Latest news with #tradewar
Asharq Al-Awsat
an hour ago
- Business
- Asharq Al-Awsat
Trump Says he's Terminating Trade Talks with Canada over Tax on Tech Firms
President Donald Trump said Friday that he's suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called 'a direct and blatant attack on our country.' Trump, in a post on his social media network, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax is set to go into effect Monday. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Trump said in his post. Trump's announcement was the latest swerve in the trade war he's launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president poking at the nation's northern neighbor and repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney said Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation.' Trump later said he expects that Canada will remove the tax, The Associated Press reported. 'Economically we have such power over Canada. We'd rather not use it,' Trump said in the Oval Office. "It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said, 'It doesn't matter to me.' Carney visited Trump in May at the White House, where he was polite but firm. Trump last week traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a $2 billion US bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on U.S. digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Trump imposed on goods from America's neighbor. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Trump has imposed 50% tariffs on steel and aluminum as well as 25% tariffs on autos. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Trump's first term. Addressing reporters after a private meeting with Republican senators Friday, Treasury Secretary Scott Bessent declined to comment on news that Trump had ended trade talks with Canada. 'I was in the meeting,' Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminum and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the United States for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Beland said. "Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
Yahoo
2 hours ago
- Business
- Yahoo
Fireworks will light up this Fourth of July. Next year could be different if tariff talks fizzle
ALBUQUERQUE, N.M. (AP) — Like clockwork, Carla Johnson sends out letters every spring asking for donations to help pay for the annual Fourth of July fireworks show that draws tens of thousands of people to New Mexico's largest lake. And she has no reservations about doling out verbal reminders when she sees her patrons around town. There's too much at stake to be shy about fundraising when donations collected by Friends of Elephant Butte Lake State Park are what make the tradition possible. But even Johnson's ardent efforts as the group's fundraiser might not cut it next year if the U.S. and China remain locked in a trade war. With nearly all of the aerial shells, paper rockets and sparkly fountains that fuel America's Fourth of July celebrations being imported from China, volunteer groups like Johnson's and cities big and small have been closely watching the negotiations. A 90-day pause on what had been massive tariffs brought some temporary relief, but industry experts acknowledge that the tiff has lit a fuse of uncertainty as the price tag for future fireworks displays could skyrocket if an agreement isn't reached. Not the first time There were similar concerns in 2019 as trade talks between the U.S. and China dragged on. Industry groups had called on officials then to exempt fireworks from escalating tariffs. The American Pyrotechnics Association and the National Fireworks Association reignited the lobbying effort this spring, noting in letters to President Donald Trump that fireworks play a crucial role in American celebrations. The groups say the industry is made up mostly of family-owned companies that are often locked into long-term contracts that leave them unable to raise prices to offset cost surges brought on by higher tariffs. And there are few options for sourcing the more than 300 million pounds (136 million kilograms) of fireworks needed to feed demands. China produces 99% of consumer fireworks and 90% of professional display fireworks used in the U.S., according to the APA. 'I think overall it's the uncertainty,' said Julie Heckman, the APA's executive director. 'Yeah, we have a 90-day pause, but are the negotiations with China going to go well? Or is it going to go sky-high again? You know, triple digits. It's very hard for a small business to plan." How it began Fireworks have their roots in China. To ward off evil spirits, people would throw bamboo stalks into a fire, causing them to pop as the air inside the hollow pockets heated up. These early firecrackers evolved into more sophisticated fireworks after the Chinese developed gunpowder in the 9th century. By the 15th century, Europe was using fireworks for religious festivals and entertainment. In 1777, they were used in Philadelphia and Boston for what were the first organized Independence Day celebrations. Now, fireworks are synonymous with the summer holiday and with ringing in the new year. Shows have become elaborately choreographed displays that are often synced to live music. In Nashville, the Music City's award-winning symphony orchestra puts its own spin on the festivities. In New York City, organizers of the Macy's show will fire off 80,000 shells, with some reaching heights of 1,000 feet (304 meters). The National Park Service promises a spectacular show on the National Mall in Washington, D.C. At Elephant Butte in southern New Mexico, they're going old school and will light the fireworks by hand. Charlie Warren, vice president of the Friends of Elephant Butte Lake State Park, said it's like spectators are getting two shows at once as the colors reflect on the water below and the loud booms reverberate off the lake. Johnson, who also serves as the group's treasurer, gets emotional describing the experience. 