Advocacy group fears US will steer broadband cash to Musk

ONTARIO HAS CANCELED STARLINK CONTRACT OVER U$ TARIFFS

By AFP
March 4, 2025


Critics say Elon Musk's companies are in line to get a windfall from the Donald Trump administration even as the billionaire tech giant heads a department aimed at rooting out and cutting government inefficiency - Copyright GETTY IMAGES NORTH AMERICA/AFP/File Andrew Harnik

An internet rights group on Tuesday raised alarm over reports the United States may steer billions of dollars to Elon Musk’s Starlink by making changes to a rural broadband deployment program.

Net neutrality supporter Free Press spoke out after the Wall Street Journal reported that the Department of Commerce could set Musk up for a windfall by overhauling a $42.5 billion program established under former President Joe Biden to bring broadband internet service to rural parts of the country.

Commerce Secretary Howard Lutnick has told staff he plans to significantly increase the share of money available to satellite-internet providers such as Starlink rather than firms that use fiber-optic cables to deliver high-speed internet service, the Journal reported, citing people familiar with the situation.

Starlink is a unit of Musk’s SpaceX company.

Musk — the world’s wealthiest person and a top donor to Donald Trump’s 2024 campaign — has status as a “special government employee” and “senior adviser to the president.”

Trump put Musk in charge of the newly created Department of Government Efficiency that has been slashing the ranks of US agencies under the auspices of budget cutting.

“The Trump administration is undermining an essential bipartisan program designed to bring reliable and affordable broadband to tens of millions of Americans — and it’s doing so just to line Elon Musk’s already bulging pockets,” Free Press co-chief Craig Aaron said in a statement.

The Commerce Department did not respond to a request for comment.

During the Biden administration, the Federal Communications Commission rejected Starlink’s application for nearly $900 million in subsidies on the grounds it failed to show it could meet service requirements, Free Press noted.

Fiber optic cables are considered faster and more reliable than satellites for broadband internet service.

Congress created the Broadband Equity, Access and Deployment Program as part of a 2021 infrastructure bill that Biden signed into law.

Proposals from every US state have been approved, but critics argue the program is moving too slowly.

The bill called on states to prioritize reliable, fast broadband service built to last, according to Free Press.

“The Trump administration is throwing out this sensible approach to favor only providers who are stationed inside the White House,” Aaron said.

“From the FAA to the Defense Department, giving billions to Musk seems to be the Trump administration’s top priority, and now the Commerce Department is getting in on the action,” he added.

Starlink internet service can currently be accessed by anyone in the United States, and the company doesn’t need taxpayer subsidies, Free Press argued.

NOT CAPITALI$M,IT'S MERCANTILISM

Trump gives Chevron a month to ‘wind down’ Venezuela operations


By AFP
March 4, 2025


Oil tankers sail through Lake Maracaibo in Maracaibo, Venezuela 

 Copyright AFP/File JUAN BARRETO

The United States on Tuesday gave energy giant Chevron just one month to stop its operations in Venezuela, delivering a heavy blow to cash-strapped authorities in Caracas.

Chevron currently produces and exports almost a quarter of the million barrels of crude each day from Venezuela, providing vital revenue for Nicolas Maduro’s government.

But a Treasury Department unit said Tuesday that Chevron must stop pumping within 30 days, a timeframe industry insiders described as unrealistic.

The move nonetheless signifies a head-snapping shift in Donald Trump’s policies toward Venezuela, a long-time foe of the United States.

In Trump’s first term, he pursued a policy of “maximum pressure” against the leftist regime, issuing sanctions and limiting US oil companies’ operations.

But coming to office for the second time, Trump initially sought to engage with Maduro.

He okayed a deal to secure the release of US citizens in return for Caracas accepting migrant deportees from the United States.

A Trump envoy even posed for photographs in Caracas with a beaming Maduro.

That move sparked fierce pressure from Florida Republicans who want to see the United States back pro-democracy parties that have been repeatedly thwarted in questionable elections.

