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Trump expands exemptions from Canada and Mexico tariffs

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US President Donald Trump has signed orders significantly expanding the goods exempted from his new tariffs on Canada and Mexico that were imposed this week.

It is the second time in two days that Trump has rolled back his taxes on imports from the US’s two biggest trade partners, measures that have raised uncertainty for businesses and worried financial markets.

On Wednesday, he said he would temporarily spare carmakers from 25% import levies just a day after they came into effect.

Mexican President Claudia Sheinbaum thanked Trump for the move, while Canada’s finance minister said the country would in turn hold off on its threatened second round of retaliatory tariffs on US products.

Canadian Prime Minister Justin Trudeau said on Thursday morning he had had a “colourful” conversation about tariffs in a phone call with Trump.

The US president used profane language more than once during Wednesday’s heated exchange, according to US and Canadian media reports.

Trudeau told reporters that a trade war between the two allies was likely for the foreseeable future, despite some targeted relief.

“Our goal remains to get these tariffs, all tariffs removed,” he said.

Sheinbaum said she had had an “excellent and respectful” call with Trump, adding that the two countries would work together to stem the flow of the opioid fentanyl from Mexico into the US and curb the trafficking of guns going the other way.

The carveout from the duties applies to goods shipped under North America’s free trade pact, the US-Mexico-Canada agreement (USMCA) , which Trump signed during his first term.

Items that currently come into the US under the pact’s rules include televisions, air conditioners, avocados and beef, according to analysis by the firm Trade Partnership Worldwide.

The measures also reduced tariffs on potash – a key ingredient for fertiliser needed by US farmers – from 25% to 10%.

A White House official said about 50% of US imports from Mexico and 62% from Canada may still face tariffs. Those proportions could change as firms change their practices in response to the order.

The White House has also continued to promote its plans for other tariffs, promising action on 2 April, when officials have said they will unveil recommendations for tailored “reciprocal” trade duties on countries around the world.

The trade war tensions have rattled markets and raised fears of economic turbulence.

The S&P 500 share index, which tracks the biggest listed American companies, ended down nearly 1.8% on Thursday.

George Godber, fund manager at Polar Capital, said the “hokey cokey” with Trump’s tariffs has it made it “nigh on impossible” for firms to manage their production lines and is “putting pressure on the US economy”.

Meanwhile, he said it is “galvanising a response from Europe, especially Germany, so we’ve seen a more positive reaction to European markets”.

In signing the orders, Trump dismissedthe suggestion that he was walking back the measures because of concerns about the stock market.

“Nothing to do with the market,” Trump said. “I’m not even looking at the market, because long term, the United States will be very strong with what’s happening.”

‘Numbskull’

Ontario Premier Doug Ford, who leads Canada’s most populous province, said afterwards that “a pause on some tariffs means nothing”.

Earlier, as relief looked likely but before it was announced, he told CNN that the province still planned to go ahead with a 25% tariff on the electricity it provides to 1.5 million homes and businesses in New York, Michigan and Minnesota from Monday.

“Honestly, it really bothers me. We have to do this, but I don’t want to do this,” he said.

Treasury Secretary Scott Bessent on Thursday dismissed retaliation as counter-productive for trade negotiations.

“If you want to be a numbskull like Justin Trudeau and say, ‘Oh we’re going to do this’, then tariffs are probably going to go up,” he said during a question-and-answer session after a speech at the Economic Club of New York on Thursday.

Goods worth billions cross the borders of the US, Canada and Mexico each day and the economies of the three countries are deeply integrated after decades of free trade.

Graphic showing how car industry supply chains can cross borders numerous times - it shows how powered aluminium is sent from Tennessee in the US to Pennsylvania to be turned into rods, which are taken across the border to Canada to be shaped and polished, then sent to Mexico to be assembled into pistons. Finally the pistons are imported into the US where they become part of engines assembled in Michigan

Trump has argued introducing tariffs will protect American industry and boost manufacturing. However, many economists say tariffs could lead to prices rising for consumers in the USwhile warning they could trigger severe economic downturns in Mexico and Canada.

