After imposing sweeping tariffs, Trump announces talks with Canada and Mexico

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People look on as empty shelves remain with signs "Buy Canadian Instead" after the top five US liquor brands were removed from sale at a B.C. Liquor Store in Vancouver, on February 2, 2025, as part of a response to US President Donald Trump's 25% tariffs on Canadian goods. (Reuters)
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A demonstrator waves a Mexican flag while standing on top of a car in Los Angeles on Feb. 2, 2025, during a protest calling for immigration reform. (AP)
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Updated 03 February 2025
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After imposing sweeping tariffs, Trump announces talks with Canada and Mexico

  • China, Mexico and Canada are the top three US trade partners and all have vowed to retaliate when the tariffs take effect Tuesday
  • Experts warn that Trump’s tariffs could reduce US economic growth and throw Canada and Mexico into recession
  • Says Americans may feel economic “pain” from his tariffs, but argued it would be “worth the price” to secure US interests

WASHINGTON: President Donald Trump said he will discuss the punishing tariffs he has levied on Canada and Mexico with both countries on Monday, after arguing that Americans may feel economic “pain” from the 25 percent duties but that it will be “worth the price.”
Speaking to reporters after he flew back to Washington Sunday evening from a weekend in Florida, Trump said he was “speaking with Prime Minister (Justin) Trudeau tomorrow morning, and I’m also speaking with Mexico tomorrow morning.”
“I don’t expect anything very dramatic,” he added.
Trump has also hit China with a 10-percent tariff in addition to levies already in place.
A fervent supporter of tariffs, Trump had always maintained that their impact would be borne by foreign exporters, without being passed on to American consumers, contradicting the opinion of a broad range of experts.
Earlier Sunday he acknowledged, in a series of messages on his Truth Social network, that Americans may feel economic “pain” from his tariffs, but argued it would be “worth the price” to secure US interests.
China, Mexico and Canada are the top three US trade partners and all have vowed to retaliate when the tariffs take effect Tuesday.
“Will there be some pain? Yes, maybe (and maybe not!)” Trump wrote Sunday morning in all-caps on his Truth Social media platform.
“But we will Make America Great Again, and it will all be worth the price that must be paid.”
Analysts expect the trade war to slow US growth and increase prices, at least in the short term, something the president had resisted acknowledging after frustration over rising costs was seen as a major factor in his 2024 election win.
Seeking to limit a spike in fuel prices, Trump has put the levy on energy imports from Canada at only 10 percent.
The president has cited illegal immigration and the trafficking of the deadly opioid fentanyl as reasons for the “emergency” measures.
But on Sunday he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the United States.
“The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the ‘Stupid Country’ any longer,” he wrote.
The tariffs announcements capped an extraordinary second week of Trump’s new term, with the president facing the worst US aviation disaster in years — even as his administration moved to drastically overhaul the government in actions decried by critics as illegal.

While some economies believe the levies are likely to be temporary, the outlook is unclear because the White House set very general conditions for their removal.
A White House fact sheet gave no details on what the three countries would need to do to win a reprieve.
Trump vowed to keep them in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the United States ends. China left the door open for talks with the United States. Its sharpest pushback was over fentanyl.

Canada hits back
In a separate social media post, Trump took particular aim at Canada, repeating his call for America’s northern neighbor to become a US state.
Claiming the United States pays “hundreds of billions of dollars to SUBSIDIZE Canada,” Trump said that “without this massive subsidy, Canada ceases to exist as a viable Country.”
“Therefore, Canada should become our Cherished 51st State,” he said, reiterating the expansionist threat against one of his country’s closest allies.
The US Census Bureau says the 2024 trade deficit in goods with Canada was $55 billion.
Canadian backlash was swift, with video posted to social media showing fans at a Toronto Raptors game Sunday booing during the US national anthem.

Canada said on Sunday it will take legal action under the relevant international bodies to challenge the tariffs.
Prime Minister Justin Trudeau also encouraged Canadians on Sunday to boycott their longtime ally after ordering retaliatory tariffs against $155 billion of US goods, from peanut butter, beer and wine to lumber and appliances.
Canadian officials said they were preparing measures to help business who might be hurt by the trade war.
Trudeau vowed Saturday to hit back with 25 percent levies on select American goods worth Can$155 billion ($106.6 billion), with a first round on Tuesday followed by a second one in three weeks.
Leaders of several Canadian provinces have already announced retaliatory actions as well, such as the immediate halt of US liquor purchases.
The White House has not publicly announced what actions could end the tariffs.
“It’s hard to know what more we can do, but we’re obviously open to any other suggestions that come our way,” Canada’s ambassador to the United States Kirsten Hillman told ABC News on Sunday.

