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In Canada’s ‘Suburb of Detroit,’ Fears Over Trump’s Tariff Threat

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In Canada’s ‘Suburb of Detroit,’ Fears Over Trump’s Tariff Threat

Since 1988, the hulking presses at Lanex Manufacturing on the edge of Windsor, Ontario, have been stamping out door strikers, folding-seat latches, tailpipe hangers, frame braces and other prosaic bits of metal that make their way into vehicles ranging from Corvettes to Honda minivans.

But, these days, worries about the future permeate the plant as President-elect Donald J. Trump prepares to enter the White House. He has threatened to impose a 25 percent tariff on all goods exported from Canada to the United States. In Windsor, that would ravage its lifeblood: automobiles and everything that goes into them.

“Everybody’s waiting for the next shoe to drop,” Bruce Lane, the president of Lanex, said in its boardroom, whose walls were made of painted concrete blocks. “If Windsor lost its automotive business, Windsor would not survive.”

Few Canadian cities are as acutely aware as Windsor of the integration of the two countries’ economies. The city sits just across the Detroit River from Detroit, and Canada’s maple-leaf flag often flies next to the stars and stripes there. And no industry has been interwoven across the border for as long as auto making.

“These workers here in Windsor are more exposed to trade with the United States than anyone else,” Prime Minister Justin Trudeau said at a steel plant during a recent visit to the city.

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Mr. Trump, he added, “is proposing tariffs that would damage not just people here in Windsor but people right across the country and indeed in the United States.”

Windsor’s two major landmarks are shared with Detroit: the $5.7 billion Gordie Howe International Bridge, scheduled to open this year, and the 96-year-old Ambassador Bridge, which carries about $300 million in cross-border trade each day. Of Canada’s $440 billion in annual exports to the United States, only oil and gas generate a larger amount than cars, trucks and auto parts.

But with Canadian officials taking Mr. Trump at his word that he will follow through on his threat of tariffs, Mr. Lane and others in the auto industry are already bracing for the potential fallout.

George Papp is the chief executive of Papp Plastics, whose headquarters sits near the imposing new suspension bridge. He said his U.S. customers, mainly automakers, would simply invoke the terms of contracts he has with them and deduct the cost of tariffs from the amount they pay him.

“Who’s going to take the hit?” Mr. Papp said. “Me, and people like me and companies like mine.”

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Flavio Volpe, the president of the Automotive Parts Manufacturer’s Association, a Canadian trade group, estimated that most of his members had single-digit profit margins and that the tariffs Mr. Trump was threatening would be ruinous.

The intertwining of the auto industry across the two countries was cemented in 1965 when Canada and the United States reached an agreement that effectively eliminated the border for the industry. Today, 90 percent of cars and trucks made in Canada are sent to the United States, primarily by train.

At Lanex, small metal parts that few motorists will ever see are forged into shape by upward of 600 tons of pressure by the firm’s presses. Their journeys illustrate how enmeshed the two countries’ auto industries have become.

As a small supplier, Mr. Lane does not deal directly with carmakers, but sells his goods through larger parts makers. Seat-locking hooks that Lanex makes for Honda minivans are sent to a plant elsewhere in Ontario, where they are fitted with other parts and then shipped to an assembly line in Alabama that belongs to Honda, a Japanese company.

Mr. Lane’s factory has sent parts to Michigan for heat treating, brought them back to Windsor for more machining and then sold them to a U.S. company.

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“Windsor is used to going back and forth across the border,” Mr. Lane said. “It’s like just like getting up out of bed in the morning.”

The turmoil from possible tariffs comes at an already difficult time for Canada’s auto business. Many auto-parts manufacturers have yet to see their business return to levels from before the coronavirus pandemic because of lagging car sales. In 2020, Lanex had about 60 employees working on two shifts, but it now has about two dozen employees running a single shift.

The anxiety is particularly acute in Windsor, which has a metropolitan population of roughly 484,000. Aside from cargo trucks rumbling across the Ambassador Bridge, the city’s most obvious automotive symbol is a giant Stellantis factory that produces Chrysler Pacifica minivans as well as Dodge Charger muscle cars.

A city within the city, the European-based Stellantis employs 4,500 workers at the factory. Aided by billions of dollars in Canadian subsidies, it is building a battery plant in a joint venture with the South Korean company LG in Windsor and recently spent 1.89 billion Canadian dollars (about $1.3 billion) to retool its assembly plant to make electric vehicles alongside gasoline-powered ones.

But, like many auto makers, Stellantis is now in a slump as it struggles with the transition to electric vehicles and with competition from China.

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James Stewart, the president of the local union that represents Windsor’s Stellantis workers, said he did not believe a large tariff would necessarily deal a fatal blow to Stellantis’s operations in Windsor, given how much the company had invested.

But with so much of Windsor’s economic well-being intimately tied to trade with the United States, Mr. Stewart said, tariffs would deal a heavy blow, including the closing of businesses, layoffs and production cuts.

“We’re a suburb of Detroit; we’ve always felt that way,” he said, adding that Windsor seemed to be “under attack and for no reason.”

Mr. Trump initially characterized tariffs as a way to prod Canada and Mexico into better securing their borders to tamp down the flow of undocumented migrants.

But he also mused about making Canada the 51st state, noting that the United States was heavily invested in Canada’s military defense, and threatened to use economic force annex it. He has also vented about what he describes as the “subsidizing’’ of Canada by the United States, an apparent reference to the U.S. trade deficit with Canada, largely because of oil and gas imports.

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The Trudeau government is expected to detail how it would retaliate against any U.S. tariffs on Monday, the day Mr. Trump is to take office.

But Canada’s comparatively small economy makes it difficult for the country to inflict substantial economic harm on the United States, though levies against specific products could hurt individual states. Retaliatory tariffs would also drive up prices in Canada.

Back at the Lanex plant, Mr. Lane said that, by pure coincidence, the company had been embarking on a “secret” manufacturing project unrelated to automobiles and that had unexpectedly become a potential hedge against tariffs. He declined to offer any details to avoid tipping off competitors.

Mr. Papp, the plastics-company owner, said that even though he would oppose tariffs, which would hurt his business, he was a fan of Mr. Trump and understood why the president-elect had argued that tariffs were needed to help rebuild industry in the United States.

Regardless of what happens, Mr. Papp said, Canada and the United States will always remain unshakable allies.

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“You can’t separate our countries,” he said. “They’re bolted together.”

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China’s Exports and Imports Set Records in April Amid High Energy Costs

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China’s Exports and Imports Set Records in April Amid High Energy Costs

China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.

China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.

The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.

Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.

China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.

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The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.

China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.

Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.

Overall exports of electronics and machinery were up 20 percent in April from a year earlier.

China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.

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With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.

Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.

China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.

China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.

The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.

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China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.

“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.

But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”

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Disney’s ABC challenges FCC, escalating fight over free speech

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Disney’s ABC challenges FCC, escalating fight over free speech

Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.

Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.

The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.

The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.

In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.

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“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.

The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.

In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.

“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”

ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.

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In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.

But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.

Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.

Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.

(Genaro Molina/Los Angeles Times)

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Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.

“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”

The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.

ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.

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“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”

ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.

The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.

The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.

“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.

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On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.

In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.

The company has produced more than 11,000 pages of documents to comply with the request, Disney said.

The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.

Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.

The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.

China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.

The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.

“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.

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The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.

U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.

The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.

Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.

“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.

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