Why the UN is struggling to function

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Updated 16 October 2019
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Why the UN is struggling to function

  • World body facing 'the worst cash crisis' in nearly a decade due to mounting arrears
  • Crisis is marked by lack of cash to pay staff and vendors or to fund critical programs

NEW YORK CITY: The UN is facing its worst liquidity shortfall in 74 years of operation with a deficit of $1.385 billion, which is making it difficult for the world body to pay staff and vendors or fund missions.
The crisis has forced Antonio Guterres, the UN secretary-general, to begin cutbacks in all operations.
Warning on Oct. 8 that the problems are at a “tipping point,” he called it “the worst cash crisis facing the UN in nearly a decade,” jeopardizing peacekeeping efforts in Yemen, Myanmar and the management of the UN’s New York headquarters, offices in Geneva, Vienna and Nairobi, and investigative commissions in Bangkok, Addis Ababa, Santiago and Beirut.
A UN budget review presented this week showed that the crisis is being driven by the lack of cash to pay staff and vendors or to fund critical programs, and outlined spending cuts that will begin immediately pending a resolution of the situation.
“The cash deficits occur earlier in the year, linger longer and run deeper,” said Catherine Pollard, UN under-secretary-general for management strategy, policy and compliance.
“For the second successive year, we have exhausted all regular budget liquidity reserves, despite several measures we had taken to reduce expenditures to align them with available liquidity.”
Chandramouli Ramanathan, UN's controller, detailed the debt in a presentation with Pollard on Oct. 11 that identified $1.385 billion in debts, more than half of the UN’s 2019 annual budget of $2.85 billion.
Ramanathan said that only $1.99 billion had been collected this year, including past year arrears.
“If the trend continues … you will pretty much see that at some point we are running out of liquidity so often — everything depends on the liquidity if the liquidity runs down, we have to prioritize the payment,” he said.
“It will come to the point where you will not have enough staff or not have enough to pay the vendors.”
Ramanathan said that 75 percent of the UN’s budget is for employee and building costs. The remainder includes air charters, fuel, rations, IT support and political missions, which he said are all in jeopardy.
This does not include the costs of peacekeeping missions, nearly $8 billion for 2019, but which are nearly $3.7 billion in arrears.
A slew of operating spending cuts at the UN began on Oct. 14, ranging from no new hirings or filling of vacant positions to switching off heating and airconditioning.
Ramanathan said that these were emergency steps but warned failure to address the “liquidity crisis” would result in other more serious cutbacks including funding of operations, missions and more.

UN OPERATING SPENDING CUTS

• No new hirings or filling of vacant positions

• Reducing operating hours of UN facilities including the New York City headquarters

• Suspending release of new documents, studies and translation of documents

• Curtailing travel of UN officials, meetings or publicly scheduled receptions

• Cutting back operations at the UN headquarters and its worldwide centers, including turning off the use of electricity for certain building operations such as escalators, and shutting down the UN’s fountains

• Heating and air conditioning to be turned off at 6 p.m. each day and not turned on until 8 a.m. at UN buildings

“We are trying to cut back on non-salaried costs, operating hours to meet obligations and to vendors,” he said.
Ramanathan said that the UN was prohibited by its charter from borrowing money. He acknowledged that traditionally member countries were late in paying, usually until the last half of the year or last quarter, but the late payments had become “later and later” each year.
“The US is the largest contributor and they have a large outstanding amount … the US has a large amount outstanding,” Ramanathan said, noting that the UN does single out and list specific debts or debtors.
“We are in active engagement with all the states that owe large amounts.”

Ramanathan identified seven member nations that had failed to pay their memberships fully and accounted for 97 percent of the debt owed: the US ($1.06 billion), Brazil ($143 million), Argentina ($51.5 million), Mexico ($36 million), Iran ($26.9 million), Israel ($17.7 million) and Venezuela ($17.2 million).
He said that a total of 65 other countries were in arrears for their annual dues, based on country size and per capita income, but that represented less than 3 percent of the operating budget shortfall. Only 128 members were fully paid up for this year.
According to Ramanathan, the US owes its annual membership dues of $674 million for 2019, and $381 million for previous years.
UN officials declined to comment on reports that Guterres is seeking to address the unpaid US monies in a meeting with US President Donald Trump, who has repeatedly criticized the UN and the US financial obligations.
But an independent report by UN Dispatch, which is funded by the UN Foundation, reported on Dec. 6, 2016, that the UN’s headquarters generated $3.69 billion in benefits to New York City’s economy through jobs, commerce, hotels and retail spending by delegates and their staff.
One example of the costs includes accommodating the more than 1,500 journalists, delegates and support staff at the opening of the UN’s 74th General Assembly in New York City on Sept. 23.

