Connect with us

News

Dollar surges as Donald Trump’s tariffs shake markets

Published

on

Dollar surges as Donald Trump’s tariffs shake markets

Unlock the White House Watch newsletter for free

Donald Trump’s tariffs shook markets on Monday, with the US dollar surging, Asian markets falling and US stock futures sliding as investors rush to assess how the levies will affect America’s biggest trading partners. 

The US dollar surged more than 1 per cent against a basket of currencies, sending the Canadian dollar to C$1.473 — the lowest level since 2003. Mexico’s currency slid by more than 2 per cent to 21.15 pesos a dollar while the euro fell 1 per cent.

US stock futures also fell sharply, with contracts tracking the benchmark S&P 500 losing 1.7 per cent and those tracking the Nasdaq 100 sliding 2.3 per cent. European futures also fell, with the Euro Stoxx 50 down 2.6 per cent.

Advertisement

Trump admitted in a post on Truth Social, his social network, that there would “maybe” be “some pain” from his tariffs. “But . . . it will all be worth the price that must be paid,” he wrote on Sunday.

The US two-year Treasury yield rose by 0.05 percentage points to 4.25 per cent, while the 10-year yield fell by 0.02 percentage points to 4.52 per cent.

In Asia, Japanese equities slid. The export-heavy Nikkei 225 fell 2.4 per cent while the Topix fell 1.9 per cent. The yen weakened 0.2 per cent against the dollar to ¥155.5.

China’s offshore renminbi, which trades freely, slid as much as 0.7 per cent to Rmb7.37 a dollar on Monday morning. Hong Kong’s Hang Seng index was down 1.8 per cent, led lower by Chinese companies listed in the territory. Mainland China’s stock market is closed until Wednesday.

South Korea’s Kospi benchmark shed 2.2 per cent and the won dropped 0.9 per cent against the dollar to Won1,468.8. In Australia the S&P/ASX 200 index fell as much as 2 per cent.

Advertisement

Weaker currencies can help offset some of the tariffs’ impact.

“There was some optimism in the market that [tariff threats] were just for negotiation, but the market may have underestimated the determination of the Trump administration”, said Jason Lui, head of Asia-Pacific equity and derivative strategy at BNP Paribas.

The steep declines came after Trump on Saturday imposed 25 per cent tariffs on all imports from Mexico and Canada, with a lower 10 per cent levy for Canadian energy, and new 10 per cent tariffs on imports from China. He also last week threatened levies against the EU.

Economists have warned that the tariffs are likely to accelerate inflation in the US, something that pushed up Treasury yields and the dollar following Trump’s election in November.

“The clearest implication is a stronger dollar,” said Eric Winograd, chief economist at AllianceBernstein. “A long dollar position is the cleanest, clearest expression of the trade war that is now being launched.”

Advertisement

“The currencies that will suffer the most are the ones against whom the tariffs are being imposed,” added Winograd, noting that “there’s a good case to be made that the equity market will suffer a little bit”.

Oil prices also climbed in early Asian trade, with international benchmark Brent crude up 0.6 per cent at $76.13 a barrel.

George Saravelos at Deutsche Bank said the tariff announcements were “at the most hawkish end of the protectionist spectrum we could have envisaged”, and that markets needed to “structurally and significantly reprice the trade war risk premium”.

The Mexican peso has whipsawed in recent weeks as traders have scrutinised the new Trump administration’s announcements for clues about how quickly and how extensive any new levies would be.

“If the tariff stays on for several months the exchange rate will reach new historic highs,” said Gabriela Siller, chief economist at Mexico’s Banco Base, referring to the number of pesos per dollar. “If the tariff stays on it will be a structural change for Mexico . . . and Mexico could go into a profound recession that would take years to come out of.”

Advertisement

News

Iran and the US lean into gunboat diplomacy as nuclear talks hang in balance

Published

on

Iran and the US lean into gunboat diplomacy as nuclear talks hang in balance

DUBAI, United Arab Emirates (AP) — Iran and the United States leaned into gunboat diplomacy Thursday as nuclear talks between the nations hung in the balance, with Tehran holding drills with Russia and the Americans bringing another aircraft carrier closer to the Mideast.