Facing a recent tough budget vote in Congress, Trump made an abrupt about-face last month and said Venezuela had failed to hold fair elections, as promised, and was not living up to the deal.

Experts say the loss of Chevron-linked exports could spell recession for Venezuela and an even greater number of people fleeing the country.

For Maduro, it would immediately dry up already sparse foreign reserves — a loss of some $150-200 million per month.

“The new US government is trying to hurt the Venezuelan people” said Vice President Delcy Rodriguez.

“It’s a self-inflicted blow that is going to increase fuel prices.”

Oil markets on Tuesday took the news in stride, as it arrived after a decision by oil cartel OPEC to increase production.

Chevron’s share price, however, has fallen about 2.8 percent in the last week.

Venezuela once produced 3.5 million barrels a day, but now produces just over one million, despite having the world’s largest oil reserves.

Between 2014 and 2021, Venezuela’s GDP fell by 80 percent, thanks in part to low oil prices and biting US sanctions.

European firms Eni, Repsol and Shell — which also have operations in Venezuela — were not covered by the action.

US embassies end pollution data popular in China and India


By AFP
March 4, 2025


Commuters drive through heavy smog in New Delhi 

- Copyright AFP RALF HIRSCHBERGER

The United States on Tuesday ended pollution tracking by its embassies that had been a vital source of data especially in Beijing, as President Donald Trump slashes overseas and environmental spending.

The State Department cited “budget constraints” as it said it was ending the Air Quality Monitoring Program’s transmission of data.

“The current budget climate requires us to make difficult cuts and, unfortunately, we cannot continue to publish this data,” a State Department spokesperson said.

Historical data will remain on a site of the Environmental Protection Agency, but live data stopped Tuesday and will remain down unless funding is restored, the State Department said.

The United States since 2008 has monitored air quality through embassies — as a service to Americans overseas but also, increasingly, as a way to share accurate scientific data that may otherwise be censored overseas.

In China, authorities in 2014 banned a popular app from sharing data from the US embassy ahead of a major international summit attended by then president Barack Obama.

But researchers say that the transparency has had a noticeable effect, with China taking action after being embarrassed by US embassy data released on social media that showed far worse pollution than official figures.

Obama’s ambassador to China, Gary Locke, faced scorn in state media after he presided over the introduction of monitors at the embassy and consulates that tracked the so-called PM 2.5 particulate matter carried in the thick blankets of smog pervading China’s capital.

The air quality data from the US embassy is also frequently used as a reference in New Delhi, which has severe pollution issues.

Trump since returning to office in January has slashed spending including on international cooperation and the environment as he vows to trim government and prioritize tax cuts.

Under the guidance of tech billionaire Elon Musk, the Trump administration has effectively shut down the US Agency for International Development, long at the forefront of US efforts for influence overseas.

Trump has also sharply reduced environmental staffing and turned back a slew of climate initiatives by previous president Joe Biden.

Air pollution, which is aggravated by climate change, contributes to nearly seven million premature deaths globally each year, according to the World Health Organization.

Tech giants object as YouTube set to dodge Australian social media ban


By  AFP
March 4, 2025


Australia's plan to exempt YouTube from a world-leading teen social media ban is 'illogical' and a 'mockery', rival tech giants Meta and TikTok say 

- Copyright AFP/File Lionel BONAVENTURE

Australia’s plan to exempt YouTube from a world-leading teen social media ban is “illogical” and a “mockery”, rival tech giants Meta and TikTok said Wednesday.

Prime Minister Anthony Albanese last year unveiled landmark laws that will ban under-16s from social media by the end of 2025.

While popular platforms such as Facebook, TikTok and Instagram face heavy fines for flouting the laws, Australia has proposed an exemption so children can use YouTube for school.

TikTok’s Australian policy director Ella Woods-Joyce said YouTube had been handed a “sweetheart deal” that gave it an unfair advantage.

