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.FILE PHOTO: European Commissioner for Trade Maros Sefcovic and India's Trade Minister Piyush Goyal pose after signing an agreement, as European Commission President Ursula von der Leyen, Indian Prime Minister Narendra Modi and European Council President Antonio Costa stand behind them, at the Hyderabad House in New Delhi, India, January 27, 2026.
After nearly 20 years of negotiations, the European Union and India struck a trade deal that will slash or remove tariffs from nearly 97% of all EU exports to India, and grant preferential entry to the European market for 99% of Indian products.
Seventy-eight years after helping found the World Health Organization (WHO), the United States has formally withdrawn from the agency, following through on a pledge President Donald Trump made on his first day back in office.
Mastercard Economic Institute's Outlook 2026 explores the forces redefining global business. Tariffs, technology, and transformation define an adaptive economy for the year ahead. Expect moderate growth amid easing inflation, evolving fiscal policies, and rapid AI adoption, driving productivity. Digital transformation for SMEs and shifts in trade and consumer behavior will shape strategies worldwide. Stay ahead with insights to help navigate complexity and seize emerging opportunities. Learn more here.
On GZERO World, Finnish President Alexander Stubb says that Ukraine and its NATO allies are aligned on a path to a ceasefire but warns that Vladimir Putin will drag out the war, not because he thinks he’ll win… but because he knows he’ll lose.