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Trump Pulls Back Plans to Double Canadian Metal Tariffs After Ontario Relents

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Trump Pulls Back Plans to Double Canadian Metal Tariffs After Ontario Relents

President Trump escalated his fight with Canada on Tuesday, threatening to double tariffs on steel and aluminum imports and pressing to turn one of America’s closest traditional allies into the 51st state. After several tense hours, both sides backed down, at least for now.

It was the latest in a week of chaotic trade moves, in which the president startled investors and businesses that depend on trade and clashed with some of the country’s closest trading partners.

In a post on his social media platform Tuesday morning, Mr. Trump wrote that Canadian steel and aluminum would face a 50 percent tariff, double what he plans to charge on metals from other countries beginning Wednesday. He said the levies were in response to an additional charge that Ontario had placed on electricity coming into the United States, which was in turn a response to tariffs Mr. Trump imposed on Canada last week.

By Tuesday afternoon, leaders had begun to relent. The premier of Ontario, Canada’s most populous province, said he would suspend the electricity surcharge, and Mr. Trump said at the White House he would “probably” reduce the tariff on Canadian metals.

Kush Desai, a White House spokesman, said Tuesday afternoon that Mr. Trump’s threats had succeeded in getting Canada to back down. “President Trump has once again used the leverage of the American economy, which is the best and biggest in the world, to deliver a win for the American people,” he said.

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As a result, he said that Canada would face the same 25 percent tariff on metals as all of America’s trading partners will when they go into effect at midnight.

Still, that levy could reignite trade tensions. The Canadian government has vowed to retaliate against the 25 percent tariffs that Mr. Trump will introduce on global steel and aluminum on Wednesday.

“The Government of Canada has been clear on this issue since the beginning — should the United States move forward tomorrow with the imposition of tariffs on Canadian products, including steel and aluminum, we will be ready to respond firmly and proportionately,” said Gabriel Brunet, spokesman for Dominic LeBlanc, the finance minister who is leading Canada’s trade response.

Mr. Trump’s new confrontation with Canada tariffs sent jittery markets tumbling, with major indexes closing down for the day. In addition to doubling the metal tariffs, the president threatened more levies if Canada didn’t drop various tariffs it imposes on U.S. dairy and agricultural products.

“If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada,” he threatened.

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Mr. Trump went on to say that “the only thing that makes sense” is for Canada to become the 51st U.S. state. The idea of joining the United States has been angrily rejected across Canada.

The president reiterated those comments Tuesday afternoon, saying that Canada would no longer have a tariff problem if it became part of the United States.

“When you take away that artificial line that looks like it was done with a ruler,” he said, referring to the border, “and that’s what it was, some guy sat there years ago and they said, well, when you take away that, and you look at that beautiful formation of Canada and the United States, there is no place anywhere in the world that looks like that.”

Doug Ford, Ontario’s premier, said in a news conference in Toronto Tuesday afternoon that he would suspend the 25 percent surcharge on electricity exports to Michigan, Minnesota and New York that went into effect on Monday.

“The temperature needs to come down,” Mr. Ford said.

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In a statement jointly issued with Howard Lutnick, the U.S. secretary of commerce, Mr. Ford said that the sides would meet in Washington on March 13, and discuss a “renewed U.S.M.C.A.,” referring to the trade agreement between Canada, Mexico and the United States, ahead of more tariffs to come on April 2.

Mr. Trump’s earlier comments significantly escalated a confrontation with one of America’s largest trading partners, and called into question his intentions.

Canadian officials first thought Mr. Trump’s idea of absorbing Canada into the United State was a joke, but they have more recently begun to take the president’s threats seriously.

Last week, outgoing Prime Minister Justin Trudeau of Canada called Mr. Trump’s ostensible reason for imposing tariffs on Canada — to stop the flow of fentanyl into the United States — “completely bogus.”

Mr. Trudeau suggested that what Mr. Trump wanted to see was a collapse of the Canadian economy “because that’ll make it easier to annex us.”

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“That’s never going to happen,” he said.

Mr. Trump spent much of his social media post on Tuesday essentially cajoling Canada to become part of America, writing that it would make tariffs “totally disappear,” lower Canadian taxes and make the country more secure militarily.

In calls between Mr. Trump and Mr. Trudeau in early February, the American president told the Canadian prime minister that he did not believe that the treaty that demarcates the border between Canada and the United States was valid, according to people with knowledge of the conversations.

When questioned in a news conference in January about whether he planned to use military force to annex Canada, Mr. Trump replied that he would use “economic force.”

Mark Carney, who will succeed Mr. Trudeau as prime minister of Canada within the next few days, called the latest tariff threat “an attack on Canadian workers, families, and businesses” in a social media post.

