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.


Authorities in Indian-administered Kashmir ban books by eminent writers, scholars

Authorities in Indian-administered Kashmir ban books by eminent writers, scholars
Updated 20 sec ago

Authorities in Indian-administered Kashmir ban books by eminent writers, scholars

Authorities in Indian-administered Kashmir ban books by eminent writers, scholars
  • Books by Arundhati Roy, constitutional expert A.G. Noorani, Sumantra Bose, Christopher Snedden and Victoria Schofield banned
  • Indian authorities say books by these authors propagate “false narratives” and “secessionism” in the disputed Kashmir region

SRINAGAR, India: Indian authorities have banned 25 books in Kashmir that they say propagate “false narratives” and “secessionism” in the disputed region, where strict controls on the media have escalated in recent years.

The ban threatens people with prison time for selling or owning these works by authors such as Booker Prize-winning novelist and activist Arundhati Roy, constitutional expert A.G. Noorani, and noted academicians and historians like Sumantra Bose, Christopher Snedden and Victoria Schofield.

The order was issued on Tuesday by the region’s Home Department, which is under the direct control of Lt. Gov. Manoj Sinha, New Delhi’s top administrator in Kashmir.

Sinha wields substantial power in the region as the national government’s representative, while elected officials run a largely powerless government that took office last year after the first local election since India stripped the disputed region of its special status in 2019.

The order declared the 25 books “forfeit” under India’s new criminal code of 2023, effectively banning the works from circulation, possession and access within the Himalayan region.

 Various elements of the code threaten prison terms of three years, seven years or even life for offenses related to forfeit media, although no one has been jailed yet under them.

“The identified 25 books have been found to excite secessionism and endangering sovereignty and integrity of India,” the Home Department said in its notice. Such books played “a critical role in misguiding the youth, glorifying terrorism and inciting violence against Indian State,” it said.

The action was taken following “investigations and credible intelligence” about “systemic dissemination of false narratives and secessionist literature” that was “often disguised as historical or political commentary,” it said.

In compliance with the order, police officials on Thursday raided bookstores, searched roadside book vendors and other establishments dealing in printed publications in the main city of Srinagar and across multiple locations in the region to confiscate the banned literature, police said. However, officials didn’t specify if they had seized any such material.

Bose, a political scientist and author whose book “Kashmir at Cross Roads” was among the banned works, rejected “any and all defamatory slurs” on his work, the Press Trust of India news agency reported.

“I have worked on Kashmir — among many other subjects — since 1993,” Bose said.

 “Throughout, my chief objective has been to identify pathways to peace so that all violence ends and a stable future free of fear and war can be enjoyed by the people of the conflict region, of India as a whole, and the subcontinent.

“I am a committed and principled advocate of peaceful approaches and resolutions to armed conflicts, be it in Kashmir or elsewhere in the world,” he said.

Nuclear-armed rivals India and Pakistan each administer part of Kashmir, but both claim the territory in its entirety.

Militants in the Indian-controlled portion of Kashmir have been fighting New Delhi’s rule since 1989. Many Muslim Kashmiris support the rebels’ goal of uniting the territory, either under Pakistani rule or as an independent country.

India insists the Kashmir militancy is Pakistan-sponsored “terrorism.” Pakistan denies the charge, and many Kashmiris consider it a legitimate freedom struggle. Tens of thousands of civilians, rebels and government forces have been killed in the conflict.

Since 2019, authorities have increasingly criminalized dissent and shown no tolerance for any narrative that questions India’s sovereignty over Kashmir.

In February, police raided bookstores and seized hundreds of books linked to a major Islamic organization in the region.

In 2011, police filed charges against Kashmir education officials over a textbook for first graders that illustrated the word “tyrant” with a sketch resembling a police official.

A year earlier, police arrested a college lecturer on charges that he gave his students an English exam filled with questions attacking a crackdown on demonstrations challenging Indian rule in the region.

In some cases, the accused were freed after police questioning, but most of these cases have lingered on in India’s notoriously slow judicial system.

Mirwaiz Umar Farooq, a key resistance leader in Kashmir, condemned the book ban.

“Banning books by scholars and reputed historians will not erase historical facts and the repertoire of lived memories of people of Kashmir,” Mirwaiz said in a statement.

He questioned authorities for organizing an ongoing book festival to showcase its literary commitment but then going on to ban some books.

