Trump imposes tariffs on Canada, Mexico and China, raising prospect of inflation and trade conflict

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A drone view shows trucks waiting in line near the Zaragoza-Ysleta border crossing bridge to cross into the US, in Ciudad Juarez, Mexico January 31, 2025. (Reuters)
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Updated 02 February 2025
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Trump imposes tariffs on Canada, Mexico and China, raising prospect of inflation and trade conflict

  • Trump declared an economic emergency in order to place duties of 10 percent on all imports from China and 25 percent on imports from Mexico and Canada
  • Trump said his decision was necessary “to protect Americans,” although it could throw the global economy and his own political mandate to combat inflation into possible turmoil

PALM BEACH, Florida: President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China — fulfilling one of his post-campaign commitments to voters that also carries the risk of sparking higher inflation and disrupting businesses across North America.
Trump’s order also includes a mechanism to escalate the rates if the countries retaliate against the US, as they are possibly prepared to do.
The decision throws the global economy and Trump’s own political mandate to combat inflation into possible turmoil, though the Republican president posted on social media that it was necessary “to protect Americans.”
The tariffs risk an economic standoff with America’s two largest trading partners in Mexico and Canada, upending a decades-old trade relationship with the possibility of harsh reprisals by those two nations. The tariffs also if sustained could cause inflation to significantly worsen, possibly eroding voters’ trust that Trump could as promised lower the prices of groceries, gasoline, housing, autos and other goods.

Trump declared an economic emergency in order to place duties of 10 percent on all imports from China and 25 percent on imports from Mexico and Canada. But energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10 percent rate.
The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the US economy, saying the average US household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen — and the situation could be worse if Canada, Mexico and China retaliate.

For the moment, Mexico plans to stay cool-headed as it weighs its options.
Mexico President Claudia Sheinbaum, appearing Saturday at an event promoting a government housing program outside Mexico City said, “I’m calm, I’ve been saying since yesterday, because I know that Mexico’s economy is very powerful, very strong.”

A senior administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize any disruptive increases on the price of gasoline or utilities. That’s a sign White House officials understand the gamble they’re taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped to return Trump to the White House last year.
The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
The Trump administration put the tariffs in place to force the three countries to stop the spread and manufacturing of fentanyl, in addition to pressuring Canada and Mexico to limit any illegal immigration into the United States.




Flags fly above the Peace Arch monument on the border between the US and Canada at Peace Arch Park on February 1, 2025 in Blaine, Washington.(Getty Images via AFP)

The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.
The order would also allow for tariffs on Canadian imports of less than $800. Imports below that sum are currently able to cross into the United States without customs and duties.
“It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former US trade official. “Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive ... Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’
The Republican president is making a major political bet that his actions will not significantly worsen inflation, cause financial aftershocks that could destabilize the worldwide economy or provoke a voter backlash. AP VoteCast, an extensive survey of the electorate in last year’s election, found that the US was split on support for tariffs.
With the tariffs, Trump is honoring promises that are at the core of his economic and national security philosophy. But the announcement showed his seriousness around the issue as some Trump allies had played down the threat of higher import taxes as mere negotiating tactics.
The president is preparing more import taxes in a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil and natural gas, as well as against copper, pharmaceutical drugs and imports from the European Union — moves that could essentially pit the US against much of the global economy.
It is unclear how the tariffs could affect the business investments that Trump said would happen because of his plans to cut corporate tax rates and remove regulations. Tariffs tend to raise prices for consumers and businesses by making it more expensive to bring in foreign goods.