About $1bn in trade enters the US from Mexico and Canada each day that does not claim duty-free exemptions under USMCA, since it has historically enjoyed low or no tariffs, said Daniel Anthony, president of Trade Partnership Worldwide.

“Whether importers can or will start claiming USMCA remains to be seen, but it’s a huge amount of money at stake,” he said.

In the US, the economy is already starting to show the effects of the disruption from Trump’s policies.

Imports spiked in January on the back of tariff fears, with America’s trade deficit increasing 34% to more than $130bn (£100bn), the Commerce Department reported.

Gregory Brown, who leads BenLee, a company that makes big trailers, said he had had to adjust prices multiple times over the last five weeks as a result of Trump’s policies, which have included an order, set to go into effect later this month, expanding tariffs on steel and aluminium.

But Mr Brown, who attended Mr Bessent’s speech, said that for now, his customers are agreeing to pay the higher prices – a sign that the economy is holding up.

“It’s a great growth economy,” he said, noting that the economy had been strong under Biden too. He said he saw Trump’s decision to quickly offer relief from his new tariffs as a sign of a business-friendly president adjusting to the “business reality”.

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Taken From BBC News

https://www.bbc.com/news/articles/c5y03qleevvo

American News

The Real Reason Trump Crumbled Against Iran

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : The MOU signed between the USA and Iran has been described by Trump’s critics as humiliating. It has been resisted by many politicians in Washington, including voices from both Democratic and Republican circles. It reportedly angered supporters of Israel and those who believed the United States should have pressed forward rather than entered into negotiation. Yet, despite opposition from political allies, media commentators, and regional partners, President Trump moved toward the MOU.
Why?. The conventional answer is that the United States feared the closure of the Strait of Hormuz. But that may not have been the prime reason. Disruption of oil supply, the rise in petrol prices, and the inflationary burden on American consumers may have added pressure.
However, the reality was depletion of arms and ammunition. In a Middle East Eye clip quoting American author Brandon Weichert speaking to Tucker Carlson, Weichert claimed that the United States had used roughly 50 percent of its Patriot interceptors, up to 80 percent of its THAAD interceptors, about one-third of its Tomahawk cruise missile supply, and nearly the entire pre-war inventory of new Precision Strike Missiles. He also referred to the major use of JASSM missiles and naval interceptors such as SM-3 and SM-6. These figures must be treated as attributed claims unless independently confirmed by official data, but if even broadly accurate, they reveal a far
The conventional U.S.-Israeli calculation may have been based on treating Iran as a normal regional power. A normal country may possess missiles, drones, and naval weapons, but usually in limited numbers. Such weapons are preserved for deterrence, symbolic retaliation, and emergency use. A normal country might fire a dramatic opening salvo, but after several days or weeks of war, its missile depots, launchers, command centers, and radar systems would be degraded. Its firing rate would collapse. Its leadership would become cautious because it would fear exhausting its national arsenal. That calculation may have made sense against a conventional state. It did not make sense against Iran.
Iran is not a normal missile country. Iran is a missile-war state. For decades, Iran understood that it could not match the United States or Israel aircraft-for-aircraft, tank-for-tank, or ship-for-ship. It could not build a navy equal to the U.S. Navy. It could not build an air force equal to Israel’s or America’s. It could not protect every city, base, oil installation, port, and military site with a perfect defensive shield. So Iran chose a different path. It built missiles, drones, decoys, tunnels, mobile launchers, coastal batteries, mines, fast boats, small submarines, and asymmetric naval systems.
This was the central strategic miscalculation by Washington and Tel Aviv. They calculated Iran as a normal country with missiles. Iran revealed itself as a missile state with a country.
