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Harsh trade retaliation from Canada, China show challenge ahead for Trump team

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Harsh trade retaliation from Canada, China show challenge ahead for Trump team

Canada will begin imposing 25% tariffs on select U.S. car imports Wednesday, ratcheting up tensions between Washington and Ottawa as the rest of the world grapples with President Trump’s ongoing assault on the global economic order.

Canada’s move came hours after Beijing vowed that China would “fight to the end” over the Trump administration’s tariff policy, which it characterized as an attempt to “blackmail” the world. As of Wednesday, all products imported from China to the United States would face a duty of 104%.

The news led to yet another day of market turmoil, with the Dow Jones industrial average, Standard & Poor’s 500 and Nasdaq all beginning the day with promising rallies that disappeared by the closing bell.

The steps from two of America’s largest trading partners — one friend, one foe — exemplified the challenges ahead for the Trump administration, which said that its sweeping global tariffs policy on nearly every country on Earth would remain in place. Only direct negotiations with trading partners, on an individual basis, could potentially result in new trade agreements that would lift or ease some restrictions, officials said.

Prime Minister Mark Carney said Tuesday that Canada’s new tariffs will go into effect at 12:01 a.m. EDT on noncompliant vehicles from the United States, and on contents of CUSMA-compliant vehicles not from Canada or Mexico. CUSMA, called USMCA in the United States, refers to a trade agreement negotiated among Canada, the United States and Mexico during the first Trump administration.

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The trade war is already reverberating through the auto industry, with Jaguar, Land Rover and Audi halting exports to the United States, and U.S.-based Stellantis — which produces brands including Chrysler, Dodge and Jeep — announcing an initial round of 900 temporary layoffs at five U.S. plants.

“President Trump caused this trade crisis,” Carney said in a statement posted on X. “Canada is responding with purpose and with force.”

Trump told reporters Tuesday that he was “doing very well in making tailored deals” with countries around the world, and said that over 70 nations had reached out to the White House to start negotiations. He added that the U.S. is “taking in almost $2 billion a day in tariffs.”

But Trump has said he is waiting, in particular, for talks to begin with China, the third-largest U.S. trading partner after Canada and Mexico. On Wednesday, the administration will push forward with Trump’s threat to pile on additional 50% tariffs if China does not remove its 34% tariffs against the United States.

Trump first announced 20% tariffs against China soon after taking office, complaining that the Asian nation had forced fentanyl to flood into the country. Last Wednesday, as part of his sweeping tariffs measure he dubbed “Liberation Day,” Trump enacted an additional 34% tariff against the country.

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White House officials continued to champion tariffs as the ultimate leverage, forcing other countries to line up to negotiate with the president. White House Press Secretary Karoline Leavitt repeated Tuesday that “the phones are ringing off the hook” from global leaders, hoping to negotiate an end to the crippling taxes.

“It’s because the world knows that they need the United States of America. They need our markets. They need our consumers,” Leavitt said. “The president has a lot of leverage on his side.”

Not only is China the world’s largest trading partner, it is the provider of many goods Americans rely on — from iPhone components to cheap clothing. Already, members of Trump’s inner circle — and the broader Republican Party — are questioning the president’s tactics.

Elon Musk, the president’s close advisor and the world’s richest man, who has several businesses with interests in China, complained in recent days on X, which he owns, about tariffs. He called Trump’s trade advisor, Peter Navarro, “dumber than a sack of bricks” over his guidance to the president.

“Navarro is truly a moron,” Musk posted. “What he says here is demonstrably false.”

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Several Republican lawmakers, including prominent GOP senators, initially responded to the policy change with draft legislation that would reassert congressional control over tariff policy. But Senate Majority Leader John Thune of South Dakota threw cold water on the bill’s prospects Monday.

“I don’t think that has a future,” Thune said. “The president’s indicated he would veto it. I don’t see how they get it on the floor in the House, so I think at this point we’re kind of waiting to see what’s going to happen next.”

The lack of congressional action leaves countries around the world with little choice but to directly negotiate with the Trump administration. Yet it is unclear what Trump will consider adequate for success in any bilateral agreement, much less whether a common standard will emerge for countries entering talks.

Sitting in the Oval Office on Monday, Israeli Prime Minister Benjamin Netanyahu said to the president, “We will eliminate the trade deficit with the United States.” Israel has been hit with a 17% tariff rate by the Trump administration, ostensibly over the country’s trade deficit with Washington.

