Tag: Newsletter

Vice President J.D. Vance stated on Friday that the United States is unlikely to use military force in President Donald Trump’s pursuit of acquiring Greenland. Speaking from Pituffik Space Base, a key American military installation in northwestern Greenland, Vance emphasized that the U.S. respects the island’s sovereignty despite Trump’s repeated assertions that the territory should belong to the United States.

“We do not think military force is ever going to be necessary,” Vance said in response to a question about potential military plans to take control of Greenland. “What we think is going to happen is that the Greenlanders are going to choose, through self-determination, to become independent of Denmark, and then we’re going to have conversations with the people of Greenland from there.”

The comments come as Trump continues to argue that Greenland is crucial to U.S. security interests. His concerns range from Russia’s access to the Arctic to China’s increasing influence in the region.

“We need Greenland for international security. We have to have Greenland,” Trump said in remarks from the White House on Friday.

Vance, however, shifted some of the focus to Denmark’s role in securing Greenland, claiming that the Danish government has failed to adequately protect the strategically important territory.

“The Danes have not done their job in keeping this area safe,” Vance said.

Greenland, an autonomous territory within the Kingdom of Denmark, has firmly resisted Trump’s interest in acquiring it. The Danish government has repeatedly stated that Greenland is not for sale, and officials in Copenhagen strongly criticized Vance’s visit.

Vance clarified that the U.S. has no plans to expand its military presence on the island and suggested that any changes in security arrangements would be coordinated with Nuuk, Greenland’s capital.

“We hope that they choose to partner with the United States because we’re the only nation on Earth that will respect their sovereignty and respect their security,” he said.

Greenland’s Political Landscape

Greenland’s recent elections reflect little appetite for a quick break from Denmark. The Demokraatit party, which advocates a long-term path toward independence rather than an abrupt split, won the March election.

Public sentiment in Greenland appears largely against Trump’s proposal, and attitudes toward the U.S. among the island’s 57,000 residents have reached a low point.

This growing tension led to the White House canceling a planned “heritage” tour of Greenland. The visit, originally set for Second Lady Usha Vance, National Security Adviser Mike Waltz, and Energy Secretary Chris Wright, was scrapped after officials in Nuuk and Copenhagen pushed back strongly. Greenlandic officials also showed little enthusiasm for hosting the American delegation.

Danish Foreign Minister Lars Løkke Rasmussen welcomed the White House’s decision to cancel the heritage tour, calling it a “positive” move that respected Greenlandic sentiment. However, he noted there was no objection to American officials visiting the Pituffik base, which has long been a U.S. military outpost.

U.S. Presence in Greenland

Vance’s visit to northern Greenland provided a rare opportunity to highlight the American military’s presence in one of the world’s harshest environments. Pituffik Space Base, located 750 miles north of the Arctic Circle, serves as a key front line in missile defense, early-warning systems, and space surveillance.

The vice president received an extensive briefing on Arctic security from military personnel stationed at the base. The extreme conditions became apparent upon his arrival, as temperatures hovered at minus 3 degrees Fahrenheit.

“It’s cold as s‑‑‑ here. Nobody told me,” Vance remarked after joining U.S. Space Force Guardians for lunch.

In addition to serious discussions on security, Vance was introduced to some of the unusual traditions upheld by service members at the base. One such tradition is the polar plunge, where participants dive into the frigid Arctic waters. Those who complete the challenge receive a certificate acknowledging their bravery—or as some jokingly call it, a “certificate for stupidity.”

Vance took the opportunity to share a lighthearted moment with the troops, joking about the challenge.

“And let it be known that this task of questionable sanity was accomplished despite near-freezing temperatures, the threat of collapsing icebergs, and lusty seals,” he quipped.

The Signal Chat Controversy

Vance’s trip to Greenland also took place against the backdrop of a controversy surrounding his involvement in a sensitive text chain. The vice president has come under scrutiny for participating in a Signal group chat in which officials discussed classified details about a planned military strike in Yemen.

The chat became a major scandal after it was revealed that a journalist had inadvertently been included in the group. Critics argue that the discussion may have put classified military information at risk.

Vance attempted to downplay the controversy, assuring reporters that an internal investigation is underway. However, he made it clear that no one would face termination over the incident.

“President Trump has said on Monday, on Tuesday, on Wednesday, on Thursday, and I’m the vice president saying it here on Friday, we are standing behind our entire national security team,” Vance stated.

The investigation’s findings are expected to be released “soon,” according to the vice president.

Tensions Over U.S.-Greenland Relations

The Trump administration’s push to establish greater U.S. influence in Greenland has generated friction with Denmark, which has historically controlled the island. In recent years, Washington has increased its diplomatic and economic outreach to Greenland, viewing it as a critical asset in Arctic geopolitics.

Despite these efforts, Greenlanders remain skeptical of Trump’s ambitions. Greenland’s economy and governance remain deeply tied to Denmark, and there is little indication that its population supports closer ties with the U.S. at the expense of its autonomy.

Trump’s repeated declarations that Greenland should be part of the United States have only fueled further resentment. His administration has previously floated ideas such as investing in infrastructure and economic development projects on the island, but these proposals have been met with mixed reactions.

With tensions between Copenhagen, Nuuk, and Washington continuing to simmer, Vance’s trip to Greenland was seen as a diplomatic attempt to balance Trump’s aggressive rhetoric with a more measured approach. However, his visit did little to quell the controversy surrounding the U.S. administration’s stance on Greenland’s future.

As Trump and his allies continue to push for greater U.S. influence in the Arctic, it remains to be seen how Greenland’s leadership and its people will respond. For now, Denmark remains firmly in control, and Greenlanders show little interest in Trump’s vision for the island’s future.

Russia and Ukraine have signaled their commitment to halting hostilities in the Black Sea, but it remains uncertain whether an agreement will take effect soon—if at all.

Moscow attached a significant condition to the deal, stating it would comply only if restrictions on its agricultural exports were lifted. The penalties, imposed by the United States and the European Union, would require a complex negotiation process to reverse.

Additionally, Kyiv and Moscow appear to have differing interpretations of the U.S.-brokered agreement announced on Tuesday. While Russia views the deal as a means to revive a 2022 U.N.-backed accord granting it control over commercial shipping in the Black Sea, Ukraine has insisted it will not allow the Russian Navy back into the western Black Sea, its primary maritime trade route.

Violations and Mistrust Persist

The deep-seated mistrust between the two nations was evident on Wednesday as both sides accused each other of breaching the truce. Ukraine reported an attack on its port city of Mykolaiv, while Moscow claimed to have shot down two Ukrainian drones over the Black Sea.

Russia’s demands indicate that it is in no rush to end the conflict. With a sympathetic administration in the White House and the upper hand on the battlefield, Moscow appears determined to extract maximum concessions before considering a cease-fire.

Russia’s Conditions for Compliance

The Kremlin has made clear that it will not agree to the cease-fire unless its state agriculture bank and other financial institutions involved in food and fertilizer trade are reconnected to the international payment system, Swift.

Given that Swift is headquartered in Belgium, the U.S. would have to convince European regulators to approve such a move. The White House has stated that it will “help restore Russia’s access to the world market for agricultural and fertilizer exports.”

Moscow is also demanding that Western companies resume deliveries of agricultural equipment to Russia and that sanctions on its food and fertilizer companies, shipping vessels, and insurers be lifted.

Despite sanctions, Russia’s agricultural exports remain strong. The country’s grain and fertilizer trade reached $45 billion in 2023, and it continues to export record-high volumes, according to Andrei Sizov, director of the Russian consultancy SovEcon.

Some experts warn that lifting sanctions on a Russian state bank could allow the Kremlin to bypass broader financial restrictions. “The minute you have a sanctions-free bank, you can use it for whatever you want,” said Aleksandr Kolyandr, a Russia analyst at the Center for European Policy Analysis. “It can be an instrument to crack the sanctions regime, but it is much easier to monitor just one bank.”

Ukraine’s Skepticism

While Kyiv has agreed to the maritime cease-fire, it remains wary of Moscow’s intentions.

President Volodymyr Zelensky criticized Russia’s demand for sanctions relief, stating it was “already trying to distort agreements.” He also expressed concerns that the U.S. commitment to facilitating Russian agricultural exports represented “a weakening of positions and a weakening of sanctions.”

With Russia’s demands and the conflicting interpretations of the deal, experts question what Ukraine stands to gain. Notably, the White House has not clarified whether the agreement would protect Ukrainian ports from Russian attacks or lead to the reopening of the ports of Mykolaiv and Kherson—key objectives for Ukraine during negotiations.

Kyiv also has little interest in reviving the 2022 U.N.-backed grain deal that Russia favors. That agreement allowed Ukraine to export grain through a designated Black Sea corridor but also granted Russia the authority to inspect commercial vessels for weapons.

Andrii Klymenko, head of the Black Sea Institute of Strategic Studies, noted that these inspections significantly delayed exports, making the route unprofitable. Since Russia withdrew from the deal, Ukraine has established its own shipping corridor, pushing the Russian Navy out of the western Black Sea and restoring grain exports to near prewar levels.