A truck carrying vehicles drives into the US at the Otay Mesa Port of Entry, on the US-Mexico border on February 1, 2025 in San Diego, California. (Getty Images via AFP)

Many voters turned to Trump in the November election on the belief that he could better handle the inflation that spiked under Biden. But inflation expectations are creeping upward in the University of Michigan’s index of consumer sentiment as respondents expect prices to rise by 3.3 percent. That would be higher than the actual 2.9 percent annual inflation rate in December’s consumer price index.
Trump has said that the government should raise more of its revenues from tariffs, as it did before the income tax became part of the Constitution in 1913. He claims, despite economic evidence to the contrary, that the US was at its wealthiest in the 1890s under President William McKinley.
“We were the richest country in the world,” Trump said Friday. “We were a tariff country.”
Canadian Prime Minister Justin Trudeau has told Canadians that they could be facing difficult times ahead, but that Ottawa was prepared to respond with retaliatory tariffs if needed and that the US penalties would be self-sabotaging.
Trudeau said Canada is addressing Trump’s calls on border security by implementing a CDN$1.3 billion ($900 million) border plan that includes helicopters, new canine teams and imaging tools.
Trump still has to get a budget, tax cuts and an increase to the government’s legal borrowing authority through Congress. The outcome of his tariff plans could strengthen his hand or weaken it.
Democrats were quick to say that any inflation going forward was the result of Trump, who is about to start his third week back as president.
“You’re worried about grocery prices. Don’s raising prices with his tariffs,” Senate Democratic Leader Chuck Schumer of New York posted on X. “You’re worried about tomato prices. Wait till Trump’s Mexico tariffs raise your tomato prices. … You’re worried about car prices. Wait till Trump’s Canada tariffs raise your car prices,” he wrote in a series of posts.


Ukraine’s Zelensky says Russian artillery fire has not subsided

Updated 06 May 2025
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Ukraine’s Zelensky says Russian artillery fire has not subsided

“Therefore, there is no trust in words coming from Moscow,” Zelensky said

KYIV: Ukrainian President Volodymyr Zelensky said on Saturday that, according to his top commander, Russian artillery fire had not subsided despite the Kremlin’s proclamation of an Easter ceasefire.
“As of now, according to the Commander-in-Chief reports, Russian assault operations continue on several frontline sectors, and Russian artillery fire has not subsided,” Zelensky wrote on the social media platform X.
“Therefore, there is no trust in words coming from Moscow.”
He recalled that Russia had last month rejected a US-proposed full 30-day ceasefire and said that if Moscow agreed to “truly engage in a format of full and unconditional silence, Ukraine will act accordingly — mirroring Russia’s actions.”
“If a complete ceasefire truly takes hold, Ukraine proposes extending it beyond the Easter day of April 20,” Zelensky wrote.

Kyiv calls on foreign troops not to take part in Russia’s May 9 parade

Updated 06 May 2025
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Kyiv calls on foreign troops not to take part in Russia’s May 9 parade

  • “The Russian army has committed and continues to commit atrocities in Ukraine,” Kyiv’s foreign ministry said
  • “These people are not liberators of Europe, they are occupiers and war criminals“

KYIV: Ukraine warned Tuesday against any foreign troop participation in Russia’s May 9 parade to mark 80 years since the defeat of Nazi Germany, saying it would be “unacceptable” and seen as helping Moscow “whitewash its war crimes.”
A handful of countries have in recent years sent their militaries to take part in Russia’s traditional May 9 parade — a showpiece event that has become the country’s most important public holiday under President Vladimir Putin’s quarter-century in power.
“The Russian army has committed and continues to commit atrocities in Ukraine on a scale that Europe has not seen since World War II,” Kyiv’s foreign ministry said.
“It is this army that will march on Red Square in Moscow on May 9. These people are not liberators of Europe, they are occupiers and war criminals.”
Kyiv said marching with Russian soldiers would be considered as “sharing responsibility” for Moscow’s actions during its three-year Ukraine invasion.
“To march side by side with them is to share responsibility for the blood of murdered Ukrainian children, civilians and military, not to honor the victory over Nazism.”
Ukraine was one of the most devastated countries during World War II, with Kyiv saying it “touched every Ukrainian family.”
The foreign ministry also said that six million Ukrainians fought in the Red Army — with five million Ukrainian civilians killed and three million Ukrainian troops.
Russian leader Vladimir Putin attributed the victory over Nazism in Europe as a feat primarily achieved by the Russian nation.
Central Asian troops have often taken part in the Moscow parade.
The Kremlin has this year not ruled out that North Korean soldiers could take part for the first time, after Pyongyang’s troops helped Moscow oust Ukrainian soldiers from Russia’s Kursk region.


