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Canada’s snap election is all about Trump and his ‘unjustified trade actions and his threats to our sovereignty’

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New Canadian Prime Minister Mark Carney and his Conservative opponent said U.S. President Donald Trump must respect Canada’s sovereignty as they kicked off their election campaigns Sunday against the backdrop of a trade war and Trump’s annexation threats.

Carney announced a five-week election campaign before the vote on April 28.

“We are facing the most significant crisis of our lifetimes because of President Trump’s unjustified trade actions and his threats to our sovereignty,” Carney said.

“President Trump claims that Canada isn’t a real country. He wants to break us so America can own us. We will not let that happen,” he added.

The governing Liberals appeared poised for a historic election defeat this year until Trump declared a trade war. He has repeatedly said Canada should become the 51st U.S. state and has acknowledged he’s upended Canadian politics.

Trump’s almost daily attacks on Canada’s sovereignty have infuriated Canadians and led to a surge in Canadian nationalism that has bolstered Liberal poll numbers.

“They want our resources. They want our water. They want our land. They want our country. Never,” Carney said at a rally in Newfoundland.

The election campaign for 343 seats or districts in the House of Commons will last 37 days. Although other parties are running, the Liberals and the Conservatives are the only two that have a chance to form a government. The party that commands a majority in Parliament, either alone or with the support of another party, will form the next government and its leader will be prime minister.

Carney replaced Justin Trudeau, who announced his resignation in January but remained in power until the Liberal Party elected a new leader following a leadership race.

The opposition Conservatives hoped to make the election about Trudeau, whose popularity declined as food and housing prices rose and immigration surged. But after decades of bilateral stability, the vote is now expected to focus on who is best equipped to deal with Trump.

Carney said the choice for Canadians is a “Canadian Trump or a government that unites.”

“Canadians are always ready when someone else drops the gloves,” Carney said in a hockey reference. “In this trade war, just like in hockey, we will win.”

Trump put 25% tariffs on Canada’s steel and aluminum and is threatening sweeping tariffs on all Canadian products — as well as all of America’s trading partners — on April 2.

Conservative leader Pierre Poilievre is Carney’s main challenger. The party and Poilievre were heading for a huge victory in Canada’s election until Trump’s near-daily trade and annexation threats derailed them.

Alberta Premier Danielle Smith, a conservative ally, said Poilievre would be “very much in sync” with the “new direction in America.”

“The content of this interview is very bad news for the Conservatives because it reinforces the Liberals’ narrative about Pierre Poilievre and his perceived ideological proximity with Donald Trump,” said Daniel Béland, a political science professor at McGill University in Montreal.

Poilievre said he will stand up to Trump.

“I will insist the president recognizes the independence and sovereignty of Canada. I will insist he stops tariffing our nation,” he said as he launched his campaign.

“I know a lot of people are worried, angry and anxious. And with good reason as a result of the president’s unacceptable threats against our country,” Poilievre said.

Carney still hasn’t had a phone call with Trump and that might not happen now until after the election. Trump mocked Trudeau by calling him governor, but he has not yet mentioned Carney’s name.

“Trump must recognize that Canada is a sovereign country,” Carney said. “He has to say that, he has to accept that, before we can have a discussion about a trade agreement. … Let’s just say there is no meeting that has been planned.”

Carney, 60, was the head of the Bank of Canada during the 2008 financial crisis. In 2013, he became the first noncitizen of the United Kingdom to run the Bank of England, helping to manage the impact of Brexit.

Carney, a political novice, said Canadians want change and he’s moved the Liberal Party to the right, announcing a middle-class tax cut Sunday and scrapping Trudeau’s signature carbon tax and reversing a capital gains tax increase.

Poilievre, 45, for years the party’s go-to attack dog, is a career politician and firebrand populist who says he will put “Canada first.” Elon Musk, who is playing an integral role in the Trump administration, has endorsed and praised him.

This story was originally featured on Fortune.com



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Dow futures drop as report says White House mulls global tariff of up to 20% on nearly all trading partners

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  • US stock futures fell Sunday evening as Wall Street braced for the latest salvo in President Donald Trump’s trade war. The Wall Street Journal reported that advisers have considered a global tariff of up 20% on almost all countries, though reciprocal tariffs are still an option. That follows an earlier report that said Trump is eyeing more aggressive duties to transform the US economy.

Investors are buckling up for a potentially bumpy ride as a critical week for markets and the economy kicks off, with reports indicating President Donald Trump’s trade war could soon get even more intense.

Dow futures were down more than 180 points, or 0.43%, while S&P 500 futures fell 0.5% and Nasdaq futures dropped 0.7%. That follows Friday’s selloff that saw the broad market index sink 2%.

