Ontario Premier encourages Canadian PM to be ‘polite… but stern' in G7 meetings with Trump
Ontario Premier Doug Ford joined The Situation Room to share his hopes for the G7 summit in Canada this week, amid strained US-Canadian relations over President Trump's tariff policy.
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Yahoo
12 minutes ago
- Yahoo
President Trump says he'll set unilateral tariff rates within weeks
US President Donald Trump told reporters on Wednesday that he would send letters to trading partners in the next week or two, outlining unilateral tariff rates. 'We're going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,' Trump said at the John F. Kennedy Center for the Performing Arts in Washington. 'At a certain point, we're just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it,' he added. This would put Trump ahead of his tariff deadline, as the president previously paused so-called 'reciprocal' duties for 90 days until 8 July. The higher rates are set to kick in on the 9th. Trump told reporters at the Kennedy Center that a delay to the deadline is unlikely, although US Treasury Secretary Scott Bessent previously suggested there may be some flexibility. "It is highly likely that those countries - or trading blocs as is the case with the EU - who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiations," Bessent told the House Ways and Means Committee. "If someone is not negotiating, then we will not." Related EU targets Trump's 'Big Beautiful Bill' over tax provision in tariff talks US federal appeals court rules Trump tariffs may remain in effect while appeals process continues The US has thus far only managed to secure a trade framework with the UK, as well as clinching a tariff deal with China. Trump was nonetheless upbeat about negotiations on Wednesday. "We're rocking in terms of deals," he said. "We're dealing with quite a few countries and they all want to make a deal with us." Following talks in London, Trump said on Wednesday that magnets and rare earths would be supplied up front by China and that the US would allow Chinese students into its colleges and universities. The president added that a 55% tariff would be applied to Chinese imports. A White House official, who was not authorised to discuss the terms publicly, said the 55% was not an increase on the previous 30% tariff on China because Trump was including other pre-existing import taxes. Specifically, the president was tallying up his 10% baseline tariff, the 20% fentanyl trafficking levy and a 25% pre-existing tariff on China. In May, the US agreed upon a trade framework with the UK, which allows US goods to be fast-tracked through customs and reduces trade barriers on a number of products. The framework lowers US duties on British steel, aluminum and cars, although there are some knots to work out, meaning the specifics of the deal could arrive later than the 9 July deadline. US Commerce Secretary Howard Lutnick said on Wednesday that a deal with the European Union will likely be among the final trade agreements concluded by the United States. 'I'm optimistic that we can get there with Europe. But Europe will be probably [at] the very, very end,' Lutnick told CNBC. In May, Trump threatened a 50% tariff on EU goods coming to the US, although he later said he would hold off on this threat until 9 July. The president originally placed a 20% so-called 'reciprocal' levy on EU goods, but this duty was lifted during the 90-day pause window. Sign in to access your portfolio
Yahoo
15 minutes ago
- Yahoo
US and UK sign a trade deal, but steel imports are still in question
US president Donald Trump and British prime minister Keir Starmer said Monday that they had signed a trade deal that will slash tariffs on UK auto and aerospace industry imports — but they are still discussing how to handle steel production. "We just signed it, and it's done," Trump said, as the pair spoke to reporters at the Group of Seven summit (G7) in the Canadian Rockies, with the US president brandishing the pages of what he said was a long-awaited agreement. The rollout was anything but smooth, however, as Trump dropped the papers and said at first that his administration had reached an agreement with the European Union when he meant the United Kingdom. The president said that the pact is "a fair deal for both" and would "produce a lot of jobs, a lot of income." British prime minister, Keir Starmer, said it meant "a very good day for both our countries, a real sign of strength." Reaching this agreement is a significant step as Trump has threatened much of the world with steep import tariffs that have unsettled markets and raised the possibility of a global trade war. Related President Trump says he'll set unilateral tariff rates within weeks UK economy contracts sharply in April: Will the BoE respond? He has since backed off on many of his proposed levies but also continued to suggest that administration officials were furiously negotiating new trade pacts with dozens of countries — even if few have yet to materialise. Trump said, "the UK is very well protected" from tariffs. "You know why? Because I like them." The signing of the deal at the G7 followed Trump and Starmer's announcement in May that they'd reached a framework for a trade pact that would slash US import taxes on British cars, steel and aluminium in return for greater