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He added: “My government will ensure our response has maximum impact in the US and minimal impact here in Canada. My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade.”

Mr. Trump, in his post, also targeted the Canadian dairy industry, saying that the country “must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous.”

The Canadian dairy industry has become a frequent target of Mr. Trump’s in recent weeks, although his description of those barriers is misleading. Canada allows a certain amount of U.S. dairy products to come in to the country tariff-free, as long as they don’t exceed certain import quotas, which increase every year. After imports hit a certain level, they are hit with high tariffs, for example 298.5 percent for butter. The system is known as a “tariff-rate quota.”

For a variety of reasons, American dairy exporters, who shipped about $1.1 billion of their products to Canada last year, have never exceeded those quotas, so those tariffs have never been activated. The United States also has tariff-rate quotas for some dairy imports, and other goods, though its tariffs tend to be much lower.

Mr. Trump also said Tuesday that he would declare “a national emergency on electricity within the threatened area” that would “allow the U.S. to quickly do what has to be done to alleviate this abusive threat from Canada.”

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“They will pay a financial price for this so big that it will be read about in History Books for many years to come!” he said in a subsequent social media post.

Ryan Young, a senior economist at the Competitive Enterprise Institute, said that putting tariffs on foreign countries’ goods would almost always incite them to retaliate, increasing costs for consumers and worsening concerns about a recession. “Sometimes the only way to win is not to play,” he said. “This is true of nuclear war, and it is true of tariffs.”

Mr. Trump’s head-spinning tariff threats and quick reversals against America’s largest trading partners have caused anxiety for investors and businesses. The president imposed a 25 percent tariff on imports from Mexico and nearly all imports from Canada last Tuesday.

But Mr. Trump partly lifted the measure after stock markets sank and various industries pushed back. By Thursday, the president suspended those tariffs indefinitely for all products that comply with the North American free trade deal, U.S.-Mexico-Canada Agreement, or U.S.M.C.A. — about half of all imports from Mexico and nearly 40 percent of those from Canada.

The president has repeatedly promised that more tariffs are on the way. He has said that he would impose tariffs on foreign cars as well as “reciprocal” tariffs on foreign nations on April 2.

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Eswar Prasad, a professor of trade policy at Cornell University and a former official at the International Monetary Fund, said that the threats against Canada would have important repercussions not just for the North American economies “but for the stability of the world order.”

“Trump’s aggressive tariff actions against a country long seen as a close U.S. economic and geopolitical ally puts the entire world on notice that strong historical relationships are no guarantee of future cordiality,” he said.

Matina Stevis-Gridneff and Danielle Kaye contributed reporting.

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Commentary: The UC faculty just won a big court victory over Trump. But why didn’t UC join their lawsuit?

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Commentary: The UC faculty just won a big court victory over Trump. But why didn’t UC join their lawsuit?

On Nov. 14 the faculty and staff of the University of California won a significant victory over President Trump in his effort to fine UCLA $1.2 billion for resisting his efforts to bend the university to his ideological demands.

Finding that the plaintiffs submitted “overwhelming evidence” that Trump and his cabinet members pursued a campaign of cutting off government funding with the goal of “bringing universities to their knees and forcing them to change their ideological tune,” federal Judge Rita Lin of San Francisco blocked the fine and nearly $600 million in funding cuts. She ordered the money to start flowing again.

Lin’s ruling resembles those by other federal judges who blocked Trump’s funding cutoffs. Faculty and staff representatives, with the American Assn. of University Professors as the lead plaintiff, justly celebrated the UC injunction, even though it’s likely that the government will appeal.

It may be hard for an educational institution to ride this out until 2029. For an institution that budgets on an annual basis, three years is a long time.

— Dan Schnur, UC Berkeley

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But two entities with an interest in the case’s outcome have been silent: the state of California and UC itself. Neither joined the AAUP lawsuit, which was filed in September, and neither has commented since.

It’s not as though the state and the university are blind to the potential impact of Trump’s funding cutoff. When Trump’s demands and threats were made public in August, Gov. Newsom termed them “extortion” and threatened to sue. UC President James B. Milliken said the announced cuts would be a “death knell for innovative work that saves lives, grows our economy and fortifies our national security.”

Addressing the UC Board of Regents at its meeting Wednesday, Milliken stated that the university system still faces the loss of more than $1 billion in federal research funding, but didn’t mention the AAUP lawsuit.