“Handing one major social media platform a sweetheart deal of this nature — while subjecting every other platform in Australia to stringent compliance obligations — would be illogical, anti-competitive, and shortsighted,” said Woods-Joyce.

“The government’s arguments citing unique educative value do not survive even the most cursory of closer examinations,” she added in a submission to a government agency released Wednesday.

It would “further entrench Google’s market dominance”, she said, referring to YouTube’s parent company.

Meta — the parent company of Facebook and Instagram — made similar arguments against the exemption.

“This proposed blanket exception makes a mockery of the government’s stated intention, when passing the age ban law, to protect young people,” Meta said in its own submission to the communications department.

“YouTube has the very features and harmful content that the government has cited as justifying the ban.”

Both companies argued they produced video content that was virtually indistinguishable from YouTube’s.

While a host of countries from France to China have mooted similar measures, Australia’s looming ban would be one of the strictest in the world.

Firms face fines of up to Aus$50 million (US$31.3 million) for failing to comply.

Albanese has painted social media as “a platform for peer pressure, a driver of anxiety, a vehicle for scammers and, worst of all, a tool for online predators”.

But officials are yet to solve basic questions surrounding the laws, such as how the ban will be policed.

The ban is set to come into effect by December 2025.

CLIMATE CRISIS

Rain offers relief as Japan battles worst wildfire in 50 years


By  AFP
March 4, 2025


Firefighters battle flames near the city of Ofunato, Iwate Prefecture

 - Copyright ${image.metadata.node.credit} 

Tomohiro Osaki, with Kyoko Hasegawa in Tokyo

Wet weather looked poised to offer relief Wednesday as Japan battled its worst wildfire in half a century in a northern region hit by record-low rainfall.

The blaze around the northern city of Ofunato has killed one person and forced nearly 4,000 to evacuate their homes.

It has engulfed around 2,900 hectares (7,170 acres) — over eight times the area of New York City’s Central Park — making it Japan’s largest wildfire since at least 1975, when 2,700 hectares burnt in Kushiro on Hokkaido island.

But rain and snow were falling Wednesday, AFP reporters saw, as several columns of white smoke billowed from a mountain where the blaze has been raging.

“Firefighters have been working on the ground through the night to extinguish the fire,” a city official told AFP on Wednesday.

“We are hoping that snow, which started to fall this morning, will help” put out the blaze, he added.

At least 84 buildings are believed to have been damaged, although details are still being assessed, according to the fire agency.

As of late Tuesday, almost 4,000 people living nearby had complied with orders to evacuate.

Japan endured its hottest summer on record last year, as climate change pushes up temperatures worldwide.

The number of wildfires in the country has declined since its 1970s peak, but there were about 1,300 in 2023, concentrated in the period from February to April when the air dries out and winds pick up.

Ofunato had just 2.5 millimetres (0.1 inches) of rainfall in February — breaking the previous record low for the month of 4.4 millimetres in 1967 and falling well below the usual average of 41 millimetres.

Since Friday, “there has been no rain — or very little, if any” in Ofunato, a local weather agency official told AFP late Tuesday.

Around 2,000 firefighters — most deployed from other parts of the country, including Tokyo — have been working from the air and ground in the fire-hit zone in the Iwate region, which was devastated in 2011 by a deadly tsunami.

Some types of extreme weather have a well-established link with climate change, such as heatwaves and heavy rainfall.

Other phenomena like droughts, snowstorms, tropical storms and forest fires can result from a combination of complex factors.

Japanese baseball prodigy Roki Sasaki, who recently joined the Los Angeles Dodgers, has offered a 10-million-yen ($67,000) donation and 500 sets of bedding to people affected by the wildfire, Ofunato city posted on X.

Sasaki was a high school student there, after losing his father and grandparents in the huge 2011 tsunami.

Thousands flee after Japan’s biggest wildfire in decades


By AFP
March 1, 2025


A helicopter is pictured above the wildfire near Ofunato 

- Copyright JIJI Press/AFP/File STR

Thousands of people evacuated from parts of northern Japan as the country’s largest wildfire in three decades raged unabated Sunday after killing at least one person, officials said.

