Category Archives: Global economy

End of an era for Canada-US ties, says Carney, as allies worldwide decry Trump’s car tariffs

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Canadian PM says Donald Trump has permanently altered relations, as countries around the globe insist import taxes are harmful to all, including Washington

Canada’s prime minister has said the era of deep ties with the US “is over”, as governments from Tokyo to Berlin to Paris sharply criticised Donald Trump’s sweeping tariffs on car imports, with some threatening retaliatory action.

Mark Carney warned Canadians that Trump had permanently altered relations and that, regardless of any future trade deals, there would be “no turning back”.

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Starmer is warned against ‘appeasing’ Trump with tax cut for US tech firms

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Labour MP and Lib Dem leader express concern social media companies could be let off hook just as benefits are cut

Keir Starmer has been warned against “appeasing” Donald Trump as he considers reducing a major tax for US tech companies while cutting disability benefits and public sector jobs.

His chancellor, Rachel Reeves, confirmed on Sunday that there were “ongoing” discussions about the UK’s £1bn-a-year digital services tax that affects companies including Meta and Amazon.

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Trump’s expansionism threatens the rules-based order in place since second world war

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UN charter says members ‘shall refrain from the threat or use of force’ against a country’s territory or independence

The post-second world war taboo on acquiring territory through force or by the threat of force is being unravelled by a generation of political leaders, led by expansionist threats from Donald Trump that are unprecedented for a US president.

Experts are warning that a combination of the Russian aggression against Ukraine and Trump’s comments explicitly pushing for the US to acquire Greenland, Canada, the Panama canal and Gaza is fuelling a permissive environment that threatens long-recognised borders and the international rules-based order that has existed since the end of the war.

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Government debt costs in richest nations at highest since 2007

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Payments by OECD countries outstrip amount spent on defence, police services and housing, report finds

The cost of government debt payments in the world’s richest nations last year reached its highest level since 2007, outstripping the amount spent on defence, police services and housing, a report has found.

Across the 38 members of the Organisation for Economic Co-operation and Development (OECD), debt service costs as a percentage of national income rose to 3.3% in 2024, from 2.4% in 2021.

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‘Trump tariffs are reshaping our politics’: Canadians on their election

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Voters reflect on their priorities and mood shifts in their communities before a crucial contest

When the Canadian prime minister, Justin Trudeau, resigned in early January, after months of pressure to quit, the approval ratings of the progressive firebrand had dropped from their peak of 65% in September 2016 to 22%.

At the end of last year, the Conservative leader, Pierre Poilievre, described by many as “Trump Lite”, was the clear favourite to win Canada’s next general election, and the top pick of 45% of Canadians for prime minister. At the time, the three biggest issues for voters were all economic: reducing the cost of everyday items, inflation and interest rates, and access to affordable housing.

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Ed Davey calls on Keir Starmer to back Canada against Trump attacks

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Lib Dem leader says PM should make public show of support for ally against ‘shocking attacks’ on its sovereignty

The leader of the UK’s Liberal Democrats has called on the prime minister to publicly support Canada and oppose the “shocking attacks” on Canadian sovereignty, as the Trump administration further escalates its global trade war against longstanding allies.

Ed Davey, who leads the third largest political party in the UK, has called on Keir Starmer to travel to Canada in a show of support to the nation’s new prime minister, Mark Carney, as the commonwealth nation faces a generational crisis under Trump’s tariff war and suggestions that the country might become the 51st US state.

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UK drops down list of affluent nations after decade of stagnation, NIESR finds

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Districts in Birmingham now ranked below poorest areas of France, Malta and Slovenia as institute urges rethink on planned welfare cuts

The UK has tumbled down the league of affluent nations after almost a decade of welfare cuts and stagnant incomes, according to a report that found the poorest districts in Britain now rank below the lowest-income areas of Malta and Slovenia.

In a warning for ministers to protect welfare spending before Rachel Reeves’s spring statement later this month, the National Institute of Economic and Social Research (NIESR) said the UK’s reputation for high living standards was under threat.

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Trump confirms detention of Palestinian activist Mahmoud Khalil: ‘the first arrest of many to come’ – live

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Trump says Ice took the Palestinian student protester into custody after his executive order

Secretary of state Marco Rubio has announced that USAid will cancel the majority of its programs, while the rest will be folded into the state department.

Writing on X, Rubio said:

After a 6 week review we are officially cancelling 83% of the programs at USAID.

The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States.

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Risk of ‘Trumpcession’ rising, economists say, as global markets fall

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Donald Trump’s brinkmanship and stop-start approach to tariffs rattle investors

The risk that the US economy will enter recession this year is rising, according to economists, as Donald Trump’s chaotic approach to tariffs continued to hit markets.

Shares on Wall Street fell sharply on Monday as investors bet the president’s unpredictable tariff trade war and handling of the economy would hit growth, amid a recent plunge in business and consumer confidence.

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China likely to target US agriculture, state media reports, as Trump tariff deadline nears

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Global Times signals Beijing’s likely countermeasure after US president threatened a further 10% duty to come into force on Tuesday

China is preparing countermeasures against fresh US import tariffs that are set to take effect on Tuesday, China’s state-backed Global Times reported, with American agricultural exports likely to be targeted.