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UC reportedly has continued negotiations with the White House. A UC spokesperson wouldn’t comment on any such talks, even to confirm them. A spokesman for Gov. Newsom said he’s closely watching the numerous court cases challenging Trump’s funding threats, and “he’s pleased with the recent court rulings affirming that Trump’s assault on California’s world-class research institutions was reckless and illegal.”

Let’s keep in mind what’s at stake in this battle. The University of California is the premier public university system in the nation. It’s the second-largest employer in the state and one of the most important providers of healthcare. The productivity of its research is spectacular. Much of the universities’ work is supported by the government — $17 billion a year, including matching Medicaid and Medicare funding and student aid.

“We were hopeful that the UC system would defend itself legally,” says Veena Dubal, a law professor at UC Irvine and general counsel to the AAUP. After UCLA published the administration’s 27-page list of demands in August, she says, the AAUP decided it couldn’t wait any longer: “We couldn’t not sue, they were so outrageous.”

The demands included bans on diversity programs, public demonstrations across much of the campus and provisions for transgender students. UCLA also would be required to refuse admission to foreign students “likely to engage in anti-Western, anti-American, or antisemitic disruptions,” and to comply with Trump’s ban on “gender ideology” — that is, defining males and females as anything other than the sex they were assigned at birth.

The state and the UC system haven’t entirely avoided legal jousting with Trump. California led seven other states into federal court to challenge the Dept. of Education’s termination of $65 million in grants funding programs that included diversity, equity and inclusion initiatives. They won at the trial level, but the Supreme Court stayed that ruling on grounds that the case may have been brought in the wrong federal court.

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The regents also joined a lawsuit brought by the Assn. of American Universities and 13 other universities challenging the Dept. of Health and Human Services limit on reimbursements for overhead costs on government-funded research, which would cost universities billions of dollars. They won at the trial level, but the government appealed that ruling. The state also sued Trump or participated in lawsuits on other topics.

One can understand, even sympathize with, the reluctance of UC to pursue a courtroom fight over Trump’s demands. UC faces the same quandary as other institutions that have tried to reach accords with the administration.

Trump has almost unlimited tools at his discretion to harass his adversaries for years to come through endless “investigations” of purported statutory violations, among other things. Courtroom battles take time and money, resources that may never be recovered. Plus with a pro-Trump majority on the Supreme Court, ultimate victory is nothing like a certainty.

And while Trump’s term won’t last beyond January 2029, at which point his anti-university campaign might end, that may be cold comfort for institutions facing an immediate financial crisis.

“It may be hard for an educational institution to ride this out until 2029,” says Dan Schnur, a veteran political consultant on the faculty of UC Berkeley’s Institute of Governmental Studies. “For an institution that budgets on an annual basis, three years is a long time, and for a student, it’s three-fourths of an undergraduate experience.”

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That brings us to the case the UC faculty and staff made in court. It’s as clear and concise a description of the noxious campaign Trump has conducted against American higher education that one will find anywhere. It was accepted almost in its entirety by Judge Lin.

The administration consistently has portrayed the funding cutoffs as a response to what it claims to be pervasive antisemitism at UCLA and other targeted campuses. Yet as federal Judge Allison D. Burroughs of Boston found in September when she blocked Trump’s grant terminations against Harvard, it’s “difficult to conclude anything other than that [the government] used antisemitism as a smokescreen for a targeted, ideologically-motivated assault on this country’s premier universities.”

Indeed, the UC plaintiffs show that the funding cutoffs were motivated purely by ideology, and flagrantly infringed on free speech rights. Just a week after Trump’s inauguration, the White House issued an order suspending all financial disbursements that involved “DEI, woke gender ideology, and the green new deal.” (“DEI” refers to programs aimed at diversity, equity and inclusion, a favored target of the right.)

The faculty lawsuit quotes Leo Terrell, an assistant attorney general for civil rights and a named defendant, telling Fox News, “The academic system in this country has been hijacked by the left, has been hijacked by the Marxists.” He said, “We’re gonna bankrupt these universities. We’re gonna take away every single dollar.” In an interview he said he had “targeted 10 schools. Columbia, Harvard, Michigan, UCLA, USC… We’re going to take away [their] funding.”

The lawsuit positions the administration’s campaign against UCLA against its similar attacks on funding at Columbia, Brown and Harvard. It also points to the folly of trying to settle with Trump out of court.

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Columbia was among the first universities to settle with Trump — it would ultimately agree to $221 million in payments and to give the government extraordinary oversight of its hiring, pedagogical and social policies. Initially that was a response in March to a government threat to block some $400 million in federal grants.

But even after its initial capitulation in March Trump continued to block $1.2 billion in funding until Columbia agreed to additional demands in July.