Around 2,000 people fled areas around the northern Japan city of Ofunato to stay with friends or relatives, while more than 1,200 evacuated to shelters, according to officials.

“We’re still examining the size of the affected area, but it is the biggest since the 1992 wildfire” in Kushiro, Hokkaido, a disaster management agency spokesman told AFP Saturday.

Some reports estimated the fire had spread over 1,800 hectares.

Aerial footage by NHK showed columns of white smoke billowing, four days after the blaze first materialised, with military helicopters trying to douse them.

One burned body has been discovered so far, with more than 80 buildings damaged and around 1,700 firefighters mobilised from across the country.

The number of wildfires has declined since the peak in the 1970s, according to government data, but there were about 1,300 across Japan in 2023 — concentrated in the February to April period when the air dries and winds pick up

Union-led Advisory Table releases report on Canada’s workforce future


By Jennifer Kervin
March 4, 2025
DIGITAL JOURNAL

Photo by ThisisEngineering on Unsplash

As Canada’s economy shifts with new technologies and evolving industries, workers face an uncertain path forward.

A new report from the Union-led Advisory Table, commissioned by the Government of Canada, outlines recommendations to help workers navigate job transitions and prepare for the future.

Unions Power Prosperity: A Report from the Union-Led Advisory Table outlines strategies to ensure workers are equipped with the skills and support they need to thrive in a changing labour market.
Recommendations to support workers through economic change

The advisory table, chaired by Bea Bruske, president of the Canadian Labour Congress, convened 14 additional labour leaders from across Canada between December 2023 and October 2024. Their discussions focused on ensuring workers can adapt to changes brought on by automation, sectoral shifts, and emerging industries.

With industries evolving due to climate policies and technological advancements, the report stresses the need for proactive workforce strategies. Recommendations include:Aligning skills training with industry demand.
Supporting workers transitioning from declining sectors to growth industries.
Ensuring continuous learning and foundational skill development.
Expanding access to skilled trades for women and underrepresented groups.

Bruske underlined the need for government and industry to collaborate closely with unions to ensure an equitable workforce transition.

“Meeting Canada’s economic and climate challenges starts with investing in and listening to workers,” she said in a statement.

“This means prioritizing more and better jobs, expanding workplace learning opportunities and including workers in decision-making. Unions have the tools, the know-how and the creativity to drive an innovative, prosperous and equitable economy.”
Collaboration as a key to workforce development

The report’s recommendations contribute to broader government efforts to build a modern workforce, including policies that address skills gaps and prepare workers for sectors like green energy. The advisory table emphasized that solutions require collaboration between workers, unions, employers, and government to ensure a workforce that meets Canada’s evolving labour market needs.

Minister of Employment, Workforce Development and Labour Steven MacKinnon welcomed the report’s findings, emphasizing the role of worker input in shaping Canada’s economic future.

“Giving workers a seat at the table is the best way to help us understand how to prepare workers for the jobs of tomorrow so we can make sure our economy thrives,” he said in a statement. “We need their advice to confront the challenges of our changing labour market.”

The advisory table included leaders from some of Canada’s largest labour organizations, representing a broad range of industries and worker interests.

Chaired by Bruske, the group featured representatives from major unions such as Teamsters Canada, Unifor, the Canadian Union of Public Employees, and the United Steelworkers. Leaders from sector-specific unions, including the International Brotherhood of Electrical Workers, the Canadian Federation of Nurses Unions, and Canada’s Building Trades Unions, also contributed their expertise.

Their collective expertise provided insight into the challenges workers face and the steps needed to secure good-quality jobs in a changing economy.

With Unions Power Prosperity now published, policymakers and industry leaders will have a roadmap to strengthen workforce resilience and ensure Canadian workers are equipped for the future

.

This article was created with the assistance of AI. Learn more about our AI ethics policy here.

