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Trump announces “fair and reciprocal” tariffs, warning days of trade abuse are “over”

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President Donald Trump on Thursday signed a memorandum directing his administration to implement a “fair and reciprocal” trade policy, ensuring that foreign nations imposing high tariffs on American goods will face identical treatment. In a statement on Truth Social, Trump declared that the days of the U.S. being economically exploited are over, vowing to retaliate against trade policies that unfairly disadvantage American businesses.

Key Details:

  • Trump wrote on Truth Social, “For purposes of fairness, I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them—No more, no less!”

  • The policy will consider Value-Added Tax (VAT) systems—widely used in Europe—as trade barriers equivalent to tariffs, with Trump arguing they are “far more punitive” and used to harm American exports.

  • The administration will crack down on trade loopholes, including countries shipping goods through third-party nations to evade tariffs. “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted,” Trump warned.

 

Diving Deeper:

Trump’s reciprocal tariff plan is designed to end decades of one-sided trade deals that he says have crippled American industries and workers. By enforcing equal tariffs on foreign nations, Trump is making it clear: If a country charges the U.S. high tariffs, they will face the same in return.

Trump specifically called out countries that manipulate Value-Added Tax (VAT) systems, arguing that these taxes function as hidden trade barriers designed to punish U.S. exports while protecting foreign industries. He declared, “For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff.”

Beyond traditional tariffs, Trump’s administration is also cracking down on non-monetary trade barriers, such as regulations designed to block American businesses from competing fairly overseas. He emphasized, “Provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let U.S. businesses operate.”

Additionally, Trump warned against countries attempting to game the system by shipping goods through third-party nations to avoid tariffs. “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted,” he stated.

Critics, including some business groups and investors, argue that tariffs could increase costs for U.S. consumers, but Trump’s supporters say securing fair trade is worth any short-term disruption. JPMorgan CEO Jamie Dimon defended the approach, stating, “If it’s a little inflationary but it’s good for national security, so be it. I mean, get over it.”

Meanwhile, Federal Reserve Chair Jerome Powell sidestepped questions about the policy but acknowledged that trade barriers could influence economic conditions, saying, “It’s not the Fed’s job to make or comment on tariff policy. That’s for elected people.”

2025 Federal Election

Next federal government should end corporate welfare for forced EV transition

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From the Fraser Institute

By Tegan Hill and Jake Fuss

Corporate welfare simply shifts jobs and investment away from other firms and industries—which are more productive, as they don’t require government funding to be economically viable—to the governments’ preferred industries and firms, circumventing the preferences of consumers and investors. And since politicians spend other people’s money, they have little incentive to be careful investors.

General Motors recently announced the temporary closure of its electric vehicle (EV) manufacturing plant in Ontario, laying off 500 people because its new EV isn’t selling. The plant will shut down for six months despite hundreds of millions in government subsides financed by taxpayers. This is just one more example of corporate welfare—when governments subsidize favoured industries and companies—and it’s time for the provinces and the next federal government to eliminate it.

Between the federal government and Ontario government, GM received about $500 million to help fund its EV transition. But this is just one example of corporate welfare in the auto sector. Stellantis and Volkswagen will receive about $28 billion in government subsidies while Honda is promised $5 billion.

More broadly, from 2007 to 2019, the last pre-COVID year of data, the federal government spent an estimated $84.6 billion (adjusted for inflation) on corporate welfare while provincial and local governments spent another $302.9 billion. And crucially, these numbers exclude other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the actual cost of corporate welfare during this period was much higher.

Of course, politicians claim that corporate welfare benefits workers. Yet according to a significant body of research, corporate welfare fails to generate widespread economic benefit. Think of it this way—if the businesses that received subsidies were viable to begin with, they wouldn’t need government support. So unprofitable companies are kept in business through governments’ support, which can prevent resources, including investment and workers, from moving to profitable companies, hurting overall economic growth.