A Fragile Path Forward

Last week, Russian President Vladimir Putin agreed in a phone conversation with former U.S. President Donald Trump to halt attacks on Ukrainian energy infrastructure for 30 days. Ukraine, which has advocated for a broader cease-fire, followed suit. Both nations have reaffirmed their commitment to the temporary moratorium on energy strikes.

On Tuesday, the Kremlin outlined which facilities would be protected under the agreement, including refineries, pipelines, storage sites, nuclear plants, hydroelectric dams, and energy transmission infrastructure. However, Russia excluded gas and oil extraction sites—facilities that Ukraine claims have been frequent targets of Russian attacks and that Kyiv had included in its own cease-fire proposal.

The situation underscores Moscow’s strategy of appearing open to negotiations while making minimal concessions.

Ukraine’s Defense Minister Rustem Umerov acknowledged the complexities of the deal, stating on Tuesday that “additional technical consultations” were necessary to effectively implement the energy and maritime cease-fires.

With key details unresolved and both sides skeptical of each other’s commitments, the viability of the cease-fire remains uncertain.

The security landscape of the Western world faces its gravest challenge since the end of World War II, and this shift is likely to be long-term. As one expert notes, “Trumpism will outlast his presidency.” With the U.S. taking a step back, the pressing question is which nations are prepared to assume a leadership role.

In February 1947, at 9:00 AM, Lord Inverchapel, the British ambassador to Washington, entered the U.S. State Department with two critical diplomatic messages printed on blue paper—one concerning Greece and the other Turkey. Britain, financially drained and deeply indebted to the U.S., declared it could no longer support Greek government forces battling a Communist insurgency. Simultaneously, Britain was withdrawing from Palestine and India and reducing its presence in Egypt.

Recognizing the threat of Soviet influence expanding into Greece and potentially Turkey, the U.S. swiftly responded. President Harry Truman proclaimed, “It must be a policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressure.” This policy, known as the Truman Doctrine, cemented the idea that defending democracy abroad aligned with U.S. national interests.

Following this shift, the U.S. launched the Marshall Plan to rebuild European economies and helped establish NATO in 1949 to counter Soviet expansion. This period marked the definitive transfer of Western leadership from Britain to the United States. With its vast economic and military power, the U.S. emerged as the dominant force shaping the post-war world.

For decades, the U.S. played a central role in maintaining global security, but now, the fundamental assumptions behind its foreign policy are being questioned. Donald Trump is the first post-World War II president to challenge America’s global commitments. His stance has created uncertainty about the existing world order and left many wondering what the new one will look like.

A Challenge to the Truman Legacy

Trump’s skepticism of America’s international obligations is not new. Nearly 40 years ago, he placed full-page ads in U.S. newspapers criticizing the country’s military commitments. In 1987, he wrote, “For decades, Japan and other nations have been taking advantage of the United States. Why are these nations not paying the United States for the human lives and billions of dollars we are losing to protect their interests? The world is laughing at America’s politicians as we protect ships we don’t own, carrying oil we don’t need, destined for allies who won’t help.”

This sentiment has persisted into his second term. Recently leaked messages on airstrikes against Yemen’s Houthis revealed administration officials expressing frustration over European reliance on U.S. military action. A message attributed to Vice President J.D. Vance read, “I just hate bailing Europe out again.” In response, another, reportedly from Defense Secretary Pete Hegseth, stated, “VP: I fully share your loathing of European free-loading. It’s PATHETIC.”

Trump has gone further by embracing Russian President Vladimir Putin. Early in his second term, he informed Russia that Ukraine would not be allowed NATO membership and that he did not expect Ukraine to regain lost territories. Many critics saw this as a strategic blunder, surrendering leverage without securing anything in return.

Some Trump supporters view Putin as an ally in the ideological battle against liberal values, reinforcing the notion that U.S. foreign policy is increasingly shaped by domestic culture wars. Ed Arnold, a senior research fellow at the Royal United Services Institute, warns, “The US is becoming divorced from European values. That’s difficult [for Europeans] to swallow because it means that it’s structural, cultural, and potentially long-term. I think the current trajectory of the US will outlast Trump, as a person. I think Trumpism will outlast his presidency.”

NATO’s Article 5 “On Life Support”

Trump’s administration has signaled that the U.S. will no longer be the primary guarantor of European security, insisting that European nations must take responsibility for their own defense. Earlier this month, Trump stated, “If [NATO countries] don’t pay, I’m not going to defend them. No, I’m not going to defend them.”

For nearly 80 years, NATO’s Article 5—stating that an attack on one member is an attack on all—has been the bedrock of European security. While UK Prime Minister Sir Keir Starmer expressed confidence in the U.S. commitment to NATO, others remain skeptical.

Ben Wallace, former UK defense secretary, warned, “I think Article 5 is on life support. If Europe, including the United Kingdom, doesn’t step up to the plate, invest a lot on defense, and take it seriously, it’s potentially the end of the NATO that we know and it’ll be the end of Article 5. Right now, I wouldn’t bet my house that Article 5 would be able to be triggered in the event of a Russian attack… I certainly wouldn’t take for granted that the United States would ride to the rescue.”

Public perception reflects this shift. A French poll by Institut Elabe found that nearly three-quarters of respondents do not consider the U.S. an ally of France. Majorities in traditionally pro-American nations like the UK and Denmark also hold unfavorable views of the U.S. Robert Kagan, a senior fellow at the Brookings Institute, argues, “The damage Trump has done to NATO is probably irreparable. The alliance relied on an American guarantee that is no longer reliable, to say the least.”

Is the West Fragmenting?

For Russian President Putin, these developments play into his strategy of destabilizing Europe. After Ukrainian President Volodymyr Zelensky’s unsuccessful meeting with Trump, a Kremlin spokesperson declared, “The fragmentation of the West has begun.”

Armida van Rij of Chatham House echoes this concern: “Russia’s objectives are to destabilize Europe. It is to weaken NATO and get the Americans to withdraw their troops from here. And at the moment, you could go ‘tick, tick, and almost tick.'”

Meanwhile, European defense spending has dwindled. The UK, for example, has cut its military budget by nearly 70% since the Cold War peak. Wallace laments, “We had a big budget [during the Cold War] and we took a peace dividend… The problem is we went from a peace dividend to corporate raiding. [Defense] just became the go-to department to take money from. And that is where we just forgot the lessons of our history.”

Germany’s Chancellor-in-waiting, Friedrich Merz, has called for a Europe independent of the U.S. But building an autonomous European military-industrial complex remains a complex challenge. Ian Bond of the Centre for European Reform notes, “The further west you go, the more problematic it becomes until you get to Spain and Italy.”

A New World Order?

Historian Timothy Garton Ash identifies key military assets that only the U.S. currently provides: “The satellites, the intelligence, the Patriot air defense batteries, which are the only ones that can take down Russian ballistic missiles.” He argues that within five years, Europe should develop its own capabilities to replace U.S. support.

Van Rij acknowledges that while European defense autonomy is necessary, “what’s really difficult are the divisions within Europe on how to actually do this and whether to actually do this.”

Trump’s vision appears to favor a world where major powers dictate terms to weaker nations, akin to the spheres of influence system of the Cold War era. The uncertainty surrounding U.S. commitments has left Europe facing a pivotal decision: unite, invest in defense, and maintain independence—or risk becoming subordinate to larger global powers.

Greenland’s political leaders have strongly criticized upcoming high-profile U.S. visits following President Donald Trump’s renewed remarks about taking over the island.

Second Lady Usha Vance is set to visit Greenland this week for a cultural tour, while National Security Adviser Mike Waltz is also expected to travel there with Energy Secretary Chris Wright. However, outgoing Greenlandic Prime Minister Mute Egede has described the visits as aggressive and noted that neither official was invited for meetings. Jens-Frederik Nielsen, the likely next leader of Greenland, accused the U.S. of showing disrespect toward the island’s population.

U.S. Interest in Greenland

Greenland, the world’s largest island, has been under Danish control for about 300 years. While it manages its domestic affairs, foreign and defense policies remain under Copenhagen’s authority. The U.S. has long maintained a strategic interest in Greenland and has operated a military base on the island since World War II. Trump has also expressed interest in Greenland’s rare earth minerals, and his son, Donald Trump Jr., visited the island before his father’s inauguration in January.

Announcing Vance’s visit, the White House stated that she would attend Greenland’s national dogsled race, the Avannaata Qimussersu, and visit historical sites to “celebrate Greenlandic culture and unity.” Meanwhile, Waltz’s trip was confirmed by a source speaking to CBS News, with reports suggesting he would arrive before Vance.

Egede viewed Waltz’s visit as a deliberate provocation. “What is the security adviser doing in Greenland? The only purpose is to show a demonstration of power to us,” he told Greenlandic newspaper Sermitsiaq. Nielsen echoed these concerns, saying the visits demonstrated a lack of respect for Greenlanders.