Written ByJennifer Kervin
Jennifer Kervin is a Digital Journal staff writer and editor based in Toronto.

REPUBLICAN WET DREAM COME TRUE

US tax agency weighs firing half of its 90,000 employees

Last month, the IRS laid off around 7,000 probationary employees


By AFP
March 4, 2025


Image: — © GETTY IMAGES NORTH AMERICA/AFP MARK WILSON

The US Internal Revenue Service (IRS) is considering letting go up to half of its approximately 90,000 employees, a source with knowledge of the situation told AFP on Tuesday.

The bloodbath would be the latest drastic cut to a federal agency under President Donald Trump’s administration.

When asked about US press reports of the plans to halve the IRS headcount, the source confirmed such a project was being discussed internally.

Last month, the IRS laid off around 7,000 probationary employees, amid similar cuts at other federal agencies.

Since his return to the White House in January, Trump has launched a vast offensive aimed at slashing public spending and reducing the federal bureaucracy, one of the goals he promised on the campaign trail.

To that end, he has tapped billionaire Elon Musk, his top campaign donor turned close adviser, to lead the Department of Government Efficiency (DOGE), which has cut thousands of government jobs and upended federal agencies.

Among his first targets were members of the federal bureaucracy overseeing policies that promote diversity.

Trump’s return also saw the dismantling of the US Agency on International Development (USAID), ending humanitarian and international development projects around the globe.

Survey: 26,000 employees in tech laid off globally since January


By Dr. Tim Sandle
March 5, 2025

DIGITAL JOURNAL

Facial recognition technology. — Image by © Tim Sandle

As new rounds of mass layoffs at major technology companies are being announced in 2025, a new survey examines the workforce reductions around the world in 2024 and since the beginning of the year.

The survey comes from RationalFX, who have aggregated layoff announcements sourced from U.S. notices, the job portal TrueUp, TechCrunch and the Layoffs.fyi tracker for the entirety of 2024.

The firm also looked into the latest layoffs since the beginning of January 2025, focusing on companies in the technology sector. Numbers show that 280,991 employees in technology companies were laid off last year, with another 26,215 let go since January.

A total of 80 tech companies, primarily U.S., have laid off 26,215 employees since January 2025. We found another 40 companies reducing their workforce or shutting down operations altogether but with no confirmed figures for the positions eliminated.

The tech companies with the largest layoffs so far this year are Meta (3,600 job cuts), STMicro (3,000 job cuts), Microsoft (2,280 job cuts), and Amazon (2,100). Enterprise software giant Workday also announced plans to eliminate roughly 8.5 percent of its workforce or around 1,750 positions, followed by GM-owned autonomous taxis Cruise, which laid off 1,050 after being shut down by its parent company in December.

Salesforce and Jeff Bezos’ space travel company have also joined the wave of layoffs, each slashing 1,000 jobs. In 2024, tech companies around the world laid off 280,991 employees, with U.S. tech giants Dell, Intel, and Amazon cutting the most jobs. Within this figure, at least 95,000 workers at U.S.-based tech companies were laid off in mass job cuts in 2024.

Since January 2025, U.S.-based tech companies have slashed another 18,168 jobs. Globally, at least 26,215 employees in the technology sector have lost their jobs.

The top 10 companies with the largest layoffs so far in 2025:

• Meta (Menlo Park, CA, U.S.) – 3,600 laid-off employees
• STMicro (Geneva, Switzerland) – 3,000 laid-off employees
• Microsoft (Redmond, WA, U.S.), 2,280 laid-off employees
• Amazon (Seattle, WA, U.S.) – 2,100 laid-off employees
• Workday (Pleasanton, CA, U.S.) – 1,750 laid-off employees
• Cruise (San Francisco, CА, U.S.) – 1,050 laid-off employees
• Salesforce (San Francisco, CA, U.S.) – 1,000 laid-off employees
• eFishery (Bandung, Indonesia) – 1,000 laid-off employees
• Blue Origin (Kent, WA, U.S.) – 1,000 laid-off employees
• Wayfair (Boston, MA, U.S.) – 730 laid-off employees

In terms of the most recent announcement, in a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC), dated February 27, HP revealed it will eliminate between 1,000 and 2,000 of its workers.

