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As U.S. Tariffs Become Reality, Canadians Prepare for Economic Pain

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As U.S. Tariffs Become Reality, Canadians Prepare for Economic Pain

The trucks that carry about $300 million worth of auto parts each day over the bridge from Windsor, Ontario, to Detroit are still rolling as usual. But in the aftermath of President Trump’s decision to impose 25 percent tariffs on most categories of Canadian exports, the mood in Windsor, like all of Canada, was transformed.

Mr. Trump’s move has ignited a sense of economic anxiety and anger among Canadians about how they are being treated by their neighbor, ally and best customer. Most are still puzzling over Mr. Trump’s motivations and objectives for the tariffs, as well as his comments about annexing Canada as the 51st state.

And as they turned their attention to getting the potentially crippling tariffs, and a 10 percent levy on Canadian oil and gas and some minerals, lifted, politicians, business people and ordinary Canadians say that the relationship between the two countries will never return to what it once was.

Flavio Volpe, the head of a Canadian auto-parts maker trade group, said that his members could start shutting down factories in days, and that he feels betrayed by the United States.

“We’ve built two societies on the same values,” said Mr. Volpe, who is also a member of Prime Minister Justin Trudeau’s Council on Canada-U.S. Relations. “The man in the White House did a U-turn and drove right over us.”

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Mr. Trudeau and anxious business leaders throughout Canada said that their country’s focus must be on ending the tariffs as quickly as possible.

Most forecasts project that Canada’s export-dependent economy will be sent into a recession, although they differ on timing and its initial severity.

“We have a limited experience for this magnitude of a trade shock,” the Royal Bank of Canada, the country’s largest financial institution, said this week. Some Canadians reached back for comparison to the Smoot-Hawley tariffs of 1930, which raised the average U.S. import duty to a staggering 59.1 percent. Many economists believe that they worsened the Great Depression, but the two countries’ economies were far less integrated at that time.

Aside from oil and gas, Canada’s largest export sector is the auto industry. On Tuesday, Mr. Trump suggested that the only way out of tariffs for the sector is to move all of its production to the United States. Aside from abandoning a skilled work force, that would require billions of dollars in new investments.

Historically, automotive trade has been largely balanced between the United States and Canada. Parts often swirl around between Canada, the United States and Mexico, sometimes crossing borders repeatedly before winding up in vehicles in a dealer’s showroom.

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Mr. Volpe, of the Automotive Parts Manufacturers’​ Association in Canada, said that, aside from the tariffs, trade remained unchanged on Tuesday, an assessment backed up by the usual migration of trucks to the Ambassador Bridge.

The 25 percent tariffs are being paid by the importers, either other parts makers or automakers. Most contracts allow an automaker to deduct tariffs it pays when settling a parts company’s bill.

Mr. Volpe said that those deductions will make parts suppliers, which have generally have single-digit profit margins, instantly and deeply unprofitable.

He expects that most of his members can cover those losses from their cash reserves for about a week. After that, they will be forced to stop shipments.

“No one is going to burn up their cash reserve for the president of the United States,” he said.

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For more parts, automakers usually have no alternative suppliers, let alone ones in the United States. Setting up new suppliers would take time and substantial investment. The result, experts say, will be a parts shortage that rapidly cascades into assembly-line shutdowns. Thousands of workers in Canada, the United States and Mexico would be left idle.

Some industries began idling small numbers of workers before the tariffs came into effect.

Bill Slater, the president of a United Steelworkers local in Sault Ste. Marie, Ontario, said that Algoma Steel laid off about 20 of his members who are salaried employees, citing the tariffs. He said that a number of probationary hourly workers were also let go by the mill.

Truck drivers had a mixed experience. Stephen Laskowski, the president of the Ontario Trucking Association, said that some had a surge in business as companies moved to get products into the United States before the tariffs came into effect, while others were laying off drivers because customers were canceling shipments.

Canada’s forestry industry knows tariffs all too well. Special U.S. duties on softwood lumber go back decades and were a factor in Canada seeking the 1989 free trade agreement with the United States, which was later expanded to include Mexico. (Canada has repeatedly failed to get an exemption from the U.S. trade complaints system that imposes the softwood lumber tariffs.)