Trump’s Push for U.S. Control

The tensions follow Trump’s recent remarks about Greenland’s future. In a conversation with NATO Secretary-General Mark Rutte earlier this month, Trump implied that he might pursue U.S. control over Greenland with NATO’s backing. “You know, Mark, we need that for international security… we have a lot of our favorite players cruising around the coast, and we have to be careful,” he said. “We’ll be talking to you.” When asked about the possibility of annexation, Trump responded, “I think that will happen.”

Greenland’s political parties swiftly condemned Trump’s statements, calling them “unacceptable behavior.” The issue became central to Greenland’s recent elections, in which Egede’s governing Inuit Ataqatigiit party lost unexpectedly to Nielsen’s Democratic party, which advocates for gradual independence from Denmark.

In a speech to the U.S. Congress earlier this month, Trump claimed he supported Greenland’s right to self-determination, stating, “If you choose, we welcome you into the United States of America.” However, polls show that while nearly 80% of Greenlanders favor independence from Denmark, an even larger majority opposes becoming part of the U.S.

Russian President Vladimir Putin has agreed to pause strikes on Ukraine’s energy and infrastructure facilities following a lengthy conversation with former U.S. President Donald Trump. However, Moscow has not committed to a broader ceasefire, keeping the overall conflict active.

In another development, the Trump administration has made public a set of records linked to the assassination of John F. Kennedy, which were previously classified. While a large portion of these files had already been disclosed in the past, many of the newly released 1,123 documents had been redacted in earlier versions. Researchers will need time to thoroughly examine and assess their contents.

Meanwhile, a federal judge ruled that billionaire Elon Musk had exceeded his executive authority concerning his Department of Government Efficiency. The judge’s decision indefinitely halted efforts to dismantle the United States Agency for International Development (USAID).

Additionally, Chief Justice John Roberts issued a rare statement countering Trump’s increasingly critical remarks against the federal judiciary. This response appeared to be directed at Trump’s recent calls to impeach judges who rule against him. Despite Roberts’ pushback, Trump dismissed the criticism without much reaction.

The United States has implemented a 25% tariff on steel and aluminum imports from across the globe.

In response, Canada and the European Union (EU) have introduced tariffs on American goods worth billions of dollars, heightening concerns about a potential global trade war.

President Donald Trump has threatened to impose a 200% tariff on alcohol imports from EU countries unless the bloc removes its “nasty 50% tariff on whisky.”

Additionally, Trump has already imposed 25% tariffs on various imports from Mexico and Canada, with some exceptions, as well as a 20% levy on goods from China.

Understanding Tariffs and Their Impact

Tariffs are taxes applied to goods imported from foreign countries.

Importing companies pay these taxes to the government.

Tariffs are usually calculated as a percentage of a product’s value. For example, a 20% tariff on Chinese goods means that an item valued at $10 (£7.76) incurs an additional $2 charge.

Businesses may choose to pass on some or all of the tariff costs to consumers.

Historically, the U.S. has maintained lower tariffs on imported goods than many other nations.

However, economists fear that Trump’s new tariffs, along with additional levies he has suggested could take effect on April 2, may drive up consumer prices both in the U.S. and globally.

Trump’s Justification for Tariffs

Tariffs play a key role in Trump’s economic strategy.

He argues that they will strengthen U.S. manufacturing, safeguard jobs, generate tax revenue, and stimulate domestic economic growth.

He also aims to correct America’s trade imbalance by reducing the gap between imports and exports with specific countries.

Despite this, Trump has not ruled out the possibility of a recession resulting from his trade policies, which led to a sharp decline in U.S. stock markets just before the metal tariffs took effect.

U.S. Commerce Secretary Howard Lutnick later defended the tariffs, stating that they were “worth it” even if they contributed to an economic downturn.

Trump initially targeted Chinese, Mexican, and Canadian imports with tariffs.

These three countries accounted for over 40% of all U.S. imports in 2024.

However, Trump has accused them of failing to do enough to curb the influx of migrants and illegal drugs, such as fentanyl, into the U.S.

All three nations have rejected these allegations.

How the Steel and Aluminum Tariffs Work

The U.S. implemented a 25% tariff on all steel and aluminum imports on March 12.

The U.S. is the world’s largest steel importer, with Canada, Brazil, and Mexico being its top suppliers.

Canada also supplies nearly 60% of all aluminum imported by the U.S.

Initially, Trump announced that there would be no exemptions to the steel and aluminum tariffs.

On March 11, he threatened to double tariffs on Canadian metals due to Canada’s decision to impose higher electricity charges on customers in three northern U.S. states in response to earlier U.S. tariffs.

However, Trump withdrew this plan just before it was set to take effect, as Canada agreed to suspend the extra energy charges.

During his first term in office, Trump had previously imposed 25% tariffs on steel and 10% on aluminum in 2018.

However, he later negotiated exemptions for several countries, including Australia, Canada, and Mexico.

Despite these exemptions, the U.S. International Trade Commission reported that tariffs raised the average price of steel and aluminum in the country by 2.4% and 1.6%, respectively.

Global Reactions to the Steel Tariffs

Within hours of the U.S. tariffs taking effect, Canada and the EU announced countermeasures.

Canada introduced a 25% tariff on an additional C$29.8 billion ($20 billion; £16 billion) worth of U.S. goods starting on March 13.

These tariffs include steel products valued at C$12.6 billion, along with sports equipment, computers, and cast iron items.

The EU’s retaliatory tariffs, set to take effect on April 1 and be fully implemented by April 13, target U.S. goods worth €26 billion (£22 billion).

The list of affected items includes “boats, bourbon, motorbikes,” as well as steel and aluminum products such as pipes, window frames, and tin foil.

European Commission President Ursula von der Leyen expressed regret over the measure, stating, “Tariffs are bad for business and worse for consumers.”

Trump, responding on his social media platform Truth Social, warned that if the EU did not remove its 50% tariff on American whiskey “immediately,” the U.S. would impose a 200% tariff on “all wines, Champagnes, and alcoholic products coming out of EU-represented countries.”

“This will be great for the Wine and Champagne businesses in the U.S.,” he added.

The UK, which exports significant amounts of steel to the U.S. each year, has taken a cautious stance.

Prime Minister Sir Keir Starmer told lawmakers that the UK would adopt a “pragmatic approach” but stated that it would “keep all options on the table.”

China’s foreign ministry vowed to take “all necessary measures” to protect its interests, asserting that the U.S. tariffs violated World Trade Organization rules.

Tariffs on Canadian and Mexican Goods

Trump has already implemented 25% tariffs on other goods from Canada and Mexico.

Originally set to take effect on February 4, these tariffs were delayed for a month to allow negotiations. They were officially implemented on March 4, alongside a 10% tariff on Canadian energy exports.

On March 5, Trump announced a one-month exemption for North American-made cars that comply with the United States-Mexico-Canada Agreement (USMCA).

This trade pact, negotiated by Trump during his first term, establishes rules on how much of a vehicle must be produced within North America to qualify for tariff-free treatment.

The auto industry had warned that tariffs on Canadian and Mexican goods could have significant consequences, as vehicle components frequently cross borders multiple times before assembly.

After Trump’s exemption announcement, shares in major U.S. automakers surged.

On March 6, Trump expanded the exemption to cover other goods covered by USMCA, including televisions, air conditioners, avocados, and beef.

Additionally, Trump reduced tariffs on potash, a key fertilizer ingredient, from 25% to 10%.

Canada’s Response to the Additional Tariffs

Outgoing Canadian Prime Minister Justin Trudeau accused Trump of attempting “a total collapse of the Canadian economy [to] make it easier to annex us.”

He announced immediate retaliatory tariffs on C$30 billion ($21 billion; £16 billion) worth of U.S. imports, with plans for further measures totaling C$125 billion within three weeks.

However, after Trump granted additional exemptions, Canada delayed the second phase of tariffs.

Trudeau’s successor, Mark Carney, also criticized the tariffs as “unjustified” and stated, “In trade, as in hockey, Canada will win.”

Ontario Premier Doug Ford initially planned to impose a 25% surcharge on electricity exports to three U.S. states—Michigan, New York, and Minnesota—in retaliation.

However, these plans were shelved after Trump threatened to double tariffs on Canadian steel and aluminum.

Mexico’s Response

Mexico postponed its retaliatory tariffs during the initial negotiation period.

President Claudia Sheinbaum urged calm, stating that “cooler heads will prevail” despite Trump’s actions.

She also agreed to deploy 10,000 troops along the U.S.-Mexico border to curb smuggling.

Following the implementation of tariffs on March 4, Sheinbaum declared them “unjustified” and promised a response involving “tariff and non-tariff measures.”

Before these countermeasures could be announced, Trump unveiled exemptions for carmakers and other goods, which Sheinbaum welcomed.

While Trump has been critical of Trudeau, he has praised Sheinbaum, describing their relationship as “very good.”

China’s Retaliatory Measures

A 10% tariff on all Chinese imports to the U.S. began on February 4.

Trump later announced an exemption for shipments valued under $800.

On February 10, China responded with tariffs of 10-15% on select U.S. agricultural products and imposed export controls on American aviation, defense, and tech firms.

The U.S. tariff doubled to 20% on March 4.