'Oh man, in my heart and sometimes out loud, I'm singing the Star-Spangled Banner. I'll sing it out loud to the top of my lungs when I watch that show," she said. 'It makes you proud to be in this country, and we're celebrating our freedom, and I'm going to start crying now. Don't get me started.' Stocking up before the tariffs Organizers in Nashville ordered fireworks for that show over a year ago so they weren't affected by the tariffs. It was the same in one of New Mexico's largest cities, where Rio Rancho officials planned to spend a little more to go bigger and higher this year. In Oklahoma, Big Blast Fireworks supplies nonprofit groups so they can fundraise by setting up fireworks stands. The company received its first container from China in January before the tariffs hit. The second container arrived in February and was subject to a 10% tariff. The third container was put on hold to avoid the highest tariffs, meaning inventory could be tight later this year if nothing changes. 'As a small business, we are passionate about watching our price points and intentional about passing along as much savings on to customers as possible," said Melissa Torkleson, a managing partner at Big Blast. With some orders on hold, industry experts say Chinese manufacturers throttled back production as warehouses filled up. The backup in the supply chain also has resulted in competition for shipping space aboard ocean vessels, and Heckman, the APA's director, said it will take much more than flipping a light switch to ease either situation. If the trade war drags on, she said, there are ways that show organizers can adjust and spectators might not notice. A minute or two could be shaved from a show or certain types of fireworks could be substituted with less expensive options. As for this year, Warren said the price tag for the Elephant Butte show was unchanged and he and Johnson can't wait to see spectators lining the shoreline, on the surrounding hillsides and on boats bobbing on the lake. The mission every year is to make sure 'that the T's are all crossed," Warren said. "Because this community would not be happy if this show didn't come off,' he said.
Associated Press
2 hours ago
- Business
- Associated Press
Fireworks will light up this Fourth of July. Next year could be different if tariff talks fizzle
ALBUQUERQUE, N.M. (AP) — Like clockwork, Carla Johnson sends out letters every spring asking for donations to help pay for the annual Fourth of July fireworks show that draws tens of thousands of people to New Mexico's largest lake. And she has no reservations about doling out verbal reminders when she sees her patrons around town. There's too much at stake to be shy about fundraising when donations collected by Friends of Elephant Butte Lake State Park are what make the tradition possible. But even Johnson's ardent efforts as the group's fundraiser might not cut it next year if the U.S. and China remain locked in a trade war. With nearly all of the aerial shells, paper rockets and sparkly fountains that fuel America's Fourth of July celebrations being imported from China, volunteer groups like Johnson's and cities big and small have been closely watching the negotiations. A 90-day pause on what had been massive tariffs brought some temporary relief, but industry experts acknowledge that the tiff has lit a fuse of uncertainty as the price tag for future fireworks displays could skyrocket if an agreement isn't reached. Not the first time There were similar concerns in 2019 as trade talks between the U.S. and China dragged on. Industry groups had called on officials then to exempt fireworks from escalating tariffs. The American Pyrotechnics Association and the National Fireworks Association reignited the lobbying effort this spring, noting in letters to President Donald Trump that fireworks play a crucial role in American celebrations. The groups say the industry is made up mostly of family-owned companies that are often locked into long-term contracts that leave them unable to raise prices to offset cost surges brought on by higher tariffs. And there are few options for sourcing the more than 300 million pounds (136 million kilograms) of fireworks needed to feed demands. China produces 99% of consumer fireworks and 90% of professional display fireworks used in the U.S., according to the APA. 'I think overall it's the uncertainty,' said Julie Heckman, the APA's executive director. 'Yeah, we have a 90-day pause, but are the negotiations with China going to go well? Or is it going to go sky-high again? You know, triple digits. It's very hard for a small business to plan.' How it began Fireworks have their roots in China. To ward off evil spirits, people would throw bamboo stalks into a fire, causing them to pop as the air inside the hollow pockets heated up. These early firecrackers evolved into more sophisticated fireworks after the Chinese developed gunpowder in the 9th century. By the 15th century, Europe was using fireworks for religious festivals and entertainment. In 1777, they were used in Philadelphia and Boston for what were the first organized Independence Day celebrations. Now, fireworks are synonymous with the summer holiday and with ringing in the new year. Shows have become elaborately choreographed displays that are often synced to live music. In Nashville, the Music City's award-winning symphony orchestra puts its own spin on the festivities. In New York City, organizers of the Macy's show will fire off 80,000 shells, with some reaching heights of 1,000 feet (304 meters). The National Park Service promises a spectacular show on the National Mall in Washington, D.C. At Elephant Butte in southern New Mexico, they're going old school and will light the fireworks by hand. Charlie Warren, vice president of the Friends of Elephant Butte Lake State Park, said it's like spectators are getting two shows at once as the colors reflect on the water below and the loud booms reverberate off the lake. Johnson, who also serves as the group's treasurer, gets emotional describing the experience. 