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It's Wednesday, March 12th. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. First up, the trade war between the US And Canada heats up with President Trump threatening massive tariffs on Canadian steel and aluminum after the governor of Ontario announced electricity surcharges for American customers. I'll have the latest later in the show. Just months after Israel's invasion of Lebanon, a breakthrough. Israel and Lebanon are set to negotiate their land border for the first time in years. Plus, the Trump administration announces that it's once again pulling security clearances from former Biden officials. And in today's Back of the Brief, the Department of Homeland Security is launching a new Customs and Border Patrol app with a self deport feature. But first, today's PDB Spotlight. We'll begin with an update on the North American trade war as President Trump sent markets tumbling on Tuesday after announcing new retaliatory tariffs on Canada, only to pump the brakes again on the new duties just hours later. It was another day of back and forth announcements from the White House, which began when President Trump declared his intent to slap a 50% tariff on imports of Canadian steel and aluminum, doubling a previously announced 25% tariff on the products set to take effect on Wednesday. Trump announced the retaliatory measure after Ontario Premier Doug ford imposed a 25% tax on electricity exports to the U.S. on Monday. That's according to a report from CNN. It appeared the trade war was set for an extraordinary escalation, threatening to further royal markets that are, well, frankly, already in turmoil. Earlier on Tuesday, Trump took to truth social, calling the electricity tariff outrageous. In addition to imposing a 50% tariff on Canadian steel and aluminum, Trump vowed to target Canadian electricity with a 25% tariff and impose new taxes aimed at crippling the Canadian auto industry. He added that the only solution to the trade crisis was for Canada to become the 51st state. But after several tense hours, both sides decided to keep their powder dry and back down from the economic threats, at least for now. U.S. commerce Secretary Howard Lutnick and Ontario Premier Ford issued a joint statement Tuesday afternoon saying they would meet on Thursday in Washington to renegotiate aspects of the current North American Free Trade Treaty, known as the United States Mexico Canada Agreement, or USMCA. In the meantime, Ontario agreed to suspend its 25% surcharge on electricity exports, while White House trade adviser Peter Navarro confirmed that Trump's 50% retaliatory tariffs on steel and aluminum would be shelved. Are you following me so far? Critically, however, the previously planned 25% tariff on steel and aluminum from Canada and all other US Trading partners will still go into effect today. Addressing the chaotic events, a White House spokesman said, quote, president Trump has once again used the leverage of the American economy to deliver a win for the American people, end quote. Okay. Still, trade tensions remain high between the US And Canada, and jittery investors are anticipating further chaos. Despite the temporary reprieve, the Canadian government has still promised to retaliate against the previously announced 25% tariff on global steel and aluminum, though it's not clear when what their next move will be. It's impossible to keep score here, isn't it? Trump, meanwhile, threatened more levies on Canadian exports in the near future if they don't lift various tariffs on U.S. dairy and agricultural products. Trump said Tuesday, quote, if other egregious, longtime tariffs are not likewise dropped by Canada, I will substantially increase on April 2nd the tariffs on cars coming into the US which will essentially permanently shut down the automobile manufacturing business in Canada, end quote. As I mentioned, Trump also reiterated his invitation for Canada to become. I'm sorry, I tried to read that with a straight face, didn't I? As I mentioned, Trump also reiterated his invitation for Canada to become the 51st state, saying the tariff issue would vanish overnight if they agreed to be absorbed into the US Almost made it. Canadian leaders, as you can imagine, are not pleased. That's a. That's putting it mildly. In a diplomatic fashion, Mark Carney, who's set to succeed Justin Trudeau as prime minister in the coming days, called Trump's latest tariff threats a, quote, attack on Canadian workers, families and businesses a. End quote. He continued, quote, my government will keep our tariffs on until the Americans show us respect and, and make credible, reliable commitments to free and fair trade, end quote. Now, as a reminder, this whole drama began in early February when President Trump announced plans to impose a 25% tariff on most goods from Canada and Mexico over the migrant and drug crisis at both borders as well as what Trump argues are imbalances in the current Free Trade Treaty. After pausing those tariffs for a period of one month, Trump enacted the tariffs last Tuesday, though he lowered the tariff on Canadian energy products to 10%. Canada responded by imposing an immediate 25% tariff on nearly $30 billion worth of American goods, while threatening more in the near future. But last Thursday, Trump signed an executive order delaying the 25% tariffs on Canada and Mexico for all products covered by the USMCA Free Trade Treaty. The exemption, which frankly only covers roughly 38% of Canadian imports, will last through April 2. And that's the same day that President Trump plans to impose reciprocal tariffs on all major U.S. trading partners, including longtime allies. Now, as you can imagine, the abrupt starts and stops on tariffs have left investors heads spinning. And all major US Stock indexes posted their second straight day of losses on Tuesday. Okay, coming up next, Israel and Lebanon agree to border talks just months after Israel's invasion. And the Trump administration pulls security clearances from former Biden officials. I'll be right back.