access to the British market for US products, including beef and ethanol. But Monday's agreement fully covers only British cars and aerospace materials, with more work to come on steel. The British government said the new agreement removes US tariffs on UK aerospace products, exempting Britain from a 10% levy the Trump White House has sought to impose on all other countries — a boost to British firms, including engine-maker Rolls-Royce. It also sets the tax on British autos at 10% from the end of the month, down from the current 27.5%, up to a quota of 100,000 vehicles a year. UK Business and Trade Secretary Jonathan Reynolds said the deal protects "jobs and livelihoods in some of our most vital sectors." Mike Hawes, chief executive of Britain's Society of Motor Manufacturers and Traders, said it was "great news for the UK automotive industry." There was no final agreement to cut the tax on British steel to zero as originally anticipated — seen as vital to preserving the UK's beleaguered steel industry. Britain's steel output has fallen 80% since the late 1960s due to high costs and the rapid growth of cheaper Chinese production. Related EU 'strongly regrets' Trump's announcement to double steel and aluminium tariffs to 50% Spring 2025 economic forecast: How much will Trump's tariffs hinder EU growth? After the two leaders spoke, the White House released a statement seeking to clarify matters, saying that with respect to steel and aluminium, Commerce Secretary Howard Lutnick will "determine a quota of products that can enter the United States without being subject" to previous tariffs imposed by the Trump administration. The British government said Monday that the plan was still for "0% tariffs on core steel products as agreed." Trump's executive order authorising the deal contained several references to the security of supply chains, reflecting the US administration's concerns about China. It said the UK "committed to working to meet American requirements on the security of the supply chains of steel and aluminium products intended for export to the United States." There was also no final deal on pharmaceuticals, where "work will continue," the UK said. The deal signed Monday also confirms that American farmers can export 13,000 metric tons (29 million pounds) of beef to the UK each year, and vice versa — though a British ban on hormone-treated beef remains in place.
Wall Street Journal
28 minutes ago
- Wall Street Journal
The U.S. Gave Up Its Lead in Clean Energy Sectors Before. It Might Be Doing It Again.
The U.S. is the world leader in clean hydrogen and carbon-capture production, but President Trump's move to roll back green-energy subsidies could mean giving up that position to rivals. It wouldn't be the first time the country has fallen from the top spot in the clean-energy sector. Right now, the U.S. is the unambiguous leader in just a few energy-transition technologies, said Julio Friedmann, chief scientist at Carbon Direct, a consulting firm focusing on decarbonization. 'We have surrendered leadership on EVs, on batteries, on wind and on nuclear,' Friedmann said, adding the U.S. was also once a key player in solar energy. 'In all these cases we had led significantly, and we abdicated that leadership.' The Manhattan Project played a crucial role in the advancement of nuclear energy. The first practical solar cell was developed by Bell Labs in the 50s. The first large-scale wind farm was built in California in the 80s. In the 90s, the U.S. led the world on electric-vehicle battery development—in 2008, Tesla made the first EV able to travel more than 200 miles. More recently, under the Biden administration, a combination of tax credits, subsidies and grants have helped the U.S. to take the lead in clean hydrogen and carbon capture, even as China remains the largest producer of clean energy overall. According to a study published last year by consulting firm group McKinsey & Co., North America is set to produce 52% of the world's clean hydrogen by 2030, while China is on course for 30%. When it comes to carbon capture and storage technology, nearly half of all projects are set to be based in North America by 2030, according to the International Energy Agency, with Europe next highest with 31% of projects. Most of the North American projects are in the U.S., largely in Republican States and counties. But over the past month, the Trump administration has set about rolling back Biden's incentives, canceling grants and removing tax credits that helped to spur production across the country. 'On their current course, the administration will again abdicate leadership,' Friedmann said. Last month, Energy Secretary Chris Wright moved to cut $3.7 billion of grants and subsidies authorized under the previous administration that were designed to get clean-energy projects off the ground. Those included a carbon capture and storage project in Indiana, plastics recycling projects in Texas and a green cement project in California. Under the 'Big Beautiful Bill' proposal, hydrogen tax credits are set to end by the end of the year and clean-energy tax credits face a de facto repeal for projects coming online next year and in 2027. The Trump administration said the technologies were costly, burdening ratepayers and consumers, calling the sector a scam. Gregory Nemet, author of the book 'How Solar Energy Became Cheap,' likened the current rollback to policies that were put in place by President Richard Nixon but rolled back in 1981 by President Ronald Reagan, when subsidies for solar were axed. The U.S. had been the leader in solar technologies, thanks to research from NASA. But withdrawal in government-led support meant the industry moved abroad, he said. 