Trump imposes tariffs on Canada, Mexico and China, raising prospect of inflation and trade conflict

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A drone view shows trucks waiting in line near the Zaragoza-Ysleta border crossing bridge to cross into the US, in Ciudad Juarez, Mexico January 31, 2025. (Reuters)
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Private vehicles enter the US from Canada at the Peace Arch border crossing on February 1, 2025 in Blaine, Washington. (Getty Images via AFP)
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Updated 02 February 2025
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Trump imposes tariffs on Canada, Mexico and China, raising prospect of inflation and trade conflict

  • Trump declared an economic emergency in order to place duties of 10 percent on all imports from China and 25 percent on imports from Mexico and Canada
  • Trump said his decision was necessary “to protect Americans,” although it could throw the global economy and his own political mandate to combat inflation into possible turmoil

PALM BEACH, Florida: President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China — fulfilling one of his post-campaign commitments to voters that also carries the risk of sparking higher inflation and disrupting businesses across North America.
Trump’s order also includes a mechanism to escalate the rates if the countries retaliate against the US, as they are possibly prepared to do.
The decision throws the global economy and Trump’s own political mandate to combat inflation into possible turmoil, though the Republican president posted on social media that it was necessary “to protect Americans.”
The tariffs risk an economic standoff with America’s two largest trading partners in Mexico and Canada, upending a decades-old trade relationship with the possibility of harsh reprisals by those two nations. The tariffs also if sustained could cause inflation to significantly worsen, possibly eroding voters’ trust that Trump could as promised lower the prices of groceries, gasoline, housing, autos and other goods.

Trump declared an economic emergency in order to place duties of 10 percent on all imports from China and 25 percent on imports from Mexico and Canada. But energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10 percent rate.
The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the US economy, saying the average US household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen — and the situation could be worse if Canada, Mexico and China retaliate.

For the moment, Mexico plans to stay cool-headed as it weighs its options.
Mexico President Claudia Sheinbaum, appearing Saturday at an event promoting a government housing program outside Mexico City said, “I’m calm, I’ve been saying since yesterday, because I know that Mexico’s economy is very powerful, very strong.”

A senior administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize any disruptive increases on the price of gasoline or utilities. That’s a sign White House officials understand the gamble they’re taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped to return Trump to the White House last year.
The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
The Trump administration put the tariffs in place to force the three countries to stop the spread and manufacturing of fentanyl, in addition to pressuring Canada and Mexico to limit any illegal immigration into the United States.




Flags fly above the Peace Arch monument on the border between the US and Canada at Peace Arch Park on February 1, 2025 in Blaine, Washington.(Getty Images via AFP)

The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.
The order would also allow for tariffs on Canadian imports of less than $800. Imports below that sum are currently able to cross into the United States without customs and duties.
“It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former US trade official. “Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive ... Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’
The Republican president is making a major political bet that his actions will not significantly worsen inflation, cause financial aftershocks that could destabilize the worldwide economy or provoke a voter backlash. AP VoteCast, an extensive survey of the electorate in last year’s election, found that the US was split on support for tariffs.
With the tariffs, Trump is honoring promises that are at the core of his economic and national security philosophy. But the announcement showed his seriousness around the issue as some Trump allies had played down the threat of higher import taxes as mere negotiating tactics.
The president is preparing more import taxes in a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil and natural gas, as well as against copper, pharmaceutical drugs and imports from the European Union — moves that could essentially pit the US against much of the global economy.
It is unclear how the tariffs could affect the business investments that Trump said would happen because of his plans to cut corporate tax rates and remove regulations. Tariffs tend to raise prices for consumers and businesses by making it more expensive to bring in foreign goods.




