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Economy

Big Tech’s AI Dreams And Dems’ Electrification Push Are Keeping More Coal Online For Longer

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3 minute read

From the Daily Caller News Foundation

By Nick Pope

 

Power-hungry data centers and Democrats’ broad electrification agenda are teaming up to keep more coal-fired capacity online for longer than initially projected, according to The Wall Street Journal.

Tech companies’ data centers, policies pushing adoption of products like electric vehicles (EVs) and heat pumps and manufacturing activity are quickly driving up electricity demand projections, forcing some utility companies to keep coal-fired power plants operational for longer than anticipated, according to the WSJ. In 2023, S&P Global Commodity Insights projected that the U.S. would retire about 133,000 megawatts of remaining coal capacity by 2035, but the organization’s 2024 outlook now anticipates that roughly 105,000 megawatts of coal-fired generation will be retired by that year.

“Utilities around the country are kind of going into panic mode” because they are finding themselves unprepared for surging power demand, Michelle Solomon, a senior policy analyst at Energy Innovation, told the WSJ. Nearly every regional power market in the U.S. increased their projections for five-year annualized electricity demand growth between 2022 and 2023, with the rate doubling in some instances.

Coal-fired power plants are also benefiting from the fact that green energy generation is not coming online fast enough to replace retiring fossil fuel capacity, according to the WSJ. Coal is a dirtier fuel source than alternatives like natural gas, but the artificial intelligence (AI) boom and Democrats’ push for electrification — an effort intended to counter climate change —are prolonging its use.

“The existing fleet [of fossil-fuel generators] needs to stick around longer and run harder,” Patrick Finn, an analyst at the energy-focused consultancy Wood Mackenzie, told the WSJ. This dynamic will likely be a headwind for cutting emissions, which has been a top domestic and international priority for the Biden administration.

The Biden administration has pursued policies that will drive up long-term electricity demand while making it more difficult to build reliable, cheap fossil fuel-fired capacity.

On the demand side, the administration has pushed policies that will substantially increase the number of EVs on the road and issued regulations that often favor electric appliances, in addition to incentivizing power-intensive manufacturing while the AI boom takes shape. In terms of supply, the Biden Environmental Protection Agency (EPA) has moved to reshape the American power grid by effectively mandating the installation of costly carbon capture and sequestration (CCS) technology for coal plants, requiring that these plants control 90% of their emissions by 2032 if they are to operate past 2039, according to the Center for Strategic and International Studies.

Business

Canada may escape the worst as Trump declares America’s economic independence with Liberation Day tariffs

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MXM logo  MxM News

Quick Hit:

On Wednesday, President Trump declared a national emergency to implement a sweeping 10% baseline tariff on all imported goods, calling it a “Declaration of Economic Independence.” Trump said the tariffs would revitalize the domestic economy, declaring that, “April 2, 2025, will forever be remembered as the day American industry was reborn.”

Key Details:

  • The baseline 10% tariff will take effect Saturday, while targeted “reciprocal” tariffs—20% on the EU, 24% on Japan, and 17% on Israel—begin April 9th. Trump also imposed 25% tariffs on most Canadian and Mexican goods, as well as on all foreign-made cars and auto parts, effective early Thursday.

  • Trump justified the policy by citing foreign trade restrictions and long-standing deficits. He pointed to policies in Australia, the EU, Japan, and South Korea as examples of protectionist barriers that unfairly harm American workers and industries.

  • The White House estimates the 10% tariff could generate $200 billion in revenue over the next decade. Officials say the added funds would help reduce the federal deficit while giving the U.S. stronger leverage in negotiations with countries running large trade surpluses.

Diving Deeper:

President Trump on Wednesday unveiled a broad new tariff policy affecting every imported product into the United States, marking what he described as the beginning of a new economic era. Declaring a national emergency from the White House Rose Garden, the president announced a new 10% baseline tariff on all imports, alongside steeper country-specific tariffs targeting longstanding trade imbalances.

“This is our Declaration of Economic Independence,” Trump said. “Factories will come roaring back into our country — and you see it happening already.”

The tariffs, which take effect Saturday, represent a substantial increase from the pre-Trump average U.S. tariff rate and are part of what the administration is calling “Liberation Day” for American industry. Reciprocal tariffs kick in April 9th, with the administration detailing specific rates—20% for the European Union, 24% for Japan, and 17% for Israel—based on calculations tied to bilateral trade deficits.

“From 1789 to 1913, we were a tariff-backed nation,” Trump said. “The United States was proportionately the wealthiest it has ever been.” He criticized the establishment of the income tax in 1913 and blamed the 1929 economic collapse on a departure from tariff-based policies.

To underscore the move’s long-anticipated nature, Trump noted he had been warning about unfair trade for decades. “If you look at my old speeches, where I was young and very handsome… I’d be talking about how we were being ripped off by these countries,” he quipped.

The president also used the moment to renew his push for broader economic reforms, urging Congress to eliminate federal taxes on tips, overtime pay, and Social Security benefits. He also proposed allowing Americans to write off interest on domestic auto loans.

Critics of the plan warned it could raise prices for consumers, noting inflation has already risen 22% under the Biden administration. However, Trump pointed to low inflation during his first term—when he imposed more targeted tariffs—as proof his strategy can work without sparking runaway costs.

White House officials reportedly described the new baseline rate as a guardrail against countries attempting to game the system. One official explained the methodology behind the reciprocal tariffs: “The trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating,” adding that the tariffs are “half of what they could be” because “the president is lenient and he wants to be kind to the world.”

In addition to Wednesday’s sweeping changes, Trump’s administration recently imposed a 25% tariff on Chinese goods tied to fentanyl smuggling and another 25% on steel and aluminum imports—revoking previous carve-outs for countries like Brazil and South Korea. Future tariffs on semiconductors, pharmaceuticals, and raw materials such as copper and lumber are reportedly under consideration.

Trump closed his remarks with a message to foreign leaders: “To all of the foreign presidents, prime ministers, kings, queens, ambassadors… I say, ‘Terminate your own tariffs, drop your barriers.’” He declared April 2nd “the day America’s destiny was reclaimed” and promised, “This will indeed be the golden age of America.”

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2025 Federal Election

Three cheers for Poilievre’s alcohol tax cut

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By Franco Terrazzano

The Canadian Taxpayers Federation applauds Conservative Party Leader Pierre Poilievre’s commitment to end and reverse the alcohol escalator tax.

“Poilievre just promised major alcohol tax cuts and taxpayers will cheers to that,” said Franco Terrazzano, CTF Federal Director. “Poilievre’s tax cut will save Canadians money every time they have a cold one with a buddy or enjoy a glass of Pinot with their better half and it will give Canadians brewers, distillers and wineries a fighting chance against tariffs.”

Today, federal alcohol taxes increased by two per cent, costing taxpayers about $40 million this year, according to Beer Canada.

Poilievre announced a Conservative government “will axe the escalator tax on wine, beer and spirits back to 2017 levels, ending the automatic annual tax increases.”

The alcohol escalator tax has automatically increased excise taxes on beer, wine and spirits every year, without a vote in Parliament, since 2017. The alcohol escalator tax has cost taxpayers more than $900 million since being imposed, according to Beer Canada.

Taxes from multiple levels of government account for about half of the price of alcohol.

Meanwhile, tariffs are hitting the industry hard. Brewers have described the tariffs as “Armageddon for craft brewing.”

“Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop,” Terrazzano said. “If politicians think Canadians aren’t paying enough tax, they should at least have the spine to vote on the tax increase.

“Poilievre is right to end the escalator tax and all party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol tax hikes.”

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