The cash deficits occur earlier in the year, linger longer and run deeper.

Catherine Pollard, UN under-secretary-general for management strategy, policy and compliance

The UN erected a huge outdoor media tent in its grounds to accommodate journalists, providing access to the internet, electrical outlets, video and audio feeds, tables and work stations.
But these journalists, staff and delegates also brought with them revenue for the host city — filling hotels and restaurants, and generating profits for retailers, cabs and other businesses.
Despite the financial benefits New York City reaps from the UN headquarters presence, and the power the US wields at the UN, Trump brushed aside reports of the budget crisis or his nation’s failure to pay its share of the UN costs during his address on Sept. 24 to the UN General Assembly.
And a week later, Trump tweeted in response to UN officials’ budget concerns: “So make all Member Countries pay, not just the United States!”
The UN could suspend the voting of any nation that fails to pay its dues under Article 19 of the UN Charter, which states: “A Member of the United Nations which is in arrears in the payment of its financial contributions to the Organization shall have no vote in the General Assembly if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years. The General Assembly may, nevertheless, permit such a Member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the Member.” (Article 19 of the Charter of the United Nations)
A UN staff member said that it was unlikely that the UN would implement the rule against the US and that they fully expected the US “to pay at least part of what it owes” before the end of the year.
The UN was created in 1945 with the goal of ending human-rights abuses.
The power of the UN rests with the 15-member Security Council, which the US is a member of and controls through its veto to block any policies or resolutions it opposes.
The UN General Assembly includes 193 nations, serving as a platform for advocacy and action.


Spain’s power supply is almost fully restored after one of Europe’s most severe blackouts

Updated 17 sec ago
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Spain’s power supply is almost fully restored after one of Europe’s most severe blackouts

  • Many questions remained about what caused one of Europe’s most severe blackouts
  • By 7:00 a.m. local time, more than 99 percent of energy demand in Spain had been restored

MADRID: Power had almost fully returned to Spain early Tuesday morning as many questions remained about what caused one of Europe’s most severe blackouts that grounded flights, paralyzed metro systems, disrupted mobile communications and shut down ATMs across Spain and Portugal.

By 7:00 a.m. local time, more than 99 percent of energy demand in Spain had been restored, the country’s electricity operator Red Electrica said. Portuguese grid operator REN said Tuesday morning all of the 89 power substations were back online since late last night after an “absolutely unusual” blackout and power was restored to all 6.4 million customers.

On Tuesday morning, as life slowly returned to normal on the Iberian Peninsula, outside Atocha station, one of the busiest in the Spanish capital, people were once again crossing the street while looking at their cell phones, despite the Internet connection being intermittent at times.

Inside, hundreds of people waited to board trains or rebook those that had been canceled the previous day. Large groups of people milled around the screens, waiting for updates. Still, several people slept on the floor with blankets provided by the Red Cross for those who waited overnight at the station. The same scenes were replicated at Sants station in Barcelona. Classes were suspended in several regions.

The Madrid Open, the tennis tournament being held this week, was still affected by the power outage after its cancelation the previous day and delayed the opening of its doors.

Power had gradually returned to several regions across Spain and Portugal as the nations reeled from the still-unexplained widespread blackout that had turned airports and train stations into campgrounds for stranded travelers.

Monday night, many city residents, including in Spain’s capital of Madrid, went to sleep in total darkness. The normally illuminated cathedral spires of Barcelona’s Sagrada Familia Basilica became indistinguishable from the night sky. Streets remained deserted even in neighborhoods where lights flickered back on, as people stayed home after a day of chaos.

“We have a long night ahead,” Spanish Prime Minister Pedro Sanchez said when he addressed the European nation late Monday. “We are working with the goal of having power restored to the entire country.”