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But Kurt Niquidet, the president of the British Columbia Council of Forest Industries, said that adding the 25 percent tariff “really puts us into unprecedented territory.”

Lumber mills in the western province are facing a dizzying array of tariffs. This week’s 25 percent tariff is on top of a 14.4 percent tariff that the U.S. government expects to raise this summer, to more than 27 percent. Then Mr. Trump announced last weekend that he’s opened an investigation into lumber imports that could result in even more tariffs.

While the United States supplies about 70 percent of its own lumber, Mr. Niquidet, an economist, said that American forests and mills cannot replace all the lumber from Canada, nor can it be sourced from other countries.

“There will still be imports from Canada,” he said. “Prices in the U.S. will rise.” Some Canadian lumber mills, however, may not survive the trade assault, he added.

While Mr. Trudeau speculated that Mr. Trump was seeking a “total collapse of the Canadian economy, because that’ll make it easier to annex us,” Mr. Volpe said he was not sure it’s that complicated. “If it looks like he is dismantling the structure of the postwar economy, then he is,” Mr. Volpe said. “What are you going to do about it?” Some Canadians believe that their country is simply being used as part of Mr. Trump’s plan to fund substantial U.S. tax cuts with tariffs.

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Jean Simard, the president of the Aluminum Association of Canada, fought a successful battle over the 10 percent tariff on Canadian exports of the metal Mr. Trump enacted in during his first administration. Now Mr. Simard is attempting to fend off additional tariffs that Mr. Trump has promised to put on top of Tuesday’s 25 percent. He said that he believes the president is telling the world: “This is what I’m able to do to my closest allies — think about what’s awaiting you.”

Mr. Simard added: “It’s an old barbarian approach to war.”

As the tariffs were rolled out, actions against American goods quickly came into play. Government-owned liquor stores, including in Ontario, pulled U.S. beer, wine and spirits from off their shelves, and that province canceled a 100 million Canadian dollar ($69 million) contract with Elon Musk’s Starlink satellite service to provide internet in rural areas.

Some Canadians are also vowing not to travel south, a decision perhaps also informed by the decline of the Canadian dollar brought on by the tariffs.

Most winters, Lee Miller, a retired electrician from Saint John, New Brunswick, would be traveling in his motor home through sunny warm states, including Florida.

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“As soon as Trump started talking tariffs, I said, ‘Nope, not going,’” Mr. Miller said. After canceling this year’s trip, he plans not to enter the United States as long as Mr. Trump is president. That will, however, mean missed visits with friends and family who live across the border.

“This is one of those things that tears families apart,” he said.

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YouTube to start bringing back creators banned for COVID-19 and election misinformation

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YouTube to start bringing back creators banned for COVID-19 and election misinformation

NEW YORK (AP) — YouTube will offer creators a way to rejoin the streaming platform if they were banned for violating COVID-19 and election misinformation policies that are no longer in effect, its parent company Alphabet said Tuesday.

In a letter submitted in response to subpoenas from the House Judiciary Committee, attorneys for Alphabet said the decision to bring back banned accounts reflected the company’s commitment to free speech. It said the company values conservative voices on its platform and recognizes their reach and important role in civic discourse.

“No matter the political atmosphere, YouTube will continue to enable free expression on its platform, particularly as it relates to issues subject to political debate,” the letter read.

The move is the latest in a cascade of content moderation rollbacks from tech companies, who cracked down on false information during the pandemic and after the 2020 election but have since faced pressure from President Donald Trump and other conservatives who argue they unlawfully stifled right-wing voices in the process.

It comes as tech CEOs, including Alphabet CEO Sundar Pichai, have sought a closer relationship with the Republican president, including through high-dollar donations to his campaign and attending events in Washington.

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YouTube in 2023 phased out its policy to remove content that falsely claims the 2020 election, or other past U.S. presidential elections, were marred by “widespread fraud, errors or glitches.”

The platform in 2024 also retired its standalone COVID-19 content restrictions, allowing various treatments for the disease to be discussed. COVID-19 misinformation now falls under YouTube’s broader medical misinformation policy.