Mexico, China push back
Mexican President Claudia Sheinbaum said she, also, was awaiting Trump’s response to her proposal for dialogue.
She said she had directed her economy minister to “implement Plan B,” which includes unspecified “tariff and non-tariff measures,” promising to detail Monday the steps she intends to take.
Trump said Sunday he also planned to hit the European Union with tariffs “pretty soon,” to which the EU said earlier it would “respond firmly.”

“Fentanyl is America’s problem,” China’s foreign ministry said, adding that China has taken extensive measures to combat the problem.
Mexican President Claudia Sheinbaum, raising her fist in the air in a speech outside the capital, vowed resilience.
She accused the United States of failing to tackle its fentanyl problem and said it would not be solved by tariffs.
Sheinbaum said she would provide more details on Monday of the retaliatory tariffs she ordered this weekend.

Warnings of inflation, recession

EY Chief Economist Greg Daco said Trump’s tariffs could reduce US economic growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” — high inflation, stagnant economic growth and elevated unemployment — at home.
Trump’s move was the first strike in a what could be a destructive global trade war that Paul Ashworth of Capital Economics said would lead to a surge in US inflation that would “come even faster and be larger than we initially expected.
US crude oil futures jumped more than $2 to hit $75 per barrel, while stock futures fell. The S&P 500 E-mini futures were down 2 percent, while Nasdaq futures were down 2.75 percent.

The Trump tariffs, outlined in three executive orders, are due to take effect 12:01 a.m. ET (0501 GMT) on Tuesday. Markets were awaiting developments with anxiety, but some analysts said there was some hope for negotiations, especially with Canada and China.
“The tariffs look likely to take effect, though a last-minute compromise cannot be completely ruled out,” Goldman Sachs economists said in a note Sunday.

The tariff announcement made good on Trump’s repeated 2024 campaign threat, defying warnings from economists that a trade war would erode growth and raise prices for consumers and companies.
Trump declared a national emergency under two laws, the International Emergency Economic Powers Act and the National Emergencies Act, which give the president sweeping powers to impose sanctions to address crises.
Trade lawyers said Trump could face legal challenges for testing the limits of US laws. Democratic lawmakers Suzan DelBene and Don Beyer decried what they called a blatant abuse of executive power. Others warned about rising prices.
“No matter which way you slice it: costs are going to climb for consumers,” Senate Democratic Leader Chuck Schumer said, vowing to try to “undo this mess.”
Republicans welcomed Trump’s action.
A Reuters/Ipsos poll released last week showed Americans were divided on tariffs, with 54 percent opposing new duties on imported goods and 43 percent in support, with Democrats more opposed and Republicans more supportive.

Investors look ahead
Investors were considering the effects of additional tariffs promised by Trump, including those related to oil and gas, as well as steel, aluminum, semiconductor chips and pharmaceuticals. Trump has also vowed actions against the European Union.
A European Commission spokesperson said the EU “would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.” Europe’s biggest carmaker, Volkswagen, said it was counting on talks to avoid trade conflict.
Automakers would be particularly hard hit, with new tariffs on vehicles built in Canada and Mexico burdening a vast regional supply chain where parts can cross borders several times before final assembly.
Trump imposed only a 10 percent duty on energy products from Canada after oil refiners and Midwestern states raised concerns. At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all US imports from Canada, according to US Census Bureau data.
White House officials said Canada specifically would no longer be allowed the “de minimiz” US duty exemption for shipments under $800. The officials said Canada, along with Mexico, has become a conduit for shipments of fentanyl and its precursor chemicals into the US via small packages that are not often inspected by customs agents.
 


Indonesia weighs US arms purchases to curb tariff threat, Bloomberg News reports

Updated 58 min 31 sec ago
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Indonesia weighs US arms purchases to curb tariff threat, Bloomberg News reports

  • Equipment includes fighter jets and munitions

Dubai: Indonesia is considering purchasing billions of dollars worth of US-manufactured defense equipment, including fighter jets and munitions, Bloomberg news reported on Friday.
Indonesia’s Defense Minister Sjafrie Sjamsoeddin held a closed-door meeting of senior officials on April 8 to deliver a directive from the President Prabowo Subianto instructing them to identify US weapons that could be imported or fast-tracked for purchase, the report said, citing people with knowledge of the gathering.


EU needs to decide on possible Iran sanctions, Rubio says

Updated 18 April 2025
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EU needs to decide on possible Iran sanctions, Rubio says

  • Rubio said the US administration is looking for a peaceful solution with Iran

PARIS: Europe needs to decide if it is willing to reimpose sanctions on Iran when it becomes clear it is close to developing a nuclear weapon, US Secretary of State Marco Rubio said on Friday.
“The Europeans have a decision to make, because I believe we should all anticipate that they’re about to get a report from the IAEA that says not just Iran is out of compliance, but Iran is dangerously close to a weapon, closer than they’ve ever been,” Rubio said in Paris after meeting with European leaders.
Rubio said the US administration is looking for a peaceful solution with Iran, but will never tolerate the country developing a nuclear weapon.
“It has to be something that not just prevents Iran from having a nuclear weapon now,” he said about a possible agreement.
“But in the future as well, not just for ten years with some sort of sunset provision or the like.”