A truck carrying vehicles drives into the US at the Otay Mesa Port of Entry, on the US-Mexico border on February 1, 2025 in San Diego, California. (Getty Images via AFP)

Many voters turned to Trump in the November election on the belief that he could better handle the inflation that spiked under Biden. But inflation expectations are creeping upward in the University of Michigan’s index of consumer sentiment as respondents expect prices to rise by 3.3 percent. That would be higher than the actual 2.9 percent annual inflation rate in December’s consumer price index.
Trump has said that the government should raise more of its revenues from tariffs, as it did before the income tax became part of the Constitution in 1913. He claims, despite economic evidence to the contrary, that the US was at its wealthiest in the 1890s under President William McKinley.
“We were the richest country in the world,” Trump said Friday. “We were a tariff country.”
Canadian Prime Minister Justin Trudeau has told Canadians that they could be facing difficult times ahead, but that Ottawa was prepared to respond with retaliatory tariffs if needed and that the US penalties would be self-sabotaging.
Trudeau said Canada is addressing Trump’s calls on border security by implementing a CDN$1.3 billion ($900 million) border plan that includes helicopters, new canine teams and imaging tools.
Trump still has to get a budget, tax cuts and an increase to the government’s legal borrowing authority through Congress. The outcome of his tariff plans could strengthen his hand or weaken it.
Democrats were quick to say that any inflation going forward was the result of Trump, who is about to start his third week back as president.
“You’re worried about grocery prices. Don’s raising prices with his tariffs,” Senate Democratic Leader Chuck Schumer of New York posted on X. “You’re worried about tomato prices. Wait till Trump’s Mexico tariffs raise your tomato prices. … You’re worried about car prices. Wait till Trump’s Canada tariffs raise your car prices,” he wrote in a series of posts.


Chinese astronauts' return to earth delayed owing to weather

Updated 4 sec ago
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Chinese astronauts' return to earth delayed owing to weather

  • The astronauts, Cai Xuzhe, Song Lingdong and Wang Haoze, were originally due to land Tuesday in Dongfeng
  • The three were sent up to China's Tiangong space station in October last year
BEIJING: Three Chinese astronauts' return to Earth has been postponed owing to weather conditions.
The astronauts, Cai Xuzhe, Song Lingdong and Wang Haoze, were originally due to land Tuesday in Dongfeng, in China's northern Inner Mongolia region, after spending six months in space. The landing was postponed to “guarantee the health and safety of the astronauts” because weather conditions were not optimal, according to the official Xinhua news agency.
The three were sent up to China's Tiangong space station in October last year, and a new crew of astronauts recently arrived to replace them.
The three Chinese astronauts have carried out experiments and improvements to the space station during their time on board. Two of the astronauts, Cai and Song, conducted a nine-hour space walk, the world's longest, during their mission, the Manned Space Agency said.
China built its own space station after it was excluded from the International Space Station owing to U.S. national security concerns over the control of the country’s space program by the People’s Liberation Army, the military branch of the ruling Communist Party.
The country's space program has grown rapidly in recent years. The space agency has landed an explorer on Mars and a rover on the far side of the moon. It aims to put a person on the moon before 2030.
Last year, two American astronauts wound up stuck in space for nine months after a test flight with Boeing ran into problems and NASA determined it was too risky for the astronauts to come back to Earth in the same capsule.

Spain’s power supply is almost fully restored after one of Europe’s most severe blackouts

Updated 29 April 2025
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Spain’s power supply is almost fully restored after one of Europe’s most severe blackouts

  • Many questions remained about what caused one of Europe’s most severe blackouts
  • By 7:00 a.m. local time, more than 99 percent of energy demand in Spain had been restored

MADRID: Power had almost fully returned to Spain early Tuesday morning as many questions remained about what caused one of Europe’s most severe blackouts that grounded flights, paralyzed metro systems, disrupted mobile communications and shut down ATMs across Spain and Portugal.

By 7:00 a.m. local time, more than 99 percent of energy demand in Spain had been restored, the country’s electricity operator Red Electrica said. Portuguese grid operator REN said Tuesday morning all of the 89 power substations were back online since late last night after an “absolutely unusual” blackout and power was restored to all 6.4 million customers.

On Tuesday morning, as life slowly returned to normal on the Iberian Peninsula, outside Atocha station, one of the busiest in the Spanish capital, people were once again crossing the street while looking at their cell phones, despite the Internet connection being intermittent at times.

Inside, hundreds of people waited to board trains or rebook those that had been canceled the previous day. Large groups of people milled around the screens, waiting for updates. Still, several people slept on the floor with blankets provided by the Red Cross for those who waited overnight at the station. The same scenes were replicated at Sants station in Barcelona. Classes were suspended in several regions.

The Madrid Open, the tennis tournament being held this week, was still affected by the power outage after its cancelation the previous day and delayed the opening of its doors.