Overall, the opening days of January and the closing days of February have not been good ones for job security in the technology industry.

‘Stab in the back’: Ukrainians in shock after US aid halt


WHEN HISTORY REPEATS ITSELF, FIRST AS TRAGEDY THEN AS FARCE   K MARX

By AFP
March 4, 2025


Russian forces have escalated their attacks on eastern Ukraine despite mounting rhetoric from Washington and Moscow over peace - Copyright AFP Tetiana DZHAFAROVA
Sergii VOLSKYI with Florent VERGNES in Kramatorsk

Ukrainians in Kyiv and soldiers on the front lines were in shock on Tuesday and grappling with a sense of betrayal after US President Donald Trump’s decision to suspend military aid.

The move by Trump follows weeks of deteriorating ties between Washington and Kyiv, and Ukrainians said the decision played directly into the hands of the Kremlin.

“It’s like a stab in the back. Because we were counting on them. And we are still counting on them. It’s wrong in my opinion,” Sofia, a Kyiv resident, who declined to give her surname, told AFP.

“Of course it was shocking. These are our main partners,” the 33-year-old financial assistant added.

The United States, which is Ukraine’s most important political ally, has also contributed billions of dollars of vital military assistance to Kyiv since Russia invaded in February 2022.

Trump vowed before his inauguration in January to speedily end the war but had offered no roadmap, spurring fears that Ukraine could be forced into conceding territory to Russia as part of an agreement.

– ‘Europe will be next’ –

Oleksiy, a 26-year-old serviceman, told AFP in the frontline town of Kramatorsk that Ukraine would need to find other ways to make up the shortfalls in aid.

“At the very least, Europe is interested in this. If (Russian forces) capture Ukraine, Europe will be next,” he added.

Denys Kazansky, a Ukrainian media commentator said that while Washington had paused support for Kyiv “North Korea and Iran did not stop military aid to Russia”.

Both Moscow-allied countries have provided critical help to the Russian military since the Kremlin launched its fully-fledged invasion.

“We live in a reality where the United States has become an ally of North Korea, Russia and Iran and it is helping them carry out aggression against a European country,” Kazansky added on social media.

Political analyst Volodymyr Fesenko told AFP that the halt of US military aid did not necessarily mean that Ukraine would imminently lose the war.

“Worsening of the situation — yes. Weakening of Ukraine’s defence capabilities — yes. More vulnerability in case of ballistic missile attacks on Ukraine — yes,” he said.

“But this does not mean the inevitable loss of the war,” he said.

Sergiy Takhmazov, a member of the Ukrainian military, questioned how long Ukrainians would be able to hold out without US support for air defence systems and intelligence sharing.

Prime Minister Denys Shmygal told reporters that Ukraine would find a way to “hold out” and said Kyiv was still open to talks with Washington.

But he said that Ukraine needed security guarantees from its Western allies to deter any future Russian attacks.

“This is existentially important not only for Ukraine, but also for the European Union, for the European continent,” Shmygal said.

– Ukraine could ‘cease to exist’ –

Pavlo Kazarin, a journalist and commentator who joined the military, warned what would happen without those guarantees.

“All those who demand peace from us ignore that the price of our peace will be higher than the price of our war,” he said.

Some of the servicemen AFP spoke with in eastern Ukraine voiced confidence in their country’s own developing arms industry.

“It’s just that so much has already happened, and now to back off or something like that, I don’t see any sense in it,” said a 37-year-old sergeant who identified himself to AFP as Viking.

In the capital, Igor Peresada said the dynamics of fighting would become much more difficult without US military support, but said that it would also be impossible for Ukraine to stop fighting.