UN chief: India, Pakistan must ‘step back from the brink’

An Indian Border Security Force (BSF) personnel inspects a vehicle near the India-Pakistan Wagah border post.
Updated 1 min 18 sec ago
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UN chief: India, Pakistan must ‘step back from the brink’

  • Countries should exercise ‘maximum restraint’ amid soaring tensions, says Antonio Guterres
  • UN Security Council holds closed-door session to discuss dispute

NEW YORK CITY: UN Secretary-General Antonio Guterres has called on India and Pakistan to exercise “maximum restraint” amid soaring tensions between the two countries.

It follows last month’s terror attack in the Pahalgam area of Jammu and Kashmir.

Both countries administer parts of the territory but claim it in full.

The attack on April 22 killed at least 26 civilians and injured many more.

Guterres, speaking outside the Security Council at UN Headquarters in New York City on Monday, warned that tensions between India and Pakistan “are at their highest in years.”

He added: “I deeply respect and am profoundly grateful to the government and people of both countries — and their significant contributions to the work of the UN, not least UN peacekeeping.

“And so it pains me to see relations reaching a boiling point.”

The Indian government today will carry out a nationwide civil defense drill to simulate an attack on its territory.

Pakistan on Saturday test-fired a ballistic missile with a range of 450 km.

Guterres called on the two countries to “step back from the brink,” and warned that a “military solution is no solution.”

He said: “I understand the raw feelings following the awful terror attack in Pahalgam on April 22. 

“I once again strongly condemn that attack and extend my condolences to the families of the victims.

“Targeting civilians is unacceptable — and those responsible must be brought to justice through credible and lawful means.

“It is also essential — especially at this critical hour — to avoid a military confrontation that could easily spin out of control.

“Now is the time for maximum restraint and stepping back from the brink.

The UN Security Council met on Monday in a closed-door session to discuss the tensions.

Guterres pledged to support “any initiative that promotes de-escalation, diplomacy and a renewed commitment to peace.”


Macron to host Syrian leader’s first European visit

Updated 06 May 2025
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Macron to host Syrian leader’s first European visit

  • French President Emmanuel Macron will welcome Syrian leader Ahmed Al-Sharaa to Paris on Wednesday for his first visit to Europe