In Madrid, cheers erupted from balconies where the electricity had returned.

Subway service returning on Tuesday morning

On Tuesday morning, Madrid’s metro system was restored on all but one line, meaning that 80 percent of trains operated during rush hour.

In Barcelona, the metro was also operating normally, but commuter trains were suspended due to “electrical instability,” the company that runs the service, Rodalies Catalunya, said on X. In other parts of the country, commuter and mid-distance services were also suspended or running at reduced capacity.

As metro service stopped on Monday, train stations cleared out and shops and offices closed, and thousands of people spilled onto the streets of Madrid.

Emergency workers in Spain said they rescued some 35,000 passengers stranded along railways and underground.

The blackout turned sports centers, train stations and airports into makeshift refuges late Monday.

“We were in the north of Portugal and did get any notifications until we got here because of Internet outage,” said Ian Cannons, a British tourist trying to get home who was forced to spend the night in Lisbon’s airport. “We can’t book any hotels. Nothing.”

The Barcelona municipality distributed 1,200 cots to indoor recreation centers to host residents with no way to get home and international travelers left in limbo. All over Barcelona and Madrid, people were sleeping on train station benches and floors.

Cash and radios in high demand

As Internet and mobile phone services blinkered offline across Spain and Portugal, battery-powered radios flew off the shelves. Those fortunate enough to find service shared whatever news updates they could with strangers on the street.

Lines snaked out of the few supermarkets running on backup generators in Barcelona and Lisbon as people stocked up on dried goods, water and battery-powered flashlights and candles. Clerks counted euros by hand, since many cash registers had stopped working.

Hector Emperador, picking his kids up from school in Barcelona, said he resorted to raiding his sons’ piggybank to ensure he had cash on hand after ATMs and some online-banking services shut down. “The coronavirus pandemic will be nothing compared to this,” he said.

Few gas stations were operating, sending the drivers who dared navigate without traffic lights scrambling for fuel. Residents with electric door keys found themselves locked out of their homes.

The many inconveniences became a threat to survival for those with medical needs like refrigeration for insulin or power for dialysis machines and oxygen concentrators. Some hospitals – but not all – stayed open with the help of generators.

Cause remains a mystery

Officials did not say what caused the blackout, the second such serious European power outage in as many months after a fire at Heathrow Airport shut down Britain’s busiest travel hub on March 20.

They said there was little precedent for this kind of widespread electric failure across all of the Iberian Peninsula, with a combined population of some 60 million. Across the Mediterranean Sea, Spain’s Balearic Islands and the territories of Ceuta and Melilla were spared. The Canary Islands off the northwest coast of Africa were also spared.

“We have never had a complete collapse of the system,” Sanchez said, explaining how Spain’s power grid lost 15 gigawatts, the equivalent of 60 percent of its national demand, in just five seconds.

In his televised address late Monday, Sanchez said that authorities were still investigating what happened. Portugal’s National Cybersecurity Center threw cold water on feverish speculation about foul play, saying there was no sign that the outage resulted from a cyberattack.

Speaking to reporters in Brussels, Teresa Ribera, an executive vice president of the European Commission, also ruled out sabotage. Nonetheless, the outage “is one of the most serious episodes recorded in Europe in recent times,” she said.


India shuts over half of Kashmir tourist spots in security review

Updated 29 April 2025
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India shuts over half of Kashmir tourist spots in security review

  • Tensions between the nuclear-armed neighbors have increased since the attack on holiday-makers
  • India’s Jammu and Kashmir territory has decided to shut 48 of the 87 tourist destinations in Kashmir

