World

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

Published

1 year ago

March 5, 2025

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.”

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.

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.

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.)

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.

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.

“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.

Click to comment

World

Hegseth warns ‘more casualties’ expected in Operation Epic Fury against Iran

Published

12 minutes ago

March 9, 2026

Press Room

Hegseth warns ‘more casualties’ expected in Operation Epic Fury against Iran

NEWYou can now listen to Fox News articles!

Secretary of War Pete Hegseth warned that more casualties are expected in the ongoing Operation Epic Fury in Iran, with seven U.S. soldiers having been killed so far in the fighting.

Hegseth made the comment during an interview with CBS’ “60 Minutes” that aired on Sunday.

“The president’s been right to say there will be casualties,” Hegseth said. “Things like this don’t happen without casualties.”

“There will be more casualties,” he continued. “And no one is — I mean, especially our generation knows what it’s like to see Americans come home in caskets, it’s — but that doesn’t weaken us one bit. It stiffens our spine and our resolve to say this is a fight we will finish.”

WATCH: CAPITOL HILL DEBATE ERUPTS OVER WHETHER TRUMP’S IRAN STRIKES AMOUNT TO ‘WAR’

U.S. Secretary of War Pete Hegseth speaks at the “Shield of the Americas” Summit in Miami, Florida, March 7, 2026. (Reuters/Kevin Lamarque)

Six U.S. service members were killed in a March 1 Iranian drone attack in Port Shuaiba, Kuwait, while supporting Operation Epic Fury. The U.S. military said a seventh service member died of injuries from an Iranian attack on troops in Saudi Arabia on March 1.

The U.S. and Israel last week launched joint strikes against Iran. Iran has retaliated, launching strikes against Israel and neighboring Gulf Arab states, including Qatar and Saudi Arabia.

Residents look on and take pictures as flames and smoke rise from an oil storage facility struck as attacks hit the city during the U.S.–Israeli military campaign in Tehran, Iran, Saturday, March 7, 2026. (Alireza Sotakbar/ISNA via AP)

Iranian Foreign Minister Abbas Aragchi on Sunday told NBC News’ “Meet the Press” that if the U.S. deploys ground troops in Iran, “we have very brave soldiers who are waiting for any enemy who enters into our soil, to fight with them and to kill them and destroy them.”

HEGSETH BLASTS BRITS, SAYS IRAN’S CHAOTIC RETALIATION HAS DRIVEN ITS OWN ALLIES ‘INTO THE AMERICAN ORBIT’

“We never give up, we never surrender, and we continue to resist as long as it takes,” he said. “We continue to defend ourselves, and we are defending our territory, our people and our dignity. And our dignity is not for sale.”

When reporters asked President Donald Trump aboard Air Force One on Saturday about potential ground troops being used in the Iran operation, the president said there would “have to be a very good reason.”

From left, President Donald Trump, White House special envoy to the Middle East Steve Witkoff, center, and Secretary of War Pete Hegseth listen to a reporter’s question while traveling aboard Air Force One en route from Dover Air Force Base, Del., to Miami, Saturday, March 7, 2026. (AP Photo/Mark Schiefelbein)

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

“And I would say if we ever did that, [Iran] would be so decimated they wouldn’t be able to fight at the ground level,” Trump told reporters.

The Associated Press contributed to this report.

World

What defence support could Ukraine offer Middle East states amid Iran war?

Published

1 hour ago

March 9, 2026

Press Room

What defence support could Ukraine offer Middle East states amid Iran war?

Ukrainian President Volodymyr Zelenskyy has said that Kyiv could provide defensive systems as well as assistance to civilians and American soldiers “deployed in certain countries” in the Middle East as the war in Iran continues.

He has reportedly proposed an exchange of Ukrainian defensive technology to combat Iranian drones in return for advanced US defensive systems to use in the war against Russia.

The US-Israel-Iran conflict, which started 10 days ago when the United States and Israel launched strikes on Iran and killed Iran’s supreme leader, Ayatollah Ali Khamenei, has continued to escalate. Iran has responded with strikes on Israel and US military assets and other infrastructure in Kuwait, Bahrain, Qatar, Saudi Arabia and the United Arab Emirates.

As Gulf and other Middle Eastern states continue to attempt to intercept incoming drones and missiles with US-supplied air defences, the US has asked Ukraine to contribute some of its own air-defence systems.

Here is what we know.

What has the US requested from Ukraine and why?

The US has asked for Ukraine’s help in defending Washington’s allies in the Middle East against Iranian missile attacks on infrastructure and US military assets, Ukraine’s president confirmed last week.

At the moment, the US is using air defence systems such as the Patriot, Terminal High Altitude Area Defense (THAAD) batteries and Airborne Warning and Control System (AWACS) aircraft, to intercept Iranian drones and missiles targeting its military assets in the region. The Patriot Advanced Capability-2 (PAC-2) and PAC-3 are advanced surface-to-air missile defence systems.

However, these types of systems are extremely expensive, costing millions of dollars for each interceptor missile fired, and there are concerns that supplies of US interceptor missiles could run low.

“We received a request from the United States for specific support in protection against ‘shaheds’ in the Middle East region,” Zelenskyy wrote in an X post on March 5.

