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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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Follow the twists and turns of Trump’s second presidential term with North America correspondent Anthony Zurcher’s weekly US Politics Unspun newsletter. Readers in the UK can sign up here. Those outside the UK can sign up here.

Taken From BBC News

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

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Trump’s theatrical State of the Union address offers little hint of any change in course

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Donald Trump delivered a combative State of the Union address on Tuesday night that hailed what he said was an American “turnaround for the ages”.

At a time when polls suggest many in the US are dissatisfied with the current state of the nation – and with Trump’s leadership of it – the president offered little hint of a change of course.

Instead, with an eye on crucial midterm elections later this year, he delivered a sales pitch to the nation, a patriotic rallying cry to his loyal supporters and taunts for his political opponents.

It was a speech filled with theatrical flourishes – the kind of made-for-the-cameras moments the man who once hosted a reality television show seems to enjoy.

Early on, he welcomed the US Olympic men’s hockey team to the gallery. They held up their gold medals as Republicans chanted “USA!” and even Democrats stood and applauded.

Later, Trump praised military heroes including a 100-year-old World War Two veteran who received a Medal of Honor, and a Coast Guard swimmer who rescued 165 people trapped in last year’s Texas flooding and was given a Legion of Merit award for Extraordinary Heroism.

Although his speech set a record for length at 107 minutes, these moments quickened the pace of the evening and fit with the president’s larger theme of American patriotism and accomplishment.

His speech opened with familiar lines. “Our nation is back,” he said. It was the “hottest” country in the world. At one point, after blaming Democrats for creating a crisis of “affordability”, he added: “We are doing really well.”

He pointed to the rising incomes, a growing stock market, lower petrol prices, a southern border with dramatically reduced undocumented migrant crossing and tamed inflation.

“Our country is winning again,” he concluded.

The challenge for the president is that his public approval ratings are hovering around 40 percent, and the American public wants him to do more to address their concerns.

Two months ago, he gave a national address from the White House where he struck similar themes and cited similar statistics – but it hasn’t convinced the public. The president and his aides appear to be hoping that with a bigger State of the Union audience, which should measure in the tens of millions, the results will be different.

What Trump didn’t do in this speech, however, was offer much in the way of new policies.

He sprinkled the nearly two-hour address with a handful of ideas, including new retirement savings accounts for working-class Americans and a deal with AI companies to provide sufficient electricity for their plants to avoid consumers being hit with higher bills.

He made new pitches for other, older ideas, such as a healthcare plan that provides direct payments to Americans to help cover insurance premiums, a law to require all voters to prove their citizenship and a ban on providing commercial driver’s licences to undocumented migrants.

He also pledged to continue to push ahead with his broad tariff regime, even in the face of last Friday’s Supreme Court decision striking down many of the duties he had previously imposed.

Three of the justices who had ruled against the president remained expressionless as they watched on from the front row. Earlier, Trump and Chief Justice John Roberts – who penned the court’s tariff opinion – briefly shook hands, but neither man smiled.

Watch: Trump says he has overseen a “turnaround for the ages” in first year back

In a speech that was frequently interrupted by cheering Republicans in the crowd, Trump’s tariff discussion prompted murmurs from Democrats and uncomfortable silences from Republicans, many of whom have been uneasy about their economic cost and the threat their unpopularity with the public might pose to their electoral chances.

If tariffs sucked the air out of the chamber, when Trump turned to immigration tempers flared.

Trump’s passages on what he said was the threat of “illegal aliens” prompted some of the most thunderous applause from Republicans in the chamber and angry shouts and icy stares from Democrats.

The immigration issue had been one of Trump’s political strengths, but his enforcement surge in Minneapolis, which resulted in the shooting deaths of two American citizens by federal agents, has significantly eroded his standing.

The president made no mention of those fatal shootings – or the “softer approach” to enforcement he had suggested might be needed in the aftermath. Instead, Trump’s speech, with its focus on crimes committed by undocumented migrants – murders, accidents and corruption – was an attempt to wrest back the issue.

“The only thing standing between Americans and a wide-open border right now is President Donald J Trump and our great Republican patriots in Congress,” he said.