“Because if we stop shooting, Ukraine will cease to exist as an independent state. And if Putin wants a ceasefire, he can withdraw his troops, and that’s it, the war will end,” the 57-year-old civil servant said.

Diplomat Charles: UK king’s role in Trump-Ukraine tightrope act


By AFP
March 4, 2025


King Charles welcomed Zelensky to the Sandringham Estate just two days after the Ukrainian leader's dressing down in the Oval Office

 - Copyright ${image.metadata.node.credit} 

Peter HUTCHISON

From showing solidarity with Volodymyr Zelensky to inviting US President Donald Trump for an historic state visit, Britain’s diplomatic drive over Ukraine has a surprising pivotal figure: King Charles III.

The UK head of state may be politically neutral, but that has not stopped the Labour government from calling upon him three times in recent days to aid international diplomacy efforts.

Charles helped smooth Prime Minister Keir Starmer’s visit to the White House last week before separately welcoming Zelensky and Canadian leader Justin Trudeau to his country retreat in Norfolk.

“It’s slightly unusual, but I think it’s a very good use of the royals,” professor Pauline Maclaran at Royal Holloway University of London said of the flurry of meetings.

“Their big asset is this soft power that they can provide, and I think it was much needed at this time,” the royal expert told AFP.

The 76-year-old monarch appears all-too-happy to play his part, as Britain’s diplomatic blitz over Ukraine sees it emerge from the wilderness of the post-Brexit years to take its place again on the world stage.

“It has been six days of royal diplomacy at its most delicate, deliberate and nuanced,” a royal source briefed UK media on Monday.

The source added that Charles “is very conscious of his responsibility globally, regionally and nationally -– and passionately engaged in all the detail”.

“As a global statesman and a head of state for both the UK and Canada, the king’s role is highly significant, and his majesty is determined to play his part, within appropriate parameters,” the source added.

Buckingham Palace never shares information about what is discussed during the monarch’s meetings, but the source said his role “is to offer symbolic gestures, rather than express comment”.

The symbolism was plain to see in the Oval Office last week when Starmer brandished a signed letter from Charles inviting Trump to become the first leader in history to undertake a second state visit to Britain.

In front of the TV cameras a beaming US president read the invitation, said it would be an “honour” to accept, and declared the king “a beautiful man, a wonderful man”.



– ‘Masterstroke’ –



That set the tone for a friendly meeting between Starmer and Trump that was devoid of any verbal fireworks.

“It was a little bit of a masterstroke,” said Maclaran, adding that the king’s invitation was “to impress Trump, to show him the greatest respect, and to ease the way for Starmer to negotiate with him”.

Evie Aspinall, director of the British Foreign Policy Group think-tank, agrees that the gesture helpfully played to Trump’s ego.

“He wants to feel big and important, and we can do that” with a state visit, she told AFP.

Charles’s next diplomatic endeavour was much less flashy but sent an equally strong message, the analysts say.

On Sunday, he warmly welcomed Zelensky to his Sandringham Estate in eastern England just two days after Trump and Vice President JD Vance berated Ukraine’s leader in the Oval Office.

According to royal watchers it cleverly symbolised solidarity with British ally Zelensky, but in a low-key way so as not to offend the thin-skinned Trump.

“The royal family was giving their legitimacy to Zelensky at a time where he really needs it with Trump,” said Aspinall.

For Maclaran, it helped portray “equal respect” to both leaders at a time when Britain is trying to bridge the divide between the United States on one side, and Europe and Ukraine on the other.

Charles is Canada’s head of state and Trudeau said he was going to use Monday’s meeting to talk about defending Canada’s sovereignty, as Trump repeatedly calls for it to become the 51st US state.

It is custom that the monarch acts only on the advice of the prime minister in matters involving the Commonwealth nation but some Canadians have asked why the king has not spoken out in defence of Canada.

Royal commentator Richard Fitzwilliams says Charles must remain wary of becoming too involved in diplomacy due to the unpredictability of the Trump era.

“It’s not only the complexities, it’s the speed at which it moves. It’s very confusing and he’s got to be very, very careful,” Fitzwilliams told AFP.