China urged the U.S. to resume negotiations, warning that if America continued a trade war, China would “fight them to the bitter end,” according to foreign ministry spokesperson Lin Jian.

Ukrainian President Volodymyr Zelensky has accused Russia of deliberately delaying negotiations on a Ukraine ceasefire, claiming that Moscow aims to ensure diplomacy collapses so that the conflict continues.

Meanwhile, Ukraine’s military has refuted claims that its forces are encircled in Russia’s Kursk region. This denial comes after former U.S. President Donald Trump appealed to Russian President Vladimir Putin to spare the lives of what he described as thousands of “surrounded” Ukrainian troops.

In response to Trump’s plea, Putin stated that Russia would allow Ukrainian soldiers in Kursk to live, provided they surrender and lay down their weapons.

During a press briefing following the G7 summit in Canada, U.S. Secretary of State Marco Rubio expressed cautious optimism regarding a potential Ukraine ceasefire but emphasized that further efforts are required to finalize an agreement.

Trump had earlier noted that discussions between the United States and Putin, held in Moscow on Thursday, had been “good and productive.”

The war in Ukraine began with Russia’s full-scale invasion three years ago. Since then, the conflict has evolved significantly, with ongoing military engagements and diplomatic efforts attempting to bring an end to the hostilities.

Economist and political newcomer Mark Carney has officially taken office as Canada’s new prime minister, delivering a strong message that Canada will “never” become part of the United States.

Carney assumed office on Friday, mere days after winning the leadership of the governing Liberal Party, amid escalating trade tensions with U.S. President Donald Trump.

“We know that by building together, we can give ourselves far more than anyone else can take away,” Carney stated after his swearing-in ceremony.

He replaces outgoing Prime Minister Justin Trudeau, who led Canada for nine years. Carney’s victory in last week’s Liberal leadership contest was decisive, marking a significant shift in the party’s direction.

During his first press conference as prime minister in Ottawa, Carney directly addressed Trump’s previous remarks suggesting Canada could become the 51st U.S. state. “We will never, in any shape or form, be part of the U.S.,” he asserted.

Emphasizing the distinctiveness of Canadian identity, he added, “We are very fundamentally a different country,” later dismissing Trump’s idea as “crazy.”

Carney did not confirm whether he would push for an early federal election, currently scheduled for October, but indicated he would act swiftly to secure “as strong a mandate that is needed for the time.”

One of Carney’s first acts as prime minister was ending a policy that had long been a target of opposition criticism. He repealed the consumer carbon pricing program, a significant environmental policy from Trudeau’s tenure that had become unpopular amid rising inflation.

The carbon tax had been widely criticized by Conservatives, who argued it increased the cost of goods and energy for Canadian households. However, at an afternoon cabinet meeting, Carney clarified that his government remains committed to addressing climate change, noting that the industrial carbon tax on large emitters would remain in place.

Canadians who have been paying into the carbon pricing system will receive their final rebate checks in April.

In recent months, Canadian politics have been largely shaped by Trump’s trade war, which began after he took office in January. With an election on the horizon, Carney is expected to position himself as the most capable leader to handle Trump’s economic policies.

Carney is no stranger to financial crises. He previously served as governor of both the Bank of Canada and the Bank of England, where he played key roles in stabilizing both economies during turbulent times.

Next week, Carney is scheduled to embark on his first international trip as prime minister, visiting the United Kingdom and France.

Despite tensions, Carney expressed a willingness to engage with Trump. “We respect the United States. We respect President Trump,” he stated.

Acknowledging Trump’s policy priorities, Carney added, “President Trump has put some very important issues at the top of his agenda.”

Carney has pledged to maintain Canada’s retaliatory tariffs on specific U.S. goods for as long as Trump upholds the 25% universal tariffs on Canadian products not covered under the Canada-United States-Mexico Agreement (CUSMA).

Given Canada’s economic dependence on trade with the U.S., economists warn that if Trump’s tariffs are fully implemented, Canada could face a recession.

Carney’s new cabinet includes several ministers from Trudeau’s administration, particularly those who have been actively involved in negotiations with the Trump administration.

Key figures retained in the new government include Mélanie Joly, who continues as foreign affairs minister; David McGuinty, who remains in charge of public safety; Jonathan Wilkinson, who stays on as energy minister; and Dominic LeBlanc, who moves from finance to trade. François-Philippe Champagne, formerly industry minister, has been appointed to the finance portfolio.

As Canada prepares for its next federal election, Carney’s primary political rival will be Conservative leader Pierre Poilievre.

Before Trump’s tariff threats, the Conservatives held a commanding 20-point lead in some election polls. However, recent polling suggests a much tighter race.

Speaking after Carney’s swearing-in, Poilievre criticized the Liberals’ tenure, arguing that after nine years in power, they had failed to address key economic challenges. “It will be the same Liberal results,” he remarked.

Poilievre also vowed to take a tougher stance against Trump’s trade policies if elected. “If I were to be elected prime minister, I would face off against President Trump directly, respond with counter tariffs, and take back control,” he declared.

In the upcoming election, the Liberals will not only face the Conservatives, who hold 120 seats in the House of Commons, but also the Bloc Québécois, with 33 seats, and the New Democratic Party (NDP), which currently has 24 seats.

NDP leader Jagmeet Singh reacted to Carney’s swearing-in by criticizing his cabinet selections, arguing that they signal a lack of space for progressive Liberals in the new government.

Singh noted that Carney did not create separate cabinet roles for ministers of women, youth, or people with disabilities. He accused the new prime minister of favoring the wealthy, stating that Carney has made billionaires “very rich at the cost of workers.”

Russian President Vladimir Putin has expressed agreement with the concept of a ceasefire in Ukraine but highlighted the need for further discussions on its terms. He also outlined a series of strict conditions that must be met before peace can be achieved.

Putin was responding to a proposed 30-day ceasefire, which Ukraine accepted earlier this week after negotiations with the United States. However, Ukrainian President Volodymyr Zelensky criticized Putin’s reaction, calling it “manipulative” and urging for additional sanctions against Russia.

Meanwhile, the U.S. imposed new sanctions on Russia’s oil, gas, and banking sectors, further increasing pressure on Moscow.

Russian authorities announced that Putin was scheduled to discuss the ceasefire on Thursday evening with Steve Witkoff, a special envoy of U.S. President Donald Trump, who had arrived in Moscow earlier that day. However, it remains unclear whether the meeting actually took place. On Friday, Russian state media cited air traffic monitoring service Flightradar, which reported that the aircraft believed to have transported Witkoff had already departed from Moscow. Neither Washington nor Moscow have provided any official statements on the matter.

On Thursday night and into Friday morning, both Russian and Ukrainian forces reported enemy drone attacks. Ukraine reported that seven people, including children, were wounded in the northeastern city of Kharkiv. In Russia, authorities confirmed a massive fire at an oil facility in the southern city of Tuapse.

At a news conference in Moscow on Thursday, Putin discussed the ceasefire plan, stating, “The idea is right—and we support it—but there are questions that we need to discuss.” He emphasized that any ceasefire must lead to “an enduring peace and remove the root causes of this crisis.”

“We need to negotiate with our American colleagues and partners,” Putin added. “Maybe I’ll have a call with Donald Trump.”

The Russian president acknowledged that a temporary truce could be beneficial for Ukraine, saying, “It will be good for the Ukrainian side to achieve a 30-day ceasefire. We are in favor of it, but there are nuances.”

One of the major points of contention for Russia is the situation in its western Kursk region. Putin pointed out that Ukrainian forces had launched an incursion there in August, capturing some areas. He claimed that Russia had regained full control of Kursk and that Ukrainian troops in the region were now “isolated.”

“They are trying to leave, but we are in control. Their equipment has been abandoned,” he stated. “There are two options for Ukrainians in Kursk—surrender or die.”

A day earlier, Ukraine’s top commander, Oleksandr Syrskyi, said Ukrainian troops would maintain defensive positions in Kursk as long as necessary, despite mounting pressure from Russian forces.

During his press conference, Putin also raised concerns about how the ceasefire would be implemented. “How will those 30 days be used? For Ukraine to mobilize? Rearm? Train people? Or none of that? Then a question—how will that be controlled?” he asked.

“Who will give the order to end the fighting? At what cost? Who decides who has broken any possible ceasefire, over 2,000km? All those questions need meticulous work from both sides. Who polices it?”

Zelensky, in his nightly video address, accused Putin of preparing to reject the ceasefire in practice, despite not explicitly saying so. “Putin, of course, is afraid to tell President Trump directly that he wants to continue this war, wants to kill Ukrainians,” he said.

He further argued that the Russian president had placed so many conditions on the ceasefire that it was unlikely to succeed. “The Russian leader has set so many preconditions that nothing will work out at all,” Zelensky said.

Putin’s comments and Zelensky’s response have highlighted the deep divisions between the two sides on how to proceed.

Ukraine advocates for a two-step approach: first, an immediate ceasefire, followed by discussions on a long-term peace agreement. However, Russia insists that both issues should be resolved together in a single, comprehensive deal. Neither side appears willing to compromise at this stage.

