Tuesday Briefing: Trump’s new tariff fight
Good morning. We’re covering President Trump’s new tariff fight and Hamas’s decision to suspend hostage releases. Plus, Kendrick Lamar’s Super Bowl show.
Trump’s new tariffs would hit metals importsPresident Trump was poised to move forward with sweeping 25 percent tariffs on foreign steel and aluminum that are likely to rankle Canada and Mexico, which supply the bulk of U.S. metal imports. The two countries could also incite retaliation on U.S. exports. Trump said on Sunday that he would make a formal announcement about the tariffs on Monday. His decision took leaders in Canada and Mexico by surprise. A North American trade war had been averted at the last moment last month when deals were reached with Trump for a 30-day postponement of tariffs. My colleague Ana Swanson, who covers trade, said the new tariffs “will probably spark new trade fights with American allies.” “The interesting thing about steel and aluminum tariffs is they do really help domestic metal makers,” she said. “But there’s a big trade-off because they increase costs for other businesses that use steel and aluminum. And there a lot of those — makers of cars, machinery, planes and food packaging come to mind.” Context: Trump imposed a 25 percent tariff on metals in his first term. Studies showed that the move hurt the broader economy as prices went up for so many other industries. China: Trump’s metal tariffs might primarily be aimed at allies of the U.S., but they’re really intended to hit China, which dominates the global steel and aluminum industry.
Hamas won’t free hostages ‘until further notice’Hamas has indefinitely postponed the release of Israeli hostages who were set to be freed this weekend, a spokesman said yesterday. He accused Israel of several violations of the cease-fire agreement. The move threatens to derail a six-week truce and prospects for a lasting end to the war. The announcement from Hamas came after Fox News published a clip of an interview in which President Trump said Palestinians would not be allowed to return to Gaza under his plan to relocate the entire population. What’s next: Prime Minister Benjamin Netanyahu of Israel planned to hold a meeting of his security cabinet after consulting with his top advisers. Mediators from Qatar and Egypt could work with Israeli and Hamas negotiators to find a resolution.
Europe wants to be a top contender in the A.I. raceTop tech executives, academic experts and government leaders gathered yesterday in Paris for a two-day A.I. summit. Europe wants to keep up with the U.S. and China in the A.I. race, but investors worry that the continent has too much red tape, and that its taxes are too high. It was a fear that President Emmanuel Macron of France seemed eager to push past. “If we regulate before we innovate, we won’t have any innovation of our own,” he said. China: Many people in the country see the success of the start-up DeepSeek as a victory for domestic education, proof that it equals or has surpassed that of the U.S. |
