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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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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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General Motors to pay $12.5 million to settle claims that it illegally sold California driver data

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General Motors to pay .5 million to settle claims that it illegally sold California driver data

General Motors has agreed to pay $12.5 million dollars to settle claims that the automaker illegally sold location and driving data of hundreds of thousands of Californians, state officials said Friday.

The settlement is an example of how automakers are facing more scrutiny over allegations that they share driver data with the insurance industry, influencing how much people pay for coverage. California, though, has a law that bars insurers from using driving data to set rates.

“If we get word that a company is illegally collecting, storing or selling consumer data, we won’t hesitate to look under the hood and hold them accountable to the law,” California Atty. Gen. Rob Bonta said in a news conference.

The settlement is the largest California Consumer Privacy Act penalty in the state’s history, Bonta said.

The act gives California consumers the right to request that businesses disclose what data they collect. They can also opt out of the sharing or sale of their personal information and request that businesses delete their data.

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Investigators found that from 2020 to 2024, GM sold driver data, including names, contact information, location data and driving behavior data, to data brokers Verisk Analytics Inc. and LexisNexis Risk Solutions. The data came from a driver’s use of OnStar, which is owned by GM and provides roadside assistance, navigation and other services.

GM said the agreement addresses a product called OnStar Smart Driver that the company discontinued in 2024. The product was meant to help improve people’s driving but faced privacy concerns from consumers. In 2024, GM also ended its partnership with the two data brokers and said it would enhance privacy controls.

“Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information,” a GM spokesperson said in a statement.

Various district attorneys throughout the state, including in Los Angeles and San Francisco, were involved in the investigation and settlement.

Technology has been playing a bigger role in the auto industry, but the data collected from drivers can reveal personal information about people’s daily habits, including where they drop off their kids and doctor visits.

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The California Privacy Protection Agency in 2023 started investigating the privacy practices of connected cars. As the state was looking into the automakers, the New York Times reported in 2024 that GM was sharing consumer driving behavior with insurance companies. Nationwide, GM reportedly made roughly $20 million from selling data to Verisk and LexisNexis.

The state’s privacy protection agency has taken action against other automakers before. Ford Motor Company was fined $375,703 in March and Honda was fined $632,500 in 2025 for privacy violations.

Under the GM settlement, which still needs court approval, the automaker would delete any driving data the company kept within 180 days and request that the two data brokers do the same. They would also stop selling driving data to consumer reporting agencies for five years and develop a privacy program that includes assessing and mitigating the risks of data collected from OnStar.

California’s settlement with GM came after the Federal Trade Commission in 2025 also took action against the automaker and OnStar for its privacy practices, barring them from disclosing location and driver behavior data to consumer reporting agencies for five years.

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Trump’s Latest Tariff Setback Looms Over China Talks

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Trump’s Latest Tariff Setback Looms Over China Talks

A day after a federal court ruled against President Trump’s latest global tariffs, his administration returned to the drawing board on Friday, trying to preserve its powers to wage economic warfare in time for high-stakes trade talks with China.

The latest legal blow concerned the 10 percent tariff that Mr. Trump imposed in late February on nearly all U.S. imports. The president unveiled that policy as a sort of temporary fix, after the Supreme Court tossed out his initial duties, but a panel of judges once again found that the White House had run afoul of the law.

The result was a familiar set of headaches for Mr. Trump, who has tried repeatedly — and with mixed success — to stretch his authority to tax imports without the express permission of Congress. By Friday, one of the president’s top aides signaled that an appeal was imminent, echoing the president, who told reporters shortly after the ruling that he would simply “do it a different way.”

Technically, the Court of International Trade only declared the president’s across-the-board, 10 percent tariff to be illegal. Otherwise, it did not issue an order forcing the government to stop collecting it from all importers, at least for now. Still, the outcome marked both a political and legal setback for Mr. Trump, who had spent much of the week issuing trade threats against Europe and preparing for talks in China.

Tariffs are expected to be a major topic on the agenda when Mr. Trump travels to Beijing to meet next week with his counterpart, Xi Jinping. Trade experts said the court decision could undercut the president’s leverage. Eswar Prasad, a professor of economics at Cornell University, said the ruling “severely handicapped” the administration’s ability to employ tariffs against foreign nations, leaving Mr. Trump with a “much weaker bargaining hand” when it comes to China.