Ukraine hopes to pressure Russia into agreeing to a ceasefire by portraying it as an unwilling participant in peace talks. Meanwhile, Russia views the situation as an opportunity to raise its broader concerns, including NATO expansion and Ukraine’s sovereignty.

This situation presents a challenge for Donald Trump, who has stated that he wants a swift resolution to the war. He has repeatedly indicated that he aims to bring the conflict to an end in a matter of days.

However, Putin does not appear inclined to cooperate with Trump’s timeline.

Speaking at the White House after Putin’s remarks, Trump said he would “love” to meet the Russian president and expressed hope that Russia would “do the right thing” by agreeing to the proposed 30-day ceasefire.

“We’d like to see a ceasefire from Russia,” Trump stated.

Earlier in the day, during a meeting in the Oval Office with NATO Secretary General Mark Rutte, Trump told reporters that he had already discussed specific details with Ukraine regarding a potential peace agreement.

“We’ve been discussing with Ukraine land and pieces of land that would be kept and lost, and all of the other elements of a final agreement,” Trump explained. “A lot of the details of a final agreement have actually been discussed.”

Regarding Ukraine’s possible NATO membership, Trump remarked, “Everybody knows what the answer to that is.”

In response to Russia’s continued aggression, the U.S. expanded sanctions on Russian oil and gas, making it harder for other countries to purchase Russian energy by restricting access to U.S. payment systems.

Earlier on Thursday, Kremlin aide Yuri Ushakov had already dismissed the U.S.-backed ceasefire proposal.

Meanwhile, on Wednesday, the Kremlin released a video purportedly showing Putin visiting Russia’s Kursk region, wearing military fatigues. Later, Russian officials announced they had recaptured the key town of Sudzha.

The war, which began with Russia’s full-scale invasion of Ukraine in February 2022, has resulted in Russia occupying approximately 20% of Ukrainian territory.

According to data analyzed by the BBC, more than 95,000 Russian soldiers have been killed in the conflict. However, experts believe the actual number is significantly higher.

The Russian military has not officially disclosed its casualty figures since September 2022, when it reported 5,937 deaths.

Ukraine last provided an official death toll in December 2024, when Zelensky stated that 43,000 Ukrainian soldiers and officers had been killed. However, Western analysts consider this figure to be an underestimation.

The United States’ top diplomat has expressed optimism about Ukraine’s proposal for a partial ceasefire with Russia, viewing it as a potential step toward ending the ongoing war. This statement comes just before scheduled discussions in Saudi Arabia on Tuesday between US and Ukrainian officials.

“I’m not saying that alone is enough, but it’s the kind of concession you would need to see in order to end the conflict,” said US Secretary of State Marco Rubio on Monday.

During the upcoming negotiations in Jeddah, Kyiv is expected to put forward a proposal for an aerial and naval ceasefire with Russia. However, Moscow has previously dismissed such ideas, arguing that any temporary truce would merely serve as a stalling tactic to prevent Ukraine’s military from collapsing.

In a separate event, at least three individuals lost their lives in what was described as a “massive” overnight drone assault on Moscow and its surrounding areas, according to Governor Andrei Vorobyev. The attack damaged seven apartments in a residential complex.

Moscow Mayor Sergei Sobyanin reported that 74 drones aimed at the city were intercepted and shot down. He further stated that debris from a downed drone damaged the roof of one building.

The drone strike led to temporary disruptions in one of Moscow’s district train networks and imposed flight restrictions at the city’s airports.

Meanwhile, Ukrainian President Volodymyr Zelensky arrived in Saudi Arabia on Monday to meet Crown Prince Mohammed bin Salman. However, he is not expected to take a formal role in the negotiations between US and Ukrainian representatives.

In a video message late on Monday, Zelensky expressed his hopes for “a practical result” from the discussions, stating that Ukraine’s stance would be “absolutely constructive.”

The Ukrainian delegation at the talks will include Andriy Yermak, Zelensky’s chief of staff, along with the country’s national security adviser and several foreign and defense ministers.

On the US side, Rubio will lead the delegation alongside National Security Adviser Mike Waltz and US Middle East envoy Steve Witkoff.

Speaking before his arrival in Jeddah, Rubio emphasized the importance of clarifying Ukraine’s stance on a potential peace agreement. He noted that both sides must prepare for tough compromises if the conflict is to be resolved.

“I’m not going to set any conditions on what they have to or need to do,” he said. “We want to listen to see how far they’re willing to go, and compare that to what the Russians want, and then see how far apart we truly are.”

Rubio stressed that both Ukraine and Russia must acknowledge that “there’s no military solution” to the war and that diplomacy is the only viable path forward.

Meanwhile, reports from Bloomberg and Axios suggest that Witkoff is scheduled to meet Russian President Vladimir Putin in Moscow later this week, though the Kremlin has not officially commented on the matter.

The discussions in Jeddah coincide with increased pressure from US President Donald Trump on Zelensky to agree to a ceasefire with Russia. Notably, this push comes without any firm commitments from the US regarding security guarantees for Ukraine.

This meeting marks the first official encounter between US and Ukrainian officials since Zelensky’s contentious visit to the White House last month. That meeting reportedly ended in frustration, leading the US to suspend military aid and intelligence sharing with Ukraine—a move seen as an attempt to push Kyiv toward negotiations.

Rubio suggested that the suspension of aid could be reversed depending on the outcomes of Tuesday’s discussions.

“The pause came about because we felt that they [Ukraine] were not committed to any sort of peace process,” he explained. “If that changes, obviously our posture can change.”

He added, “The president is going to use whatever tools he has at his disposal to try to get both sides to that table so this war will end.”

Earlier on Monday, Trump’s special envoy, Steve Witkoff, expressed optimism about the upcoming negotiations, saying he expected “substantial progress.”

When asked if he believed Zelensky would return to the US later in the week to sign a minerals agreement, Witkoff told Fox News, “I am really hopeful. All the signs are very, very positive.”

Zelensky has previously signaled willingness to sign a minerals deal with the US, which would create a joint fund derived from the sale of Ukrainian minerals.

According to Witkoff, the Saudi Arabia talks will cover multiple topics, including security protocols for Ukraine and territorial issues.

He emphasized that, despite the suspension of military aid, the US had not cut off intelligence sharing for any defensive needs that Ukraine might have. Trump also told Fox News on Sunday that he had “just about” lifted the intelligence-sharing freeze on Ukraine.

UK Prime Minister Sir Keir Starmer also spoke with Trump ahead of the Jeddah talks. According to a statement from Downing Street, Starmer conveyed that “he hoped there would be a positive outcome to the talks that would enable US aid and intelligence-sharing to be restarted.”

Russia launched its full-scale invasion of Ukraine in February 2022 and currently controls roughly one-fifth of Ukraine’s territory, including Crimea, which it annexed in 2014.

Mark Carney has secured a landslide victory to become Canada’s next prime minister, replacing Justin Trudeau. In his first major statement, he has committed to winning the ongoing trade war with U.S. President Donald Trump, vowing to impose retaliatory tariffs on American goods until, in his words, “Americans show us respect.”

Meanwhile, Ontario Premier Doug Ford has announced plans to impose retaliatory electricity tariffs on the U.S. He is set to discuss these measures in a live address, emphasizing that Canada will take firm action in response to U.S. economic pressures.

Canada to Launch Advertising Campaign in U.S.

Ford addressed questions regarding a marketing and advertising campaign in the U.S., stating, “We need to inform the American people.” He emphasized the importance of delivering a strong message to Americans, calling them Canada’s “greatest allies in the fight against these tariffs.”

Tariff Impact Will ‘Reverberate’ Across U.S., Says Energy Minister

Stephen Lecce, Minister of Energy and Electrification, highlighted Canada’s role as a major power exporter to the U.S., stating, “They need our power.” He explained that the objective is to “maximize pressure on America and minimize the impacts on Ontario.” Lecce warned that the repercussions of these tariffs will “reverberate” across the U.S., affecting states that rely on and profit from reselling Canadian power.

Ford: Tariffs Could Add $100 to U.S. Utility Bills

Ford outlined the potential consequences of Ontario’s countermeasures, estimating that 1.5 million homes and businesses in Minnesota, Michigan, and New York would be affected. According to Ford, these states could face a surcharge of up to $400,000 per day, potentially increasing bills for American consumers by approximately $100.

While acknowledging the difficulties this would create, Ford stated he “will not hesitate” to raise the charge further or even halt electricity exports entirely. However, he also expressed regret for the impact on American citizens, stating, “I feel terrible for the American people who did not start this trade war.”

‘We Will Apply Maximum Pressure,’ Says Ford

Ford described the situation as an escalating conflict, noting that President Trump is now targeting steel and aluminum with additional tariffs. He asserted that these trade policies are detrimental to families on both sides of the border and affirmed Ontario’s determination to resist. “We will apply maximum pressure to maximize leverage,” he stated, confirming that Ontario will proceed with a 25% surcharge on electricity exports.