Among the creators who have been banned from YouTube under the now-expired policies are prominent conservative influencers, including Dan Bongino, who now serves as deputy director of the FBI. For people who make money on social media, access to monetization on YouTube can be significant, earning them large sums through ad revenue.

House Judiciary Committee Chairman Jim Jordan and other congressional Republicans have pressured tech companies to reverse content moderation policies created under former President Joe Biden and accused Biden’s administration of unfairly wielding its power over the companies to chill lawful online speech.

In Tuesday’s letter, Alphabet’s lawyers said senior Biden administration officials “conducted repeated and sustained outreach” to coerce the company to remove pandemic-related YouTube videos that did not violate company policies.

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“It is unacceptable and wrong when any government, including the Biden Administration, attempts to dictate how the Company moderates content, and the Company has consistently fought against those efforts on First Amendment grounds,” the letter said.

Meta CEO Mark Zuckerberg has also accused the Biden administration of pressuring employees to inappropriately censor content during the COVID-19 pandemic. Elon Musk, the owner of the social platform X, has accused the FBI of illegally coercing Twitter before his tenure to suppress a story about Hunter Biden.

The Supreme Court last year sided with former President Joe Biden’s administration in a dispute with Republican-led states over how far the federal government can go to combat controversial social media posts on topics including COVID-19 and election security.

Asked for more information about the reinstatement process, a spokesperson for YouTube did not immediately respond to a request for comment.

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Syria’s new president takes center stage at UNGA as concerns linger over terrorist past

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Syria’s new president takes center stage at UNGA as concerns linger over terrorist past

NEWYou can now listen to Fox News articles!

Once a member of al Qaeda and the Islamic State and now leading Syria’s fragile transition since toppling the Bashar Assad regime, Ahmed al-Sharaa is ready to take to the global center stage at the United Nations General Assembly Wednesday and make his case for a new path forward for his war-torn nation.

“This marks the first participation in high-level meetings of a Syrian president at the United Nations General Assembly since 1967, so this is a very big deal,” Natasha Hall, senior associate at the Center for Strategic and International Studies, told Fox News Digital.

“On such a historic occasion, what he will try to emphasize and underline is that this is a new day for Syria. They have overthrown the brutal dictatorship of the Assad regime. He will talk about the progress that’s been made and what more progress needs to happen in terms of recognition and the lifting of U.N. sanctions to help Syria move forward,” Hall added.

TRUMP’S MIDDLE EAST TOUR BEGINS WITH SYRIA LOOMING AS STRATEGIC OPPORTUNITY

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Interim Syria President Ahmed al-Sharaa speaks during the Concordia Annual Summit in New York, Monday, Sept. 22, 2025.  (Photo/Andres Kudacki)

A high-ranking Syrian government official confirmed to Fox News Digital that al-Sharaa will use the opportunity at the U.N. to present Syria’s vision for stability, reconstruction, and reconciliation.

“The most important issues he will raise include the need to lift all forms of unilateral sanctions that continue to hinder Syria’s recovery, the importance of combating terrorism in all its forms, the return of displaced Syrians and refugees, and the advancement of a genuinely inclusive political process rooted in the will of the Syrian people,” the Syrian official said.

Al-Sharaa, who led the Islamist rebel group Hay’at Tahrir al-Sham (HTS) to victory over Assad, ditched his military fatigues for a Western-style suit and has been on a charm offensive, hosting European and Western diplomats and politicians in hopes of bringing Syria out from its international pariah status.

The new Syrian leader received an unprecedented endorsement from President Donald Trump when the two met in Riyadh, Saudi Arabia, in May. 

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Trump called al-Sharaa a “young, attractive, tough guy,” announcing that the U.S. would lift sanctions in place since the Assad era and even discussed normalizing relations. 