SRINAGAR, India: More than half of the tourist destinations in India’s insurgency-torn Kashmir region have been closed to the public from Tuesday, according to a government order reviewed by Reuters, in a bid to tighten security after last week’s attack on holiday-makers.
The assailants segregated men, asked their names and targeted Hindus before shooting them at close range in the Pahalgam area, killing 26 people, officials and survivors said.
India has identified two of the three attackers as “terrorists” from Pakistan waging a violent revolt in Muslim-majority Kashmir. Pakistan has denied any role and called for a neutral probe.
Hindu-majority India accuses Islamic Pakistan of funding and encouraging militancy in Kashmir, the Himalayan region both nations claim in full but rule in part. Islamabad says it only provides moral and diplomatic support to a Kashmiri demand for self-determination.
Tensions between the nuclear-armed neighbors have increased since the attack, along with calls in India for action against Pakistan.
Delhi and Islamabad have taken a raft of measures against each other since the Kashmir attack. India has suspended the Indus Waters Treaty – an important river-sharing pact. Pakistan has closed its airspace to Indian airlines.
The government of India’s Jammu and Kashmir territory has decided to shut 48 of the 87 tourist destinations in Kashmir and enhanced security at the remaining ones, according to a government document reviewed by Reuters.
No time period was given. Government officials did not immediately respond to requests for comment.
Nestled in the Himalayas with lofty peaks, picturesque valleys and grand Mughal-era gardens, Kashmir has been emerging as India’s tourism hotspot as violence there has waned in recent years.
But the Pahalgam attack has left panic-stricken tourists seeking an early exit at the start of the busy summer season.
Firing has also increased along the 740-km de facto border separating the Indian and Pakistani areas of Kashmir.
On Tuesday, for the fifth consecutive day, the Indian army said it had responded to “unprovoked” small arms fire from multiple Pakistan army posts around midnight.
It gave no further details and reported no casualties. The Pakistani military did not respond to a request for comment.
Pakistan’s Defense Minister Khawaja Muhammad Asif told Reuters on Monday that a military incursion by India was imminent and it had reinforced its forces in preparation.


China blames US tariffs for halting Boeing plane deliveries

Updated 29 April 2025
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China blames US tariffs for halting Boeing plane deliveries

  • Beijing spokesperson: The levies had ‘disrupted the international air transport market’
  • Boeing’s CEO confirmed last week that China had stopped accepting new aircraft due to the trade war

BEIJING: China on Tuesday blamed US tariffs for Beijing’s decision to stop accepting new aircraft from aviation giant Boeing, saying the levies had “disrupted the international air transport market.”
“The United States’ wielding of tariffs has severely impacted the stability of the global industrial chain and supply chain,” China’s commerce ministry said in a statement.
“Relevant Chinese airlines and Boeing in the United States have suffered greatly,” a spokesperson said.
New US tariffs have reached 145 percent on many Chinese products, while Beijing has responded with fresh 125 percent duties on imports from the United States.
And Boeing’s CEO confirmed last week that China had stopped accepting new aircraft due to the trade war.
In a televised interview with CNBC, Boeing chief executive Kelly Ortberg said Chinese customers had “stopped taking delivery of aircraft due to the tariff environment,” adding that if the halt continued, the aviation giant would soon market the jets to other carriers.
Boeing had planned to deliver around 50 aircraft to China in 2025, said Ortberg, adding that the company wouldn’t “wait too long” to send the jets to other customers.
US President Donald Trump also criticized Beijing for backing out of the deal, saying Boeing should “default China for not taking the beautifully finished planes.”
Beijing’s commerce ministry on Tuesday hit back, saying “many companies have been unable to carry out normal trade and investment activities” due to Trump’s tariffs.
“China is willing to continue to support the normal business cooperation between the two countries’ enterprises,” its spokesperson said.
Beijing “hopes that the United States can listen to the voices of enterprises and create a stable and predictable environment for their normal trade and investment activities,” they added.


Girl, 5, and parents among dead in car attack at Filipino festival in Vancouver

Updated 52 min 34 sec ago
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Girl, 5, and parents among dead in car attack at Filipino festival in Vancouver

  • The family left behind a 16-year-old son who stayed home to finish his homework
  • Mourners including Canadian Prime Minister Mark Carney remembered the dead at vigils before Monday’s national election

