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

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

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

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.


Police confirm 134 arrested for supporting Palestine Action in London

Police confirm 134 arrested for supporting Palestine Action in London
Updated 02 October 2025

Police confirm 134 arrested for supporting Palestine Action in London

Police confirm 134 arrested for supporting Palestine Action in London
  • ‘Biggest ever mass action yet’ in support of banned group to take place this weekend
  • Further 66 people arrested at demo outside Labour Party conference in Liverpool

LONDON: The Metropolitan Police in London have said 134 people have been charged with allegedly supporting Palestine Action in the UK capital, The Independent reported.

It comes after 20 people became the latest to be charged under section 13 of the UK’s Terrorism Act for their part in demonstrations backing the proscribed group, which can carry a sentence of up to six months in prison.

The 20 were arrested on Aug. 9, and are due to appear at Westminster Magistrates’ Court on Nov. 24.

Palestine Action was banned in the UK after several high-profile incidents, including a break-in at a Royal Air Force base that saw damage done to two military aircraft.

Protests in support of the group have subsequently been held across the country, with campaigners seeking to overwhelm police stations and courts through the number of people arrested and charged under the Terrorism Act, which forbids showing support for a banned group.

Defend Our Juries, the group organizing demonstrations for supporters of Palestine Action, said more than 1,500 people are set to take part in another protest in London this weekend. It said it will be “the biggest ever mass action yet defying the ban on Palestine Action.”

Earlier this week, 66 people were arrested for taking part in a protest outside the governing Labour Party’s annual conference in Liverpool.

Two were subsequently released, but the remaining 64 were taken into custody on suspicion of terrorism-related offenses.

A spokesperson for Defend Our Juries said: “If they can’t enforce the ban on their own doorstep, how do they expect to stop the biggest act of mass civil disobedience in Trafalgar Square this weekend?

“It’s nothing short of a scandal that thousands of people are being arrested — from vicars and priests to students and retired healthcare workers — as our fundamental rights to free speech and protest have been stripped away, not to keep us safe, but to protect weapons manufacturers’ interests and enable Israel to continue to slaughter Palestinian people.”


Police: 4 people wounded in Manchester stabbing outside synagogue

Police: 4 people wounded in Manchester stabbing outside synagogue
Updated 02 October 2025

Police: 4 people wounded in Manchester stabbing outside synagogue

Police: 4 people wounded in Manchester stabbing outside synagogue

 Police say they believe they have shot a person suspected of stabbing a person at a synagogue in the north of Manchester.
In a series of posts on X, Greater Manchester Police said they were called to the Heaton Park Hebrew Congregation Synagogue in Crumpsall shortly after 9:30 a.m. by a member of the public. The caller said he had witnessed a car being driven towards members of the public and that one man had been stabbed.
It said that minutes later shots were fired by firearms officers.
“One man has been shot, believed to be the offender,” it added.

British Prime Minister Keir Starmer said he was appalled by the attack, adding that the fact it had taken place on the holy day of Yom Kippur makes it “all the more horrific.”
Andy Burnham, the mayor of the Greater Manchester area, told BBC Radio the “immediate danger appears to be over.”


Philippines ends quake rescue efforts, priority now on helping the 20,000 displaced

Philippines ends quake rescue efforts, priority now on helping the 20,000 displaced
Updated 02 October 2025

Philippines ends quake rescue efforts, priority now on helping the 20,000 displaced

Philippines ends quake rescue efforts, priority now on helping the 20,000 displaced
  • Attention has now turned to delivering aid to survivors of the 6.9-magnitude quake
  • The Philippines sits on the Pacific “Ring of Fire” – an earthquake-prone belt of volcanoes stretching from South America to the Russian Far East

BOGO, Philippines: Philippine authorities said on Thursday that search and rescue operations in quake-hit Cebu province have ended, as the current death toll of 72 was not expected to go much higher and missing people had been accounted for.

Attention has now turned to delivering aid to survivors of the 6.9-magnitude quake that has become the country’s deadliest in more than a decade.

Striking waters off Cebu’s central island late Tuesday, the quake has caused more than 20,000 people to be displaced, while over 300 have been injured.

