In response to President Trump’s new auto tariffs, Canada announced matching counter-tariffs of 25 percent on US vehicles, excluding those compliant with CUSMA. The resulting revenue, estimated at $8 billion, will fund aid for displaced auto workers and struggling businesses, supplementing a previously announced $2 billion relief fund. Prime Minister Carney emphasized that this action is necessary to protect Canadian sovereignty and the auto industry, while also stating that post-election talks with President Trump will determine the future of Canada-U.S. economic relations. Despite the escalating trade conflict, Canada maintains that the U.S. remains an ally.
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Secretary of State Marco Rubio urged NATO allies to increase defense spending to 5% of their GDP, citing the need for a stronger and more viable alliance. This call comes amidst EU frustration with U.S. tariffs and uncertainty surrounding the Ukraine conflict. Rubio emphasized that increased military capability, particularly in light of the war in Ukraine, is crucial for deterrence. He stated that the U.S. remains committed to NATO, but expects its partners to fulfill their spending commitments. At least one NATO member, Estonia, has already pledged to meet the 5% target.
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Japan strongly condemned the U.S.’s imposition of reciprocal tariffs, expressing serious concern over potential violations of global trade rules and the significant negative impact on bilateral economic ties. Prime Minister Ishiba vowed to urge President Trump to reconsider the tariffs, even through a personal appeal. The Japanese government is exploring retaliatory options while emphasizing the substantial Japanese investments in the U.S. economy. Disputes over tariff calculations on goods like rice and cars highlight the sensitivity of the issue for both nations.
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South Korea’s constitutional court upheld parliament’s impeachment of President Yoon Suk Yeol, removing him from office due to his controversial declaration of martial law. Acting President Han Duck-soo will serve until a new president is elected within 60 days. The decision, following weeks of deliberation and widespread protests, exposed deep societal divisions and international concern. Yoon’s supporters contest the legality of the impeachment, while his opponents cite abuse of power and a threat to democracy. Yoon also faces a separate criminal trial for insurrection.
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A somber ceremony in Vilnius honored four U.S. soldiers killed when their armored vehicle sank in a peat bog during a training exercise near Pabrade. President Nauseda expressed pride in Lithuania’s rescue efforts. The soldiers’ bodies were transported to the airport for repatriation after a public procession. The recovery operation spanned several days, involving extensive digging to retrieve the sunken M88 Hercules. U.S. units have been rotating through the Pabrade training ground since 2019.
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Commerce Secretary Howard Lutnick asserted that President Trump will not reverse his recently implemented tariffs, characterizing them as a restructuring of global trade. This decision follows retaliatory tariffs imposed by China and the EU. Lutnick’s comments followed a significant market downturn, with major indices experiencing substantial drops as a result of the escalating trade war. He argued the tariffs are necessary to prevent the exploitation of the United States and to promote domestic sales of products like American lobster.
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House Democrats sharply criticized Republicans for supporting President Trump’s reciprocal tariffs, which followed the announcement of the “Make America Wealthy Again” initiative. The DCCC highlighted the potential $5,200 annual cost to American families, citing a Center for American Progress report that disputes the tariffs’ purported benefits. Democrats accused Republicans of prioritizing party loyalty over economic consequences, framing their support as complicit and cowardly. This follows earlier criticism of the Trump administration for negatively impacting the stock market, contrasting it with the strong market conditions under the Biden administration.
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UAW members at the Stellantis Warren Stamping Plant will hold a strike authorization vote on May 6th. The vote concerns approximately 1,000 workers. A strike authorization vote does not automatically trigger a walkout, but grants union leadership the power to call one. The plant is located in Warren, Michigan, north of Detroit.
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Approximately 10,000 HHS employees were laid off as part of a restructuring effort, with Health and Human Services Secretary Robert F. Kennedy Jr. acknowledging that roughly 20% of these cuts were erroneous. The reinstatement of wrongly terminated personnel, including those from the CDC’s Lead Poisoning Prevention and Surveillance Branch, is underway. This correction aligns with the DOGE task force’s initial plan to account for potential mistakes within the 80/20 cut model. The impacted programs and specific individuals targeted for reinstatement remain largely unclear, though some FDA employees have already been temporarily rehired.
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JPMorgan Chase has raised its global recession probability to 60%, citing the Trump administration’s new tariffs as a major contributing factor. This significant increase stems from a reassessment of U.S. trade policy, now deemed considerably less business-friendly than previously anticipated. The bank highlights the tariffs’ substantial impact, equating to the largest tax increase since 1968 and potentially exacerbating economic hardship through retaliatory measures and decreased business confidence. JPMorgan projects that the full implementation of these policies could trigger a U.S., and potentially global, recession in 2019.
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John Q. Hosedrinker