“We intend to do it very quickly — we think it’s the right thing to do — and we’re going to also eliminate trade barriers,” Netanyahu said. “I think Israel could serve as a model for many countries who ought to do the same.”

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And yet, in response to a reporter’s question moments later, Trump would not commit to lifting the new tariff rate on Israel even if Netanyahu were to fulfill his promise. “Maybe not,” Trump said.

“Don’t forget, we help Israel a lot,” Trump added. “We give Israel $4 billion a year, that’s a lot.”

The remarks suggested that case-by-case talks with trading partners would involve topics well beyond tariffs, and even beyond trade deficits, to possibly include foreign aid, military assistance and other matters unrelated to economic policy — a series of negotiations that could take months, if not years, to complete.

Kevin Hassett, director of the National Economic Council under Trump, said in an interview with Fox News on Tuesday that the administration is “managing a massive amount of requests for negotiations.”

“It’s actually, logistically, quite challenging,” he added.

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Trump announced a baseline tariff rate of 10% for nearly all countries last week. For countries with higher, customized tariff rates — assigned based on the president’s belief that they have treated the United States unfairly — the new import duties are scheduled to go into effect on Wednesday morning. Russia was not included on the list.

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Nearly 20 states sue HHS over declaration to restrict gender transition treatment for minors

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Nearly 20 states sue HHS over declaration to restrict gender transition treatment for minors

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A group of 19 Democrat-led states and Washington, D.C., filed a lawsuit against the Trump administration over a declaration that aims to restrict gender transition treatment for minors.

The lawsuit against the U.S. Department of Health and Human Services; its secretary, Robert F. Kennedy Jr.; and its inspector general comes after the declaration issued last week described treatments such as puberty blockers, hormone therapy and gender surgeries as unsafe and ineffective for children experiencing gender dysphoria.

The declaration also warned doctors they could be excluded from federal health programs, including Medicare and Medicaid, if they provide these treatments to minors.

The move seeks to build on President Donald Trump’s executive order in January calling on HHS to protect children from “chemical and surgical mutilation.”

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HHS UNLEASHES SWEEPING CRACKDOWN ON CHILD ‘SEX-REJECTING PROCEDURES,’ THREATENS HOSPITAL, MEDICAID FUNDING

The lawsuit was filed against the U.S. Department of Health and Human Services; its secretary, Robert F. Kennedy Jr.; and its inspector general. (Elizabeth Frantz/Reuters)

“We are taking six decisive actions guided by gold standard science and the week one executive order from President Trump to protect children from chemical and surgical mutilation,” Kennedy said during a press conference last week.

HHS has also proposed new rules designed to further block gender transition treatment for minors, although the lawsuit does not address the rules, which have yet to be finalized.

The states’ lawsuit, filed Tuesday in Eugene, Oregon, argues that the declaration is inaccurate and unlawful and urges the court to prevent it from being enforced.

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“Secretary Kennedy cannot unilaterally change medical standards by posting a document online, and no one should lose access to medically necessary health care because their federal government tried to interfere in decisions that belong in doctors’ offices,” New York Attorney General Letitia James, who led the lawsuit, said in a statement.

The lawsuit claims the declaration attempts to pressure providers into ending gender transition treatment for young people and circumvent legal requirements for policy changes. The complaint said federal law requires the public be given notice and an opportunity to comment before substantively amending health policy and that neither of these were done before the declaration was released.

HHS’ move seeks to build on President Donald Trump’s executive order in January calling on HHS to protect children from “chemical and surgical mutilation.” (Tom Brenner for The Washington Post via Getty Images)

The declaration based its conclusions on a peer-reviewed report that the department conducted earlier this year that called for more reliance on behavioral therapy rather than broad gender transition treatment for minors with gender dysphoria.

The report raised questions about standards for the treatment of transgender children issued by the World Professional Association for Transgender Health and brought concerns that youths may be too young to give consent to life-changing treatments that could result in future infertility.

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Major medical groups and physicians who treat transgender children have criticized the report as inaccurate.

HHS also announced last week two proposed federal rules — one to cut off federal Medicaid and Medicare funding from hospitals that offer gender transition treatment to children and another to block federal Medicaid money from being used for these procedures.

HOUSE APPROVES MTG-SPONSORED BILL TO CRIMINALIZE GENDER TRANSITION TREATMENT FOR MINORS

New York Attorney General Letitia James led the lawsuit against the Trump administration. (Michael M. Santiago/Getty Images)

The proposals have not yet been made final and are not legally binding because they must go through a lengthy rulemaking process and public comment before they can be enforced.