The Iranian drill and the arrival of the USS Gerald R. Ford aircraft carrier near the mouth of the Mediterranean Sea underscore the tensions between the nations. Iran earlier this week also launched a drill that involved live-fire in the Strait of Hormuz, the narrow opening of the Persian Gulf through which a fifth of the world’s traded oil passes.

The movements of additional American warships and airplanes don’t guarantee a U.S. strike on Iran — but it does give President Donald Trump the ability to carry out one should he choose to do so. He’s so far held off on striking Iran after setting red lines over the killing of peaceful protesters and Tehran holding mass executions, while reengaging Tehran in nuclear talks earlier disrupted by the Iran-Israel war in June.

“Should Iran decide not to make a Deal, it may be necessary for the United States to use Diego Garcia, and the Airfield located in Fairford, in order to eradicate a potential attack by a highly unstable and dangerous Regime,” Trump wrote on his Truth Social website, seeking to pressure the United Kingdom over its plans to settle the future of the Chagos Islands with Mauritius.

Meanwhile, Iran struggles with unrest at home following its crackdown on protests, with mourners now holding ceremonies honoring their dead 40 days after their killing by security forces. Some of the gatherings have included anti-government cries, despite threats from authorities.

Advertisement

Iran holds drill with Russia

The drill Thursday saw Iranian forces and Russian sailors conduct operations in the Gulf of Oman and the Indian Ocean, Iran’s state-run IRNA news agency reported. The drill will be aimed at “upgrading operational coordination as well as exchange of military experiences,” IRNA added.

China had joined the “Security Belt” drill in previous years, but there was no acknowledgment it participated in this round. In recent days, a vessel that appeared to be a Steregushchiy-class Russian corvette had been seen at a military port in the Iranian city of Bandar Abbas.

Iran also issued a rocket-fire warning to pilots in the region, suggesting they planned to launch anti-ship missiles in the exercise.

Meanwhile, tracking data showed the Ford off the coast of Morocco in the Atlantic Ocean midday Wednesday, meaning the carrier could transit through Gibraltar and potentially station in the eastern Mediterranean with its supporting guided-missile destroyers.

Having the carrier there could allow American forces to have extra aircraft and anti-missile power to potentially protect Israel and Jordan should a conflict break out with Iran. The U.S. similarly placed warships there during the Israel-Hamas war in the Gaza Strip to protect against Iranian fire.

Advertisement

Anti-government chants made at mourning ceremonies

Mourning ceremonies for those killed by security forces in the protests last month also have increased. Iranians traditionally mark the death of a loved one 40 days after the loss. Both witnesses and social media videos showed memorials taking place at Tehran’s massive Behesht-e Zahra cemetery. Some memorials included people chanting against Iran’s theocracy while singing nationalistic songs.

The demonstrations began Dec. 28 at Tehran’s historic Grand Bazaar, initially over the collapse of Iran’s currency, the rial, then spread across the country. Tensions exploded on Jan. 8, with demonstrations called for by Iran’s exiled crown prince, Reza Pahlavi.

Iran’s government has offered only one death toll for the violence, with 3,117 people killed. The U.S.-based Human Rights Activists News Agency, which has been accurate in previous rounds of unrest in Iran, puts the death toll at over 7,000 killed, with many more feared dead.

___

Associated Press writer Nasser Karimi in Tehran, Iran, contributed to this report.

Advertisement

Continue Reading

News

Zuckerberg grilled about Meta’s strategy to target ‘teens’ and ‘tweens’

Published

on

Zuckerberg grilled about Meta’s strategy to target ‘teens’ and ‘tweens’

Meta CEO Mark Zuckerberg arrives at the Los Angeles Superior Court ahead of the social media trial tasked to determine whether social media giants deliberately designed their platforms to be addictive to children on Feb. 18, 2026. Zuckerberg is scheduled to testify Wednesday.

Frederic J. Brown/AFP via Getty Images


hide caption

toggle caption

Advertisement

Frederic J. Brown/AFP via Getty Images

Meta CEO Mark Zuckerberg was clearly getting testy.

“That’s not what I’m saying at all,” said the tech billionaire. “I think you’re misunderstanding what I’m saying,” Zuckerberg responded. “You’re mischaracterizing what I’m saying,” he shot back.