Power had gradually returned to several regions across Spain and Portugal as the nations reeled from the still-unexplained widespread blackout that had turned airports and train stations into campgrounds for stranded travelers.

Monday night, many city residents, including in Spain’s capital of Madrid, went to sleep in total darkness. The normally illuminated cathedral spires of Barcelona’s Sagrada Familia Basilica became indistinguishable from the night sky. Streets remained deserted even in neighborhoods where lights flickered back on, as people stayed home after a day of chaos.

“We have a long night ahead,” Spanish Prime Minister Pedro Sanchez said when he addressed the European nation late Monday. “We are working with the goal of having power restored to the entire country.”

In Madrid, cheers erupted from balconies where the electricity had returned.

Subway service returning on Tuesday morning

On Tuesday morning, Madrid’s metro system was restored on all but one line, meaning that 80 percent of trains operated during rush hour.

In Barcelona, the metro was also operating normally, but commuter trains were suspended due to “electrical instability,” the company that runs the service, Rodalies Catalunya, said on X. In other parts of the country, commuter and mid-distance services were also suspended or running at reduced capacity.

As metro service stopped on Monday, train stations cleared out and shops and offices closed, and thousands of people spilled onto the streets of Madrid.

Emergency workers in Spain said they rescued some 35,000 passengers stranded along railways and underground.

The blackout turned sports centers, train stations and airports into makeshift refuges late Monday.

“We were in the north of Portugal and did get any notifications until we got here because of Internet outage,” said Ian Cannons, a British tourist trying to get home who was forced to spend the night in Lisbon’s airport. “We can’t book any hotels. Nothing.”

The Barcelona municipality distributed 1,200 cots to indoor recreation centers to host residents with no way to get home and international travelers left in limbo. All over Barcelona and Madrid, people were sleeping on train station benches and floors.

Cash and radios in high demand

As Internet and mobile phone services blinkered offline across Spain and Portugal, battery-powered radios flew off the shelves. Those fortunate enough to find service shared whatever news updates they could with strangers on the street.

Lines snaked out of the few supermarkets running on backup generators in Barcelona and Lisbon as people stocked up on dried goods, water and battery-powered flashlights and candles. Clerks counted euros by hand, since many cash registers had stopped working.

Hector Emperador, picking his kids up from school in Barcelona, said he resorted to raiding his sons’ piggybank to ensure he had cash on hand after ATMs and some online-banking services shut down. “The coronavirus pandemic will be nothing compared to this,” he said.

Few gas stations were operating, sending the drivers who dared navigate without traffic lights scrambling for fuel. Residents with electric door keys found themselves locked out of their homes.

The many inconveniences became a threat to survival for those with medical needs like refrigeration for insulin or power for dialysis machines and oxygen concentrators. Some hospitals – but not all – stayed open with the help of generators.

Cause remains a mystery

Officials did not say what caused the blackout, the second such serious European power outage in as many months after a fire at Heathrow Airport shut down Britain’s busiest travel hub on March 20.

They said there was little precedent for this kind of widespread electric failure across all of the Iberian Peninsula, with a combined population of some 60 million. Across the Mediterranean Sea, Spain’s Balearic Islands and the territories of Ceuta and Melilla were spared. The Canary Islands off the northwest coast of Africa were also spared.

“We have never had a complete collapse of the system,” Sanchez said, explaining how Spain’s power grid lost 15 gigawatts, the equivalent of 60 percent of its national demand, in just five seconds.

In his televised address late Monday, Sanchez said that authorities were still investigating what happened. Portugal’s National Cybersecurity Center threw cold water on feverish speculation about foul play, saying there was no sign that the outage resulted from a cyberattack.

Speaking to reporters in Brussels, Teresa Ribera, an executive vice president of the European Commission, also ruled out sabotage. Nonetheless, the outage “is one of the most serious episodes recorded in Europe in recent times,” she said.