“It only exposes the insecurities and limited understanding of those behind such authoritarian actions, and the contradiction in proudly hosting the ongoing Book Festival,” he said.

Banning books isn’t common in India, but authorities under Prime Minister Narendra Modi have increasingly raided independent media houses, jailed journalists and sought to rewrite history in school and university textbooks to promote the Hindu nationalist vision of his governing Bharatiya Janata Party.

Meanwhile, curriculums related to Muslim Mughal rulers who ruled much of India between the 16th and 19th centuries have been altered or removed. Last year, an Indian court ended a decades-long ban on Salman Rushdie’s “The Satanic Verses”, owing to the absence of any official order that had banned the book in 1988.


Amnesty tells London police to avoid arresting protesters supporting Palestine Action

Amnesty tells London police to avoid arresting protesters supporting Palestine Action
Updated 21 sec ago

Amnesty tells London police to avoid arresting protesters supporting Palestine Action

Amnesty tells London police to avoid arresting protesters supporting Palestine Action
  • The group was listed as a terrorist organization on July 5 after members broke into an RAF airbase and damaged aircraft
  • A major protest in support of Palestine Action is set to take place in London on Saturday

LONDON: Amnesty International has warned London’s Metropolitan Police to avoid arresting protesters who show support for the banned group Palestine Action, The Guardian reported.

It comes ahead of a major protest planned for this Saturday in London, and as the number of people prosecuted for showing support for the organization continues to grow.

Three people who were arrested in Westminster in July and charged with showing support for a proscribed organization are due to appear in court on Sept. 16. Since Palestine Action was proscribed on July 5, police across the UK have arrested 221 people for suspected offenses under the Terrorism Act.

The pro-Palestinian group was listed as a terrorist organization after breaking into an RAF airbase on June 20 and damaging aircraft.

The protest in support of the group this weekend will take place in Parliament Square, central London. The organizer, pressure group Defend Our Juries, has requested that protesters hold signs saying: “I oppose genocide, I support Palestine Action.”

Dominic Murphy, the chief of the Metropolitan Police’s counterterrorism unit, cautioned people against showing support for the group.

“I would strongly advise anyone planning to come to London this weekend to show support for Palestine Action to think about the potential criminal consequences of their actions,” he said.

In a letter to London’s police chief, Mark Rowley, Amnesty International UK called for officers to show “restraint” during Saturday’s protest.

Signed by CEO Sacha Deshmukh, it said any arrests of peaceful protesters simply for holding placards would violate the UK’s international obligations to protect freedom of expression and assembly.

“As such, we urge you to instruct your officers to comply with the UK’s international obligations and act with restraint in their response to any such protests that occur, by not arresting protesters who are merely carrying placards that state they oppose genocide and support Palestine Action,” it added.

On Wednesday, Home Secretary Yvette Cooper, who was responsible for proscribing the group, said she did so after a “unanimous recommendation by the expert cross-government proscription review group.”

She added: “It also follows disturbing information referencing planning for further attacks, the details of which cannot yet be publicly reported due to ongoing legal proceedings.

“Those who seek to support this group may yet not know the true nature of the organization. But people should be under no illusion — this is not a peaceful or nonviolent protest group.”


Harvard scientists say research could be set back years after funding freeze

Harvard scientists say research could be set back years after funding freeze
Updated 33 min 9 sec ago

Harvard scientists say research could be set back years after funding freeze

Harvard scientists say research could be set back years after funding freeze
  • “It’s like we have been creating a state-of-the-art telescope to explore the universe, and now we don’t have money to launch it,” said Ascherio
  • The loss of an estimated $2.6 billion in federal funding at Harvard has meant that some of the world’s most prominent researchers are laying off young researchers

CAMBRIDGE: Harvard University professor Alberto Ascherio’s research is literally frozen.
Collected from millions of US soldiers over two decades using millions of dollars from taxpayers, the epidemiology and nutrition scientist has blood samples stored in liquid nitrogen freezers within the university’s T.H. Chan School of Public Health.

The samples are key to his award-winning research, which seeks a cure to multiple sclerosis and other neurodegenerative diseases. But for months, Ascherio has been unable to work with the samples because he lost $7 million in federal research funding, a casualty of Harvard’s fight with the Trump administration.

“It’s like we have been creating a state-of-the-art telescope to explore the universe, and now we don’t have money to launch it,” said Ascherio. “We built everything and now we are ready to use it to make a new discovery that could impact millions of people in the world and then, ‘Poof. You’re being cut off.’”