VANCOUVER: As members of the Le family headed out the door to enjoy music, food and camaraderie at a Filipino heritage festival in Vancouver, British Columbia, their 16-year-old son decided to instead stay home to finish homework.
Then news began arriving of a car plowing through the crowd.
The teen’s father, Richard Le, his stepmother Linh Hoang and his 5-year-old sister Katie Le, were among 11 people killed, said Richard Le’s brother, Toan Le, in the world’s latest vehicle ramming attack.
The teenage boy is in a state of shock, Le said. His sister Katie Le was nearing graduation from kindergarten and was described as a vibrant and joyful child in a GoFundMe page posted by Toan Le.
The black Audi SUV sped down a closed, food-truck-lined street Saturday evening and struck people attending the Lapu Lapu Day festival, which celebrates Datu Lapu-Lapu, an Indigenous chieftain who stood up to Spanish explorers in the 16th century.
Thirty-two people were hurt. Seven were in critical condition and three were in serious condition at hospitals Monday, Vancouver police spokesperson Steve Addison said.
Those killed include nine females and two males ranging in age from 5 to 65, according to Addison. All of them lived in the Vancouver metropolitan area, he said.
Mourners including Canadian Prime Minister Mark Carney remembered the dead at vigils before Monday’s national election.
The crash came just two days before another vehicle smashed through a building in a town outside of Springfield, Illinois, during an after-school program, killing four children and injuring several others, police said.
A ‘significant history’ of interactions with police
Kai-Ji Adam Lo, 30, was charged with eight counts of second-degree murder in a video appearance before a judge Sunday, said Damienne Darby, spokeswoman for British Columbia prosecutors. Lo has not yet entered a plea.
A woman who answered the phone Monday at the home of Lo’s mother, Lisa Lo, said that the mother was too distraught to speak to a reporter.
Investigators said more charges were possible. They said Lo had a history of mental health issues. Interim Police Chief Steve Rai said there was no indication of a motive but that the suspect has “a significant history of interactions with police and health care professionals related to mental health.”
Lo had contact with police the day before the vehicle attack in a neighboring jurisdiction, Addison said Monday.
“That contact was not criminal in nature and it did not rise to the level where a mental health intervention was required,” Addison said.
The Associated Press could not immediately reach an attorney representing Lo. Online records showed that Vancouver Provincial Court issued a publication ban barring the release of details about the legal case against Lo. Such bans are common in Canada to protect the rights of the accused to a fair trial as well as the privacy of crime victims.
Lo’s brother, 31-year-old Alexander Lo, was the victim of a homicide at his home last year. Kai-ji Lo started an online fundraising effort, since deleted, seeking donations to bury his brother.
He said he was “burdened with remorse for not spending more time with him,” according to an archived version of the webpage. Their mother had taken out significant loans to build Alexander a home, leaving her financially strained.
Screaming and bodies hitting a vehicle
Noel Johansen was searching for dessert at the festival with his wife Jenifer Darbellay, an artist, and their two children, ages 7 and 15, when the attack happened. They lived only about a block and a half away and were visiting for the third time.
“It hit us before we knew. I was falling in slow motion trying to save my head from smashing in the pavement,” Johansen said. “It’s like a giant tidal wave.”
Darbellay, 50, was killed, while the rest of the family survived. Johansen described her as selfless, creative and empathetic.
Johansen said the day before she was killed, the couple was talking about politics and the many situations in which people seek revenge toward the person who hurt them.
He said she told him: “That’s the whole problem. We need to forgive the perpetrators of the crimes that are committed against us.”
Johansen said that he’s trying to honor that philosophy.
Hours before the attack, Makayla Bailey saw her friend Kira Salim, a teacher and school counselor, for the first time in a while and Salim had apologized for not being out and about more.
“I told them, ‘It’s OK it’s been crappy out, the weather sucks, summer’s coming so I’m sure we’ll see each other a lot more,’” Bailey said, recalling in an interview Salim’s drag king performances that audiences loved.
“I didn’t think it would be the last conversation we would ever have,” said Bailey.
Salim was among those killed in the attack, according to the New Westminster School District, where Salim worked.
Investigators were collecting evidence at the scene Monday and had executed a search warrant at a Vancouver property, Addison said. Investigators were also going through bystander video from the scene.
Officials will review the situation, and it may change how they approach such events, Addison said.
“This was intended to be a safe, fun, family-friendly community block party for people to celebrate their community and culture,” Addison said. “The actions of one person stole that away from them.”