India shuts over half of Kashmir tourist spots in security review

Updated 29 April 2025
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India shuts over half of Kashmir tourist spots in security review

  • Tensions between the nuclear-armed neighbors have increased since the attack on holiday-makers
  • India’s Jammu and Kashmir territory has decided to shut 48 of the 87 tourist destinations in Kashmir

SRINAGAR, India: More than half of the tourist destinations in India’s insurgency-torn Kashmir region have been closed to the public from Tuesday, according to a government order reviewed by Reuters, in a bid to tighten security after last week’s attack on holiday-makers.
The assailants segregated men, asked their names and targeted Hindus before shooting them at close range in the Pahalgam area, killing 26 people, officials and survivors said.
India has identified two of the three attackers as “terrorists” from Pakistan waging a violent revolt in Muslim-majority Kashmir. Pakistan has denied any role and called for a neutral probe.
Hindu-majority India accuses Islamic Pakistan of funding and encouraging militancy in Kashmir, the Himalayan region both nations claim in full but rule in part. Islamabad says it only provides moral and diplomatic support to a Kashmiri demand for self-determination.
Tensions between the nuclear-armed neighbors have increased since the attack, along with calls in India for action against Pakistan.
Delhi and Islamabad have taken a raft of measures against each other since the Kashmir attack. India has suspended the Indus Waters Treaty – an important river-sharing pact. Pakistan has closed its airspace to Indian airlines.
The government of India’s Jammu and Kashmir territory has decided to shut 48 of the 87 tourist destinations in Kashmir and enhanced security at the remaining ones, according to a government document reviewed by Reuters.
No time period was given. Government officials did not immediately respond to requests for comment.
Nestled in the Himalayas with lofty peaks, picturesque valleys and grand Mughal-era gardens, Kashmir has been emerging as India’s tourism hotspot as violence there has waned in recent years.
But the Pahalgam attack has left panic-stricken tourists seeking an early exit at the start of the busy summer season.
Firing has also increased along the 740-km de facto border separating the Indian and Pakistani areas of Kashmir.
On Tuesday, for the fifth consecutive day, the Indian army said it had responded to “unprovoked” small arms fire from multiple Pakistan army posts around midnight.
It gave no further details and reported no casualties. The Pakistani military did not respond to a request for comment.
Pakistan’s Defense Minister Khawaja Muhammad Asif told Reuters on Monday that a military incursion by India was imminent and it had reinforced its forces in preparation.


China blames US tariffs for halting Boeing plane deliveries

Updated 29 April 2025
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China blames US tariffs for halting Boeing plane deliveries

  • Beijing spokesperson: The levies had ‘disrupted the international air transport market’
  • Boeing’s CEO confirmed last week that China had stopped accepting new aircraft due to the trade war

BEIJING: China on Tuesday blamed US tariffs for Beijing’s decision to stop accepting new aircraft from aviation giant Boeing, saying the levies had “disrupted the international air transport market.”
“The United States’ wielding of tariffs has severely impacted the stability of the global industrial chain and supply chain,” China’s commerce ministry said in a statement.
“Relevant Chinese airlines and Boeing in the United States have suffered greatly,” a spokesperson said.
New US tariffs have reached 145 percent on many Chinese products, while Beijing has responded with fresh 125 percent duties on imports from the United States.
And Boeing’s CEO confirmed last week that China had stopped accepting new aircraft due to the trade war.
In a televised interview with CNBC, Boeing chief executive Kelly Ortberg said Chinese customers had “stopped taking delivery of aircraft due to the tariff environment,” adding that if the halt continued, the aviation giant would soon market the jets to other carriers.
Boeing had planned to deliver around 50 aircraft to China in 2025, said Ortberg, adding that the company wouldn’t “wait too long” to send the jets to other customers.
US President Donald Trump also criticized Beijing for backing out of the deal, saying Boeing should “default China for not taking the beautifully finished planes.”
Beijing’s commerce ministry on Tuesday hit back, saying “many companies have been unable to carry out normal trade and investment activities” due to Trump’s tariffs.
“China is willing to continue to support the normal business cooperation between the two countries’ enterprises,” its spokesperson said.
Beijing “hopes that the United States can listen to the voices of enterprises and create a stable and predictable environment for their normal trade and investment activities,” they added.