As a brilliant strategic master stroke, Iran did not spend most of its limited resources trying to build an expensive nationwide anti-ballistic missile system. If Iran had tried to build an Israeli-style or American-style interceptor shield over the entire country, it would likely have been financially suicidal and militarily insufficient. Iran is too large, its territory too dispersed, and its targets too numerous.
To defend all of Iran would require enormous numbers of radars, command systems, interceptor batteries, trained crews, spare parts, and replacement missiles. Even then, such a defensive network could be overwhelmed by the combined air and missile power of the United States and Israel. So Iran refused to play America’s game. It did not try to build an Iron Dome over Iran. It built a sword aimed at the shield of its enemies.
Instead of spending its limited wealth on defensive interceptors, Iran spent it on offensive saturation. This decision changed the cost equation of the war. A Patriot, THAAD, Arrow, SM-3, or SM-6 interceptor can cost millions of dollars and may take months or years to replace. A drone, decoy, loitering munition, or simpler missile can be far cheaper and easier to produce.
Iran did not need every missile or drone to hit its target. It only needed to force Israel and the United States to respond. Every incoming object had to be detected, classified, tracked, and, if dangerous, intercepted. In the fog of war, the defender cannot always know immediately which target is a decoy and which is lethal. Therefore, expensive interceptors are often spent against cheaper threats.
That was the winning cost-exchange. Iran spent a quantity. America and Israel spent treasure. This is why Iran’s strategy was not necessarily to defeat the United States in one dramatic battlefield encounter. Its aim was to impose an unbearable burn rate. Ballistic missiles, cruise missiles, drones, decoys, and maritime threats forced the United States and Israel to spend their most sophisticated defensive weapons at a pace that could not be sustained.
The same logic applied at sea. In the Strait of Hormuz, Iran did not need a blue-water navy equal to America’s. Geography was its ally. The Strait is narrow, close to Iranian territory, and vulnerable to coastal missiles, mines, drones, fast boats, and unmanned naval systems. Iran could threaten U.S. naval forces without defeating them in a conventional naval battle. It could force the U.S. Navy to spend large numbers of defensive interceptors simply to keep ships, bases, and shipping lanes safe.
This may explain why the reported use of SM-3 and SM-6 naval interceptors is so significant. If large numbers of these weapons were fired, then U.S. ships may have faced far greater threats than officials publicly admitted. That does not mean the Navy failed. It may mean the Navy successfully defended itself. But a successful defense can still reveal strategic vulnerability if it rapidly depletes limited stocks.
That was the moment when the war became larger than Iran. Every THAAD, Patriot, SM-3, or SM-6 interceptor used against Iran was one less available against a future threat from China, North Korea, or another adversary. The United States may have discovered that its global commitments exceeded its weapons inventory.
This is why the MOU can be interpreted by critics as a form of conditional surrender. If a superpower accepts terms it dislikes because continuing the war would expose its inability to sustain the fight, then the political meaning is unmistakable. It has been compelled by battlefield realities.
In that sense, Iran’s strategic masterpiece was not that it built better weapons than America. It built cheaper weapons in larger numbers and forced America to defend with weapons it could not replace quickly. Iran understood that it could not win a defensive technology race against the United States and Israel, but it could win an offensive cost-imposition race.
That is why Trump crumbled against Iran. Not because Washington suddenly trusted Tehran. Not because Israel supported the compromise. Not because the American political class welcomed restraint. But because the United States may have reached the point where continuing the war would have exposed an even greater humiliation: the inability to defend its own assets, its closest regional ally, and its global deterrence posture at the same time.
The MOU was not born from generosity. It was born from necessity. The United States did not simply choose to stop. It was forced to pause, replenish, reassess, and negotiate from a position far weaker than it wanted the world to know.