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Several major medical providers have already pulled back on gender transition treatment for youths since Trump returned to office, even those in Democrat-led states where the procedures are legal under state law.

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Medicaid programs in just under half of states currently cover gender transition treatment. At least 27 states have adopted laws restricting or banning the treatment, and the Supreme Court’s decision this year upholding Tennessee’s ban likely means other state laws will remain in place.

Democrat attorneys general from California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Wisconsin, Washington state and Washington, D.C., as well as Pennsylvania’s Democrat governor, joined James in the lawsuit.

The Associated Press contributed to this report.

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Claims about Trump in Epstein files are ‘untrue,’ the Justice Department says

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Claims about Trump in Epstein files are ‘untrue,’ the Justice Department says

Tips provided to federal investigators about Donald Trump’s alleged involvement in Jeffrey Epstein’s schemes with young women and girls are “sensationalist” and “untrue,” the Justice Department said on Tuesday, after a new tranche of files released from the probe featured multiple references to the president.

The documents include a limousine driver reportedly overhearing Trump discussing a man named Jeffrey “abusing” a girl, and an alleged victim accusing Trump and Epstein of rape. It is unclear whether the FBI followed up on the tips. The alleged rape victim died from a gunshot wound to the head after reporting the incident.

Nowhere in the newly released files do federal law enforcement agents or prosecutors indicate that Trump was suspected of wrongdoing, or that Trump — whose friendship with Epstein lasted through the mid-2000s — was investigated himself.

But one unidentified federal prosecutor noted in a 2020 email that Trump had flown on Epstein’s private jet “many more times than previously has been reported,” including over a time period when Ghislaine Maxwell, Epstein’s top confidante who would ultimately be convicted on five federal counts of sex trafficking and abuse, was being investigated for criminal activity.

The Justice Department released an unusual statement unequivocally defending the president.

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“Some of these documents contain untrue and sensationalist claims made against President Trump that were submitted to the FBI right before the 2020 election,” the Justice Department statement read. “To be clear: the claims are unfounded and false, and if they had a shred of credibility, they certainly would have been weaponized against President Trump already.”

“Nevertheless, out of our commitment to the law and transparency, the DOJ is releasing these documents with the legally required protections for Epstein’s victims,” the department added.

The Justice Department files were released with heavy redactions after bipartisan lawmakers in Congress passed a new law compelling it to do so, despite Trump lobbying Republicans aggressively over the summer and fall to oppose the bill. The president ultimately signed the Epstein Files Transparency Act into law after the legislation passed with veto-proof majorities in both chambers.

One newly released file containing a letter purportedly from Epstein — a notorious child sex offender who died in jail while awaiting federal trial on sex-trafficking charges — drew widespread attention online, but was held up by the Justice Department as an example of faulty or misleading information contained in the files.

The letter appeared to be sent by Epstein to Larry Nassar, another convicted sex offender, shortly before Epstein’s death. The letter’s author suggested that Nassar would learn after receiving the note that Epstein had “taken the ‘short route’ home,” possibly referring to his suicide. It was postmarked from Virginia on Aug. 13, 2019, despite Epstein’s death in a Manhattan jail three days prior.

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“Our president shares our love of young, nubile girls,” the letter reads. “When a young beauty walked by he loved to ‘grab snatch,’ whereas we ended up snatching grub in the mess halls of the system. Life is unfair.”

The Justice Department said that the FBI had confirmed that the letter is “FAKE” after it made the rounds on Tuesday.

“This fake letter serves as a reminder that just because a document is released by the Department of Justice does not make the allegations or claims within the document factual,” the department posted on social media. “Nevertheless, the DOJ will continue to release all material required by law.”

The department has faced bipartisan scrutiny since failing to release all of the Epstein files in its possession by Dec. 19, the legal deadline for it to do so, and for redacting material on the vast majority of the documents.

Justice Department officials said they were following the law by protecting victims with the redactions. The Epstein Files Transparency Act also directs the department not to redact images or references to prominent or political figures, and to provide an explanation for each and every redaction in writing.

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The latest release, just days before the Christmas holiday, includes roughly 30,000 documents, the department said. Hundreds of thousands more are expected to be released in the coming weeks.

Democrats on the House Oversight Committee released a statement in response to the Tuesday release accusing the Justice Department of a “cover-up,” writing on social media, “the new DOJ documents raise serious questions about the relationship between Epstein and Donald Trump.”