Put differently, rather than fuelling economic growth, corporate welfare simply shifts jobs and investment away from other firms and industries—which are more productive, as they don’t require government funding to be economically viable—to the governments’ preferred industries and firms, circumventing the preferences of consumers and investors. And since politicians spend other people’s money, they have little incentive to be careful investors.

Governments also must impose higher tax rates on everyone else to pay for corporate welfare. In turn, higher tax rates discourage entrepreneurship and business investment—again, which fuels economic growth. And the higher the tax rates, the more economic activity they discourage.

GM’s EV plant shut down once again proves that when governments try to engineer the economy with corporate welfare, workers will ultimately lose. It’s time for the provinces and the next federal government—whoever it may be—to finally put an end to this costly and ineffective policy approach.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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Business

Hudson’s Bay Bid Raises Red Flags Over Foreign Influence

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From the Frontier Centre for Public Policy

By Scott McGregor

A billionaire’s retail ambition might also serve Beijing’s global influence strategy. Canada must look beyond the storefront

When B.C. billionaire Weihong Liu publicly declared interest in acquiring Hudson’s Bay stores, it wasn’t just a retail story—it was a signal flare in an era where foreign investment increasingly doubles as geopolitical strategy.

The Hudson’s Bay Company, founded in 1670, remains an enduring symbol of Canadian heritage. While its commercial relevance has waned in recent years, its brand is deeply etched into the national identity. That’s precisely why any potential acquisition, particularly by an investor with strong ties to the People’s Republic of China (PRC), deserves thoughtful, measured scrutiny.

Liu, a prominent figure in Vancouver’s Chinese-Canadian business community, announced her interest in acquiring several Hudson’s Bay stores on Chinese social media platform Xiaohongshu (RedNote), expressing a desire to “make the Bay great again.” Though revitalizing a Canadian retail icon may seem commendable, the timing and context of this bid suggest a broader strategic positioning—one that aligns with the People’s Republic of China’s increasingly nuanced approach to economic diplomacy, especially in countries like Canada that sit at the crossroads of American and Chinese spheres of influence.

This fits a familiar pattern. In recent years, we’ve seen examples of Chinese corporate involvement in Canadian cultural and commercial institutions, such as Huawei’s past sponsorship of Hockey Night in Canada. Even as national security concerns were raised by allies and intelligence agencies, Huawei’s logo remained a visible presence during one of the country’s most cherished broadcasts. These engagements, though often framed as commercially justified, serve another purpose: to normalize Chinese brand and state-linked presence within the fabric of Canadian identity and daily life.

What we may be witnessing is part of a broader PRC strategy to deepen economic and cultural ties with Canada at a time when U.S.-China relations remain strained. As American tariffs on Canadian goods—particularly in aluminum, lumber and dairy—have tested cross-border loyalties, Beijing has positioned itself as an alternative economic partner. Investments into cultural and heritage-linked assets like Hudson’s Bay could be seen as a symbolic extension of this effort to draw Canada further into its orbit of influence, subtly decoupling the country from the gravitational pull of its traditional allies.

From my perspective, as a professional with experience in threat finance, economic subversion and political leveraging, this does not necessarily imply nefarious intent in each case. However, it does demand a conscious awareness of how soft power is exercised through commercial influence, particularly by state-aligned actors. As I continue my research in international business law, I see how investment vehicles, trade deals and brand acquisitions can function as instruments of foreign policy—tools for shaping narratives, building alliances and shifting influence over time.

Canada must neither overreact nor overlook these developments. Open markets and cultural exchange are vital to our prosperity and pluralism. But so too is the responsibility to preserve our sovereignty—not only in the physical sense, but in the cultural and institutional dimensions that shape our national identity.

Strategic investment review processes, cultural asset protections and greater transparency around foreign corporate ownership can help strike this balance. We should be cautious not to allow historically Canadian institutions to become conduits, however unintentionally, for geopolitical leverage.

In a world where power is increasingly exercised through influence rather than force, safeguarding our heritage means understanding who is buying—and why.

Scott McGregor is the managing partner and CEO of Close Hold Intelligence Consulting.

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