Tariff news dominated the weekend and indicated more escalation is ahead. On Sunday, sources told the Wall Street Journal that Trump has pushed his advisers to get more aggressive on tariffs, including higher rates on a wider set of nations.

One option under consideration in recent days is a global tariff of up to 20% that hits nearly all US trading partners, reviving an idea Trump floated on the campaign trail.

A 20% rate would further up the ante. Fitch Ratings earlier estimated that if Trump carried out all his previously announced plans, the effective US tariff rate could hit 18% on average—the highest level in 90 years. 

Reciprocal tariffs, where the US matches duties or trade barriers from other countries, are still an option too, according to the Journal, but one source that said Trump wants a “big and simple” policy.

That suggests the eventual tariff policy will be broader than Treasury Secretary Scott Bessent’s “dirty 15” plan to set tariffs on the 15% of countries that the administration considers the worst trading partners.

The White House didn’t immediately respond to a request for comment.

Similarly, the Washington Post reported on Saturday that Trump is considering a single universal tariff as part of an effort to fundamentally transform the US economy.

That means most imports would face the same rate no matter which country they are from, the report said, adding that Trump views a single duty as less likely to be watered down by exemptions.

Intense discussions are ongoing ahead of Wednesday, which Trump has billed as “Liberation Day,” when his next batch of tariffs will be unveiled.

Trump has already slapped tariffs on China, Canada, Mexico, steel, aluminum and autos, while threatening duties on pharmaceuticals, chips, lumber and the European Union. 

Last week, he suggested he would show some “flexibility” on reciprocal tariffs, and earlier reports said those would be more targeted, raising hopes on Wall Street that their impact would be less severe.

But after stocks rallied, his announcement of auto tariffs on Wednesday contributed to another selloff, which was also fueled by signs that tariffs were worsening inflation as well as consumers’ expectations of future inflation.

Also on Saturday, Trump stood by his auto tariffs, telling NBC News that they are permanent and that he doesn’t care of they cause carmakers to hike prices.

“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” he said. “I couldn’t care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty.”

Trump later said if prices on foreign cars go up, then consumers will buy American cars.

Meanwhile, several big reports are due this week that could reveal how much stress the economy is feeling from Trump’s tariffs and steep federal job cuts.

On Tuesday, the Institute for Supply Management’s manufacturing activity index for March will come out, and the Labor Department will report February job openings and turnover.

On Wednesday, ADP will release private-sector payroll data for March. On Thursday, ISM will publish its monthly services-activity index, and the Labor Department will report weekly jobless claims.

On Friday, the Labor Department will issue its highly anticipated March jobs report, and Federal Reserve Chairman Jerome Powell is also scheduled to speak.

This story was originally featured on Fortune.com



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EU will respond firmly to US tariffs but still open to ‘compromise,’ German chancellor says

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German Chancellor Olaf Scholz on Sunday said the EU would respond firmly to tariffs announced by US President Donald Trump but stressed the bloc was also open to compromise.

“It is clear that we, as the European Union… will react clearly and decisively to the United States’ tariff policy,” Scholz said ahead of the opening of a trade fair in Hanover.

But the bloc was “always and at all times firmly prepared to work for compromise and cooperation”, he said.

“I say to the US: Europe’s goal remains cooperation. But if the US leaves us no choice, as with the tariffs on steel and aluminum, we will respond as a united European Union,” Scholz said.

Trump has announced sweeping tariffs on the United States’ allies and adversaries, including a 25-percent levy on auto imports starting next week.

A 25-percent US tariff on steel and aluminium from around the world came into effect in mid-March, with EU countermeasures set to begin in April.

As a major car manufacturer and exporter, Germany could be hit particularly hard by the auto tariffs and they were the subject of a visit to Washington by Finance Minister Joerg Kukies last week.

Germany has vowed a tough response to the tariffs, with a government spokesman insisting that “nothing is off the table”.

However, Italian Prime Minister Giorgia Meloni struck a more conciliatory tone on Saturday, calling for a “reasoned” approach to the escalating dispute.

EU chief Ursula von der Leyen also previously said she “deeply” regretted the US auto tariffs and the EU would “continue to seek negotiated solutions”.

Scholz on Sunday also insisted Canada was an independent country, responding to repeated comments by Trump that it should become the 51st US state.

“Canada is a proud, independent nation, Canada has friends all over the world and especially here in Germany and Europe,” he said at the Hanover trade fair.

Canada is a special guest at the event, which officially opens on Monday.

This story was originally featured on Fortune.com



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