Ford Congratulates Carney, Praises His Leadership

Doug Ford, in his public remarks, congratulated Mark Carney on his victory, expressing optimism about the country’s new leadership. He emphasized the need for decisive action, stating, “It’s never been more important to build big things.” Ford also took a moment to thank Justin Trudeau for his service to the country.

‘Every Tool in the Toolbox’ Will Be Used in Response to U.S. Tariffs

Stephen Lecce, addressing the media, stated that Ontario has been a critical energy supplier to the U.S. for years, helping to “keep the lights on” in American homes, factories, and farms. However, he made it clear that Canada would not stand by idly. “When under attack, we will use every tool in the toolbox,” he declared.

Ontario’s Retaliatory Tariffs to Be Unveiled Soon

Ford is scheduled to present a detailed plan for retaliatory tariffs against the U.S., reinforcing his stance from last week, when he warned that Canada could cut off electricity supplies if President Trump’s tariff policies persisted. Around 1.5 million Americans in Michigan, New York, and Minnesota rely on electricity imported from Canada.

Ford’s statements align with his recent post on X, in which he congratulated Carney and declared, “Together, let’s unleash the Canadian economy and make our country more secure by building big, bold projects—starting with the Ring of Fire.”

U.S. Stock Markets React to Trump’s Tariff Strategy

As U.S. markets opened for trading, investor concerns over Trump’s economic policies intensified. Fears of increased costs, business uncertainty, and economic disruption have contributed to a market downturn.

The S&P 500 dropped by approximately 1.7%, while the Dow Jones Industrial Average declined by 0.7%. The tech-heavy Nasdaq took the biggest hit, falling by 2.8%. The market turbulence comes as optimism about artificial intelligence-driven growth fades and fears of a recession rise, particularly after Trump declined to rule out an economic downturn.

The Meaning Behind Canada’s ‘Elbows Up’ Slogan

In his farewell address, Justin Trudeau drew loud applause when he declared, “Elbows up!” The phrase has gained traction as a rallying cry against Trump’s tariff threats and his recent suggestion that Canada could become the 51st U.S. state.

Canadian actor Mike Myers recently echoed the phrase on Saturday Night Live, mouthing the words while pointing to his elbow. The slogan originates from ice hockey, symbolizing readiness to fight back—a sentiment many Canadians now embrace in response to Trump’s trade policies.

Ford Calls Carney’s Leadership Critical Amid Tariff Conflict

Shortly after Carney’s landslide victory in the Liberal leadership race, Doug Ford extended his congratulations, describing the moment as pivotal. “Your election comes at a critical time as our country continues to stare down the ongoing threat of President Trump’s tariffs,” Ford stated.

The Ontario Premier is expected to further elaborate on his plan to impose a 25% surcharge on electricity exports to Michigan, New York, and Minnesota. He has also indicated that, if necessary, he may completely cut off power exports to these states.

What’s Next?

As Canada undergoes a significant political transition, here’s a summary of recent developments and upcoming steps:

• Mark Carney’s Victory: The former Bank of England governor won 85.9% of the vote in the Liberal leadership race and will be sworn in as prime minister in the coming days.
• Justin Trudeau’s Departure: Trudeau must formally resign before Carney can take office. He will remain in position until he meets with Governor General Mary Simon.
• Upcoming Election: A general election must take place by October 20, but it is widely expected to be called sooner.
• Carney’s First Address: In his victory speech, Carney declared, “Americans should make no mistake… in trade, as in hockey, Canada will win.”
• International Reactions: UK Prime Minister Keir Starmer and French President Emmanuel Macron have extended their congratulations to Carney, signaling strong international support for Canada’s new leadership.

Carney’s Background: A Banker Turned Prime Minister

Mark Carney, Canada’s 24th prime minister, has an extensive background in economics and finance.

• Early Life: Born in Fort Smith, Northwest Territories, Carney grew up in a politically engaged family, with his father once running as a Liberal candidate in Edmonton-South.
• Education: He studied at Harvard University on a scholarship and later earned a PhD in economics from Oxford University.
• Career in Banking: Carney served as governor of both the Bank of Canada and the Bank of England.
• Political Entry: Despite previous dismissals of a political career—once joking, “Why don’t I become a circus clown?”—Carney’s expertise in financial crises has now positioned him as Canada’s leader during a tense economic standoff with the U.S.
• International Influence: He has participated in G20 meetings alongside Trump and chaired the Financial Stability Board. Recalling a past encounter, he remarked, “Trump only respects power… Good luck with that” when discussing efforts to appease the former U.S. president.

Liberal Party Gathers Momentum for Snap Election

Following months of poor polling, Liberals now sense an opportunity for a political resurgence. Carney’s resounding victory—securing more votes than Trudeau did in 2013—has energized the party.

“There’s no sense that we should delay,” said David McGuinty, the federal public safety minister. “I’m really, really excited for what’s coming. And frankly, it’s time for an election.”

Although no official date has been set for the transfer of power from Trudeau to Carney, political insiders anticipate a swift transition, with an election announcement likely to follow shortly after.

As Canada braces for a new chapter under Carney’s leadership, the nation prepares for an intensified trade battle with the U.S., setting the stage for one of the most consequential political and economic showdowns in recent history.

The competition to succeed Canadian Prime Minister Justin Trudeau is in full swing. Leading candidates for the leadership of Trudeau’s ruling Liberal Party, including the globally recognized Chrystia Freeland and Mark Carney, are vying to steer Canada through pressing domestic and international challenges, such as escalating trade disputes with the United States.

After a tumultuous year marked by political crises, Trudeau announced in January that he would resign as Liberal leader once his successor was chosen, eventually stepping down as prime minister.

This Sunday, the Liberals will finally count the votes and declare their new leader, a decision that comes as Canada gears up for a general election later this year.

Why is Trudeau stepping down?

Trudeau has led the Liberal Party for more than a decade. He first brought the Liberals to power in 2015, promising “sunny ways” for Canada. Since then, he has been re-elected twice, most recently in 2021, though that victory cost him his governing majority.

During his tenure, he championed progressive causes, including tackling climate change and addressing historic injustices against Indigenous communities. However, economic dissatisfaction has increasingly overshadowed his leadership in recent years. His administration was further shaken when Freeland, who was serving as deputy prime minister and finance minister, unexpectedly resigned just hours before delivering her annual fiscal update.

Trudeau is stepping down as the Liberal Party faces a significant challenge in the upcoming general elections, expected by October. The party has been trailing in polls against the Conservatives, led by right-wing politician Pierre Poilievre. However, recent weeks have seen the gap narrow as Trudeau’s potential successors, such as Carney, take assertive stances on trade tensions with the United States.

Though Trudeau will relinquish his role as Liberal leader after Sunday’s vote, he has not specified a timeline for stepping down as prime minister. His successor will have the authority to request new federal elections at any time—whether within days, weeks, or months.

What role does the US play?

Relations between Canada and the United States have deteriorated under President Donald Trump. Over the past three months, Trump has blamed Canada for illegal immigration into the U.S., threatened to annex Canada as the U.S.’s 51st state, and imposed steep tariffs on Canadian imports. The White House justifies these tariffs as necessary to curb fentanyl smuggling into the U.S.

The heated rhetoric between Trump and Trudeau has stirred nationalist sentiments in Canada. At NHL and NBA games in the country, some Canadian fans have even taken to booing the U.S. national anthem.

These cross-border tensions may have provided an unexpected boost to the Liberal Party, as Conservative leader Poilievre—often compared to Trump—has sought to distance himself from the U.S. president. At a press conference on Tuesday, Poilievre emphasized, “I am not MAGA.”

“Canadian politics is being convulsed by the Trump government’s assertions about Canada’s future as he saw it, and secondly by the tariffs that were very puzzling to a lot of people given the depth of interdependence between the Canadian and American economies,” said Allan Tupper, a political science professor at the University of British Columbia.

Tupper added that Trudeau’s successor would need to be a skilled negotiator, particularly regarding tariffs. “It just may be a different kind of Canada to deal with. It’s going to be more assertive, more nationalistic, and more in charge of its destiny.”

Who are the leading candidates?

Mark Carney

One of the frontrunners in the race, Carney is a former governor of both the Bank of England and the Bank of Canada. His campaign has focused on clean energy, climate policies, and fostering economic growth.

Carney has emphasized his role in helping Canada manage its debt during the 2008 financial crisis and in navigating the British economy through Brexit. He has also advocated leveraging Canada’s natural resources to drive prosperity while positioning the country as a leader in clean energy.

Experts suggest Carney enjoys significant support from Liberal lawmakers and members of Trudeau’s cabinet. His financial expertise makes him a compelling candidate at a time when economic concerns are at the forefront.

“He’s very competent in economics, so with these tariffs, this economic war, a lot of people are supporting him,” said Charles-Etienne Beaudy, a political science professor at the University of Ottawa and author of Radio Trump: How he won the first time.

Carney has not shied away from addressing tensions with the Trump administration. Speaking to CNN in February, he stated, “Despite being insulted on multiple occasions by senior members of the administration, we are not going to reciprocate in those insults.”