Canadian Prime Minister Mark Carney’s Liberals win an election upended by Trump

Updated 29 April 2025
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Canadian Prime Minister Mark Carney’s Liberals win an election upended by Trump

TORONTO: Prime Minister Mark Carney’s Liberal Party won Canada’s federal election on Monday, capping a stunning turnaround in fortunes fueled by US President Donald Trump’s annexation threats and trade war.
The Liberals are projected to win more of Parliament’s 343 seats than the Conservatives, though it wasn’t clear yet if they would win an outright majority, which would allow them to pass legislation without needing help.
The Liberals looked headed for a crushing defeat until the American president started attacking Canada’s economy and threatening its sovereignty, suggesting it should become the 51st state. Trump’s actions infuriated Canadians and stoked a surge in nationalism that helped the Liberals flip the election narrative and win a fourth-straight term in power.
The opposition Conservative Party’s leader, Pierre Poilievre, hoped to make the election a referendum on former Prime Minister Justin Trudeau, whose popularity declined toward the end of his decade in power as food and housing prices rose.
But Trump attacked, Trudeau resigned and Carney, a two-time central banker, became the Liberal Party’s leader and prime minister.
Trump was even trolling Canada on election day, suggesting on social media that he was in fact on the ballot and repeating that Canada should become the 51st state — an assertion that Canadians find deeply insulting. He also erroneously claimed that the US subsidizes Canada, writing, “It makes no sense unless Canada is a State!”
Poilievre, who has been criticized for not taking a firmer stance against Trump, responded with a post of his own.
“President Trump, stay out of our election. The only people who will decide the future of Canada are Canadians at the ballot box,” he posted hours before polls closed. “Canada will always be proud, sovereign and independent and we will NEVER be the 51st state.”
Until Trump won a second term and began threatening Canada’s economy and sovereignty, the Liberals looked headed for defeat. But Trump’s truculence has infuriated many Canadians, leading many to cancel US vacations, refuse to buy American goods and possibly even vote early. A record 7.3 million Canadians cast ballots before election day.
Trump’s attacks also put Poilievre and the opposition Conservative Party on the defensive and led to a surge in nationalism that helped the Liberals flip the election narrative.
“The Americans want to break us so they can own us,” Carney said recently, laying out what he saw as the election’s stakes. “Those aren’t just words. That’s what’s at risk.”
Election day came as the country grappled with the fallout from a deadly weekend attack at a Vancouver street fair that led to the suspension of campaigning for several hours. Police ruled out terrorism and said the suspect is a local man with a history of mental health issues.
Trump became the main issue
Poilievre and his wife walked hand-in-hand to vote in their district in the nation’s capital, Ottawa. “Get out to vote for a change,” he implored voters.
Sisters Laiqa and Mahira Shoaib said they did just that, with Laiqa, a 27-year-old health care worker, voting for the progressive New Democratic Party, and Mahira, a 25-year-old bank worker, backing the Conservatives.
The sisters, who immigrated from Pakistan a decade ago, said the economy has worsened and job opportunities have dried up under Liberal rule.
After the sisters voted at a community center in the Toronto suburb of Mississauga, Mahira Shoaib said she thinks Poilievre is best equipped to improve Canada’s finances.
“He is business-minded, and that’s what we need right now,” she said.
After Trump became the election’s central issue, Poilievre’s similarities to the bombastic American president might have cost him.
Reid Warren, a Toronto resident, said he voted Liberal because Poilievre “sounds like mini-Trump to me.” And he said Trump’s tariffs are a worry.
“Canadians coming together from, you know, all the shade being thrown from the States is great, but it’s definitely created some turmoil, that’s for sure,” he said.
“He appeals to the same sense of grievance,” Canadian historian Robert Bothwell said of the Conservative leader. “It’s like Trump standing there saying, ‘I am your retribution.’”
“The Liberals ought to pay him,” Bothwell added, referring to the American president. “Trump talking is not good for the Conservatives.”
Foreign policy hadn’t dominated a Canadian election as much since 1988 when, ironically, free trade with the United States was the prevailing issue.
Big challenges await the Liberals
Carney and the Liberals cleared a big hurdle in winning a fourth-straight term, but they have daunting tasks ahead.
In addition to the sweeping US tariffs on Canadian goods, Canada has been dealing with a cost-of-living crisis for some time. And more than 75 percent of its exports go to the US, so Trump’s tariffs threat and his desire to get North American automakers to move Canada’s production south could severely damage the Canadian economy.