On Thursday, Philippine President Ferdinand Marcos Jr visited Bogo, a city of some 90,000 that was the worst-affected, seeking to reassure evacuees and noting that relief operations have been complicated due to widespread damage to infrastructure.

“We are having some difficulty because we have nowhere to put the displaced families because we’re unsure of the integrity of the evacuation centers,” he told reporters.

“We will make sure there is food supply, water supply and electricity – a generation set if needed. Whatever the people need, we will make sure we can provide.”

Many of the victims were killed when buildings and homes collapsed – either due to the quake itself or landslides that followed after. Heavy rain and the absence of power also hampered rescue efforts.

The Philippines sits on the Pacific “Ring of Fire” – an earthquake-prone belt of volcanoes stretching from South America to the Russian Far East. It experiences more than 800 quakes each year.


French PM: Two crew members of detained Russian tanker have been arrested

French PM: Two crew members of detained Russian tanker have been arrested
Updated 02 October 2025

French PM: Two crew members of detained Russian tanker have been arrested

French PM: Two crew members of detained Russian tanker have been arrested
  • The two crew members were arrested at the request of the Brest prosecutor

PARIS: French police have arrested two crew members of a tanker suspected of belonging to the Russian shadow fleet after the French navy boarded the vessel over the weekend, Prime Minister Sebastien Lecornu said in a post on X on Thursday.
The two crew members were arrested at the request of the Brest prosecutor, whose office is handling the investigation into the boat, currently anchored off western France. Its crew is accused of failing to provide proof of the vessel's nationality and failing to comply with orders.


Anti foreigner sentiments and politicians are on the rise as Japan faces a population crisis

Anti foreigner sentiments and politicians are on the rise as Japan faces a population crisis
Updated 02 October 2025

Anti foreigner sentiments and politicians are on the rise as Japan faces a population crisis

Anti foreigner sentiments and politicians are on the rise as Japan faces a population crisis
  • The populist surge comes as Japan, a traditionally insular nation that values conformity and uniformity, sees a record surge of foreigners needed to bolster its shrinking workforce
  • Anti immigrant policies, which allow populists to vent their dissatisfaction on easy targets, are appealing to more Japanese as they struggle with dwindling salaries, rising prices and bleak future outlooks