Following the announcement of U.S. tariffs last month, Carney has strongly advocated for dollar-for-dollar retaliatory tariffs that would hurt the U.S. while minimizing the impact on Canada.

Chrystia Freeland

Freeland, a former journalist and another leading contender in the race, was one of Trudeau’s most high-profile cabinet ministers before her resignation.

Born to a Ukrainian mother in Alberta, Freeland studied at Harvard University and later worked as a journalist covering Russia and Ukraine. Entering politics in 2013, she quickly rose through the ranks of the Liberal Party, securing key cabinet positions under Trudeau.

She has prior experience negotiating with Trump on trade. As Canada’s foreign minister in 2018, she played a crucial role in renegotiating the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico—a deal that Trump has expressed interest in revisiting. She also clashed with the U.S. administration when it imposed tariffs on Canadian steel and aluminum imports.

Trump has personally targeted Freeland, calling her “totally toxic and not at all conducive to making deals.”

Her resignation in December signaled the beginning of Trudeau’s political decline.

On the campaign trail, Freeland has indicated support for a stricter immigration stance and has backed targeted retaliatory tariffs against the U.S.

Karina Gould

Gould, the youngest woman to ever serve as a Canadian minister, has branded herself as a candidate representing a generational shift in leadership. Launching her campaign in January, she stated that the Liberal Party “needs to embrace this shift too.”

Gould has proposed increasing corporate taxes on large businesses earning over $500 million annually. She argues that this policy would incentivize corporations to reinvest in productivity and business development, or else face higher taxes.

Her top priority, if elected, is resolving Canada’s trade dispute with the U.S. before calling for a general election. Like her competitors, she has taken a tough stance against Trump.

Frank Baylis

A businessman from Montreal, Baylis previously served as a lawmaker from 2015 to 2019. In February, he proposed constructing two pipelines to transport natural gas to Europe and Asia, reducing Canada’s economic reliance on the United States.

Baylis has warned against Canada’s heavy dependence on a single trading partner. He has also criticized Trudeau’s handling of Trump, arguing that Canadian leaders made missteps, including traveling to Mar-a-Lago to meet the U.S. president.

“Anybody that’s ever dealt with a bully successfully knows that you don’t give an inch,” Baylis told The Canadian Press last month.

As Canada prepares for new leadership, the next Liberal prime minister will face significant challenges—both at home and abroad. With the U.S. relationship in flux and economic uncertainty looming, the outcome of Sunday’s vote could shape the country’s trajectory for years to come.

U.S. President Donald Trump announced a temporary suspension of steep tariffs on Canada and Mexico on Thursday, March 6, 2025, offering a brief reprieve for businesses and consumers following strong backlash from global markets.

The decision came after the implementation of tariffs of up to 25% on imports from the two neighboring countries on Tuesday, March 4, 2025. The move had caused stock markets to drop significantly, with economists cautioning that such broad tariffs could slow U.S. economic growth and contribute to rising inflation in the near term.

Although the Republican president rejected claims that his trade policies were responsible for market instability, he opted to temporarily pause the tariffs on trade with Canada and Mexico that falls under a regional agreement.

Additionally, Mr. Trump reduced the newly imposed 25% tariff on Canadian potash, a crucial component in fertilizer. U.S. officials noted that their country does not produce large amounts of this resource, making the import levy particularly impactful.

The suspension of these tariffs, which will remain in effect until April 2, follows a similar move a day earlier when the White House announced temporary relief for automakers.

“These changes make conditions much more favorable for our American car manufacturers,” Mr. Trump said on Thursday, March 6, 2025.

However, he emphasized that significant updates would be announced on April 2, when he is expected to introduce “reciprocal tariffs” aimed at addressing what Washington perceives as unfair trade practices. He made it clear that Canadian and Mexican goods could still be subject to new levies after that date.

At the same time, Mr. Trump confirmed that tariffs on steel and aluminum, set to take effect next week, would remain unchanged.

‘Good’ Relationship With Mexico

Explaining the temporary relief for some Mexican imports, Mr. Trump stated on Truth Social that he made the decision “as an accommodation, and out of respect for” Mexican President Claudia Sheinbaum. He added, “Our relationship has been a very good one.”

His remarks about Mexico stood in stark contrast to his tense relations with Canadian Prime Minister Justin Trudeau.

On Thursday, March 6, 2025, Mr. Trudeau acknowledged that some industries might receive temporary exemptions but maintained that Canada would remain in a trade conflict with the U.S. for the foreseeable future.

“Our goal remains to get these tariffs, all tariffs removed,” Mr. Trudeau asserted.

‘Economic Reality’

Scott Lincicome, vice president of general economics at the Cato Institute, described Mr. Trump’s decision to ease tariffs on Mexico as “a recognition of economic reality.”

He explained that the move demonstrated an understanding of how tariffs disrupt supply chains, place financial burdens on consumers, and create uncertainty that markets dislike. “The market doesn’t like them and certainly doesn’t like the uncertainty surrounding them,” Mr. Lincicome told AFP.

Since beginning his second term in January, Mr. Trump has frequently threatened tariffs against both allies and adversaries.

He has defended tariffs on Canada, Mexico, and China as necessary measures to curb illegal immigration and combat the trafficking of fentanyl, a powerful synthetic opioid.

However, official data from both Canadian and U.S. government sources indicate that Canada contributes less than 1% of the fentanyl in the illicit U.S. supply. Furthermore, Canada is not a major source of illegal immigration, particularly in comparison to migration across the southern border with Mexico.

Meanwhile, China has rejected U.S. accusations regarding its role in fentanyl trafficking, asserting that the issue is a domestic matter for the U.S. and that tariffs will not address it.

Inflation and Trade Deficit Concerns

U.S. Treasury Secretary Scott Bessent dismissed concerns on Thursday, March 6, 2025, that Mr. Trump’s tariffs would drive up inflation, stating that any effect on prices would likely be temporary.

Mr. Trump has consistently portrayed tariffs as a tool for generating government revenue and correcting trade imbalances.

New government data released on Thursday, March 6, 2025, showed that the U.S. trade deficit had reached an all-time high in January.

The Commerce Department reported that the overall trade deficit of the world’s largest economy surged by 34% to $131.4 billion, driven by a sharp increase in imports.

Analysts suggested that a significant portion of the rise in the trade deficit was due to increased gold imports. However, data also indicated that many businesses had boosted their imports in anticipation of potential new tariffs.

A $53 billion (£41.4 billion) reconstruction initiative, seen as a counter to former U.S. President Donald Trump’s idea of “taking over Gaza” and relocating over two million Palestinians, has been endorsed by Arab leaders at an emergency summit held in Cairo, Egypt.

“The Egypt plan is now an Arab plan,” declared Ahmed Aboul Gheit, secretary general of the Arab League, following the prolonged meeting.

Without directly mentioning Trump’s proposal, Aboul Gheit emphasized the unified Arab stance against any form of Palestinian displacement, whether voluntary or forced.

Egypt developed a comprehensive blueprint, encapsulated in a 91-page glossy document filled with images depicting green neighborhoods and grand public structures, aiming to provide an alternative to a U.S.-led scheme dubbed the “Middle East Riviera,” which had sparked widespread alarm across the Arab world and beyond.

The new plan extends beyond real estate development, focusing on political solutions and the rights of Palestinians.

Egyptian President Abdul Fattah al-Sisi, in his opening speech, urged for a simultaneous political process alongside the reconstruction effort, advocating for a two-state solution—a Palestinian state coexisting with Israel. This framework is widely recognized by Arab nations and much of the international community as the only viable resolution to the conflict, yet it remains firmly opposed by Israeli Prime Minister Benjamin Netanyahu and his allies.

Under this new proposal, Gaza would temporarily be administered by a “Gaza management committee under the umbrella of the Palestinian government,” composed of skilled technocrats.

The document does not clarify what role, if any, Hamas would have in this administration. It only briefly alludes to militant groups as an “obstacle” and suggests that their presence would be addressed if the fundamental causes of the conflict with Israel were resolved.

Opinions among Arab states vary regarding Hamas’ future; some call for its complete dissolution, while others believe that decision should be left to the Palestinian people. Reports suggest that Hamas has acknowledged it will not participate in governing Gaza but remains adamant that it will not disarm.

Netanyahu, who has called Trump’s plan “visionary,” has ruled out any future governance by both Hamas and the Palestinian Authority.

The critical issue of security is addressed by calling for the deployment of international peacekeepers under the United Nations Security Council.

A large-scale international conference is scheduled for next month to secure the necessary funds for the ambitious reconstruction effort.

Wealthy Gulf nations have signaled a willingness to contribute to the massive financial requirement. However, potential donors remain hesitant, unwilling to invest unless assured that their contributions will not be obliterated in another conflict.

The fragility of the current ceasefire, now appearing to be at risk of collapse, only heightens this uncertainty.

The Arab reconstruction plan outlines a three-phase process, beginning with an initial six-month “early recovery stage” focused on clearing the extensive debris and unexploded ordnance. The following two phases are expected to span several years.