Documents from Epstein’s private estate released by the oversight committee earlier this fall had already cast a spotlight on that relationship, revealing Epstein had written in emails to associates that Trump “knew about the girls.”

The latest documents release also includes an email from an individual identified as “A,” claiming to stay at Balmoral Castle, a royal residence in Scotland, asking Maxwell if she had found him “some new inappropriate friends.” Andrew Mountbatten-Windsor, formerly known as Prince Andrew, has come under intense scrutiny over his ties to Epstein in recent years.

Speaking at his Mar-a-Lago resort in Florida on Monday, Trump said the continuing Epstein scandal amounts to a “distraction” from Republican successes, and expressed disapproval over the release of images in the files that reveal associates of Epstein.

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“I believe they gave over 100,000 pages of documents, and there’s tremendous backlash,” Trump told reporters. “It’s an interesting question, because a lot of people are very angry that pictures are being released of other people that really had nothing to do with Epstein. But they’re in a picture with him because he was at a party, and you ruin a reputation of somebody. So a lot of people are very angry that this continues.”

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Nick Fuentes says he’ll campaign against Vivek Ramaswamy in Ohio in slur-laced rant

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Nick Fuentes says he’ll campaign against Vivek Ramaswamy in Ohio in slur-laced rant

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White nationalist Nick Fuentes vowed to campaign against Vivek Ramaswamy in a slur-laced rant denouncing the Republican’s Ohio governor bid. 

The declaration came just days after Ramaswamy called out Fuentes during a speech at Turning Point USA’s AmericaFest conference in which he criticized Fuentes over some of his inflammatory remarks. 

“I think I’m going to go to Ohio and the word that we are looking for is denial. We have to deny Vivek Ramaswamy the governorship. This is the only race I care about in ‘26. It’s the only one I care about,” Fuentes said during a Tuesday livestream. He also used a slur to describe Ramaswamy and said he does not care if a Democrat defeats him in the governor’s race.

When asked by Fox News Digital for a response, a spokesperson for Ramaswamy’s campaign said on Wednesday, “We’re focused on the issues that matter most to Ohioans, not fringe voices that prefer a far-left Democrat to the Trump-endorsed conservative.”

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VIVEK RAMASWAMY TURNS TO CONSERVATIVE YOUTH TO SHAPE THE MOVEMENT’S NEXT PHASE, ANALYZES 2026 RACES 

Vivek Ramaswamy speaks during Turning Point USA’s AmericaFest conference on Friday, Dec. 19, 2025. At right is White nationalist Nick Fuentes outside a Turning Point event on June 15, 2024, in Detroit. (Cheney Orr/Reuters; Dominic Gwinn/Getty Images)

Ramaswamy laid out his vision for what it means to be an American during remarks Friday at AmericaFest. 

“What does it mean to be an American in the year 2026? It means we believe in those ideals of 1776,” he said at the Turning Point USA event. “It means we believe in merit, that the best person gets the job regardless of their skin color.”

“It means we believe in free speech and open debate,” he added. “Even for those who disagree with us, from Nick Fuentes to Jimmy Kimmel, you get to speak your mind in the open without the government censoring you.”

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RAMASWAMY REVEALS MAIN LESSON LEARNED BY REPUBLICANS AFTER DEMOCRATS’ BIG WINS ON ELECTION DAY

Vivek Ramaswamy speaks during Turning Point USA’s AmericaFest 2025, on Friday, Dec. 19, 2025, in Phoenix. (Jon Cherry/AP)

Ramaswamy then said, “If you believe in normalizing hatred toward any ethnic group, toward Whites, toward Blacks, toward Hispanics, toward Jews, toward Indians, you have no place in the future of the conservative movement, period.” 

“And I will not apologize for that. I will not hedge when I say it,” Ramaswamy continued. “If you believe, and you will forgive me for giving you an exact quote from our online commentator, Nick Fuentes. If you believe that Hitler was pretty f—— cool, you have no place in the future of the conservative movement. You can debate foreign aid, Israel all you want. That’s fine. That’s fair. But you have no place with that level of hatred.” 

Ramaswamy declared his candidacy for the Ohio governorship in late February.

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Ramaswamy is running to replace Ohio Gov. Mike DeWine, shown here in the Old Senate Chamber in the U.S. Capitol on Jan. 21, 2025. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

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Current Ohio Gov. Mike DeWine, who is also a Republican, is term-limited and will be departing office in January 2027. 

Fox News Digital’s David Rutz contributed to this report. 

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