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The Great Decoupling of the United States and Israel

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : For more than half a century, the United States and Israel have been viewed as inseparable strategic partners in the Middle East. Successive American administrations, regardless of party affiliation, generally aligned their regional policies with Israel’s security concerns, often treating the two nations’ interests as largely identical.
Yet the diplomatic developments that followed the recent Iran war suggest that this assumption may no longer hold true. Rather, it is the beginning of something far more consequential: the gradual decoupling of American strategic interests from Israel’s broader regional agenda.
The clearest evidence of this shift is not coming from Tehran or Islamabad. It is coming from within the United States itself. The political shockwave generated by Tucker Carlson’s public break with the Republican Party illustrates a growing debate within conservative America.
Carlson, one of the most influential voices on the American right, declared that he could no longer support a political movement that, in his view, places the interests of a foreign country ahead of those of the United States. Whether one agrees with his conclusion or not, the significance lies in the fact that such criticism is no longer confined to the political fringes. Questions that were once whispered are now being discussed openly among conservatives, libertarians, progressives, and independent voters alike.
The debate intensified following the U.S.-Iran diplomatic initiative that emerged after the war. The architecture of this process is noteworthy. Rather than attempting to solve every dispute at once, the framework creates a pathway for addressing complex issues over time. The objective is not to produce instant solutions but to establish a structure capable of managing disagreements before they escalate into war.
Pakistan’s role in this process has been particularly significant. Iranian President Masoud Pezeshkian’s visit to Islamabad on 23rd June underscored the importance Tehran attaches to Pakistan’s mediation efforts. Prime Minister Shehbaz Sharif reaffirmed Pakistan’s commitment to facilitating dialogue and helping both sides move toward a durable peace. The symbolism was powerful: a regional Muslim power acting as a bridge between Washington and Tehran at a moment when military confrontation seemed inevitable only months earlier.
Yet the most important development may be the evolution of American objectives themselves. For years, Israeli strategic thinking has viewed Iran’s nuclear program, ballistic missile capability, drone industry, cyber warfare assets, Revolutionary Guard networks, and relationships with Hezbollah, Hamas, and the Houthis as components of a single threat architecture. From this perspective, lasting security requires not merely preventing nuclear weaponization but substantially weakening Iran’s broader ability to project power throughout the region.
The emerging American position appears different. President Donald Trump has drawn a clear distinction between Iran’s nuclear ambitions and its conventional military capabilities. In remarks that surprised many observers, Trump argued that if neighboring states possess missiles, drones, cyber capabilities, and conventional deterrent forces, it would be difficult to justify denying Iran every means of self-defense.
Interestingly, the MOU is formally bilateral between Washington and Tehran, mediated by Pakistan and Qatar. But its effects reach Israel, Hezbollah, Hamas, the Houthis, Gaza, Lebanon, the Strait of Hormuz, and the GCC. None of these actors fully sits at the table. The assumption is simple: America will manage Israel and its Arab allies; Iran will manage Hezbollah, Hamas, and the Houthis. If that assumption holds, the deal can reshape the region. If it fails, the Middle East may again slide into fire.
Israel is the elephant in the room. Netanyahu has already signaled that Israel reserves “full freedom of action” in Lebanon, even while Washington tries to stabilize the ceasefire. That statement exposes the central problem: America may want de-escalation, but Israel still wants operational freedom. If Israel refuses to follow Washington’s larger strategy, then the U.S. will have to decide whether it is a superpower or merely Israel’s security subcontractor.
These goals of the USA and Israel are not identical but divergent. This divergence became more visible when Israeli Prime Minister Benjamin Netanyahu reaffirmed Israel’s determination to maintain operational freedom in Lebanon, even as diplomatic efforts sought to stabilize ceasefire arrangements. While Washington is investing political capital in de-escalation and negotiation, Israel continues to conduct military operations against threats it considers immediate and existential.
The growing gap between these approaches represents the core of the emerging decoupling. The debate surrounding Senator Lindsey Graham, a close associate of Donald Trump and staunch supporter of Israel. Graham openly warned that if the talks failed, which he hoped will, President Trump would seize control of the Strait of Hormuz by force, place the strategic waterway under American control, and charge transit fees on commercial shipping to recover the costs of military operations. He further declared that if Iran resisted such a move, the United States would “obliterate” Iran.
More significantly, Graham linked the success or failure of the negotiations to a broader regional realignment involving the expansion of the Abraham Accords and the normalization of relations between Israel and key Arab states. His comments reflected the traditional strategic school that has dominated Middle East policy debates for decades: maintain maximum pressure, preserve overwhelming military leverage, and keep the option of force constantly on the table.
The implications of Israel’s manipulative ability extend beyond the USA. Across Western democracies and especially in the UK parliament, public debate is intensifying over the role of Israeli influence, its lobbying networks, campaign financing, and the relationship between national interests and alliance commitments. Discussions that once centered exclusively on security concerns now increasingly include questions about accountability, transparency, and whether governments are acting primarily in the interests of their own citizens.
Nevertheless, the direction of travel appears increasingly clear. America is beginning to define its Middle East strategy through the lens of American interests rather than through automatic alignment with the preferences of Israel.
The real story of the current negotiations is therefore larger than Iran, larger than Israel, and larger than any single agreement. It is the story of a superpower rediscovering the distinction between partnership and dependency, between alliance and alignment, between supporting an ally and adopting all of that ally’s objectives as its own.
If that trend continues, historians may one day view post-Iran-war diplomacy not merely as a ceasefire initiative, but as the moment when Washington began charting a more independent course in the Middle East. And that may prove to be the most significant geopolitical shift of all.

