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Major law firm pledges at least $100 million in free legal services in deal to avoid White House order, while two other firms sue

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A prominent international law firm reached a deal with President Donald Trump on Friday to dedicate at least $100 million in free legal services and to review its hiring practices, averting a punishing executive order like the ones directed at nearly a half-dozen other major legal institutions in recent weeks.

The deal with Skadden, Arps, Slate, Meagher & Flom was announced just hours after two other law firms sued in federal court over executive orders that threatened the suspension of their attorneys’ security clearances and their access to federal buildings. Judges on Friday evening temporarily blocked the enforcement of key parts of the executive orders against those firms, WilmerHale and Jenner & Block.

The contrasting approaches reflect divisions within the legal community on whether to fight or negotiate as Trump seeks to extract major concessions from some of the world’s most significant law firms and in some cases punish them over their association with prosecutors who previously investigated him. Besides Skadden Arps, another firm, Paul Weiss, has reached an agreement with the White House, a deal that prompted major backlash last week from lawyers who said the capitulation set a bad precedent.

In a message to his firm, Skadden Arps executive partner Jeremy London said the firm had recently learned that the Trump administration intended to issue an executive order targeting it over its pro bono legal work and its diversity, equity and inclusion initiatives.

“When faced with this information, we carefully considered what the right path would be for us, and the answer was not obvious. We were thoughtful and deliberate in determining the steps we might take, knowing that the decisions we were grappling with would have fundamental consequences for our firm,” London wrote in the message, which was obtained by The Associated Press.

He added that the firm opted to enter negotiations with the administration in hopes of warding off the issuance of an executive order.

“We entered into the agreement the President announced today because, when faced with the alternatives, it became clear that it was the best path to protect our clients, our people, and our Firm,” he wrote.

As part of the deal, Skadden Arps agreed, among others things, to provide at least $100 million in pro bono legal services related to causes including veterans affairs and countering antisemitism. It also pledged a commitment to merit-based hiring and to use an independent counsel to make sure its employment practices are legal and don’t rely on diversity, equity and inclusion considerations.

The two firms who sued on Friday, Jenner & Block and WilmerHale, argued in their complaints that the orders amount to an unprecedented assault on the legal system and represent an unconstitutional form of presidential retaliation.

“Our Constitution, top to bottom, forbids attempts by the government to punish citizens and lawyers based on the clients they represent, the positions they advocate, the opinions they voice, and the people with whom they associate,” said the complaint from Jenner & Block, filed in federal court in Washington.

After arguments Friday, two different federal judges in Washington granted temporary restraining orders sought by the firms to block enforcement of key portions of the order dealing with access to federal buildings and government contracts. U.S. District Judge Richard Leon, ruling in the case of WilmerHale, said the firm “faces more than economic harm — it faces crippling losses and its very survival is at stake.”

“We appreciate the court’s swift action to preserve our clients’ right to counsel and acknowledgement of the unconstitutional nature of the executive order and its chilling effect on the legal system. The court’s decision to block key provisions of the order vindicates our and our clients’ foundational First Amendment rights,” a WilmerHale spokesperson said in a statement.

The firms argued the executive orders, issued earlier in the week, have already affected their business, with Jenner & Block saying that one client has been notified by the Justice Department that the firm cannot attend an upcoming meeting at the building.

“That client therefore will either need to attend the meeting without outside counsel or would need to retain new outside counsel before April 3,” the lawsuit says.

The WilmerHale complaint raises similar concerns, calling it a flagrant violation of the firm’s rights.

“It imposes severe consequences without notice or any opportunity to be heard; it uses vague, expansive language that does not adequately inform WilmerHale (or its clients) of what conduct triggered these extraordinary sanctions; and it unfairly singles out WilmerHale based on its perceived connections to disfavored individuals and causes,” the lawsuit says.

Targeted law firms have taken different approaches to the executive orders that threaten to upend their business model and chill their legal practice.

Earlier this month, the law firm of Perkins Coie also challenged the Trump order in court and succeeded in getting a judge to temporarily block enforcement. The Paul Weiss firm, by contrast, cut a deal with the White House days after it was subjected to an executive order, with its chairman saying that the order presented an “existential crisis” for the firm and that he wasn’t sure it could have survived a protracted fight with the Trump administration.

The executive order against Jenner & Block this week stemmed from the fact that the firm once employed Andrew Weissmann, a lawyer who served on special counsel Robert Mueller’s team that investigated Trump during his first term in office over potential connections between his 2016 campaign and Russia. Weissmann, a frequent public target of Trump’s ire, left the firm several years ago.

Mueller has retired from WilmerHale, but the White House executive order from Thursday mentions him as well as another retired partner and a current partner who all served on Mueller’s team.

“While most litigation requires discovery to unearth retaliatory motive, the Order makes no secret of its intent to punish WilmerHale for its past and current representations of clients before the Nation’s courts and for its perceived connection to the views that Mr. Mueller expressed as Special Counsel,” the WilmerHale lawsuit says.

The first executive order targeted Covington & Burling, a firm that has provided legal representation to special counsel Jack Smith, who investigated Trump during the Biden administration and filed two separate criminal cases that were abandoned after Trump’s election win last November.

