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.


German Chancellor Merz says Israel should bring hostages back alive

Updated 2 sec ago
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German Chancellor Merz says Israel should bring hostages back alive

Merz said that in principle it should be possible for an Israeli prime minister to visit Germany

BERLIN: Germany wants to see the hostages held by Hamas in Gaza, including Germans, brought back alive and Israel should consider this in its military actions in the strip, Chancellor Friedrich Merz said on Wednesday.

Asked whether Germany would implement an arrest warrant by the International Criminal Court against Israeli Prime Minister Benjamin Netanyahu, Merz said that in principle it should be possible for an Israeli prime minister to visit Germany.

How this could happen would be clarified when necessary, he said at the joint press conference with UN Secretary General Antonio Guterres in Berlin, adding that no bilateral visits by him or Netanyahu were currently planned.

Merz said future financial support for UNRWA, the United Nations’ agency for Palestinian refugees, was conditional on the organization being reformed.

Italy’s Meloni urges Israel's Netanyahu to respect international law in Gaza

Updated 1 min 15 sec ago
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Italy’s Meloni urges Israel's Netanyahu to respect international law in Gaza

  • Giorgia Meloni said her conversations in recent months with Israel's Netanyahu were 'often difficult'

ROME: Israel must respect international law in its military operation in Gaza, Italian Prime Minister Giorgia Meloni said on Wednesday, calling the humanitarian situation in the Palestinian enclave increasingly “dramatic and unjustifiable.”
Israel invaded Gaza after the Hamas-led attack on southern Israeli communities on October 7, 2023, and has recently announced plans for an expanded offensive to defeat militant group Hamas.
“Over the past months I have spoken with Prime Minister (Benjamin) Netanyahu on several occasions, and the conversations have often been difficult,” Meloni told a question time session in the Italian lower house of parliament.
More than 52,000 Palestinians have been killed in the Israeli offensive, according to local health authorities. The military campaign has left Gaza on the brink of famine, aid groups and international agencies say.
“I have always recalled the urgency of finding a way to end the hostilities and respect international law and international humanitarian law. A request that I renew today,” Meloni said.
Israeli strikes intensified this week, killing dozens in northern Gaza, locals have said.
French President Emmanuel Macron this week also criticized Netanyahu’s policy in Gaza, calling it shameful. The Israeli leader struck back accusing Macron of siding with Hamas.
Meloni’s government has been one of Israel’s most vocal supporters within Europe, but there has been growing unease within parts of her coalition over Israel’s relentless and long-running military campaign.


Japan grounds military training aircraft after crash leaves 2 crew members missing

Updated 18 min 5 sec ago
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Japan grounds military training aircraft after crash leaves 2 crew members missing

  • The crashed plane was a 36-year-old T-4 operated out of Nyutabaru Air Base
  • It was not fitted with a voice recorder or a flight data recorder

TOKYO: Japan grounded most of its aging military training aircraft on Wednesday after one of the planes crashed minutes after take off.
Two crew are missing after the T-4 training aircraft operated by the Japan Air Self-Defense Force crashed after taking off from Komaki Air Base, in the central Japanese prefecture of Aichi, officials said.
The force said the plane was lost from radar two minutes after departure. The authorities are searching for the missing aircraft and its crew in an area near a reservoir known as the Iruka pond, officials said. The reservoir, in the city of Inuyama, is about 10 kilometers (6 miles) northeast of the air base.
The military has grounded temporarily nearly 200 T-4s until the cause of the accident is identified and safety checks and training are carried out, Hiroaki Uchikura, the air force chief of staff, told a news conference late Wednesday.
The crashed plane was a 36-year-old T-4 operated out of Nyutabaru Air Base, in the southern prefecture of Miyazaki. It was not fitted with a voice recorder or a flight data recorder.
Defense Minister Gen Nakatani earlier Wednesday told reporters that parts of the aircraft have been found at the crash site. Officials were also preparing to collect fuel apparently leaked from the aircraft and floating in the reservoir, Nakatani said.
Lifesaving equipment and helmets of the crew were also found, Uchikura said.
Witnesses told the NHK national broadcaster that they heard a loud noise like thunder, followed by sirens of police cars and fire engines.
The T-4 was returning to Nyutabaru air base after its crew had earlier helped deliver a F-15 fighter jet to Komaki Air Base for scheduled maintenance, Uchikura said.
A captain with more than 1,000 hours of flight experience had piloted the F-15, while a first lieutenant piloted the T-4. Both were in the T-4 on their way back to Komaki when the incident happened.
The crash is the latest in a series of defense aircraft accidents in recent years.
In April 2024, two SH-60K navy reconnaissance helicopters crashed during nighttime anti-submarine training near Torishima island, about 600 kilometers south of Tokyo, leaving all eight crewmembers dead.
In 2023, an army UH-60JA Black Hawk helicopter on a reconnaissance mission crashed off a southern island of Miyako, with the loss of 10 crew.


UK’s Starmer condemns ‘attack on our democracy’ after fires at homes linked to him

Updated 19 min 2 sec ago
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UK’s Starmer condemns ‘attack on our democracy’ after fires at homes linked to him

  • The remarks by Starmer during weekly prime minister’s questions were his first since the fires came to light earlier this week
  • Police said they have been granted a further 36 hours to question the man

LONDON: British Prime Minister Keir Starmer told lawmakers Wednesday that recent arson attacks on properties linked to him represent “an attack on all of us, on democracy and the values that we stand for.”