TOKYO: Outside a train station near Tokyo, hundreds of people cheer as Sohei Kamiya, head of the surging nationalist party Sanseito, criticizes Japan’s rapidly growing foreign population.
As opponents, separated by uniformed police and bodyguards, accuse him of racism, Kamiya shouts back, saying he is only talking common sense.
Sanseito, while still a minor party, made big gains in July’s parliamentary election, and Kamiya’s “Japanese First” platform of anti-globalism, anti-immigration and anti-liberalism is gaining broader traction ahead of a ruling party vote Saturday that will choose the likely next prime minister.
Anti-immigrant policies, which allow populists to vent their dissatisfaction on easy targets, are appealing to more Japanese as they struggle with dwindling salaries, rising prices and bleak future outlooks.
“Many Japanese are frustrated by these problems, though we are too reserved to speak out. Mr. Kamiya is spelling them all out for us,” said Kenzo Hagiya, a retiree in the audience who said the “foreigner problem” is one of his biggest concerns.
The populist surge comes as Japan, a traditionally insular nation that values conformity and uniformity, sees a record surge of foreigners needed to bolster its shrinking workforce.
In September, angry protests fueled by social media misinformation about a looming flood of African immigrants quashed a government-led exchange program between four Japanese municipalities and African nations.
Even the governing party, which has promoted foreign labor and tourism, now calls for tighter restrictions on foreigners, but without showing how Japan, which has one of the world’s fastest-aging and fastest-dwindling populations, can economically stay afloat without them.
Kamiya says his platform has nothing to do with racism
“We only want to protect the peaceful lives and public safety of the Japanese,” he said at the rally in Yokohama, a major residential area for foreigners. Japanese people tolerate foreigners who respect the “Japanese way,” but those who cling to their own customs are not accepted because they intimidate, cause stress and anger the Japanese, he said.
Kamiya said the government was allowing foreign workers into the country only to benefit big Japanese businesses.
“Why do foreigners come first when the Japanese are struggling to make ends meet and suffering from fear?” Kamiya asked. “We are just saying the obvious in an obvious way. Attacking us for racial discrimination is wrong.”
Kamiya’s anti-immigrant message is gaining traction
All five candidates competing in Saturday’s governing Liberal Democratic Party leadership vote to replace outgoing Shigeru Ishiba as prime minister are vowing tougher measures on foreigners.
One of the favorites, former Economic Security Minister Sanae Takaichi, a hard-line ultra-conservative, was criticized for championing unconfirmed claims that foreign tourists abused deer at a park in Nara, her hometown.
Takaichi later said she wanted to convey the growing sense of anxiety and anger among many Japanese about ”outrageous” foreigners.
During the July election campaign, far-right candidates insulted Japan’s about 2,000 Kurds, many of whom fled persecution in Turkiye.
A Kurdish citizen, who escaped to Japan as a child after his father faced arrest for complaining about military hazing, said he and his fellow Kurds have had to deal with people calling them criminals on social media.
Japan has a history of discrimination against ethnic Koreans and Chinese, dating from the colonialist era in the first half of the 20th century.
Some of that discrimination persists today, with insults and attacks targeting Chinese immigrants, investors and their businesses.
Hoang Vinh Tien, 44, a Vietnamese resident who has lived in Japan for more than 20 years, says foreigners are often underpaid and face discrimination, including in renting apartments. He says he has worked hard to be accepted as part of the community.
“As we hear about trouble involving foreigners, I share the concerns of the Japanese people who want to protect Japan, and I support stricter measures for anyone from any country, including Vietnam,” Hoang said.
Rising foreigner numbers, but not nearly enough to bolster the economy
Japan’s foreign population last year hit a new high of more than 3.7 million. That’s only about 3 percent of the country’s population. Japan, which also promotes inbound tourism, aims to receive 60 million visitors in 2030, up from 50 million last year.
The foreign workforce tripled over the past decade to a record 2.3 million last year, according to Ministry of Health, Labor and Welfare statistics. An increase of 300,000 from a year earlier was twice the projected pace. Many work in manufacturing, retail, farming and fishing.
Even as the foreign population surged, only about 12,000 foreigners were arrested last year, despite alarmists’ claims that there would be a crimewave, National Police Agency figures show.
The pro-business ruling Liberal Democratic Party in 1993 launched a foreign trainee program and has since drastically expanded its scope in phases. But the program has been criticized as an exploitive attempt to make up for a declining domestic workforce. It will be renewed in 2027 with more flexibility for workers and stricter oversight for employers.
Many Japanese view immigrants as cheap labor who speak little Japanese, allow their children to drop out of school and live in high-crime communities, says Toshihiro Menju, a professor at Kansai University of International Studies and an expert on immigration policies.
He says the prejudice stems from Japan’s “stealth immigration system” that accepts foreign labor as de facto immigrants but without providing adequate support for them or an explanation to the public to help foster acceptance.
A Sanseito supporter in her 50s echoed some of these views but acknowledged that she has never personally encountered trouble with foreigners.
Meanwhile, Japan faces real economic pain if it doesn’t figure out the immigration issue.
The nation will need three times more foreign workers, or a total of 6.7 million people, than it currently allows, by 2040 to achieve 1.24 percent annual growth, according to a 2022 Japan International Cooperation Agency study. Without these workers, the Japanese economy, including the farming, fishing and service sectors, will become paralyzed, experts say.
It is unclear whether Japan can attract that many foreign workers in the future, as its dwindling salaries and lack of diversity makes it less attractive.
A growing party that’s part of a changing political landscape
Sanseito started in 2020 when Kamiya began attracting people on YouTube and social media who were discontent with conventional parties.
Kamiya, a former assembly member in the town of Suita, near Osaka, focused on revisionist views of Japan’s modern history, conspiracy theories, anti-vaccine ideas and spiritualism.
Kamiya said he is “extremely inspired by the anti-globalism policies” of US President Donald Trump, but not his style. He invited conservative activist and Trump ally Charlie Kirk to Tokyo for a talk event days before his assassination, and Kamiya has compared his party to far-right parties such as the Alternative for Germany party (AfD), the National Rally of France and Britain’s Reform UK.
His priority, he said in an interview with The Associated Press, is to further expand his support base, and he hopes to field more than 100 candidates in future elections.