The government of Canada will be responding to automotive tariffs from the United States by matching 25% tariffs on all vehicles imported from the U.S. that are not compliant with CUSMA, our North American free trade agreement, and on the non-Canadian content of CUSMA-compliant vehicles from the United States, Prime Minister Mark Carney announced today.

The retaliatory tariffs will not affect auto parts, Carney said, "because we know the benefits of our integrated production system."

The Canadian tariffs will not affect vehicles from Mexico.

Carney said Canada is "developing a framework for auto producers to avoid our counter tariffs, as long as they maintain their production and investment in Canada."

"Every single dollar raised — about $8 billion (before remission) — from these tariffs will go directly to our auto workers and the companies affected by these tariffs," Carney said. "That’s on top of the $2 billion fund to build a new Made-in-Canada auto sector I announced a new Liberal government would implement, should we be elected."

Retaliatory tariffs announced previously by Canada will remain in place.

A potentially unexpected casualty to Trump's tariffs is artificial intelligence innovation, one expert from a Washington-based think tank says.

"These massive tax hikes are slamming during the exact window U.S. industry has to set the global standard — risking innovation and ceding the market," said Matt Mittelsteadt, a technology policy fellow at the Cato Institute.

In a published commentary last month, Mittelsteadt wrote that the disruption to the supply chain caused by tariffs actually threatens the "critical components" tech developers need for imports that cannot be found domestically.

One example included graphics processing units that require minerals that are in short reserve domestically.

MADRID — Spain today was one of the few major economies to offer up a concrete solution to help weather the impact of new U.S. tariffs, offering its companies a financial package of loans and direct aid worth 14.1 billion euros ($15.66 billion).

The tariffs announced by President Donald Trump yesterday have rattled markets and drew condemnation from world leaders facing an abrupt end of an era of trade liberalization that has shaped the global order for decades.

Spain, which like other European Union members was hit by U.S. tariffs of 20% imposed on imports from the bloc, is the world’s top exporter of olive oil and sells important quantities of auto parts, steel and chemicals to the United States.

Prime Minister Pedro Sanchez described Trump’s actions as “terrible news for the world,” “unintelligent” and “a return to 19th-century protectionism.”

"This tariff attack by the U.S. administration makes no distinction between friends and enemies, it doesn’t discriminate based on ideology or trade balance; it’s against everyone and everything,” he said.

Sanchez also stressed Europe’s need to find new trading partners elsewhere. He is set to visit Vietnam and China next month, attempting to forge closer economic ties with the Asian countries.

Spain’s aid package — which still needs to be approved by a fragmented parliament — will include 7.4 billion euros in new financing, and the rest will come from existing instruments such as soft loans, Sanchez said.

He said that 5 billion euros of E.U. recovery funds would be repurposed to help industries hurt by the tariff shock — such as auto suppliers — reorient their productive capabilities towards other high-demand sectors. The government will also contribute with 2 billion euros’ worth of credit insurance and export risk coverage.

In explaining how they came up with Trump’s tariff rates, the U.S. Trade Representative put out a seemingly complicated formula that likely sent a chill down the spine of anyone who didn’t treasure their time in math class. 

The White House has denied its tariff number is based off simply dividing the trade deficit by a country’s imports. But if you read a little further down the page, everything becomes much simpler. 

ε (sigma) and φ (phi) seem like complicated variables that would make solving this equation difficult for anyone except a mathematician. But according to the trade rep’s own explanation, the numbers those variables represent cancel each other out. 

“The price elasticity of import demand, ε, was set at 4. …  The elasticity of import prices with respect to tariffs, φ, is 0.25.”

Where those numbers sit in the formula is important, because they are multiplied together. That cancels the 2 out because 4 multiplied by 0.25 equals 1, and 1 times any other number is equal to that number. 

So you get left with this formula: The tariff rate for a certain country is equal to the trade deficit divided by the part we can tax, the imports, divided by two. (That’s because the formula finds the tariff rate the White House claims America is being charged by these countries, and is levying its “reciprocal” tariffs on half that number.)

The Economist magazine is out with a new cover responding to Trump's tariffs announcement. In an X post, it said the president had "committed the most profound, harmful and unnecessary economic error in the modern era. Almost everything he said—on history, economics and the technicalities of trade—was utterly deluded."

The Russell 2000, an index particularly focused on smaller companies, fell by at least 6.5% this morning.

This is a harder dip than some of the broader indexes that track some of the top global corporations, such as the S&P 500. Such a dramatic dip post-tariff implementation could mean that investors see smaller businesses as the most at risk from the new economic policy.

Trump’s declarations are a shock for international trade, not only for the European Union and France, French President Emmanuel Macron said Thursday, adding that it would require a French and E.U. mobilization.

Last night’s tariff’s decision is “brutal and unfounded," and will affect every sector, Macron said.

The French president warned that the U.S. economy would be hit, and that American citizens or companies will come out weaker and poorer than yesterday.

Technology stocks plummeted today after President Donald Trump’s new tariff policies sparked widespread market panic.

Apple led the declines among the “Magnificent Seven,” dropping nearly 9%. The iPhone maker makes its devices in China and other Asian countries. The stock is on pace for its steepest drop since 2020.

Other megacaps also felt the pressure. Meta Platforms and Amazon fell more than 7% each, while Nvidia and Tesla slumped more than 5%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Microsoft and Alphabet both fell about 2%.

Semiconductor stocks also felt the pain, with Marvell Technology, Arm Holdings and Micron Technology falling more than 8% each. Broadcom and Lam Research dropped 6%, while Advanced Micro Devices declined more than 4%. Software stocks ServiceNow and Fortinet fell more than 5% each.

Sen. Chuck Grassley, R-Iowa, and Sen. Maria Cantwell, D-Wash., introduced a bill today to reassert Congress’s power over tariffs.

The Trade Review Act of 2025 says that a president must notify Congress on new tariffs within 48 hours of imposition. And it requires Congress to approve them within 60 days or they expire.

“For too long, Congress has delegated its clear authority to regulate interstate and foreign commerce to the executive branch,” Grassley, a Trump ally who’s skeptical of tariffs, said in a statement. “Building on my previous efforts as Finance Committee Chairman, I’m joining Senator Cantwell to introduce the bipartisan Trade Review Act of 2025 to reassert Congress’ constitutional role and ensure Congress has a voice in trade policy.”