Researchers laid off and science shelved

The loss of an estimated $2.6 billion in federal funding at Harvard has meant that some of the world’s most prominent researchers are laying off young researchers. They are shelving years or even decades of research, into everything from opioid addiction to cancer.

And despite Harvard’s lawsuits against the administration, and settlement talks between the warring parties, researchers are confronting the fact that some of their work may never resume.

The funding cuts are part of a monthslong battle that the Trump administration has waged against some the country’s top universities including Columbia, Brown and Northwestern. The administration has taken a particularly aggressive stance against Harvard, freezing funding after the country’s oldest university rejected a series of government demands issued by a federal antisemitism task force.

The government had demanded sweeping changes at Harvard related to campus protests, academics and admissions — meant to address government accusations that the university had become a hotbed of liberalism and tolerated anti-Jewish harassment.

Research jeopardized, even if court case prevails

Harvard responded by filing a federal lawsuit, accusing the Trump administration of waging a retaliation campaign against the university. In the lawsuit, it laid out reforms it had taken to address antisemitism but also vowed not to “surrender its independence or relinquish its constitutional rights.”

“Make no mistake: Harvard rejects antisemitism and discrimination in all of its forms and is actively making structural reforms to eradicate antisemitism on campus,” the university said in its legal complaint. “But rather than engage with Harvard regarding those ongoing efforts, the Government announced a sweeping freeze of funding for medical, scientific, technological, and other research that has nothing at all to do with antisemitism.”

The Trump administration denies the cuts were made in retaliation, saying the grants were under review even before the demands were sent in April. It argues the government has wide discretion to cancel federal contracts for policy reasons.

The funding cuts have left Harvard’s research community in a state of shock, feeling as if they are being unfairly targeted in a fight has nothing to do with them. Some have been forced to shutter labs or scramble to find nongovernment funding to replace lost money.

In May, Harvard announced that it would put up at least $250 million of its own money to continue research efforts, but university President Alan Garber warned of “difficult decisions and sacrifices” ahead.

Ascherio said the university was able to pull together funding to pay his researchers’ salaries until next June. But he’s still been left without resources needed to fund critical research tasks, like lab work. Even a year’s delay can put his research back five years, he said.

Knowledge lost in funding freeze

“It’s really devastating,” agreed Rita Hamad, the director of the Social Policies for Health Equity Research Center at Harvard, who had three multiyear grants totaling $10 million canceled by the Trump administration. The grants funded research into the impact of school segregation on heart health, how pandemic-era policies in over 250 counties affected mental health, and the role of neighborhood factors in dementia.

At the School of Public Health, where Hamad is based, 190 grants have been terminated, affecting roughly 130 scientists.

“Just thinking about all the knowledge that’s not going to be gained or that is going to be actively lost,” Hamad said. She expects significant layoffs on her team if the funding freeze continues for a few more months. “It’s all just a mixture of frustration and anger and sadness all the time, every day.”

John Quackenbush, a professor of computational biology and bioinformatics at the School of Public Health, has spent the past few months enduring cuts on multiple fronts.

In April, a multimillion dollar grant was not renewed, jeopardizing a study into the role sex plays in disease. In May, he lost about $1.2 million in federal funding for in the coming year due to the Harvard freeze. Four departmental grants worth $24 million that funded training of doctoral students also were canceled as part of the fight with the Trump administration, Quackenbush said.

“I’m in a position where I have to really think about, ‘Can I revive this research?’” he said. “Can I restart these programs even if Harvard and the Trump administration reached some kind of settlement? If they do reach a settlement, how quickly can the funding be turned back on? Can it be turned back on?”

The researchers all agreed that the funding cuts have little or nothing to do with the university’s fight against antisemitism. Some, however, argue changes at Harvard were long overdue and pressure from the Trump administration was necessary.

Bertha Madras, a Harvard psychobiologist who lost funding to create a free, parent-focused training to prevent teen opioid overdose and drug use, said she’s happy to see the culling of what she called “politically motivated social science studies.”

White House pressure a good thing?

Madras said pressure from the White House has catalyzed much-needed reform at the university, where several programs of study have “really gone off the wall in terms of being shaped by orthodoxy that is not representative of the country as a whole.”

But Madras, who served on the President’s Commission on Opioids during Trump’s first term, said holding scientists’ research funding hostage as a bargaining chip doesn’t make sense.