PARIS: French President Emmanuel Macron will welcome Syrian leader Ahmed Al-Sharaa to Paris on Wednesday for his first visit to Europe, despite growing doubts about Syria’s ruling Islamist coalition and protests from France’s far right.
Since the fall of longtime Syrian ruler Bashar Assad in December following fourteen years of devastating war, the international community has been pressing the new authorities, who have roots in the Al-Qaeda jihadist network, to respect personal freedoms, protect minorities and include all components of society in the country’s transition.
Many countries say they will monitor the new authorities’ conduct before fully lifting Assad-era sanctions.
“This meeting is part of France’s historic commitment to the Syrian people who aspire to peace and democracy,” the Elysee Palace said on Tuesday.
Macron will “reiterate France’s support for the construction of a new Syria, a free, stable, sovereign Syria that respects all components of Syrian society,” the presidency said.
Macron will also emphasize “his demands on the Syrian government, primarily the stabilization of the region, including Lebanon, and the fight against terrorism,” it said.
President Sharaa is still subject to a UN travel ban. France most likely had to request an exemption from the United Nations, as was the case for his recent trips to Turkiye and Saudi Arabia, according to a source familiar with the matter.
France, a former colonial ruler of Syria, is eyeing an opportunity to increase its influence in the country after years of Russian presence.
In February, France organized a conference in Paris on the reconstruction of Syria, in the hope of steering the fragile transition. Syria has been devastated by years of civil war, with over 90 percent of the population living below the poverty line.
Macron had first invited Syria’s new leader to visit France in February.
In March, he repeated the invitation but made it conditional on the formation of an inclusive Syrian government representing “all components of civil society,” describing his initial negotiations with the interim leaders as “positive.”
Syria’s new Islamist authorities have vowed inclusive rule in the multi-confessional, multi-ethnic country.
But sectarian clashes in March in which more than 1,700 people were killed, mostly from Assad’s Alawite minority, sparked widespread condemnation.
More recent clashes involving fighters from the Druze community, as well as reports of abuses from NGOs, have also raised doubts about the interim government’s ability to control extremists in its ranks.
Adding to pressure on the new Syrian government, Israel has also launched hundreds of strikes on the country since Assad’s overthrow, including one near the presidential palace in Damascus on Friday.
Israel has said its forces stand ready to protect the Druze minority and said the strike near the presidential palace was intended to send a “clear message” to Syria’s new rulers.
But the interim government described the strike as a “dangerous escalation,” while the United Nations urged Israel to halt its attacks on Syria “at once.”
The French far right criticized the upcoming talks.
Far-right leader Marine Le Pen accused Macron of hosting talks with “a jihadist” who has been involved with the Daesh group and Al-Qaeda, adding such a meeting would be “provocative and irresponsible.”
“Shock and dismay,” Le Pen said on X.
“Once again, Emmanuel Macron is damaging France’s image and discrediting its commitment, particularly among its allies, in the fight against Islamism.”
Foreign Minister Jean-Noel Barrot, who met with the Syrian leader on a visit to Damascus in January, defended the talks.
“The safety of French people is at stake in Syria,” Barrot told broadcaster RTL, adding it was important to fight terrorism and drug trafficking in the conflict-riven country as well as control migration.
Not engaging the leaders of Syria and Lebanon would amount to “rolling out the red carpet for Daesh,” he said, referring to the Daesh terrorists.
French companies are meanwhile eyeing a role in Syria’s reconstruction.
Last week, French logistics giant CMA CGM signed a 30-year contract to develop and operate the port of Latakia, at an event attended by Sharaa.


UK may restrict students from countries most likely to claim asylum

Updated 06 May 2025
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UK may restrict students from countries most likely to claim asylum

  • High levels of legal migration have long dominated Britain’s political conversation
  • Out of the 108,000 people who claimed asylum in Britain last year, 16,000 had student visas

LONDON: The British government may restrict visa applications from students living in countries that are considered most likely to claim asylum in a move designed to bring down annual net migration, a government official said.
The move comes after Prime Minister Keir Starmer’s Labour Party was punished in local elections in England last week by voters angry over issues, including illegal immigration.
The government is expected next week to publish a policy document, known as a white paper, which will set out how the government plans to reduce net migration, which reached 728,000 people in the year to June last year.
“Our upcoming Immigration White Paper will set out a comprehensive plan to restore order to our broken immigration system,” the Home Office said in a statement.
High levels of legal migration have long dominated Britain’s political conversation and were one of the major drivers for the Brexit referendum in 2016.
Out of the 108,000 people who claimed asylum in Britain last year, 16,000 had student visas, government data shows. The government does not provide a breakdown of the nationalities of those who had student visas, who went on to claim asylum.
But the government said people from Pakistan, Nigeria and Sri Lanka were the most likely to claim asylum in Britain after arriving on a work, student, or a visitor visa.
In the aftermath of the party’s poor local election results last week, some Labour members of parliament urged the government to do more to take a more decisive approach on issues such as bringing down net migration.
Jo White, who represents a group of lawmakers in previously Labour heartlands known as the “Red Wall,” said the government should stop “pussyfooting around.”