Canada prepares to retaliate against U.S. metals tariffs... Canada prepared possible retaliation measures against U.S. tariffs on steel and aluminum that President Donald Trump doubled to 50%. Canada is the top exporter of both steel and aluminum to the United States.
Prime Minister Mark Carney said Canada is prepared to strike back against the U.S. if talks with Washington to remove Trump’s tariffs did not succeed. “We are in intensive negotiations with the Americans, and, in parallel, preparing reprisals if those negotiations do not succeed,”
Carney told the House of Commons. Canada’s labor union Unifor called for retaliatory tariffs, while Ontario Premier Doug Ford urged Carney not to “sit back and let President Trump steamroll us.”
Mexico slams U.S. tariff hike as ‘unjust’ and ‘legally baseless’... Mexican President Claudia Sheinbaum on Wednesday denounced Trump’s new 50% tariff on steel and aluminum imports as “unjust,” “unsustainable” and lacking any legal basis, warning it will increase costs and hurt jobs across North America.
Economy Minister Marcelo Ebrard echoed the president’s criticism and said Mexico would seek an exclusion from the tariff during his Friday meeting with U.S. officials in Washington. Failing that, Mexico will announce its response next week—though Sheinbaum emphasized it won’t be an “eye for an eye” retaliation.
The White House argues the hike was needed to “secure the steel industry” and counteract global dumping of cheap, often subsidized, metals — especially from China. Mexico, however, is the second-largest exporter of steel and aluminum to the U.S. after China, with $34.8 billion in shipments last year, according to Commerce Department data.
Sheinbaum and Ebrard both questioned the tariff’s legality under the U.S.-Mexico-Canada Agreement (USMCA), arguing that such trade barriers contradict the spirit of regional cooperation. The Mexican president also underscored how deeply integrated the auto and steel industries are across the border: “It’s unsustainable, just like with cars — products cross the border during production.”
While Ebrard continues talks to remove duties on metals and autos, he faces additional hurdles. Mexican goods not covered by the USMCA already face 25% tariffs.
Fed Beige Book flags agricultural strain... The Federal Reserve on Wednesday released its latest Beige Book, offering a sobering snapshot of the U.S. economy — particularly the farm sector. The national summary stated that “economic activity has declined slightly since the previous report,” reflecting a broad slowdown across several industries.
Agriculture emerged as a notable area of concern. Six of the twelve regional Federal Reserve Banks included updates on agricultural conditions, with most describing weakening conditions tied to low commodity prices, persistent drought and falling demand from overseas buyers.
Takeaways from the agricultural sections:
- Chicago and St. Louis Districts reported reduced farm income due to falling crop prices and high input costs.
- Kansas City and Dallas cited severe drought conditions and lowered cattle herd numbers.
- Minneapolis noted financial strain on dairy producers, especially those facing higher feed and energy costs.
- San Francisco highlighted water shortages and rising labor costs as challenges for West Coast growers.
The report underscores growing unease in rural America, as farmers grapple with volatile markets, tightening credit conditions and policy uncertainty related to trade and tariffs.
Click here to view the full report.
FDA chief criticized over seed oil claims... FDA Commissioner Martin Makary is facing backlash from food and agriculture industry groups following remarks he made Wednesday on Fox News labeling seed oils as “pro-inflammatory” and claiming they are “not naturally occurring.” Makary specifically targeted infant formula, stating it is “nearly impossible” to find a product free of seed oils. His comments came just hours before an FDA expert panel convened to discuss safety concerns surrounding infant formula, including the presence of heavy metals and seed oil content.
In response, the National Oilseed Processors Association and the Corn Refiners Association issued a joint statement condemning Makary’s comments as “incorrect and misleading: Seed oils have been used in the global food supply for decades and are proven to be safe and nutritious ingredients for a variety of products,” the statement read. “Remarks like those made today create unwarranted anxiety about the food supply and about safe and nutritious formula that benefits millions of infants globally.”
The exchange highlights growing tension over the role of highly processed oils in the American diet — especially in sensitive products like infant nutrition — as policymakers and scientists evaluate new guidance on food safety, labeling, and health impacts.
CBO: Tariffs, tax cuts in GOP reconciliation bill would add $2.4 trillion to deficit... The Congressional Budget Office (CBO) projects the House-passed One Big Beautiful Bill Act would increase federal deficits by $2.4 trillion over the next decade, even after factoring in significant proposed spending reductions.
According to the CBO’s analysis, the bill includes:
- $3.8 trillion in tax cuts, largely from the extension of the 2017 Tax Cuts and Jobs Act
- $1.25 trillion in spending reductions, primarily targeting discretionary and mandatory programs
- The projected net impact: a $2.4 trillion increase in cumulative deficits from FY2025 to FY2035.
CBO also flagged added revenue from tariff increases under the bill, but those were not sufficient to offset the revenue losses from extending lower income tax rates, expanding the estate tax exemption and maintaining business deductions. Analysts noted that tariff receipts were “modest” relative to the size of the tax cuts.
Global fossil fuel investment set to drop for first time since pandemic... Global spending on fossil fuels is expected to decline in 2025 for the first time since the Covid-19 pandemic, according to the International Energy Agency (IEA). The downturn is primarily driven by a pullback in oil sector investments, with companies reassessing drilling and infrastructure projects amid weaker prices and growing market uncertainty.
IEA’s latest outlook indicates that total investment in oil, gas and coal will fall below $1 trillion for the year — down from a recent high of $1.07 trillion in 2024. The most significant cuts are coming from the upstream oil industry, where several multinational producers have either delayed or shelved capital expenditures due to falling profit margins and rising pressure from shareholders on climate commitments. “Companies are becoming more selective, especially with volatility in energy markets and the increasing competition from renewables and electrification,” IEA noted.
Natural gas investments are expected to remain relatively stable, buoyed by long-term LNG projects, while coal spending is projected to plateau, particularly in China and India.
The slowdown comes amid rising global momentum for clean energy transitions, but IEA said fossil fuels still receive twice the level of investment compared to renewables in many developing economies.