Shahed drones, particularly the Shahed-136, are Iranian-designed “kamikaze” or loitering munitions which are very low cost compared to the interceptors being used by the US. Costing roughly $20,000-$35,000 each, these GPS-guided drones are about 3.5m (11.5 feet) long and fly autonomously to pre-programmed coordinates to strike fixed targets with explosive payloads. They blow up as they hit their targets.

Over the course of the Iran war, Shahed-136 drones have targeted Middle Eastern countries including Saudi Arabia, Bahrain, Qatar and the UAE where US military assets and troops are hosted. Experts estimate that Iran has thousands of these drones.

Iran has also been supplying Moscow with many thousands of Shahed drones during Russia’s war on Ukraine.

During the course of Russia’s four-year war on Ukraine, Ukraine’s domestic arms industry has been forced to innovate, building low-cost interceptor drones priced at roughly $1,000 to $2,000 to counter Russian attacks with imported Iranian Shahed-136s.

Kyiv is now mass-producing these low-cost interceptor drones.

“The role of Shahed-type drones in long-range attacks has become more prominent in Ukraine after Russia took Iranian technology, improved it, and built it in previously unimaginable numbers,” Keir Giles, a Eurasia expert for the UK-based think tank Chatham House, told Al Jazeera.

A man rides a motorcycle past a Shahed drone in Tehran’s Baharestan Square on September 27, 2025, as part of an exhibit to mark the ‘Sacred Defence Week’ commemorating the 1980-88 Iran-Iraq War [Atta Kenare/AFP]

What has Zelenskyy said?

Zelenskyy has posted several statements on social media confirming that he is ready to help Middle Eastern countries defend their territories by providing technical expertise.

“Ukrainians have been fighting against ‘shahed’ drones for years now, and everyone recognises that no other country in the world has this kind of experience. We are ready to help,” he wrote on X on March 5.

“I gave instructions to provide the necessary means and ensure the presence of Ukrainian specialists who can guarantee the required security.

“Ukraine helps partners who help ensure our security and protect the lives of our people.”

It is understood that Ukraine is in talks with several Middle Eastern countries about this.

On Monday, Zelenskyy said Ukraine has deployed interceptor drones and a team of specialists to help protect US military bases in Jordan.

Zelenskyy wrote on X that he has also spoken directly to Saudi Crown Prince Mohammed bin Salman (MBS) about “countering threats from the Iranian regime”.

He also said he had spoken with the leaders of Bahrain, Jordan, Kuwait, Qatar and the UAE.

Zelenskyy has repeatedly stressed that Ukraine must not weaken its own air defences. However, it is mass-producing this equipment now, and may well be able to afford to share.

“The fact that there are surplus capabilities ready to be sent to the US and the Middle East is unsurprising because Ukraine has led this innovation,” Giles said.

Zelenskyy has therefore proposed an exchange of air defence systems with the US ones being used in the Middle East.

“We ourselves are at war. And I said, completely frankly, that we have a shortage of what they have. They have missiles for the Patriots, but hundreds or thousands of ‘shaheds’ cannot be intercepted with Patriot missiles – it is too costly,” Zelenskyy said.

“Meanwhile, we have a shortage of PAC-2 and PAC-3 missiles. So, when it comes to technology or weapons exchange, I believe our country will be open to it.”

Zelenskyy may also have good political reasons for extending help, analysts say.

“The US has declined support for Ukraine on the ground that it had insufficient supply of air defence munitions, and now more of those Patriots have been fired in the Middle East in a few days, than have been supplied to Ukraine in four years,” Giles said.

“Zelenskyy will be aware that in providing this assistance, he is not only shaming the US, but also directly supporting potential friends and partners in the Middle East, who before now have been ambivalent to the situation in Ukraine,” Giles said.

INTERACTIVE_THAAD_GAZA_ISRAEL_IRAN_MISSILE_INTERCEPTOR_FEB25, 2026-1772104791

Who else has sent defensive backup to the Gulf?

European countries including the United Kingdom, France, Spain, Portugal, Greece and Italy have pledged to provide defensive backup to Gulf nations over the past week. Additionally, Australia said it was deploying military assets to the region.

Wary of becoming directly involved in the US-Israeli war on Iran, European countries have nevertheless been drawn into the conflict by attacks on a British base on Cyprus in the Mediterranean and Iranian strikes on Western allies in Gulf countries that host US troops in military bases.

What will happen next?

Just as Ukraine is getting involved in the war, Russia might too, say experts.

“We should not be surprised if before long, as well as Russian technology in Iranian drones, we see Iran launching Shaheds manufactured in Russia,” Giles said.

He described Russia as a “primary beneficiary of current US actions,” pointing to how the surge in oil prices, the relaxation in US curbs on Russian energy exports to keep crude and gas prices under control, and the diversion of air defence munitions from Europe to the Middle East all helped Moscow. These, he said, “are all lifelines for Russia”.

World

Video: Fire Breaks Out Near Glasgow Central Station

Published

11 hours ago

March 9, 2026

Press Room

Video: Fire Breaks Out Near Glasgow Central Station

new video loaded: Fire Breaks Out Near Glasgow Central Station

Firefighters brought a blaze under control after it consumed a building on the same street as Scotland’s busiest station. It forced train service to close, the authorities said.

By Jiawei Wang

March 9, 2026