Donald Trump last week threatened China with an extra 10% duty, resulting in a cumulative 20% tariff, while accusing Beijing of not having done enough to halt the flow of fentanyl into America, something China said was tantamount to “blackmail”.

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Chinese manufacturing surges despite threat of higher Trump tariffs

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Fastest expansion in three months as Chinese factories return to growth as new orders rise

China’s manufacturing activity expanded at the fastest pace in three months in February, despite the looming threat that Donald Trump will impose tariffs this week.

Production at China’s factories returned to growth last month, an official survey showed, thanks to higher new orders and purchase volumes.

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Trump’s threatened 25% tariffs on EU imports could trigger ‘economic turmoil’

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US president’s plan could prove to be an economic shock to both blocs, German thinktank says

Donald Trump’s threatened 25% tariffs on EU imports could trigger “economic turmoil”, sharply push down growth and send inflation soaring, according to a German thinktank.

The Kiel Institute said the US president’s promise on Wednesday that he would impose the levies “very soon” was a profound moment in the postwar relationship between Washington and Brussels and could prove to be an economic shock to both parties.

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Ukraine’s economy could grow by 5% next year if hostilities end, EBRD says

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European reconstruction bank will help rebuild country if peace is agreed but a lasting end to conflict is needed

The war-torn Ukrainian economy could expand by 5% next year if a ceasefire is agreed, the European Bank for Reconstruction and Development (EBRD) has predicted – but prospects for reconstruction depend on a lasting peace.

The London-based lender has invested $6.2bn (£4.9bn) in projects in Ukraine over the course of the three-year conflict.

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Trump threatens 25% tariffs on foreign cars and semiconductor chips

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White House has raised threat of levies as a means to bolster US economy, ignoring warnings trade wars could derail it

Donald Trump stood firm against warnings that his threatened trade war risks derailing the US economy, claiming his administration could hit foreign cars with tariffs of around 25% within weeks.

Semiconductor chips and drugs are set to face higher duties, Trump told reporters at a news conference on Tuesday.

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UK marketplace sellers face ‘second Brexit’ hit from Trump’s US import rules

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End of ‘de minimis’ policy for Chinese goods also expected to hit bigger fashion retailers such as Asos and Boohoo

Many UK-based independent sellers on marketplaces such as eBay and Amazon could suffer a significant hit to US sales from planned changes to import rules under Donald Trump, with experts comparing the impact to a second Brexit.

The new rules, which mean all parcels originating or made in China and being sold into the US must pay import duty – of as much as 15% on fashion items – and an additional 10% tariff, are also expected to impact bigger online clothing retailers such as Asos and Boohoo.

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Trump policies make US ‘scary place to invest’ and risk stagflation, says Stiglitz

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Uncertainty created by tariffs and contempt for rule of law will deter investment, says top economist

Donald Trump’s tariff threats have made the US “a scary place to invest” and may unleash stagflation, the Nobel prize-winning economist Joseph Stiglitz has said.

“It risks the worst of all possible worlds: a kind of stagflation,” Stiglitz said in an interview with the Guardian.

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Caught in the middle: UK firms brace for fallout from Trump’s global trade war

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While UK may not be in direct line of fire, knock-on effects on global trade has British businesses worried

“We’re vulnerable at the moment,” says Fiona Conor, the managing director of Trust Electric Heating, a Leeds-based radiator manufacturer, who has been considering expanding into the US market.

After a predictably unpredictable start to Donald Trump’s second term as US president, Conor is worried her options could be limited, as businesses across the UK brace for a global trade war.

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Canada, Mexico and EU criticise Trump’s metal tariffs amid fears of trade war

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Ursula von der Leyen says tariffs ‘will not go unanswered’ as Justin Trudeau says Canadians will ‘stand up if we need to’

Canada, Mexico and the EU have sharply criticised Donald Trump’s decision to impose 25% tariffs on all steel and aluminium imports to the US, amid mounting fears of a global trade war.

The president of the European Commission, Ursula von der Leyen, said on Tuesday she “deeply regretted” the US president’s move, announced late on Monday, adding: “Unjustified tariffs on the EU will not go unanswered.”

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Asian stock markets mixed after Trump tariffs announcement while gold reaches record high

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Analysts say measures so far have been less than feared but traders still cautious as uncertainty about US policy ‘has basically exploded’

Asian markets were mixed on Tuesday as traders kept a nervous eye on Donald Trump’s next moves after he signed off on 25% tariffs for steel and aluminium imports, having warned of more measures to come.

The president has lived up to his campaign pledges to resume his hardball trade diplomacy to extract concessions on a range of issues, including commerce, immigration and drug trafficking.

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Trump to announce 25% aluminum and steel tariffs in latest trade escalation

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US president accused of ‘shifting goalposts’ by premier of Ontario for adding further tariffs on top of existing metal duties

Donald Trump has said he will announce new 25% tariffs on all steel and aluminum imports into the US on Monday that would affect “everybody’, including its largest trading partners Canada and Mexico, in another major escalation of his trade policy overhaul.

The US president, speaking to reporters on Air Force One on Sunday, also said he would announce reciprocal tariffs – raising US tariff rates to match those of trading partners – on Tuesday or Wednesday, which would take effect “almost immediately”. “And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.

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