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Iran-USA Peace Deal Under Siege

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : The snow-capped mountains surrounding Switzerland’s Bürgenstock Resort provide a picture of serenity. Inside its conference halls, however, some of the most consequential negotiations of the 21st century are unfolding amid extraordinary tension, diplomatic maneuvering, political resistance, and strategic uncertainty. What began as a breakthrough framework between the United States and Iran has now evolved into a global contest between advocates of diplomacy and champions of perpetual confrontation. The fate of the emerging peace process may well determine not only the future of U.S.–Iran relations but also the economic stability of the world and the security architecture of the Middle East.
The technical negotiations now underway in Switzerland are intended to transform the recently signed Islamabad Memorandum of Understanding into a permanent settlement.
The framework, reached after months of indirect and direct diplomacy and supported by Pakistan and Qatar, established a 60-day roadmap for resolving some of the most dangerous disputes in the region, including nuclear issues, sanctions, frozen assets, regional security, and freedom of navigation through the Strait of Hormuz.
Reports from Switzerland indicate that Vice President JD Vance is leading the American delegation, while Foreign Minister Abbas Araghchi and Parliamentary Speaker Mohammad Bagher Ghalibaf represent Iran. Pakistani Prime Minister Shehbaz Sharif and Qatari officials continue to play an active mediating role.
Yet even before negotiators could settle into substantive discussions, the process encountered turbulence. President Donald Trump, seeking to reassure domestic critics and maintain pressure on Tehran, warned publicly that military action could resume if Iran violated its commitments or threatened regional stability.
Iran reacted sharply, by expressing its displeasure through diplomatic distance and symbolic gestures, reflecting the deep mistrust that continues to define relations between the two countries. Negotiations nevertheless continued, highlighting both the fragility and importance of the diplomatic track.
The strongest resistance to the agreement has emerged from hawkish political circles in Washington. Several influential Republican figures have criticized the framework, arguing that it grants Iran economic relief without permanently eliminating what they regard as the core security threats posed by Tehran.
Senator Bill Cassidy described the arrangement as a major strategic mistake. Senator Roger Wicker expressed concern that hard-won leverage was being surrendered too quickly. Senator Lindsey Graham questioned both the substance of the agreement and the broader diplomatic strategy surrounding it. Collectively, these critics argue that sanctions relief, asset unfreezing, and economic normalization provide benefits to Iran before sufficient security guarantees have been secured.
Supporters of the framework offer a different perspective. They argue that diplomacy succeeds not through the humiliation of one side but through the creation of incentives that encourage compliance and reduce incentives for conflict. They contend that years of sanctions, pressure campaigns, military operations, and threats have failed to produce a durable solution. If military force could permanently solve the dispute, they argue, the issue would have been resolved long ago.
The most dramatic opposition, however, has emerged from Israel. Prime Minister Benjamin Netanyahu has repeatedly emphasized that Israel’s strategic objectives differ from those of Washington. Israeli officials continue to insist that any lasting arrangement must permanently eliminate Iran’s enrichment capabilities, constrain its missile programs, and weaken its regional network of allied groups. Netanyahu has publicly stated that Israel will continue pursuing its security objectives and will not permit Iran to acquire nuclear weapons.
