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Trump says tariffs on Canada, Mexico will go forward ‘on time’... President Donald Trump announced the 25% tariffs on Canada and Mexico will officially start on March 4 following an initial delay to allow the countries more time to address his concerns over border security. Trump said today, “The tariffs are going forward on time, on schedule.”
Canada and Mexico have implemented new border measures in an effort to stave off the tariffs.
Trump also said he was moving forward with plans for reciprocal tariffs on countries. He said, “And we’re going to make up a lot of territory. All we want is reciprocal... So, if somebody charges us, we’ll charge them.”
EU expands tariffs list in looming U.S. metals trade dispute... The European Union is broadening the list of U.S. goods it will target with retaliatory tariffs if President Donald Trump follows through on his threat to impose duties on steel and aluminum exports, people familiar with the matter told Bloomberg. The list of U.S. goods targeted by the EU in response to Trump’s original measures is currently suspended until the end of March but will automatically snap back if no action is taken. Adjusting that list will depend on the exact impact of Trump’s new measures, which is not yet known, said the people. By expanding the lists of American targets, the EU is assessing the impact on the U.S., the bloc’s alternative sources of supply and the effect the levies will have across member states, according to the people. Any potential response would need to also be proportionate to the U.S. measures and compliant with World Trade Organization rules.
Bloomberg reported on Saturday the U.S. measures could impact as much as 28 billion euros ($29.3 billion) of European exports if derivative products are hit, which would be about four times larger than the last time Trump went after the bloc’s metals sector.
In order to avoid a trade clash, EU trade chief Maros Sefcovic offered to his American counterparts in a meeting last week a deal to lower tariffs on industrial goods, including cars, one of Trump’s longstanding demands, according to the people. Any move to lower tariffs on cars would need to be part of a broader mini trade deal that covers other sectors in order to comply with WTO rules that would otherwise see the bloc have to provide equal treatment to other nations, the people said.
Tariffs and trade: The shift towards reciprocity... “There is God, country, motherhood, apple pie and tariffs,” notes Dr. Vince Malanga, president of LaSalle Economics. “Reciprocity is the new buzzword,” says Malanga. “From our vantage point, it is far preferable to a blanket tariff.” In this context, reciprocity aims to eliminate tariff and non-tariff differentials between the U.S. and its trading partners. Unlike broad tariffs targeting specific nations, this approach focuses on individual products. The Commerce Department is tasked with identifying these disparities by April 1.
A reciprocal tariff regime could be a “win-win,” as Malanga notes, reducing trade friction, expanding global trade and boosting economic growth and productivity. In contrast to blanket tariffs, this approach may be disinflationary rather than inflationary. Given the Federal Reserve’s sensitivity to inflationary pressures, this policy shift could provide much-needed stability, he observes.
Energy prices play a crucial role in the inflation outlook. Malanga highlights that “weakness in energy prices is important to this forecast as lower costs seep through the entire price structure.” Currently, energy prices sit at the lower end of a prolonged range. A resolution in the Russia/Ukraine conflict could drive them even lower, particularly if sanctions on Russian oil ease. Additionally, OPEC is set to review its production quotas in May, with several members eager to boost output. Meanwhile, U.S. policies are easing restrictions on production and exploration, which could further reduce costs.
Public concern over inflation remains high after years of price increases. The Trump administration has pledged to combat inflation, but tariffs may not align with that goal — at least in the short term, Malanga says. “The public’s patience is not endless,” Malanga warns, stressing that demonstrable progress is essential. Interestingly, tariff revenues are not being factored into congressional budget resolutions, which he sees as a positive sign.
Bottom line: Malanga says ultimately, the administration would be best served by “downplaying tariffs and focusing on spending reductions and an extension of the 2017-18 tax cut.” He concludes a study-based approach to trade reciprocity, rather than immediate implementation, could provide the necessary window to prioritize these economic measures.
Trump administration cuts 1,600 USAID jobs amid foreign aid freeze... The move places most remaining personnel on paid administrative leave, following a federal judge’s ruling that cleared the way for the cuts. Led by Elon Musk’s Department of Government Efficiency (DOGE), the effort is part of a broader push to scale back the U.S. Agency for International Development (USAID), a key instrument of American “soft power.” Former USAID officials warn the move undermines U.S. crisis response capabilities, while critics argue it is an attempt to dismantle the agency. The administration has approved $5.3 billion in aid exemptions, primarily for security programs, but only a fraction has gone to USAID humanitarian efforts.
Meanwhile, federal agencies are scrambling after an email ordered by Musk demanded that employees submit five bullet points detailing their work last week. While the message from the Office of Personnel Management did not specify consequences, Musk warned on social media that noncompliance by tonight’s 11:59 p.m. ET deadline would result in dismissal. By late Sunday, major agencies, including the Pentagon, FBI and State Department, had advised their staff not to respond.
Dockworkers set to vote on historic labor contract... Unionized dockworkers will vote this week on a new labor contract expected to bring stability to U.S. ports through September 2030. The deal, widely anticipated to pass on Tuesday, includes a 62% pay increase and guarantees against automation, a victory hailed by the International Longshoremen’s Association. Port employers also see benefits, as the agreement allows for the introduction of remote-operated cranes and other efficiency-boosting technologies, helping offset increased labor costs. The contract aims to prevent disruptions like the three-day strike in October that disrupted U.S. trade.
Trump stalls U.S. wind power industry with permit freeze... The Biden-era momentum for wind energy has ground to a halt under President Trump, who has paused federal permitting and leasing for wind projects, leaving major developers in limbo. As the Wall Street Journal (WSJ) reports, companies such as TotalEnergies, Shell and Orsted have either shelved projects or recorded billion-dollar impairments due to the uncertainty. “We aren’t going to do the wind thing,” Trump declared at a rally on Jan. 20, dismissing turbines as “big ugly windmills” that “ruin your neighborhood.”
The sweeping freeze affects offshore and land-based wind projects alike, with multiple federal agencies — including the Army Corps of Engineers, the Federal Aviation Administration and the Bureau of Land Management — now reassessing their roles in permitting. The Lava Ridge Wind Project in Idaho, specifically named in Trump’s executive order, has been halted for further review. Sen. Jim Risch (R-Idaho), who personally lobbied Trump to stop the project, commented, “He gets it. It’s not a hard lift because he shares my reticence about windmills.”
Beyond permitting, the wind industry also faces possible cuts to tax credits from the 2022 Inflation Reduction Act (aka Climate Act), which Trump has called a “scam.” Developers rushed to begin projects before the new administration took office, securing tax benefits before potential policy changes. But as David Hindman of AlixPartners warned, “All parties — developers, financers, others — are going to want to have more certainty than we have now.”
While offshore wind projects were already contending with rising costs and supply-chain disruptions, the pause has added another layer of risk. Industry advocates stress that projects still in development or under construction are vital to the economy. “They’re providing a key benefit to our economy already,” Frank Macchiarola of the American Clean Power Association, told WSJ.
Bottom line: For now, wind energy developers are left in a state of paralysis, waiting for regulatory clarity as the Trump administration reshapes America’s energy landscape.