Connect with us

World

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

Published

on

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.”

Advertisement

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.

Advertisement

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.

Advertisement

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.)

Advertisement

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.

Advertisement

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.

Advertisement

“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.

World

‘Sentimental Value’ Writing Duo Joachim Trier and Eskil Vogt Still ‘Keep the Marriage Happy’: ‘He’s My Longest Relationship’

Published

on

‘Sentimental Value’ Writing Duo Joachim Trier and Eskil Vogt Still ‘Keep the Marriage Happy’: ‘He’s My Longest Relationship’

It wasn’t love at first sight for longtime collaborators Joachim Trier and Eskil Vogt, who met when they were both in their late teens.

“We were both camera assistants, taking care of the cables on a quiz show in Norway. Joachim was still skating and wearing the biggest pants I’d ever seen. They were as wide as they were tall. I was the black jeans and Dr. Martens type, so I was skeptical,” laughs Vogt, who co-wrote “Sentimental Value” with Trier.

Then they started talking about films. 

“Suddenly, there was someone who’s seen more Fellini films than I had, and I had Hal Hartley films on VHS he wanted to borrow. This was the first time I met someone who shared my dream of making films, and that made the dream more tangible and real,” says Vogt.

Six features later, they are much more similar now, says Trier. Their way of working hasn’t really changed — they still start with ideas and develop the plot later on. 

Advertisement

“We know it would be easier the other way around, but we still think of the plot quite late. Instead, we put notes up on the board and say: ‘Oh, I love this scene.’ And then we try to keep most of our darlings,” explains Vogt. 

Trier agrees: “We don’t construct the story until very late. Instead of having scenes I don’t want to shoot and we don’t want to write, we try to make sure none of them just ‘tells the story.’ They all have to be about the characters or [present us] with an exciting visual situation.”

“We still have a phase when we entertain a lot of ideas, but we come to the core of it quicker now. I think we’re more honest with ourselves — and about what we want. We also have this silly rule that we shouldn’t think too much about production limitations and money when we write. When I become the director again, it bites me in the ass.”

How do they keep it fresh? 

“I think we don’t,” laughs Vogt. 

Advertisement

“There’s a lot of stuff going on when you make and release films, and we both like to go back to that safe space and rediscover that calm where it’s just our two voices. We are fortunate enough that our films generate more and more noise that we have to shut out, so when we work, we make it personal and small again.”

Following the success of 2021’s “The Worst Person in the World,” which earned them an Academy Award nomination for original screenplay — it also scored an Oscar nomination for international feature — expectations were high. Then again, they always are. 

“Every film feels like that. The first one, ‘Reprise,’ was quite successful, so ‘Oslo, August 31st’ was made out of panic: ‘Let’s do what we want now, before we don’t sell out’,” says Trier with a laugh. “’Worst Person’ was this fun film that generated a lot of attention and we knew we were going to put [“Sentimental Value”’”] into a climate of expectation. We used that panic and that energy to go deep into something we cared about.” 

In the film, which scored Grand Prix at Cannes, two sisters reunite with their absentee father, a movie director who wants to make a film about their family. It stars Stellan Skarsgård, “Worst Person” breakout star Renate Reinsve and Inga Ibsdotter Lilleaas, who seems to be on the same trajectory as Reinsve in terms of global recognition for her performance.

“A few months into that process, we thought: ‘We’re going to lose some of the people who loved ‘Worst Person’ for being so young and exuberant,’” says Vogt. Fast forward to November and the film is being embraced by an even younger audience and “spreading on TikTok,” says Trier with a hint of irony.  

Advertisement

Their friendship allows them to get “very intimate and very personal super quickly” when they write. 

“When I write alone, I procrastinate. When I’m procrastinating with Joachim, even if I haven’t done anything, at least I got to spend a day with my friend,” says Vogt. Trier adds: “It took me a long time to create a real family outside of art. I have one now, but Eskil is my longest relationship outside of my parents. We don’t need to be silly romantic about it, but we have to be honest: it’s a real gift.”

Trier continues: “If you look at our filmography, it becomes apparent we’ve been tracing the development of our life stages. I don’t think we could have made ‘Sentimental Value’ earlier in our collaboration.”

They say their relationship is “like every old marriage,” but having an open relationship isn’t an option just yet.

“I think we get enough excitement with other collaborators to keep the marriage happy,” says Trier.

Advertisement

“Eskil has always told me: ‘If you want to write with someone else, it’s OK’ We have those tough conversations, but it just hasn’t happened yet. I still call him during the shoot, so he’s used to me working with others and doing my own thing, and he allows that. I’m also happy to see Eskil making his own films without me at all.” 