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“Any threats by Trump to hit China with broader and higher tariffs if Xi doesn’t bend to his will on economic and geopolitical matters now seem like empty bluster rather than credible ultimatums,” he said.

One of the president’s top trade advisers, Jamieson Greer, appeared to brush aside some of those concerns on Friday. During an interview on Fox Business, he criticized the court for ruling against the White House, claiming that some of the judges on the panel were “apparently just hellbent on importing more from China.”

Mr. Greer, who defended the president’s use of trade powers, added that the administration is “confident on appeal we’ll be successful.”

At the heart of the matter is Mr. Trump’s decision to invoke a trade power that no president had ever used. Known as Section 122 of the Trade Act of 1974, it permits the president to impose tariffs up to 15 percent for 150 days, but only in response to strict conditions, including a “balance of payments” crisis.

The term itself reflects a bygone concern from the time the law was adopted, when the U.S. dollar was pegged to gold, creating unique economic risks. But the Trump administration sought to argue that the law still applied today, pointing in part to the country’s persistent trade deficit, a different measurement, which reflects the gap between U.S. imports and exports.

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In the end, a majority of judges on the Court of International Trade found the argument unpersuasive and sided with small businesses and states that had sued. It marked the second time that some of those challengers had prevailed against Mr. Trump, after they convinced the Supreme Court to invalidate his earlier use of emergency powers to impose withering tariffs.

The new decision raised the odds that the administration could soon have to pay back the billions of dollars collected from its 10 percent tariff, on top of the $166 billion that the government already owes to U.S. importers from its last legal defeat. But the fight appeared far from over, and much remained uncertain by Friday — not just for American businesses, which paid the cost to import goods, but for the Trump administration itself.

“President Trump has lawfully used the tariff authorities granted to him by Congress to address our balance of payments crisis,” Kush Desai, a White House spokesman, said in a statement. “The Trump administration is reviewing legal options and maintains confidence in ultimately prevailing.”

For one thing, the court only appeared to bar the collection of the president’s 10 percent tariff for some of the plaintiffs that sued, many legal experts said. That raised the odds that droves of U.S. businesses could soon mobilize and “file a court case” of their own asking for similar relief, said Ted Murphy, a top trade lawyer at the law firm Sidley Austin. He added that he also expected the trade court to pause implementation of its order pending an appeal.

The timing is important to Mr. Trump, who had always envisioned his across-the-board tariff as a stopgap that would allow the government time to prepare a set of more lasting rates using another set of authorities, known as Section 301. But that process was widely expected to take months, since the law requires the government to conduct investigations into other countries’ trade practices before Mr. Trump can apply new duties.

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Those inquiries targeting dozens of countries are well underway, and the president at times has suggested the final rates could be set at new highs. Some experts believe the tariffs imposed using Section 301 could be more legally durable, though the administration could still face lawsuits over his aggressive use of the law.

Michael Lowell, the chair of the global regulatory enforcement group at the law firm Reed Smith, said the White House probably would not have to worry about “a broad attack on that authority.” But, he said, the courts had recently drawn something of a line in the sand, suggesting they would be “very skeptical of the administration looking to the past and finding and repurposing” other powers to advance its trade agenda.

Unlike the president’s other trade gambits, he has successfully applied tariffs in the past using Section 301, including on China. That left some analysts to conclude that Mr. Trump, while blemished, would still retain some leverage ahead of his trip to Beijing next week.

“Unless they have amnesia, China should remember quite vividly how during Trump’s first term, the U.S. imposed multiple rounds of tariffs under Section 301 on China during negotiations,” said Sarah Schuman, a former U.S. trade official who is now managing director at Beacon Global Strategies.

The administration still had multiple options “to increase tariffs on China in pretty short order,” she added.

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Mr. Trump’s trip to China had been scheduled for April, but was delayed because of the war in Iran. U.S. officials have said their goals for the visit include establishing a “board of trade,” which would oversee commerce between the countries in an effort to balance trade and reduce the U.S. trade deficit with China

On Friday, Mr. Greer sketched out a long list of concerns that the administration planned to raise with its Chinese counterparts, from its adherence to past purchase agreements to its approach to artificial intelligence.

“There’s not really a situation where we go, we get China to change the way they govern, the way they manage their economy; that’s all baked into their system,” he said. “But I think there is a world where we find out where we can optimize trade between China and the U.S. to achieve more balance.”

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