US and Canada hold last-minute talks to avoid new tariffs
Washington and Ottawa are down to the wire with talks to reach an agreement by 12:01 a.m. Wednesday, when President Donald Trump has threatened to impose 50% tariffs on over $20 billion of Canadian goods. The proposed tariffs would hit Canadian exports to the US — everything from hockey sticks to paper — in retaliation for Canadian tariffs on US automobiles and bans by most of the provinces on the sale of US alcohol. As a result, Prime Minister Mark Carney will need support from individual provinces for any concessions. The dispute is just the next stage in an escalating trade war between the two neighbors: Canada initially imposed tariffs on US goods in response to tariffs on sectors including steel and lumber.
Pivotal trial on social media addiction begins
A landmark trial against Meta over the alleged harm social media causes children kicks off today, with attorneys general from California, Colorado, Kentucky, and New Jersey leading a group of 29 states seeking $200 billion in damages. The states allege that Meta knowingly and deliberately designed its features to be addictive and collected data on children under 13 without parental consent. Meta’s lawyers are expected to argue that the company has made a huge effort to protect children online, and that the AGs can’t prove that people were misled. Kentucky AG Russell Coleman called the trial the largest consumer protection lawsuit in US history. And Meta is not alone: other social media companies, including Snapchat, TikTok parent ByteDance, and YouTube parent Alphabet, also face similar cases in what states are calling social media’s “Big Tobacco” moment.
Japan and Australia team up on defense
Japan and Australia signed an agreement on Tuesday that will allow Japan to test hypersonic missiles on Australian firing ranges, the latest sign of Japan’s push to expand its military capabilities. In a separate announcement, Australia said both countries agreed to jointly develop a prototype laser weapon. The two countries have deepened defense ties in recent months, including a new security agreement signed in May. Japan has rapidly boosted military spending under Prime Minister Sanae Takaichi, whose government has pushed defense spending to 2% of GDP — a level not seen in Japan’s postwar WWII era, when the country adopted a pacifist stance. Tokyo has pointed to China’s growing military power and increasingly assertive posture in the Indo-Pacific as key reasons for the buildup. The partnership with Australia is also part of a broader effort by Japan to build a network of security ties beyond its longtime alliance with the United States.