The remarks by Starmer during weekly prime minister’s questions were his first since the fires came to light earlier this week.

The attacks were condemned by leaders across the House of Commons, including the Conservative Party’s Kemi Badenoch, who described them as “completely unacceptable.”

On Tuesday, London’s Metropolitan Police arrested a 21-year-old man in southeast London on suspicion of starting fires at Starmer’s private house, another property and a car connected to the politician. No injuries were reported from any of the fires.

In a statement Wednesday, police said they have been granted a further 36 hours to question the man, who is being held at a London police station. That means he can be questioned until Friday morning.

Police said the suspect was detained on suspicion of arson with intent to endanger life after an early morning fire Monday damaged the door of the house in Kentish Town, north London, where Starmer and his family lived before he was elected to lead the country last July.

Starmer moved with his family to the prime minister’s official Downing Street residence after taking office.

Counterterrorism detectives, who are leading the investigation because it involves the prime minister, are also looking into connections between a car fire Thursday near Starmer’s house and another fire Sunday outside a house nearby that has been converted into apartments and which he has a connection to.

Authorities are investigating whether there was state involvement as well as looking at other potential motivations.

“A key line of enquiry is whether the fires are linked due to the two premises and the vehicle all having previous links to the same high-profile public figure,” said Cmdr. Dominic Murphy, head of counterterrorism at the Metropolitan Police.

Starmer’s former house has attracted protesters in the past. Last year, three pro-Palestinian activists were arrested and charged with public order offenses after unfurling a banner covered in red handprints outside the building.


How escaped French drug kingpin evaded capture for months

Updated 14 May 2025
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How escaped French drug kingpin evaded capture for months

  • His escape left two prison officers dead and triggered a massive manhunt for the escaped convict dubbed “la Mouche“
  • A network of accomplices suspected of organizing the escape, including a childhood friend of Amra and rapper Koba LaD, allegedly helped the fugitive stay off the authorities’ radar

PARIS: Managing to stay “one step ahead” of investigators, drug trafficker Mohamed Amra evaded capture for nine months following a deadly jail break one year ago that shocked France.

His escape left two prison officers dead and triggered a massive manhunt for the escaped convict dubbed “la Mouche” (The Fly).

On the run for nine months, he was re-arrested only in February, near a shopping center in Romania’s capital, Bucharest, then extradited to France.

On the one-year anniversary of the attack, French President Emmanuel Macron on Wednesday paid tribute to the first prison officers killed in France in the line of duty since 1992, visiting the site of the attack and highlighting new measures in France’s push to combat organized crime.

On May 14, 2024, a car crashed head-on into a prison van at a toll booth in France’s northern Normandy region.

Moments later, a second car pulled up and four armed men jumped out, killing prison officers Arnaud Garcia and Fabrice Moello and leaving three others wounded.

At the time of the deadly ambush, Amra already had a long history of convictions for violent crimes that started when he was only 15.

After the assailants whisked the 30-year-old Normandy native into a waiting vehicle, French authorities launched a massive operation to track down the man described as “public enemy number one.”

But a source close to the case said Amra was “always one step ahead.”

Public prosecutor Laure Beccuau confirmed that the Frenchman had been holed up in the city of Compiegne, then headed further north to Rouen before eventually making his way to eastern Europe.

A network of accomplices suspected of organizing the escape, including a childhood friend of Amra and rapper Koba LaD, allegedly helped the fugitive stay off the authorities’ radar.

Even so, “the net gradually closed in,” said Beccuau, with the escapee arrested by Romanian authorities nine months after his getaway.

Authorities then intensified the search for those who aided him in his escape from France to the eastern European country, arresting more than three dozen alleged accomplices.

Among those arrested are the six suspected attackers in the May 2024 assault found as far afield as Thailand, Morocco and Spain — one of whom died in an accident in November.

But a lawyer for one of the accused said there are “real doubts” about their involvement, with some “categorically denying the charges.”

As for Amra, his lawyer said, “no one can claim to know his role.”

“The fact that he benefited from the escape doesn’t necessarily mean he planned it or knew what methods would be used,” said Lucas Montagnier.

Macron, accompanied by Interior Minister Bruno Retailleau and Justice Minister Gerald Darmanin, visited several sites on Wednesday underlining the country’s push to clamp down on drug trafficking, including the headquarters of a new anti-organized crime taskforce, EMCO and the site of the May 2024 attack.

In late April, lawmakers approved a major new bill to combat drug-related crime, with some of France’s most dangerous drug traffickers facing being locked up in high-security units in prison in the coming months.

Amra was suspected of ordering hits from prison, including in the months leading up to his breakout, when a close associate issued a warning that “the Fly” was giving someone called “A” a week to pay up, or else.

A high-security prison in the northern Pas-de-Calais region is expected to house the 100 most dangerous drug traffickers beginning in late July.

With these measures, “the Republic is now putting all its resources” into ensuring that an escape like that of Mohamed Amra “never happens again,” Darmanin said on Tuesday on broadcaster France 2.

A plaque was also unveiled, honoring the two prison officers.