Two killed as police officer’s son opens fire at US university

Updated 18 April 2025
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Two killed as police officer’s son opens fire at US university

  • Five people were wounded when the gunman — identified as Phoenix Ikner — rampaged through Florida State University
  • Footage on social media showed a stream of young adults walking through corridors with their hands in the air as they evacuated the building

Miami: Two men were killed in a mass shooting at a university in Florida allegedly carried out by the son of a local deputy sheriff with her old service weapon, police in the southeastern US state said Thursday.
Five people were wounded when the gunman — identified as Phoenix Ikner — rampaged through Florida State University, shooting at students, before he was shot by local law enforcement.
A sixth person was hurt trying to run away from the shooting, Chief Lawrence Revell of the Tallahassee Police Department said in a statement.
The campus was locked down as gunfire erupted, with students ordered to shelter in place as first responders swarmed the site moments after the lunchtime shootings.
Ikner, 20, has been hospitalized with “serious but non-life-threatening injuries,” Revell added.
Leon County Sheriff Walt McNeil told reporters Ikner was a student at the university and the son of a an “exceptional” 18-year member of his staff.
“Unfortunately, her son had access to one of her weapons, and that was one of the weapons that was found at the scene.
He added that the suspect was part of Sheriff’s Office training programs, meaning “it’s not a surprise to us that he had access to weapons.”
Bystander footage aired by CNN appeared to show a young man walking on a lawn and shooting at people who were trying to get away.
Witnesses spoke of chaos as people began running through the sprawling campus as shots rang out near the student union.
“Everyone just started running out of the student union,” a witness named Wayne told local news station WCTV.
“About a minute later, we heard about eight to 10 gunshots.”
The witness said he saw one man who appeared to have been shot in the midsection.
“The whole entire thing was just surreal. I just couldn’t believe what I was seeing.
“Everything was really quiet, then all chaotic.”
'Make them take time'
The two people who died were “adult males” who were not students, police said.
The university, a public institution with more than 40,000 students, canceled all classes and told students who did not live on campus to leave.
FSU President Richard McCullough said the university was working to support those affected by the attack.
“This is a tragic day for Florida State University,” he said.
“We’re absolutely heartbroken by the violence that occurred on our campus earlier today.”
Student Sam Swartz told the Tallahassee Democrat he had been in the basement of the student union when shooting started.
“Everyone started freaking out,” Swartz said, adding he had heard around 10 shots.
A group of eight people huddled in a hallway and barricaded themselves with trash cans and plywood.
“I remember learning to do the best you can to make them take time,” Swartz said, adding that mass shooters are “just trying to get as many people” as they can.
Footage on social media showed a stream of young adults walking through corridors with their hands in the air as they evacuated the building.
Mass shootings are common in the United States, where a constitutional right to bear arms trumps demands for stricter rules.
That is despite widespread public support for tighter control on firearms, including restricting the sale of high-capacity clips and limiting the availability of automatic weapons of war.
President Donald Trump called the shooting “a shame, a horrible thing,” but insisted that Americans should retain unfettered access to guns.
“I’m a big advocate of the Second Amendment. I have been from the beginning. I protected it,” he said, referring to the part of the US Constitution gun advocates say protects firearm ownership.
“These things are terrible, but the gun doesn’t do the shooting — the people do.”
A tally by the non-profit Gun Violence Archive shows there have been at least 81 mass shootings — which it defines as four or more people shot — in the United States so far this year.


US will abandon Ukraine peace efforts if no progress made soon, Rubio says

Updated 40 min 55 sec ago
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US will abandon Ukraine peace efforts if no progress made soon, Rubio says

  • Rubio says US needs to decide "in a matter of days"
  • Warning comes amid some progress in Ukraine talks