'Oh man, in my heart and sometimes out loud, I'm singing the Star-Spangled Banner. I'll sing it out loud to the top of my lungs when I watch that show,' she said. 'It makes you proud to be in this country, and we're celebrating our freedom, and I'm going to start crying now. Don't get me started.' Stocking up before the tariffs Organizers in Nashville ordered fireworks for that show over a year ago so they weren't affected by the tariffs. It was the same in one of New Mexico's largest cities, where Rio Rancho officials planned to spend a little more to go bigger and higher this year. In Oklahoma, Big Blast Fireworks supplies nonprofit groups so they can fundraise by setting up fireworks stands. The company received its first container from China in January before the tariffs hit. The second container arrived in February and was subject to a 10% tariff. The third container was put on hold to avoid the highest tariffs, meaning inventory could be tight later this year if nothing changes. 'As a small business, we are passionate about watching our price points and intentional about passing along as much savings on to customers as possible,' said Melissa Torkleson, a managing partner at Big Blast. With some orders on hold, industry experts say Chinese manufacturers throttled back production as warehouses filled up. The backup in the supply chain also has resulted in competition for shipping space aboard ocean vessels, and Heckman, the APA's director, said it will take much more than flipping a light switch to ease either situation. If the trade war drags on, she said, there are ways that show organizers can adjust and spectators might not notice. A minute or two could be shaved from a show or certain types of fireworks could be substituted with less expensive options. As for this year, Warren said the price tag for the Elephant Butte show was unchanged and he and Johnson can't wait to see spectators lining the shoreline, on the surrounding hillsides and on boats bobbing on the lake. The mission every year is to make sure 'that the T's are all crossed,' Warren said. 'Because this community would not be happy if this show didn't come off,' he said.
Yahoo
4 hours ago
- Business
- Yahoo
'In business, indecision is killer' - Canadian firms seek certainty in tariff war
Deal or no deal, what Wes Love wants is certainty. His Toronto-area business, Taurus Craco, imports machinery from overseas and distributes it across North America, mainly to the United States. But President Donald Trump's shifting tariffs on Canadian products have left him, like many independent business owners, unable to plan for the future. "What has been creating indecision in the market is people don't know which way this is going to go," Mr Love told the BBC in June. "And in small businesses, indecision is killer." Taurus Craco was hit hard by the tariffs earlier this year when it was forced to shell out nearly C$35,000 ($25,500, £18,700) because a shipment to the US crossed the border a few minutes after one deadline. "It is totally punitive. From a small business perspective, that's more than the cost that we spend on hydro and gas for the entire year," he said. Even though Trump paused that tariff a few hours later, Taurus Craco still had to pay. Refusing would mean no longer being allowed to transport its products into the US, Mr Love said. "It's like dealing with the mob," he said. Canada is in a tit-for-tat tariff war with its largest trading partner, faciing a series of levies, in particular on metals and auto. Since taking office in January, Trump has announced a series of import taxes on goods from other countries - arguing they will boost American manufacturing and protect jobs. The ensuing uncertainty has hit Canada's economy and intense talks between the two countries hit a snag on Friday. Prime Minister Mark Carney has called Trump's tariffs "unjust", and said while campaigning for the April election that the "old relationship" with the US is "over". Shortly after winning that election, the prime minister visited Washington DC, taking a more conciliatory message to the White House to launch talks on a new trade and security deal. A 16 July deadline since has been set to hash out that deal, and President Trump said at the recent G7 summit that he was optimistic the two countries could "work something out" on trade. But on Friday, Trump said he was cutting trade talks over Canada's digital services tax. "We are hereby terminating ALL discussions on Trade with Canada, effective immediately," he wrote on social media. Carney has threatened to impose another round of retaliatory tariffs on the US if the talks aren't successful. Mr Love welcomes any prospect of a deal. "Give us a set of rules and leave them alone and let us operate within those rules," he said. "It's like sport, right? Everybody goes onto the field and you play to a set of rules, but you don't change the rules in the middle of the game." Trade, a sudden exit, Middle East conflict - five takeaways from G7 'A stab in the back' - car workers in Canada hit out at US over tariffs The reality behind Trump's incredible investment claims What tariffs has Trump announced and why? Gaphel Kongtsa, international policy director at the Canadian Chamber of Commerce, said businesses are hopeful an agreement will bring stability. Thus far, they have had to navigate a very