That was a tacit acknowledgement that in just over eight months, Americans will head to the polls in midterm elections that will determine the composition of both chambers of Congress.

As is typical with these congressional addresses, no matter who the president is, foreign policy tended to take a back seat. Despite the massive build-up of American forces near Iran, Trump did little to make the case to the American public that a sustained US military action was necessary.

“My preference is to solve this problem through diplomacy, but one thing is certain: I will never allow the world’s number one sponsor of terror to have a nuclear weapon,” he said, and then moved on.

For the moment, the political winds are blowing in the president’s face. But Trump may believe that the public’s mood is poised for a change.

Perhaps he is convinced Americans will begin to feel the economic benefits of his policies. Or maybe he believes the mood will shift, with a renewed sense of patriotisim, during the nation’s 250th birthday celebrations this summer.

His speech, with call-outs to military heroes and gold-medal-winning hockey players in the audience, could hint that this is a political wager he has placed.

Analysis: Trump’s main themes and who he hoped to win over
A thin, grey banner promoting the US Politics Unspun newsletter. On the right, there is an image of the Capitol Building against a background of vertical red, grey and blue stripes. The banner reads: "The newsletter that cuts through the noise”

Follow the twists and turns of Trump’s second term with North America correspondent Anthony Zurcher’s weekly US Politics Unspun newsletter. Readers in the UK can sign up here. Those outside the UK can sign up here.

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Armed man killed after entering secure perimeter of Trump’s residence, Secret Service says

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An armed man has been shot dead after entering the secure perimeter of US President Donald Trump’s Mar-a-Lago residence in Florida, the Secret Service has said.

The man was carrying a shotgun and fuel can when he was stopped and shot by Secret Service agents and a Sheriff’s deputy, authorities said.

The incident happened around 01:30 ET (06:30 GMT) on Sunday morning, when the president was in Washington DC.

The suspect has been named as Austin T Martin of Cameron, North Carolina, according to the BBC’s US partner CBS.

His family in North Carolina had reported him missing in the early hours of Sunday morning, the Moore County Sheriff’s Office said in a statement to the BBC.

The missing persons information has since been turned over to federal authorities, the sheriff’s office said.

They added that the department had no prior history involving Martin and it was not involved in the Florida investigation.

Officials are looking into whether he bought the gun along the driving route he took from North Carolina to Florida, according to CBS.

Secret Service agents fired at him after they saw him “unlawfully entering the secure perimeter at Mar-a-Lago early this morning”, agency spokesman Anthony Guglielmi posted on X.

The suspect “was observed by the north gate of the Mar-a-Lago property carrying what appeared to be a shotgun and a fuel can”, the agency said in a statement.

The man was then shot after refusing orders, Palm Beach County sheriff Ric Bradshaw said.

“The only words that we said to him was ‘drop the items’ which means the gas can and the shotgun,” Bradshaw told a news conference.

“At which time he put down the gas can, raised the shotgun to a shooting position,” he said.

At that point, agents fired their weapons to “neutralise the threat”, he said.

Facebook Austin T Martin is seen in a photo from posted by relatives on social media
The suspect had been reported missing by relatives, according to CBS

The officers were wearing body cameras and no law enforcement officers were injured, he added.

Bradshaw said that he does not know if the suspect’s gun was loaded, and that will form part of an investigation, which the FBI will be assisting in.

US Secret Service Director Sean Curran travelled to Florida on Sunday for “after-actions” and has “reinvigorated operational communication and agency response to critical incidents”, the agency said in a post on X.

Security at Mar-a-Lago is extremely tight, with an outer cordon of local Palm Beach sheriffs and an inner one maintained by the Secret Service. Visitors are searched, and cars and bags are swept by dogs and metal detectors.

A map shows where the suspect was found in Mar-a-Lago.

Trump has been the target of several assassination plots or attempts.

In July 2024, Trump was shot in the ear as he stood in front of crowds in Butler, Pennsylvania. One bystander was killed and two were injured in the shooting. The shooter, 20-year-old Matthew Crooks, was immediately shot and killed by security forces and his motive remains unknown.

