might happen during his term, but I see that most of this, if it happens, will happen after he leaves office.”
There are also likely to be negative effects on Mexico, said Adrian Gonzalez, also a U.S. customs broker. About 30% of Mexico’s GDP is related to exports and about 80% of those exports are to the U.S., Gonzalez said. Because Mexico relies heavily on exports, tariffs would devastate the economy and lead to more turmoil such as an increase in drug cartel activity or mass immigration.
“The collaboration that is needed to address larger problems like immigration, fentanyl, security,” Gonzalez said, “those would be terribly damaged if the US decides to prevent Mexico from having a source of jobs and resources that they need via trade.”
Disclosure: Texas Association of Business has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.
In recent weeks, Texas business leaders have expressed growing concerns over President Trump’s threats to impose tariffs on Mexican imports. With Texas being a major hub for trade with Mexico, many companies fear that such tariffs could have a significant impact on their bottom line.
The uncertainty surrounding the situation has left many business owners scrambling to make contingency plans and assess the potential consequences of a trade war between the two countries. Some have already begun to feel the effects, with increased costs and disruptions to their supply chains.
As the situation continues to unfold, Texas business leaders are urging the Trump administration to reconsider its tariff threats and seek alternative solutions to address trade issues with Mexico. They emphasize the importance of maintaining strong economic ties with our neighbor to the south and avoiding actions that could harm both countries’ economies.
Overall, the looming threat of tariffs has cast a shadow of uncertainty over the business community in Texas, with many hoping for a resolution that will not only protect their interests but also promote continued economic growth and prosperity in the region.
WASHINGTON/NEW DELHI: US President Donald Trump has said that PM Narendra Modi will do “what is right” on illegal immigrants, underlining that discussions are going on with India. Making these remarks on Monday while speaking to reporters aboard Air Force One on his way back to Joint Base Andrews from Florida, Trump also mentioned that Modi is likely to visit the White House in Feb. Trump told House Republicans at a Florida retreat on Monday that the US would impose tariffs on countries that “harm” America, naming China, India and Brazil as high-tariff countries. “We are going to put tariffs on outside countries and outside people that really mean harm to us. Look at what others do. China is a tremendous tariff maker, and India and Brazil and so many other countries. So, we’re not going to let that happen any longer because we’re going to put America first,” he said. The remarks followed his phone conversation with Modi in which, as the White House said in a statement, Trump called upon India to increase its procurement of American-made security equipment and move towards a “fair bilateral trading relationship”. The leaders discussed plans for PM Modi to visit the White House, underscoring the strength of friendship & strategic ties between our nations, said the White House. PM Modi is coming to White House, probably in Feb, says Trump While talking to reporters aboard Air Force One, Trump was asked if Modi has agreed to take illegal immigrants. “He (Modi) will do what’s right. We are discussing,” said the president. “I had a long talk with him this morning (Monday). He is going to be coming to the White House, over next month, probably Feb. We have a very good relationship with India,” he told reporters. Responding to a question on the phone call he had with Modi on Monday, Trump told reporters, “Everything came up (in a phone call with Modi).” The PM’s trip to the US, the first under Trump 2.0, was finalised during the call. “President Donald J Trump held a productive call with PM Modi . They discussed expanding and deepening cooperation. They also discussed a range of regional issues, including security in the Indo-Pacific, the Middle East and Europe,” said White House readout. Both Modi and Trump emphasised their commitment to advance US-India strategic ties and the Indo-Pacific Quad partnership, with India set to host Quad representatives for the first time later this year. Like in many countries, there have been some concerns in India as well over the Trump administration’s approach to immigration and tariffs. Trump has already talked about slapping “100% tariffs” on BRICS grouping, a bloc that includes India as well. During a weekly press briefing, external affairs ministry spokesperson Randhir Jaiswal referred to India’s ongoing dialogue with the US on matters related to trade and immigration and expressed hope that both sides will be able to address any issue. Trade occupies a special place within the strong and multi-faceted India-US relationship, and the two sides reached a record level of trade in goods and services worth $190 billion in 2023, Jaiswal said.
In a recent turn of events, US President Donald Trump has listed India among the nations that are allegedly “harming” the United States through their trade practices. This comes in the midst of an ongoing tariff row between the two countries, with tensions escalating over issues such as market access and intellectual property rights.
Trump’s remarks have further heightened the trade war rhetoric between the US and India, as both countries continue to impose retaliatory tariffs on each other’s goods. The US President has been vocal about his dissatisfaction with India’s trade policies, particularly in the areas of agriculture and dairy products.
The escalation of tensions between the US and India has raised concerns about the impact on global trade and economic growth. Many fear that the ongoing tariff row could lead to a full-blown trade war, with potentially devastating consequences for both countries and the global economy.
As both sides continue to dig in their heels, it remains to be seen how the tariff row will ultimately be resolved. In the meantime, the US and India must work together to find a mutually beneficial solution that addresses their trade grievances while preserving the long-standing partnership between the two nations.