The executive was testifying on Wednesday before a jury in Los Angeles in a marquee social media trial accusing Meta of deliberately designing features of Instagram to addict children, and the legal team for the family suing was intent on showing that Zuckerberg’s fingerprints were all over the company’s big decisions.

Advertisement

Mark Lanier, a Texas trial lawyer and pastor with a folksy courtroom demeanor, directed Zuckerberg’s attention to a 2020 internal Meta document showing that 11-year-olds were four times as likely to keep coming back to Facebook, compared to older users. Instagram’s minimum age for signing up is 13.

“People who join Facebook at 11 years old? Lanier asked Zuckerberg. “I thought y’all didn’t have any of those?”

Lanier then went over Meta internal documents highlighting goals to increase the time 10-year-olds spend on Instagram.

“I don’t remember the context of this email from more than ten years ago,” Zuckerberg said. “I think the way we should build things is to build useful services for people to connect with their family and friends and learn about the world.”

One 2018 internal Meta document stated “If we wanna win big with teens, we must bring them in as tweens,” Lanier pointed out, saying that undercut Meta’s own policies.

Advertisement

The legal team representing the plaintiff, a 20-year-old California woman known in court documents as “Kaley,” attempted to demonstrate that the top-down goal of Meta has always been to encourage users to get on their platforms as young as possible, and once there, to figure out ways to keep them around. Often features like “beauty filters,” made the app more alluring, Lanier argued.

When the company hired experts who affirmed that such appearance-enhancing filters contributed to body-image issues among young girls, Zuckerberg would not dispense with the filters tools, calling getting rid of them was “paternalistic.”

Under questioning in court, the billionaire Facebook founder responded: “What we allowed was letting people use those filters if they wanted but deciding not to recommend them to people,” he said. “So that was the balance we came to to let people express themselves the way they want.”

Kaley, who’s also identified as KGM in court documents, often used these filters, which her lawsuit says contributed to body dysmorphia and other mental health issues.

Had Zuckerberg looked at Kaley’s Instagram posts before the trial, Lanier asked? His staff had shown him some, he responded.

Advertisement
Files are brought inside the Los Angeles Superior Court on Feb 18, 2026 as part of a major trial involving Meta and Google over whether their products harm young people.

Files are brought inside the Los Angeles Superior Court on Feb 18, 2026 as part of a major trial involving Meta and Google over whether their products harm young people.

Jill Connelly/Getty Images


hide caption

toggle caption

Jill Connelly/Getty Images

Advertisement

That’s when Lanier, who is known for orchestrating spectacles at trial, had five lawyers unspool a roughly 20-foot collage of hundreds of photos that Kaley posted to Instagram. Lanier implored Zuckerberg to dwell on the posts. Other observers in the room, including the media, were not able to see the photos.

When it was time for Meta’s lawyer to ask Zuckerberg questions, he emphasized that the company does not have an incentive for people to have harmful experiences on its services.

“From a business perspective, people think if we maximize the amount of attention people spend, that that’s good for us,” Zuckerberg said. “But if people feel like they’re not having a good experience, why would they keep using the product?”

Keeping users safe, especially teen users, has always been a priority, Zuckerberg said.

Advertisement

“Questions about well-being I consider part of this for sure,” he said. “If you build a community and people don’t feel safe, that’s not sustainable and eventually people go and join another community.”

1,600 other plaintiffs

The appearance of Zuckerberg, the star witness of the trial, came in the second week of what’s expected to be a six-week proceeding. Other tech executives, social media specialists, addiction experts and others have also testified.

Kaley, the plaintiff, is expected to deliver the most emotional testimony later in the trial. Her lawsuit claims she began using social media at age 6, including YouTube, Instagram, TikTok and Snap. After becoming hooked on the platforms, she said her body image issues, depression and suicidal thoughts worsened. The suit points to features like beauty filters, infinite scroll and auto-play as being tantamount to a “digital casino.” Evidence of the harms of these features were concealed from the public, the lawsuit says.

Julianna Arnold, whose daughter died from fentanyl she bought from someone on Instagram, talks about watching Mark Zuckerberg testify outside the Los Angeles Superior Court on Feb. 18, 2026.

