Economist Justin Wolfersjoked on social media on Tuesday that we had a “world first: An intra-day tariff chart.” Donald Trump launched a 25% tariff on Canadian aluminum and steel, raised it to 50%, and then lowered it again the same day after Ontario Premier Doug Ford backed off on a 25% energy export surcharge for electricity sent to parts of three northern US states.
In response to Trump’s steel and aluminum tariffs, Canada nonetheless moved ahead with counter-tariffs worth more than $20 billion on US goods including steel, aluminum, and other products. If you’re keeping score at home, these duties are on top of previous $30 billion counter-tariffs levied by Canada from Trump’s first round of tariffs.
The tariffs and counter-tariffs threaten to disrupt supply chains, drive profits down for manufacturers, lead to job losses, and raise prices for consumers on both sides of the border. The Dow Jones dropped almost 500 points on Tuesday and slid again Wednesday as markets reacted to the news, which included European counter-tariffs against the US worth $28 billion.
The Bank of Canada on Wednesday announced a 25-basis point interest rate cut amid slowing market confidence and investment, warning the trade war would hike inflation and make for tough times ahead – including the risk of a recession. Tough times and recession are prospects the US also faces as the tariff wars drag on.From shopping to services, consumer spending is showing strength across categories. Holiday shopping got an early start, and it’s not just higher earners filling their carts. Bank of America Institute sees continued spending growth recovery for lower- and middle-income households. See what’s driving the trends.
Garment workers in Bangladesh have taken to the streets over the past week, demanding higher wages and forcing more than 600 factories to shut down nationwide.
As AI creates new opportunities, the people who understand a community best play an important role in determining how those opportunities take shape. Across the US, Microsoft is supporting AI literacy classes as part of a new program developed in collaboration with the Public Library Association, working through trusted local institutions to help people build practical AI skills. By pairing new technology with local knowledge, the initiative is helping communities explore how AI can support their needs and open new possibilities, while putting local leaders and organizations at the center of that work. Read the full story here.
We’re breaking down the three main issues that could help decide tomorrow’s elections: the cost of living, Israel, and AI.