Paris: U.S. President Donald Trump will walk away from trying to broker a Russia-Ukraine peace deal within days unless there are clear signs that a deal can be done, U.S. Secretary of State Marco Rubio said on Friday.
"We're not going to continue with this endeavour for weeks and months on end. So we need to determine very quickly now, and I'm talking about a matter of days whether or not this is doable in the next few weeks," Rubio said in Paris after meeting European and Ukrainian leaders.
"The president feels very strongly about that. He has dedicated a lot of time and energy to this ... this is important, but there are a lot of other really important things going on that deserves just as much, if not more attention."
Rubio's warning came amid signs of some progress in U.S. talks with Ukraine.
Trump said on Thursday he expected to sign a deal with Kyiv next week that would give the U.S. access to Ukraine's minerals. An attempt to sign a minerals pact in February fell apart after Ukrainian President Volodymyr Zelenskiy's clash with Trump and Vice President JD Vance in the Oval Office.
After the talks in Paris on Thursday - the first substantive, high level and in-person talks on Trump's peace push that have included European powers - Rubio said a U.S. peace framework received an "encouraging reception". Zelenskiy's office called the talks constructive and positive.
Rubio's comments on Friday underline mounting frustrations in the White House over a lack of progress in pushes to settle a growing list of geopolitical challenges.
Trump promised during his election campaign to end the war in Ukraine within his first 24 hours in the White House. He moderated that claim on taking office, suggesting a deal by April or May as obstacles mounted.
Rubio said he spoke with Russian Foreign Minister Sergei Lavrov after the Paris talks and had told him they had been constructive, and also briefed him on "some of the elements of" the U.S. peace framework.
Rubio said the issue of U.S. security guarantees as part of any deal came up in the talks in Paris, without going into greater detail.
He said security guarantees was an issue "we can fix in sort of in a way that's acceptable to everyone," but "we have bigger challenges that we need to figure out, whether it's even possible within the short term".
He said it was clear that a peace deal would be difficult to strike but there needed to be signs it could be done soon.
"There's no one saying this can be done in 12 hours. But we want to see how far apart it is and whether those differences can even be narrowed, if it's even possible to get movement within the period of time we have in mind," he said.
Neither French presidency or foreign ministry immediately returned requests for comment.


Over 170 arrested for attacks on Pakistan KFC outlets in Gaza war protests

Updated 18 April 2025
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Over 170 arrested for attacks on Pakistan KFC outlets in Gaza war protests

  • Attacks sparked by anti-US, anti-Israel sentiment
  • Several Western brands face boycotts in Pakistan over Israel-Palestine conflict

KARACHI: Police have arrested scores of people in Pakistan in recent weeks after more than 10 mob attacks on outlets of US fast-food chain KFC, sparked by anti-United States sentiment and opposition to its ally Israel’s war in Gaza, officials said.
Police in major cities in the Islamic nation, including the southern port city of Karachi, the eastern city of Lahore and the capital Islamabad, confirmed at least 11 incidents in which KFC outlets were attacked by protesters armed with sticks and vandalized. At least 178 people were arrested, the officials said this week.
KFC and its parent Yum Brands, both US-based, did not respond to requests for comment.
A police official, who spoke on condition of anonymity, said one KFC employee was shot and killed this week in a store on the outskirts of Lahore by unknown gunmen. The official added there was no protest at the time and they were investigating whether the killing was motivated by political sentiment or some other reason.
In Lahore, police said they were ramping up security at 27 KFC outlets around the city after two attacks took place and five others were prevented.
“We are investigating the role of different individuals and groups in these attacks,” said Faisal Kamran, a senior Lahore police officer, adding that 11 people, including a member of the Islamist religious party Tehreek-e-Labbaik Pakistan (TLP), were arrested in the city. He added the protests were not officially organized by TLP.
TLP spokesman Rehan Mohsin Khan said the group “has urged Muslims to boycott Israeli products, but it has not given any call for protest outside KFC.”
“If any other person claiming to be a TLP leader or activist has indulged in such activity, it should be taken as his personal act which has nothing to do with the party’s policy,” said Khan.
KFC has long been viewed as a symbol of the United States in Pakistan and borne the brunt of anti-American sentiment in recent decades with protests and attacks.
Western brands have been hit by boycotts and other forms of protests in Pakistan and other Muslim-majority countries in recent months over Israel’s military offensive in the Gaza Strip.
The war was triggered by the Palestinian militant group Hamas’ October 7, 2023, attack on southern Israel, in which 1,200 people were killed and 251 taken hostage to Gaza, according to Israeli tallies.
Since then, more than 51,000 Palestinians have been killed in the Israeli offensive, according to local health authorities.
Yum Brands has said one of its other brands, Pizza Hut, has faced a protracted impact from boycotts related to Israel’s war in Gaza.
In Pakistan, local brands have made inroads into its fast-growing cola market as some consumers avoid US brands. In 2023, Coca-Cola’s market share in the consumer sector in Pakistan fell to 5.7 percent from 6.3 percent in 2022, according to GlobalData, while PepsiCo’s fell to 10.4 percent from 10.8 percent.
Earlier this month, religious clerics in Pakistan called for a boycott of any products or brands that they say support Israel or the American economy, but asked people to stay peaceful and not destroy property.