Julianna Arnold, whose daughter died from fentanyl she bought from someone on Instagram, talks about watching Mark Zuckerberg testify outside the Los Angeles Superior Court on Feb. 18, 2026.

Jill Connelly/Getty Images


hide caption

Advertisement

toggle caption

Jill Connelly/Getty Images

In response, Meta and Google, which owns YouTube, have said the accusations over-simplify the complexity of adolescent mental health issues. The companies argue social media use does not directly cause young people to be mentally unwell, so they should not be held legally liable for a user’s mental health struggles.

Advertisement

Kaley’s legal team called expert witnesses who described multiple studies linking regular social media use with worsening depression, anxiety and body image issues.

The jury will determine to what degree social media platforms should be held legally culpable for plaintiff Kaley’s struggles. The trial is a bellwether case tied to 1,600 similar suits filed by families and school districts. How the jury decides is expected to influence settlement talks in all those pending cases.

While debates about social media addiction have raged for decades, it has taken until now for a major trial on the issue to unfold largely due to a federal legal shield that has protected Silicon Valley. A law known as Section 230 of the 1996 Communications Decency Act has allowed tech companies to fend off lawsuits over what users post to their sites. Social media firms have also won legal battles, including a key Supreme Court case, that have found how companies curate content on platforms is a type of protected free speech.

Despite these protections, the plaintiff’s lawyers in the Los Angeles case found a way to legally attack tech giants: by treating social media apps as unsafe products, viewing Instagram, YouTube and other services as defective under product liability law. The argument is that tech companies deliberately designed social media sites as harmful and dismissed internal warnings that the services could be problematic for teenagers.

The jury will ultimately have to assess Zuckerberg’s credibility, which was under attack on Wednesday.

Advertisement

Lanier, Kaley’s lawyer, brought up an internal document showing how Meta communications staffers have pushed Zuckerberg to portray himself as more “human” and “relatable,” and “empathetic, and less “fake,” and “corporate,” and “cheesy.”

When questioned about his performance in various other public settings, whether in courtrooms or before Congress, Zuckerberg showed some humility.

He said: “I think I’m known to actually be pretty bad at this,” which drew some laughter from the courtroom.

Continue Reading

News

What Trump’s Latest East Wing Designs Show

Published

on

What Trump’s Latest East Wing Designs Show

President Trump’s latest plans for the East Wing ballroom reveal new details and a few notable changes from earlier designs.

The White House submitted the final plans to the National Capital Planning Commission, ahead of a March 5 meeting, where a board controlled by Trump allies is expected to approve the project.

Advertisement

One pediment, not two

Source: Shalom Baranes Associates.

Advertisement

In an earlier design released by Shalom Baranes — the new architect hired by Mr. Trump in December — the east and south porticoes each had a triangular pediment. The one on the south portico has been removed in the latest plan.

But the pediment on the east portico (not shown in the view above) remains and its height is about four feet taller than the roof of the executive residence. Critics have said the design would dwarf the existing White House.

Advertisement

Changed windows and doorways

Source: Shalom Baranes Associates.

Advertisement

The number of arched windows facing west on the ballroom level has increased to nine from eight.

In addition, the first floor windows have been redesigned, with more doorways leading to the new East Wing garden.

Advertisement

A new garden

These are the first renderings that include details about a garden that would replace the Jacqueline Kennedy Garden, which was demolished with the old East Wing.

Advertisement

Sources: Nearmap (2025 aerial image); Shalom Baranes Associates.

Renderings show a grand staircase from the new East Colonnade to the garden. Stone-paved paths connect the garden to the first floor of the new East Wing.

Advertisement

According to the plans, the new garden is larger than the old one, and will include a circular brick area and trees replanted from the old garden. The fountain from the old garden will also be brought back.

Asymmetrical pathway

To accommodate the massive size of the proposed East Wing, the main pathway around the South Lawn has been altered and is no longer symmetrical, renderings show.

Advertisement

Sources: Nearmap (2025 aerial image); Shalom Baranes Associates.

Advertisement

The final designs submitted last week have the same overall footprint as the plans from January, making clear Mr. Trump has rejected calls to make the building smaller.

The architects said last month that the White House was considering adding a “modest one-story addition” to the West Colonnade, to “restore a sense of symmetry to the original central pavilion.”

Advertisement
Continue Reading

Trending