Girl, 5, and parents among dead in car attack at Filipino festival in Vancouver

Updated 29 April 2025
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Girl, 5, and parents among dead in car attack at Filipino festival in Vancouver

  • The family left behind a 16-year-old son who stayed home to finish his homework
  • Mourners including Canadian Prime Minister Mark Carney remembered the dead at vigils before Monday’s national election

VANCOUVER: As members of the Le family headed out the door to enjoy music, food and camaraderie at a Filipino heritage festival in Vancouver, British Columbia, their 16-year-old son decided to instead stay home to finish homework.
Then news began arriving of a car plowing through the crowd.
The teen’s father, Richard Le, his stepmother Linh Hoang and his 5-year-old sister Katie Le, were among 11 people killed, said Richard Le’s brother, Toan Le, in the world’s latest vehicle ramming attack.
The teenage boy is in a state of shock, Le said. His sister Katie Le was nearing graduation from kindergarten and was described as a vibrant and joyful child in a GoFundMe page posted by Toan Le.
The black Audi SUV sped down a closed, food-truck-lined street Saturday evening and struck people attending the Lapu Lapu Day festival, which celebrates Datu Lapu-Lapu, an Indigenous chieftain who stood up to Spanish explorers in the 16th century.
Thirty-two people were hurt. Seven were in critical condition and three were in serious condition at hospitals Monday, Vancouver police spokesperson Steve Addison said.
Those killed include nine females and two males ranging in age from 5 to 65, according to Addison. All of them lived in the Vancouver metropolitan area, he said.
Mourners including Canadian Prime Minister Mark Carney remembered the dead at vigils before Monday’s national election.
The crash came just two days before another vehicle smashed through a building in a town outside of Springfield, Illinois, during an after-school program, killing four children and injuring several others, police said.
A ‘significant history’ of interactions with police
Kai-Ji Adam Lo, 30, was charged with eight counts of second-degree murder in a video appearance before a judge Sunday, said Damienne Darby, spokeswoman for British Columbia prosecutors. Lo has not yet entered a plea.
A woman who answered the phone Monday at the home of Lo’s mother, Lisa Lo, said that the mother was too distraught to speak to a reporter.
Investigators said more charges were possible. They said Lo had a history of mental health issues. Interim Police Chief Steve Rai said there was no indication of a motive but that the suspect has “a significant history of interactions with police and health care professionals related to mental health.”
Lo had contact with police the day before the vehicle attack in a neighboring jurisdiction, Addison said Monday.
“That contact was not criminal in nature and it did not rise to the level where a mental health intervention was required,” Addison said.
The Associated Press could not immediately reach an attorney representing Lo. Online records showed that Vancouver Provincial Court issued a publication ban barring the release of details about the legal case against Lo. Such bans are common in Canada to protect the rights of the accused to a fair trial as well as the privacy of crime victims.
Lo’s brother, 31-year-old Alexander Lo, was the victim of a homicide at his home last year. Kai-ji Lo started an online fundraising effort, since deleted, seeking donations to bury his brother.
He said he was “burdened with remorse for not spending more time with him,” according to an archived version of the webpage. Their mother had taken out significant loans to build Alexander a home, leaving her financially strained.
Screaming and bodies hitting a vehicle
Noel Johansen was searching for dessert at the festival with his wife Jenifer Darbellay, an artist, and their two children, ages 7 and 15, when the attack happened. They lived only about a block and a half away and were visiting for the third time.
“It hit us before we knew. I was falling in slow motion trying to save my head from smashing in the pavement,” Johansen said. “It’s like a giant tidal wave.”
Darbellay, 50, was killed, while the rest of the family survived. Johansen described her as selfless, creative and empathetic.
Johansen said the day before she was killed, the couple was talking about politics and the many situations in which people seek revenge toward the person who hurt them.
He said she told him: “That’s the whole problem. We need to forgive the perpetrators of the crimes that are committed against us.”
Johansen said that he’s trying to honor that philosophy.
Hours before the attack, Makayla Bailey saw her friend Kira Salim, a teacher and school counselor, for the first time in a while and Salim had apologized for not being out and about more.
“I told them, ‘It’s OK it’s been crappy out, the weather sucks, summer’s coming so I’m sure we’ll see each other a lot more,’” Bailey said, recalling in an interview Salim’s drag king performances that audiences loved.
“I didn’t think it would be the last conversation we would ever have,” said Bailey.
Salim was among those killed in the attack, according to the New Westminster School District, where Salim worked.
Investigators were collecting evidence at the scene Monday and had executed a search warrant at a Vancouver property, Addison said. Investigators were also going through bystander video from the scene.
Officials will review the situation, and it may change how they approach such events, Addison said.
“This was intended to be a safe, fun, family-friendly community block party for people to celebrate their community and culture,” Addison said. “The actions of one person stole that away from them.”