Al-Sharaa-HTS

People welcome the leader of Syria’s Islamist Hayat Tahrir al-Sham (HTS) group that headed a lightning rebel offensive snatching Damascus from government control, Ahmed al-Sharaa (C), before his address at the capital’s landmark Umayyad Mosque on December 8, 2024. Al-Sharaa gave a speech as the crowd chanted “Allahu akbar (God is greatest),” in a video shared by the rebels on their Telegram channel showed. (Aref Tammawi/AFP via Getty Images)

Hall noted that al-Sharaa might be looking to secure a security pact between Israel and Syria along the UNGA sidelines, emphasizing that he seeks a Syria that is at peace with its neighbors and doesn’t want to position Syria to be a threat to any outside forces, particularly Israel. 

He will also be looking to secure much-needed reconstruction aid to rebuild a country ravaged by 13 years of civil war. The cost for reconstruction is estimated to be between $250 and $400 billion, and 16.7 million people, or 75% of the population, are in dire need of humanitarian assistance, according to the U.N.

Since seizing Damascus, he has publicly said all the right things. He promised an inclusive government that would represent all religious and ethnic factions in Syria, uphold women’s rights and protect minority rights.

ISLAMIST GROUP RUNNING SYRIA HAS MIXED RECORD OVER GOVERNANCE IN PROVINCE, RULED WITH ‘IRON FIST’

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Al-Sharaa also fulfilled promises to target ISIS and other terrorist groups operating in Syria. One month after taking power, Syrian security forces seized a shipment of heavy ammunition destined for Hezbollah in Lebanon, once a key ally of the Assad regime and Iran’s Axis of Resistance.

While optimism for a new Syria remains high, some caution it’s still too soon to judge al-Sharaa as a Western ally given his terrorist past.

“Al-Sharaa is not a democrat. He ruled Idlib without power-sharing. So far, in terms of control of vital government functions like security, foreign affairs, intelligence and justice, he has put loyalists in place,” former U.S. Ambassador to Syria Robert Ford told Fox News Digital.

Ford, who was the last U.S. ambassador in Damascus in 2011, said the crucial question is whether, over time, individual political and civil liberties will be respected and that people maintain, as they have now, the freedom to organize and protest.

Rubio meets Al-Sharaa

Secretary of State Marco Rubio shakes hands with Syrian interim President Ahmad al-Sharaa at the Lotte New York Palace Hotel, on the sidelines of the 80th United Nations General Assembly at the United Nations headquarters, Monday, Sept. 22, 2025. (Bing Guan/Pool Photo via AP)

“Al-Sharaa’s heavy hand ruling Idlib prior to Assad’s fall has been lighter in Damascus, Aleppo and elsewhere. But so far, there is more political freedom to speak and protest in Syria than in many other countries in the region, such as Egypt, Algeria and some Gulf states,” Ford added.

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Ambassador Barbara Leaf, who served as assistant secretary of State for Near Eastern Affairs, visited Damascus and met with Shara in December, becoming the highest-ranking official to meet with Syrian leadership since the outbreak of the Syrian civil war in 2011. 

Leaf, a distinguished diplomatic fellow with the Middle East Institute, told Fox News Digital about her initial contact with Shara right after HTS overthrew Assad. Her mission was to get eyes on him, to assess him and to send a clear signal on U.S. expectations if he was going to lead a new Syria.

“My takeaway from the meeting was that he came across as somebody who was very well-prepared for the discussion. He had clearly anticipated all of the topics that I raised and he had pretty thoughtful responses with a readiness to engage,” she said.

Syrian security forces walk together along a street, after clashes between Syrian government troops and local Druze fighters resumed in the southern Druze city of Sweida early on Wednesday, collapsing a ceasefire announced just hours earlier that aimed to put an end to days of deadly sectarian bloodshed, in Sweida, Syria, July 16, 2025. 

Syrian security forces walk together along a street, after clashes between Syrian government troops and local Druze fighters resumed in the southern Druze city of Sweida early on Wednesday, collapsing a ceasefire announced just hours earlier that aimed to put an end to days of deadly sectarian bloodshed, in Sweida, Syria, July 16, 2025.  (Karam al-Masri/Reuters)

Al-Sharaa made a point several times to say that Syria would no longer be a threat or a staging point for threats against its neighbors, including Israel, and that he would not allow the Iranians, Hezbollah or Palestinian groups, to use Syrian territory to conduct terrorist activities, the ambassador said.