Vogt, who directed “The Innocents,” adds: “Maybe it would be interesting for you to make a film without me involved…” 

“…And see how shitty I really am,” deadpans Trier. “I come from a family of artists — I love the team thing. Eskil can write alone — I would hate that. We get annoyed with each other, but that’s life: there’s still love at the end of the day. So, you know, touch wood. I hope it continues.”

Continue Reading

World

Russia warns Western forces in Ukraine would be considered ‘legitimate combat targets’

Published

on

Russia warns Western forces in Ukraine would be considered ‘legitimate combat targets’

NEWYou can now listen to Fox News articles!

Russia on Thursday warned that any Western military forces deployed to Ukraine under a post-war security arrangement would be considered “legitimate combat targets,” sharply criticizing a newly signed Paris declaration outlining security guarantees for Kyiv.

Advertisement

In a statement posted on the Russian Foreign Ministry’s Telegram channel, spokeswoman Maria Zakharova said the declaration, backed by Ukraine, the United States and several European countries, was not aimed at peace but at further militarizing Ukraine and escalating the conflict.

She specifically objected to provisions calling for a multinational force and continued military support for Ukraine’s armed forces, warning that any foreign troops, military infrastructure or facilities on Ukrainian territory would be viewed by Moscow as direct foreign intervention.

UKRAINE, US NEAR 20-POINT PEACE DEAL AS PUTIN SPURNS ZELENSKYY CHRISTMAS CEASEFIRE OFFER

Russian Foreign Ministry spokesperson Maria Zakharova attends the annual press conference held by Foreign Minister Sergei Lavrov on Jan. 14, 2025, in Moscow. (Evgenia Novozhenina/Reuters)

“All such units and facilities will be considered as legitimate combat targets of the Armed Forces of the Russian Federation,” Zakharova said.

Advertisement

“These warnings have been voiced more than once at the highest level and remain relevant.”

British Prime Minister Keir Starmer said on Monday the U.K. and France signed a declaration of intent to deploy forces to Ukraine in the event of a peace deal, including establishing military hubs and facilities to store weapons and equipment after a ceasefire.

A soldier fires a third-generation Javelin man-portable anti-tank missile system during a professional training session on Jan. 7, 2026, in Ukraine. (Ukrinform/NurPhoto via Getty Images)

“It paves the way for the legal framework under which British, French and partner forces could operate on Ukrainian soil – securing Ukraine’s skies and seas – and regenerating Ukraine’s armed forces for the future,” Starmer told reporters at a press conference after the Coalition of the Willing meeting in Paris.

RUSSIA ALLEGES ATTACK ON PUTIN RESIDENCE AS UKRAINE DENIES CLAIM AHEAD OF TRUMP TALKS

Advertisement

“We also have agreed [on] significant further steps. First, that we will participate in U.S.-led monitoring and verification of any ceasefire. Second, we will support the long-term provision of armaments for Ukraine’s defence. And third, we will work towards binding commitments to support Ukraine in the case of a future armed attack by Russia,” he added.

Germany’s Chancellor Friedrich Merz, Ukraine’s President Volodymyr Zelenskiy, France’s President Emmanuel Macron, Britain’s Prime Minister Keir Starmer, U.S. Special Envoy Steve Witkoff and U.S. businessman Jared Kushner speak at a press conference after signing a declaration at the Coalition of the Willing summit on Jan. 6, 2026, in Paris. (Ludovic Marin/Pool via Reuters)

U.S. special envoy Steve Witkoff said on X that negotiators made significant progress on a bilateral security guarantee framework and a prosperity plan for Ukraine, calling durable security guarantees essential to a lasting peace.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Ukrainian President Volodymyr Zelenskyy on Thursday said the document on security guarantees for Ukraine is essentially “ready for finalization at the highest level with the President of the United States.”

Advertisement

“Complex issues from the basic framework for ending the war were also addressed, and the Ukrainian side presented possible options for finalizing this document,” he added. “We understand that the American side will engage with Russia, and we expect feedback on whether the aggressor is genuinely willing to end the war.”

Continue Reading

World

Belgium open to housing foreign prisoners in other countries, minister says

Published

on

Belgium’s Migration Minister Anneleen Van Bossuyt is looking at “every possible solution” to increase the number of irregular migrants returned from Belgium, including renting or building prison space abroad to house foreign prisoners.

Continue Reading

Trending