Trump tariff uncertainty overshadows growth promises: analysts


By   AFP
March 4, 2025


US President Donald Trump's tariffs on Canada, Mexico and China, and the retaliation they attracted, could dent US GDP growth notably if kept in place over a year 

- Copyright AFP Guillermo Arias

Beiyi SEOW

President Donald Trump’s tariffs and the retaliation they attracted will likely weigh on US growth and boost inflation, according to analysts, but, beyond that, uncertainty surrounding the levies threatens to overshadow optimism about his future policies.

Trump reignited trade wars this week with hefty duties on Canadian, Mexican and Chinese imports, drawing sharp retaliation from Ottawa and Beijing, including new tariffs on key American farm products.

Collectively, these could dent US GDP growth by one percentage point and hike inflation by 0.6 points if kept in place for the year, said Nationwide chief economist Kathy Bostjancic.

“Tariffs represent a negative supply shock. It hurts production, raises prices,” she told AFP, warning that business and consumer confidence also take a hit from levies.

And the unpredictability of Trump’s tariff plans stand to offset positivity about the president’s promises of deregulation and tax cuts, which are seen as pro-growth, she said.

“That hope and excitement right now is overwhelmed by the uncertainty of what’s going to play out,” she added.

It also remains unclear if new tariffs will be long-lasting, and they come atop cost-cutting measures in the federal government which are being challenged in courts, KPMG chief economist Diane Swonk said.

The fallout from these efforts can undermine demand.

Trump has not only quickened the pace of tariff hikes in his second term by tapping emergency economic powers to impose them without an investigation period, but his levies cover a larger value of goods.

Trump’s first-term tariffs hit $380 billion worth of US imports over 2018-2019, mainly from China, said Erica York of the Tax Foundation.

But his latest duties introduced over a month impact $1.4 trillion of imports, mostly from allies, she added.

“Because of the faster implementation and the larger magnitude, the new tariffs will be much more disruptive to the US economy than Trump’s first trade war,” York said.



– Prices, jobs –



While the situation is fluid, Bostjancic said prices of products like motor vehicle parts could rise by 10 percent within months, given how integrated North American supply chains are.

This could inflate consumer costs for big ticket items. Used car prices could increase if producing new vehicles became pricey, analysts said.

New homes stand to become more expensive too, potentially making property owners reluctant to move and weighing on the housing market, said Jessica Lautz at the National Association of Realtors.

Trump’s latest 25 percent tariff on Canadian goods hits lumber imports, which are important to homebuilders.

With the breadth of Trump’s current tariff plans, “some companies may not be able to maintain the same level of employment,” Swonk of KPMG warned.

During Trump’s first term, despite an initial uptick in steel industry employment when he imposed tariffs on imports of the metal, these were more than offset by higher input costs and layoffs elsewhere, she noted.



– ‘Choke points’ –



Other near-term effects include countries’ readiness to to hit US “choke points” following experiences from his first administration, said Swonk.

“They’re going to look for the places that are the biggest pinch points for the president’s party and that’s the Republican Party,” she told AFP.

This means taking aim at Republican-dominated states.

When the world’s biggest economy takes action like sweeping tariffs other countries tend respond strategically, targeting countermeasures at areas which likely have more political sway over the administration, she said.

Farm and food products are often primary targets of retaliation, said Wendong Zhang of Cornell University. This could spark the need for federal aid to farmers subsequently.

Already, China said it would impose 10 percent and 15 percent levies on various US agricultural exports including soybeans.

In Trump’s first term, retaliatory tariffs on the United States caused more than $27 billion in US agricultural export losses from mid-2018 to late-2019.

Economists say the hit to growth and inflation in 2025 could be somewhat counterbalanced by aggressive deregulation efforts next year, as Trump’s government seeks to rein in the budget deficit and make certain tax cuts permanent.

For now, the “uncertainty effect,” serves as a tax of its own, Swonk said.