Months later, a US Secret Service agent spotted a rifle sticking out of bushes at Trump International Golf Club in West Palm Beach. The man, later identified as Ryan Routh, fled but was caught. The 59-year-old was sentenced to life in prison earlier this month for attempting to assassinate the president.

During an appearance on Fox Business after the fatal incident, Treasury Secretary Scott Bessent blamed the the political left for “normalising” political violence, citing the two attempts on Trump’s life in 2024,

“Two would-be assassins dead, one in jail for life, and this venom coming from the other side,” Bessent said, adding: “They are normalising this violence. It’s got to stop.”

Political violence has become a prominent issue in the US, sparking debate after a series of other high-profile incidents last year, including Pennsylvania Governor Josh Shapiro’s mansion being set on fire, the fatal shootings of a Democratic lawmaker and her husband in Minnesota and the public shooting of right-wing activist Charlie Kirk.

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Violence erupts in Mexico after drug lord El Mencho killed

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A wave of violence has broken out in Mexico after the country’s most wanted drug baron was killed in a security operation to arrest him involving US intelligence.

Nemesio Oseguera Cervantes, known as “El Mencho”, was the leader of the feared Jalisco New Generation (CJNG) drug cartel and died after being seriously injured in clashes between his supporters and the army on Sunday.

Four CJNG members were killed during the operation in the town of Tapalpa, in the central-western Jalisco state, and three army personnel were also injured, the Mexican defence ministry said.

Retaliation for the drug lord’s death has seen violence spread to at least a dozen states, with CJNG blocking roads with burning vehicles.

Throughout Sunday, there were reports of gunmen on the streets in Jalisco and elsewhere.

Eyewitnesses filmed plumes of smoke rising over several cities including Guadalajara – one of the host cities of the forthcoming Fifa World Cup.

Jalisco’s Governor Pablo Lemus Navarro declared a code red in the state, pausing all public transport and cancelling mass events and in-person classes.

Tourists who spoke to Reuters described the resort town of Puerto Vallarta, Jalisco, as a “war zone”.

Some 250 roadblocks were in place across the country during the unrest, with 65 in Jalisco, the BBC’s US news partner CBS reported. In its latest update, the Mexican Security Cabinet said four blockades remained active in Jalisco.

The cabinet says 25 people have been arrested, 11 for their alleged participation in violent acts and 14 more for alleged looting and pillaging.

Shops were on fire and about 20 bank branches were attacked in the violence, it added.

Shutterstock Plumes of smoke rise from Puerto Vallarta
Plumes of smoke rose along the waterfront in Puerto Vallarta

Mexican President Claudia Sheinbaum said there was “absolute coordination” between state and federal officials in response to the violence, urging people to stay “calm and informed”.

Sheinbaum added that “in most parts of the country, activities are proceeding normally”.

Several airlines have cancelled flights to Jalisco, including Air Canada, United Airlines and American Airlines.

The US has warned its citizens to shelter in place in five states: Jalisco, Tamaulipas, areas of Michoacán, Guerrero and Nuevo Leon.

The UK government said “serious security incidents” had been reported in Jalisco, adding “you should exercise extreme caution” and follow the advice of local authorities.

Late on Sunday night, US Press Secretary Karoline Leavitt said El Mencho was a “top target for the Mexican and United States government as one of the top traffickers of fentanyl into our homeland.”

She said three cartel members had been killed, another three wounded and two arrested in the operation, for which the US had provided intelligence.

Reuters A reward poster for El Mencho
The US had offered a $15m (£11.1m) bounty for information on El Mencho’s whereabouts

El Mencho, a 59-year-old former police officer, ran a vast criminal organisation responsible for trafficking huge quantities of cocaine, methamphetamine and fentanyl into the US.

The US State Department had offered a $15m (£11.1m) reward for information leading to El Mencho’s capture.

In a statement, the Mexican defence ministry said the operation was “planned and executed” by the country’s special forces.

Mike Vigil, former Chief of International Operations for the US Drug Enforcement Administration, described the operation as “one of the most significant actions undertaken in the history of drug trafficking”. He was speaking to CBS, the BBC’s US news partner.

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