fluid landscape, he said, "where seemingly things get increased or decreased or added on without very much clear indication as to why". Canada is hugely reliant on trade with the US, with 75% of its exports heading south, according to Statistics Canada. Its economy has slowed significantly in the first quarter of 2025 as a result of trade war and the ensuing uncertainty - growing only 0.8% between 1 January and 31 March, according to the Canadian Federation of Independent Business (CFIB). It shrank 0.1% over a month in April. A timeline of the tariffs shows what a whirlwind few months it has been. On 1 February, Trump imposed a 25% tariff on most Canadian imports, then suspended them for a month days later. They were re-imposed when that deadline expired, only to be again delayed. Not long after, he granted an exemption on all goods that were compliant with the current North American free trade deal, known as the USMCA. Then in March, the US imposed a global 25% tariff on imported steel and aluminium as well as on imported vehicles. This month, Trump raised the metals tariff to 50%. The manufacturing sector has been in the spotlight when it comes to the tariffs, but the service sector also is affected by the uncertainty, if not by the levies directly. Sam Gupta is the founder and CEO at ElevatIQ, a technology and management consultancy that operates out of Buffalo, New York, and in Toronto. Mr Gupta said most people don't think about the service sector during a period of uncertainty, calling it the "unloved stepchild" of the economy. "The attention goes to all the manufacturing companies and the companies that are directly impacted by the supply chain," he said. Still, services - which encompass everything from finance to tourism - make up a huge proportion of Canada's economy, accounting for the vast majority of its workforce. Service exporters have not been hit as hard as manufacturing, but their outlook and confidence in the market is at the lowest level in years, according to data from the Canadian Chamber of Commerce. And while Ottawa has implemented several measures to provide relief to companies hit by the tariffs - including from funds raised by counter tariffs - the service sector has not received any compensation. "We are not even in the conversation," Mr Gupta said. "We don't exist." He said his business is not financially struggling at the moment, but noted that inquiries for his firm's services were "down by 50%". "As far as our understanding goes, not a lot of businesses are thinking about these longterm investments right now. It just, they just are not in the mindset," he said. "The biggest fear that we all have right now is, I don't know how long this is going to go. If it is going to be six months, a year, 18 months, we can still survive. But let's say this goes on for like two years, three years then oh, my goodness, it will be, really, really hard." This has been the toughest period for the industry in his 20-year career, as the sector faces a combination of challenges, he said. Mr Gupta recalled how easy it was for him to get a well-paying job early in his career. "Even when I was graduating, we were getting paid like crazy. And we were so arrogant that we would not even pick up calls from recruiters," he said. "But now with AI, with tariffs, the economy, everything, everybody that I know is struggling," he said. Statistics Canada reports that 56% of all businesses that export to the US have taken measures to mitigate the impact of tariffs. More than 30% have delayed major investments and expenditures, while 25% sought alternative customers outside the US. The Bank of Canada said on Wednesday that exports to the US dropped by more than 15% in April. Steel and aluminium exports were down by 25% and 11%, and the export of vehicles had fallen by 25%. But despite everything, Mr Love remains positive. He said businesses can navigate the challenges as long as the US does not keep changing its trade policy. "We're entrepreneurs. We are full of piss and vinegar, as they would say," he said. "And so we are doing everything that we possibly can to keep fighting. And I think we will be successful; we just need to know what the ground rules are." 'A stab in the back' - car workers in Canada hit out at US over tariffs Trump says he is cutting off trade talks with Canada Lotus considering shifting UK production to US Sign in to access your portfolio
BBC News
5 hours ago
- Business
- BBC News
Canadian businesses seek certainty in US tariff war
Deal or no deal, what Wes Love wants is Toronto-area business, Taurus Craco, imports machinery from overseas and distributes it across North America, mainly to the United President Donald Trump's shifting tariffs on Canadian products have left him, like many independent business owners, unable to plan for the future."What has been creating indecision in the market is people don't know which way this is going to go," Mr Love told the BBC in June. "And in small businesses, indecision is killer." Taurus Craco was hit hard by the tariffs earlier this year when it was forced to shell out nearly C$35,000 ($25,500, £18,700) because a shipment to the US crossed the border a few minutes after one deadline."It is totally punitive. From a small business perspective, that's more than the cost that we spend on hydro and gas for the entire year," he though Trump paused that tariff a few hours later, Taurus Craco still had to pay. Refusing would mean no longer being allowed to transport its products into the US, Mr Love said."It's like dealing with the mob," he is in a tit-for-tat tariff war with its largest trading partner, faciing a series of levies, in particular on metals and auto. Since taking office in January, Trump has announced a series of import taxes on goods from other countries - arguing they will boost American manufacturing and protect jobs. The ensuing uncertainty has hit Canada's economy and intense talks between the two countries hit a snag on Friday. Prime Minister Mark Carney has called Trump's tariffs "unjust", and said while campaigning for the April election that the "old relationship" with the US is "over". Shortly after winning that election, the prime minister visited Washington DC, taking a more conciliatory message to the White House to launch talks on a new trade and security deal. A 16 July deadline since has been set to hash out that deal, and President Trump said at the recent G7 summit that he was optimistic the two countries could "work something out" on on Friday, Trump said he was cutting trade talks over Canada's digital services tax. "We are hereby terminating ALL discussions on Trade with Canada, effective immediately," he wrote on social has threatened to impose another round of retaliatory tariffs on the US if the talks aren't successful. Mr Love welcomes any prospect of a deal."Give us a set of rules and leave them alone and let us operate within those rules," he said."It's like sport, right? Everybody goes onto the field and you play to a set of rules, but you don't change the rules in the middle of the game." Trade, a sudden exit, Middle East conflict - five takeaways from G7'A stab in the back' - car workers in Canada hit out at US over tariffsThe reality behind Trump's incredible investment claimsWhat tariffs has Trump announced and why? Gaphel Kongtsa, international policy director at the Canadian Chamber of Commerce, said businesses are hopeful an agreement will bring stability. Thus far, they have had to navigate a very fluid landscape, he said, "where seemingly things get increased or decreased or added on without very much clear indication as to why".Canada is hugely reliant on trade with the US, with 75% of its exports heading south, according to Statistics economy has slowed significantly in the first quarter of 2025 as a result of trade war and the ensuing uncertainty - growing only 0.8% between 1 January and 31 March, according to the Canadian Federation of Independent Business (CFIB).It shrank 0.1% over a month in April. A timeline of the tariffs shows what a whirlwind few months it has 1 February, Trump imposed a 25% tariff on most Canadian imports, then suspended them for a month days later. They were re-imposed when that deadline expired, only to be again delayed. Not long after, he granted an exemption on all goods that were compliant with the current North American free trade deal, known as the USMCA. Then in March, the US imposed a global 25% tariff on imported steel and aluminium as well as on imported vehicles. This month, Trump raised the metals tariff to 50%. The manufacturing sector has been in the spotlight when it comes to the tariffs, but the service sector also is affected by the uncertainty, if not by the levies directly. Sam Gupta is the founder and CEO at ElevatIQ, a technology and management consultancy that operates out of Buffalo, New York, and in Gupta said most people don't think about the service sector during a period of uncertainty, calling it the "unloved stepchild" of the economy."The attention goes to all the manufacturing companies and the companies that are directly impacted by the supply chain," he said. Still, services - which encompass everything from finance to tourism - make up a huge proportion of Canada's economy, accounting for the vast majority of its exporters have not been hit as hard as manufacturing, but their outlook and confidence in the market is at the lowest level in years, according to data from the Canadian Chamber of while Ottawa has implemented several measures to provide relief to companies hit by the tariffs - including from funds raised by counter tariffs - the service sector has not received any compensation."We are not even in the conversation," Mr Gupta said. "We don't exist."He said his business is not financially struggling at the moment, but noted that inquiries for his firm's services were "down by 50%". "As far as our understanding goes, not a lot of businesses are thinking about these longterm investments right now. It just, they just are not in the mindset," he said."The biggest fear that we all have right now is, I don't know how long this is going to go. If it is going to be six months, a year, 18 months, we can still survive. But let's say this goes on for like two years, three years then oh, my goodness, it will be, really, really hard."This has been the toughest period for the industry in his 20-year career, as the sector faces a combination of challenges, he said. Mr Gupta recalled how easy it was for him to get a well-paying job early in his career. "Even when I was graduating, we were getting paid like crazy. And we were so arrogant that we would not even pick up calls from recruiters," he said."But now with AI, with tariffs, the economy, everything, everybody that I know is struggling," he said. Statistics Canada reports that 56% of all businesses that export to the US have taken measures to mitigate the impact of than 30% have delayed major investments and expenditures, while 25% sought alternative customers outside the Bank of Canada said on Wednesday that exports to the US dropped by more than 15% in April. Steel and aluminium exports were down by 25% and 11%, and the export of vehicles had fallen by 25%.But despite everything, Mr Love remains said businesses can navigate the challenges as long as the US does not keep changing its trade policy."We're entrepreneurs. We are full of piss and vinegar, as they would say," he said."And so we are doing everything that we possibly can to keep fighting. And I think we will be successful; we just need to know what the ground rules are."