'That was the end of the line for the U.S. solar industry for quite a while. Japan picked it up, then Germany, then China,' Nemet said. Currently, China dominates production of solar equipment, making up nearly 75% of modules, 85% of cells and 97% of wafer production, according to data from the International Energy Agency. It is a similar situation in batteries, with 70% of all electric vehicle batteries ever produced coming from China. 'The main loss is the reset in market expectations,' Nemet added. 'There was a market for clean technologies that was huge and growing. If you were going to make a long-term investment based on long-term incentives, the last four years was meant to build that and this is a pretty big setback to those incentives.' For carbon capture and storage in particular, a number of startups like Climeworks, Heirloom and Air Products had looked to base their first-of-a-kind plants in the U.S. That was in part because of its favorable geography, including plentiful underground storage, but also because of the funding and research on offer at America's universities. 'The U.S. federal government began investing in technologies like direct air capture back in 2015, 2016, way before anyone else was thinking about this, and it really led in public investment and innovation,' said Giana Amador, executive director at the Carbon Removal Alliance, a non profit promoting carbon removals. She said this led to companies wanting 'to build their first-of-a-kind projects here, and doing so in partnership with the federal government and in particular the Department of Energy.' Amador pointed to programs like the 45Q tax credit, the carbon negative shot pilots program, and other policies that support carbon removal. But climate startups in the clean energy sector have already started to feel the effects of Trump's push against clean tech. Battery recycler Li-Cycle has filed for bankruptcy, while job cuts have been seen at direct air capture startups Climeworks and Heirloom. Meanwhile, Group14, a Seattle-based silicon-battery maker said it was delaying opening its battery factory in Moses Lake, Washington, due to uncertainty over Trump's tariffs. Share prices have fallen sharply too, with hydrogen startup Plug Power down about 50% this year. Industrial-gases supplier Air Products & Chemicals had planned to build a $4.5 billion hydrogen facility in Louisiana, but that project price tag has now ballooned to $8 billion, the construction timeline has slipped and the company is still seeking customers. Similarly, Nel Hydrogen has hit the brakes on a $400 million factory in suburban Detroit, due to policy uncertainty. 'This is an investment in the U.S. going forward and that's got to be in the mind of those who are making final decisions,' said Frank Wolak, president of the Fuel Cell and Hydrogen Energy Association. 'If we don't make this investment now, we will be looking at more and more Chinese and even European activities, and you won't be able to recover that ground. This is an investment in the U.S. future.' For local policymakers, the move to push back against green energy production has also resulted in thousands of job cuts. So far 45 announced projects have been canceled, closed or downsized resulting in 20,000 jobs being lost and $16.7 billion in investments abandoned according to environmental policy advocacy group E2. Of those, 72% of all jobs and 82% of investments were located in Republican congressional districts, E2 added. One of the other notable parts of the previous policy program was that it also had strong backing from fossil fuel, chemicals and other heavy polluting industries. The axed projects by Energy Secretary Wright included carbon capture and hydrogen proposals from Exxon Mobil, Eastman and Heidelberg Cement. 'With the current situation, the whole of this is in jeopardy,' said Sunita Satyapal, former Director of the U.S. DOE's hydrogen and fuel cell office. She said that in particular the 45V tax credit had made U.S. hydrogen production some of the cheapest in the world — an important driver in jump-starting the industry and encouraging industries to use the fuel source. 'Regardless of the technology, industry always needs a runway before take off and that is what subsidies provide.' Satyapal added that in the wake of the U.S.'s possible move away from the sector, regions like Canada and China could stand to benefit. China already makes up 65% of global electrolyser capacity, a key component in hydrogen production. Meanwhile, Canada's new Prime Minister Mark Carney has indicated supporting carbon capture projects tied with oil production. 'Companies are going to go where business is most favorable and I think that that in itself is a policy choice,' Carbon Removal Alliance's Amador said. 'The U.S. is at this critical window where we either continue to create a market and a policy environment that helps companies scale solutions here, or we give up that leadership and let other countries take the helm.' Write to Yusuf Khan at