“I came to the sense that he was already making a shift from being a military commander to being a politician, to being a political leader,” Ambassador Leaf noted.

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While Ambassador Leaf highlighted his pragmatism, his true intentions as the new leader of Syria remain murky.

The ambassador said that it appears al-Sharaa has traveled a trajectory away from his jihadist terrorist past, but it remains a question how far he is willing to go to effectuate what she believes is an intention to form an Islamist style of governance.

CHRISTIAN WATCH GROUP RISES UP TO PROTECT COMMUNITY AMID GROWING VIOLENCE IN SYRIA

“Does he want to formulate a kind of Islamist governance, conservative governance and social order that, frankly, Syria has not seen? And would he be willing to use force to get there? That’s an unknown,” the ambassador cautioned.

What’s concerning for Ambassador Leaf and others is that many of the people serving in key roles in the transitional government are close associates of al-Sharaa and others affiliated with HTS and other allied armed rebel groups. 

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“Al-Sharaa is still engaged in a careful balancing act within his own government between liberal opposition voices, former regime bureaucrats and more Islamist proponents aligned still with HTS’ mission and principles,” Caroline Rose, director of The New Lines Institute, told Fox News Digital.

Al-Sharaa in Syria

Ahmed al-Sharaa, once known by his nom de guerre Abu Mohammed al-Jolani, is seen in Syria Feb. 7, 2023. Since becoming the country’s president, he has gone back to his given name. (Omar Haj Kadour/AFP via Getty Images)

EVANGELICAL LEADER SAYS US MUST PROTECT SYRIAN CHRISTIANS FROM ATTACKS BY JIHADI TERRORISTS

Rose, who traveled to Syria earlier this year, said that Syria’s complex political dynamics have led not only to gridlock, but even incapacity in times of crisis, “such as failure to rein in radical Sunni fighters during violent outbreaks in Latakia and Suwayda, but also policies appeasing more conservative elements of al-Sharaa’s support network, such as the ruling requiring full-body swimwear at Syrian pools and beaches.”

While Syria’s new government has looked to consolidate control over a restive society, Shara’s forces had to manage a fragile society divided along ethnic and religious lines.

Syria has experienced a wave of sectarian violence since the revolution to overthrow Assad. Government security forces retaliated after forces loyal to the Assad regime launched an attack in the coastal city of Latakia, Assad’s hometown. In total, around 1,400 people, mostly civilians, were massacred, according to the U.N. Most of the victims from the Alawites, a minority group in Syria, which the Assad family belonged to, as well as from the Druze community.

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It was the worst episode of violence since the overthrow of Assad in December 2024.

ISIS attack on church

In this photo released by the Syrian official news agency SANA, a Civil Defense worker inspects the damage inside Mar Elias church where a suicide bomber detonated himself in Dweil’a on the outskirts of Damascus, Syria, Sunday, June 22, 2025. (SANA via AP)

Clashes between Bedouin tribes, Druze militias and government forces in Suweida led to hundreds of deaths and drew in Israeli military intervention — to protect Syria’s Druze minority. A ceasefire was eventually agreed to but the spiraling ethnic violence highlights Syria’s rocky transition. 

The country’s dwindling Christian community has also felt the brunt of extremist violence. In June, the Islamic State was suspected of carrying out a deadly suicide bombing at a Greek Orthodox church in Syria, which killed 22 worshipers and injured 63 others. Christians have also been attacked and, in some cases, killed, allegedly by forces tied to the al-Sharaa government. 

The new authorities will also have to incorporate Kurdish forces operating in Northeast Syria, where the Syrian Democratic Forces have been crucial to the U.S.-led counter-ISIS campaign. Any disruptions in the merging of the SDF into the Syrian state raises the risk of an ISIS resurgence.

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Palestine as a state – what would that actually look like?

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For a Palestinian state to be internationally recognised and built, Israel’s current government would need to halt its relentless opposition to Palestinian statehood and Israel’s main ally, the United States, would need to agree on a two-state solution, which it no longer does.

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