“I don’t know if reform would have happened without the president of the United States pointing the bony finger at Harvard,” she said. “But sacrificing science is problematic, and it’s very worrisome because it is one of the major pillars of strength of the country.”

Quackenbush and other Harvard researchers argue the cuts are part of a larger attack on science by the Trump administration that puts the country’s reputation as the global research leader at risk. Support for students and post-doctoral fellows has been slashed, visas for foreign scholars threatened, and new guidelines and funding cuts at the NIH will make it much more difficult to get federal funding in the future, they said. It also will be difficult to replace federal funding with money from the private sector.

“We’re all sort of moving toward this future in which this 80-year partnership between the government and the universities is going to be jeopardized,” Quackenbush said. “We’re going to face real challenges in continuing to lead the world in scientific excellence.”


Cargo of cocaine in animal skins leads to Portuguese police captain

Cargo of cocaine in animal skins leads to Portuguese police captain
Updated 40 min 18 sec ago

Cargo of cocaine in animal skins leads to Portuguese police captain

Cargo of cocaine in animal skins leads to Portuguese police captain
  • The stench had complicated the work of investigating teams as they removed and weighed the drugs
  • The skins had been packed fresh in Latin America and arrived in Portugal after weeks at sea

LISBON: Portuguese authorities have arrested a police captain and an accomplice suspected of running a drug operation that imported at least three containers of animal skins with 1.5 metric tons of cocaine hidden between the putrid layers of untanned skins.

A spokesperson at the Judicial Police for the Northern Region said on Thursday the stench had complicated the work of investigating teams as they removed and weighed the drugs.

The skins had been packed fresh in Latin America and arrived in Portugal after weeks at sea in a “highly putrefied state,” the spokesperson said.

The arrested officer has been on a long unpaid leave from a GNR police unit in the northern city of Fafe. Local media said the same officer had led an operation to dismantle a major drug ring in Fafe two years ago.

Portuguese police, acting in cooperation with the US Drug Enforcement Administration, had discovered the haul at the port of Leixoes but allowed the containers to be picked up and followed them to a warehouse in Fafe, where they found other drugs, illicit guns and thousands of euros in cash.


Spanish town bans ‘alien’ religious celebrations in public venues

Spanish town bans ‘alien’ religious celebrations in public venues
Updated 07 August 2025

Spanish town bans ‘alien’ religious celebrations in public venues

Spanish town bans ‘alien’ religious celebrations in public venues
  • Rightwing parties pass motion after violence against foreigners breaks out in nearby town 
  • Opposition parties complain ban is unconstitutional, deliberately targets Muslims

LONDON: A town in Spain has banned Muslims from celebrating religious festivals in public areas.

Jumilla, in Murcia, has a population of about 27,000, of whom 7.5 percent come from Muslim countries.

The ban was passed by the conservative People’s Party, and backed by the far-right Vox party, weeks after the nearby town of Torre Pacheco saw anti-migrant unrest.

Under the ban, public facilities cannot be used for “religious, cultural or social activities alien to our identity” unless approved by local authorities. It includes the use of sports halls and community centers, and applies to celebrations including Eid Al-Fitr and Eid Al-Adha.

Vox said on X: “Thanks to Vox the first measure to ban Islamic festivals in Spain’s public spaces has been passed. Spain is and will be forever the land of Christian people.”

However, the motion has come in for fierce criticism, with some even suggesting it could be illegal, with Article 16 of Spain’s constitution granting religious freedom.

Francisco Lucas, the leader of the Socialists in the Murcia region, said: “The PP violates the constitution and puts social cohesion as risk simply in the pursuit of power.”

The former mayor of Jumilla, Juana Guardiola, said: “What do they mean by identity? And what about the centuries of Muslim legacy here?”

Mounir Benjelloun Andaloussi Azhari, president of the Spanish Federation of Islamic Organizations, told Spanish newspaper El Pais: “They’re not going after other religions, they’re going after ours.”

Referencing the recent unrest in the area, he added: “We’re rather surprised by what’s happening in Spain. For the first time in 30 years I feel afraid.”

Violence in Torre Pacheco was sparked after three Moroccan men allegedly beat up a pensioner in the town in July. Riots lasted for several days, with Spanish press outlets reporting locals had gathered with weapons looking for foreigners.

More than 100 police were sent to the area to quell the unrest.