Israeli leaders have also signaled that they intend to maintain military pressure against Hezbollah in Lebanon regardless of broader diplomatic developments.
This disagreement reveals a profound strategic divergence between Washington and Jerusalem. The Trump administration increasingly appears focused on preventing a wider regional war, stabilizing energy markets, reopening maritime trade routes, and reducing the economic burdens associated with prolonged military engagement. Israel, by contrast, remains focused on achieving what it views as decisive security outcomes against Iran and its regional allies. The resulting tension has produced one of the most visible policy disagreements between the two allies in recent years.
The Lebanon issue has become the most immediate manifestation of this divide. Reports from the negotiations suggest that Tehran has made developments in Lebanon a central issue during the Swiss discussions.
Iran argues that regional stability cannot be achieved while military operations continue on multiple fronts. Israel, meanwhile, insists that its campaign against Hezbollah remains essential to its national security. The dispute threatens to complicate implementation of the broader framework and demonstrates how interconnected Middle Eastern conflicts have become.
At the center of this diplomatic storm stand Pakistan and Qatar. Their role has evolved from facilitator to guardian of the process itself. Throughout months of negotiations, repeated setbacks, periods of military escalation, and diplomatic breakdowns, both countries continued to maintain channels of communication between adversaries who often appeared incapable of speaking directly to one another.
Pakistan, in particular, has emerged as an increasingly significant diplomatic actor. Prime Minister Shehbaz Sharif’s direct involvement and the participation of Pakistan’s senior leadership underscore Islamabad’s determination to secure a peaceful outcome. The mediators now face the difficult challenge of preserving momentum while managing crises generated by regional developments and domestic political pressures.
The stakes extend far beyond diplomacy. For the United States, the consequences involve energy prices, inflationary pressures, military expenditures, and broader strategic priorities.
For Iran, the negotiations offer a potential pathway toward economic recovery, reconstruction, reintegration into global markets, and relief from years of economic isolation.
For Europe, Asia, and energy-importing nations around the world, the stability of the Strait of Hormuz remains a matter of immense importance. Any renewed disruption would reverberate through global supply chains, financial markets, and national economies.
The negotiations therefore represent far more than a bilateral dispute. They are a test of whether diplomacy can prevail over entrenched hostility, whether compromise can overcome ideological rigidity, and whether regional powers can choose stability over confrontation.
History often remembers the battles that start wars. It pays far less attention to the exhausting negotiations required to end them. Today, in Switzerland, diplomats, mediators, and political leaders are engaged in precisely that difficult task. Their challenge is not merely to sign documents but to create enough confidence, accountability, and mutual interest to sustain peace beyond signatures and ceremonies.
The road ahead remains uncertain. Hawks in Washington continue to criticize the agreement. Israel remains skeptical and defiant. Iran remains cautious and distrustful.
Yet despite these obstacles, the talks continue. That fact alone offers a measure of hope. If the negotiators can withstand political pressure, regional spoilers, and domestic opposition, they may achieve something far more significant than a temporary truce: the foundation of a new strategic equilibrium in the Middle East.
The alternative—a return to escalation, confrontation, and economic disruption—is a prospect neither the region nor the world can afford.

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