As Judge Lin described the government campaign against UCLA and other universities launched by the White House, it starts when “one or more … agencies open civil rights investigations into a university…. Before the investigations are concluded, Funding Agencies cancel large amounts of federal funding.” Then the Justice Department offers to settle with the targets “in exchange for further burdening faculty, staff, and student speech.”

It’s theoretically possible that the Trump administration could make its funding cutoffs stick if it follows the procedures enshrined in law for terminating federal grants (and it may yet prevail in appeals to the Supreme Court).

The rules require government agencies to issue a notice of possible violation and attempt to negotiate a settlement and hold a hearing, then file a report with the House and Senate specifying “the circumstances and grounds for such action” and wait at least 30 days more before canceling any funding. The cancellations can apply only to the specific program deemed to be violating the law.

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The goal of these safeguards, Lin observed, is to protect grant recipients from “‘vindictive’ or ‘punitive’” actions by the government. In these cases, the government followed none of the mandated procedures.

The administration‘s defense, in part, is that the funding cutoffs are entirely within its discretion and can’t be reviewed by a judge, assertions Lin specifically rejected. The administration also stated that the August demand letter to UCLA was merely an “opening settlement offer” in ongoing “confidential settlement negotiations” with the university.

Given the findings from federal judges that Trump has flouted the legal safeguards against abrupt and arbitrary grant cancellations in favor of illicit bullying, the question facing universities trying to negotiate their way out is: What is there to negotiate? The record so far indicates that no settlement will fully satisfy Trump or his anti-woke warriors; only judges can bring the campaign to a halt.

It’s certainly true that in the short run, Trump’s targets will suffer great pain. He knows well that they’re vulnerable to blunt force. “With every day that passes,” Lin observed, “UCLA continues to be denied the chance to win new grants, ratcheting up [the government’s] pressure campaign.”

In the long run, however, there are limits to how much an educational institution can concede.

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One is tempted to recall what Michael Corleone said in “The Godfather Part II” when he was being bullied by the corrupt Sen. Pat Geary into paying a bribe: “My offer is this,” he said. “Nothing.”

It may not be so easy for even powerful universities to take such an uncompromising stand. But it may be necessary.

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Skechers investors say they were forced to take a bad deal when the company went private

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Skechers investors say they were forced to take a bad deal when the company went private

Skechers investors are suing company executives and Skechers owner 3G Capital over what they say was an unfair sale price in an acquisition earlier this year.

3G Capital took the Manhattan Beach-based sneaker company private in a $9.4-billion deal that closed in September and reflected a share price of $63 per share.

In a class action complaint filed this month in Delaware Chancery Court, hedge funds and other large Skechers investors accused the company and 3G Capital of arranging a non-independent deal that shortchanged minority shareholders.

The deal undervalued the company as its shares were taking a beating because of a volatile federal tariff policy, the complaint said. The deal also benefited Skechers President Michael Greenberg and other controlling shareholders, according to the plaintiffs.

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Plaintiffs seeking a higher share price were unable to reach an early settlement with Skechers after the company made an offer that was slightly higher than the original price, Bloomberg reported this week.

According to court documents, 3G Capital had offered a price of $73 per share in March this year, but lowered its offer after Trump’s tariff “liberation day” on April 2.

Investors are now pressing ahead with the case, according to Bloomberg.

Skechers said it would not comment on pending legal matters.

Skechers was one of many footwear and apparel companies that sounded the alarm when Trump passed steep import taxes on countries including China and Vietnam, where many Skechers products are made.

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The company’s stock price fell 23% in early April after the tariffs were announced. Shares bounced back up 30% after the 3G Capital deal was announced.

Around the time of the acquisition, 3G Capital and Skechers said the purchase price represented a 30% premium to the company’s 15-day volume-weighted average stock price.

After the deal closed, about 60 investment pools managed by various firms filed to challenge the price of $1.3 billion worth of shares.

Plaintiffs in the case say Chief Executive Robert Greenberg, along with his son Michael, the company’s president, worked closely with 3G Capital to tailor an acquisition deal that worked for them amid tariff chaos.

“The merger was carefully structured to allow the Greenberg stockholders to monetize a substantial amount of their personal Skechers’ holdings,” the court complaint said.

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Video: What the Jobs Report Tells Us About the Economy

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Video: What the Jobs Report Tells Us About the Economy

new video loaded: What the Jobs Report Tells Us About the Economy

What does the September jobs report, delayed by six weeks because of the government shutdown, say about the economy? Lydia DePillis, our economics reporter, describes how the report, which was better than expected, comes at a moment of deep uncertainty.

By Lydia DePillis, Claire Hogan, Stephanie Swart, Gabriel Blanco and Jacqueline Gu

November 21, 2025

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