This story was originally featured on Fortune.com



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Canada’s former banker turned prime minister slams Trump’s tariffs as ‘misguided’

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Prime Minister Mark Carney said Thursday that Canada will match U.S. President Donald Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

Trump’s previously announced 25% tariffs on auto imports took effect Thursday. The prime minister said he told Trump last week in a phone call that he would be retaliating for those tariffs.

“We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

Carney said Canada won’t put tariffs on auto parts as Trump has done, because he said Canadians know the benefits of the integrated auto sector. The parts can go back and forth across the Canada-U.S. border several times before being fully assembled in Ontario or Michigan.

Carney said Canadians are already seeing the impact.

Automaker Stellantis said it shut down its assembly plant in Windsor, Canada, for two weeks from April 7, the local union said late Wednesday. The president of Unifor Local 444, James Stewart, said more scheduling changes were expected in coming weeks.

Carney said that will impact 3,600 auto workers that he met with last week.

Autos are Canada’s second-largest export and the sector employs 125,000 Canadians directly and almost another 500,000 in related industries.

Carney announced last week a CA$2 billion ($1.4 billion) “strategic response fund” that will protect Canadian auto jobs affected by Trump’s tariffs.

Trump previously placed 25% tariffs on Canada’s steel and aluminum. And Carney said Canada can expects further tariffs on pharmaceuticals, lumber and semi-conductors.

“Given the prospective damage to their own people the American administration should eventually change course,” Carney said. “Although their policy will hurt American families, until that pain becomes impossible to ignore, I do not believe they will change direction, so the road to that point may indeed be long. And will be hard on Canadians just as it will be on other partners of the United States.”

Carney, a former two-time central banker in Canada and the U.K, said Trump’s actions will reverberate in Canada and across the world. “They are all unjustified and unwarranted and in our judgement misguided,” Carney said.

Canada’s initial $30 billion Canadian (US$21 billion) worth of retaliatory tariffs remain in place, having been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

Carney suspended his election campaign to return to Ottawa to deal with Trump’s tariffs.

Opposition Conservative leader Pierre Poilievre said he would remove the federal tax on Canadian made vehicles.

Ontario Premier Doug Ford, whose province has the bulk of Canada’s auto industry, called Canada’s latest tariffs a “measured response.”

This story was originally featured on Fortune.com



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One country spared from Trump’s reciprocal tariffs: Mexico—but it’s still fighting other fees

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Mexico celebrated Thursday having dodged the latest round of tariffs from the White House taking aim at dozens of U.S. trading partners around the world, but was also quickly reminded that in a global economy the effects of uncertainty can’t be entirely avoided.

President Claudia Sheinbaum said the free-trade agreement signed by Mexico, Canada and the U.S. during Trump’s first administration had shielded Mexico.

Now her government will focus on the existing 25% U.S. tariffs on imported autossteel and aluminum, while accelerating domestic production to safeguard jobs and reduce imports.

“During my last call with President Trump, I said that, in the case of reciprocal tariffs, my understanding was that there wouldn’t be tariffs (on Mexico), because Mexico doesn’t place tariffs on the United States,” Sheinbaum said.

Economy Secretary Marcelo Ebrard noted that despite having free-trade agreements with the U.S., many countries were targeted by the tariffs U.S. President Donald Trump announced Wednesday on what he dubbed “Liberation Day.” Trump framed the tariffs as a way to bring manufacturing jobs back to the U.S.

Noting that Mexico dodged the latest round of tariffs, Ebrard said swaths of Mexican exports including agricultural products like avocados, clothing and electronics will continue to enter the U.S. without import duties.

Sheinbaum, meanwhile, encouraged companies producing in Mexico who had not been exporting under the free-trade agreement for various reasons to take the necessary steps to qualify. She cited major German auto producers as an example.

Qualifying for the free-trade agreement could involve anything from doing paperwork to making adjustments to the sourcing of a product.

Despite Trump’s latest tariffs not being imposed on Mexico, the uncertainty they created and the interconnectedness of the North American auto supply chains meant it didn’t take long for the effects to touch Mexico.

Stellantis, maker of auto brands including Dodge and Jeep, announced that it would pause production at its assembly plant in Toluca west of Mexico City for the month of April while it assesses the tariffs’ impact on its operations. A similar temporary production halt was scheduled for an assembly plant in Canada and some 900 workers were to be temporarily laid off across several plants in the United States.

That uncertainty is part of the reasons why Sheinbaum is pushing Plan Mexico, an initiative to promote and cultivate more domestic production.

As an example, she cited a collaboration between her government, local universities and Mexican companies Megaflux and Dina to produce electric buses for public transportation.

Ebrard said recently that the buses represent not only a technological advance in Mexico, but also a “strategic decision” in favor of Mexico’s industrial sovereignty.

At a factory in Mexico City, the electric buses called Taruk — trail-runner in the Indigenous Yaqui language – are already in production. Megaflux Director General Roberto Gottfried said the company hopes to deliver some 200 by year’s end.

He noted that some 70% of the Taruk’s components are produced in Mexico, including its motor, but the lithium batteries that power them come from China.

In a country where one out of every three people use public transportation every day, developing this sector domestically is critical, Gottfried said.

Despite the global economic challenges presented by the uncertainty caused by tariffs, he said, Mexico’s large internal market gives the initiative a competitive advantage to develop and weather the storm.

This story was originally featured on Fortune.com



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