During the early stage, approximately 1.5 million displaced Palestinians would be housed in temporary container units. The proposal’s accompanying images showcase these units as well-constructed homes surrounded by landscaped environments.

Trump continues to question, “Why wouldn’t they want to move?” His characterization of Gaza as a “demolition site” underscores the devastation in the territory, with the United Nations estimating that 90% of homes are either damaged or destroyed.

Essential services such as schools, hospitals, sewage infrastructure, and electricity grids have been almost entirely obliterated.

Trump further stirred controversy by posting an AI-generated video on his Truth Social account, depicting a gleaming, luxurious vision of Gaza. The video featured a golden statue of himself, Elon Musk snacking on a beach, and shirtless images of Trump and Netanyahu basking in the sun—all set to a catchy tune proclaiming, “Trump Gaza is finally here.”

“They had President Trump in mind,” observed a Western diplomat who attended a briefing on Egypt’s plan at the foreign ministry in Cairo. “It’s very glossy and very well-prepared.”

Egypt’s proposal reportedly draws from a broad array of expertise, incorporating insights from World Bank specialists on sustainability and Dubai developers on hospitality.

Additionally, the blueprint reflects lessons learned from the rebuilding of cities devastated by war, including Hiroshima, Beirut, and Berlin. Egypt’s own experience in constructing its ambitious “New Cairo” project, a costly new administrative capital emerging from the desert, has also played a role in shaping the design.

Trump has stated that he will not “force” his vision on anyone but insists that his plan is “the one that really works.”

Now, it is up to Arab states and their allies to demonstrate that their proposal is the definitive solution.

The United Nations, an institution that has endured for nearly eight decades, now faces an existential crisis as the Trump administration continues its threats to significantly cut funding and withdraw from various UN agencies that primarily offer humanitarian aid worldwide.

Tech billionaire Elon Musk, who wields considerable influence over President Trump, has advocated for the U.S. to leave both the North Atlantic Treaty Organization (NATO) and the United Nations. Responding to a right-wing political commentator’s post suggesting, “It’s time” for the U.S. to exit NATO and the UN, Musk simply wrote, “I agree.”

Widely described as Trump’s most powerful advisor, Musk has aggressively targeted the U.S. federal bureaucracy in his role as the head of the Department of Government Efficiency (DOGE). This has raised concerns about whether the UN will be his next target.

The threat to the UN has gained momentum with a group of Republican lawmakers recently introducing a bill calling for the U.S. to withdraw from the organization. They argue that the UN does not align with Trump’s “America First” agenda.

Kul Chandra Gautam, a former UN assistant secretary-general and former Deputy Executive Director of UNICEF, told IPS that if any proof was needed of the Trump-Musk administration’s “mean & malevolent intentions,” this is it.

As part of its cost-cutting measures, the U.S. has decided to terminate funding for several critical global programs, including those targeting polio, HIV/AIDS, malaria, and nutrition. Many of these initiatives have been implemented by reputable international non-governmental organizations (INGOs), UN agencies, governments, and private contractors known for their efficiency and success. Previously, the State Department had deemed these programs essential and granted them waivers to continue receiving funding.

“Here is a case of throwing the baby with the bathwater—millions of children and women cruelly condemned to become sick, malnourished, and dying to satisfy the ego and hubris of the world’s richest man and a would-be Master of the Universe,” Gautam said.

He further noted that this move shattered the illusion of a “waiver” for essential and lifesaving projects, exposing the lack of credibility in Trump and Senator Marco Rubio’s assurances that crucial humanitarian efforts would be protected.

UN Secretary-General Antonio Guterres addressed the crisis in a press briefing last week, expressing deep concern.

“I want to start by expressing my deep concern about information received in the last 48 hours by UN agencies—as well as many humanitarian and development NGOs—regarding severe cuts in funding by the United States. These cuts impact a wide range of critical programs,” Guterres said.

He highlighted the far-reaching consequences of the funding reductions, affecting areas ranging from lifesaving humanitarian aid to support for communities recovering from war or natural disasters, as well as development efforts, counterterrorism initiatives, and the fight against illicit drug trafficking.

“The consequences will be especially devastating for vulnerable people around the world,” he warned.

Andreas Bummel, executive director of Democracy Without Borders, told IPS that while calls for a U.S. withdrawal from the UN have periodically emerged from the Republican Party, Trump’s position remains uncertain.

“While it seems unlikely, it cannot be ruled out that Trump will support this at some point or at least use the scenario to build up diplomatic pressure,” Bummel said.

He pointed out that the U.S. stands to lose more than it gains from such a move. However, Trump’s decisions are not always rational or aligned with America’s best interests. “Certainly, it can be expected that the U.S. first will reduce or threaten to reduce its UN contributions,” he added.

Currently, the U.S. provides 22 percent of the UN’s budget through assessed contributions. The organization’s 2024 regular and peacekeeping budget stands at $3.59 billion.

When asked whether the U.S. can unilaterally cut its contributions, Ambassador Anwarul K. Chowdhury of Bangladesh, a former UN Under-Secretary-General and High Representative, explained that it cannot.

“No, the U.S. cannot do that unilaterally,” Chowdhury told IPS. He clarified that changes in contributions are negotiated in the Committee on Contributions and must be approved by the Fifth Committee, typically by consensus, before being confirmed by the UN General Assembly.

He pointed out that U.S. Ambassador Richard Holbrooke played a crucial role in 2000-2001 in securing an agreement to lower the U.S. contribution from 25% to 22%, which required negotiations with all member states.

Because UN contributions must total 100%, any reduction by one country must be offset by increases from others. However, if the U.S. withdraws from a UN entity, it would no longer be obligated to pay.

“In cases of pending contributions, negotiations would follow,” Chowdhury said. He recalled that in the past, the U.S. has used tactics such as delaying full payments or making partial contributions to exert financial pressure on the UN.

In 2000, Ambassador Holbrooke convinced Senator Jesse Helms, chairman of the Senate Foreign Relations Committee, to agree to clear U.S. arrears to the UN in exchange for a reduction in the country’s contribution rate.

When asked how much money the UN stands to lose and which programs would be affected, UN Spokesperson Stephane Dujarric told reporters on February 28 that the situation remains chaotic.

“We have been informed, and this started a while back but intensified over the last few days, that various agencies have gotten letters. We don’t have a ballpark figure, because this has been done in a bit of a… frankly, in a chaotic way,” Dujarric said.

He provided specific examples of the impact, stating that the UN Office on Drugs and Crime (UNODC) has had approximately 50 projects terminated. The agency’s Mexico office, which works to curb fentanyl trafficking, may have to shut down, affecting programs in Central America and the Darien Gap that focus on combating human trafficking.

“The IOM’s (International Organization for Migration) programs in the Democratic Republic of Congo (DRC) have basically shut down. Their programs in Haiti are at risk. And our FAO (Food and Agriculture Organization) colleagues received 27 termination letters, and the list goes on,” he said.

Guterres has been in contact with the heads of major humanitarian and development agencies to discuss the situation and assess the scale of the crisis. However, Dujarric described the overall outlook as grim.

Agencies are attempting to reach out to their U.S. government counterparts for clarification, but those efforts have yielded little engagement.

“So, we’re continuing to try to seek some clarity. But I can tell you that for our side, our priority and our focus and our determination remain on doing everything we can to continue to provide life-saving aid to those who urgently need it,” Dujarric stated.

He emphasized that the U.S. has been a critical and founding member of the UN for decades, with American generosity helping to lift millions out of poverty, eradicate diseases, and promote global stability.

“The generosity of the American people has helped to lift millions out of poverty, has helped to eradicate diseases, has frankly helped to build a more prosperous and safer world for which Americans benefit and the whole world benefits. We have tried at a fairly senior level to engage, especially on this issue, but I can’t say we’ve detected much interest in engaging on this issue,” he noted.

When asked whether the UN is considering cost-cutting measures as a contingency plan, Dujarric acknowledged that the organization is exploring ways to diversify funding sources and increase efficiency.

“Our colleague, Tom Fletcher, the Coordinator of Humanitarian Affairs, who chairs what we call the Interagency Committee—which brings together UN agencies and NGOs—his message has also been clear, which is that we have to figure out how we can save money,” Dujarric said.

He added that efforts are underway to eliminate inefficiencies, overlaps, and bureaucratic turf wars, recognizing that any organization can find ways to work more effectively.

The West faces a “crossroads in history,” British Prime Minister Keir Starmer declared at a crucial summit in London on Sunday. The gathering aimed to shift control of negotiations over the Russia-Ukraine war away from the United States and establish a unified European approach, particularly as tensions between Kyiv and Washington reached a breaking point.

“This is not a moment for more talk. It’s time to act,” Starmer emphasized after an intense day of diplomacy in London, where European leaders worked to pave the way for a ceasefire in Ukraine.

The urgency of the meeting, held at Lancaster House, escalated after U.S. President Donald Trump criticized Ukrainian President Volodymyr Zelensky in the Oval Office. The encounter alarmed Western allies while seemingly benefiting Moscow. Zelensky and numerous European leaders attended the summit, a critical moment given the heightened anxieties surrounding the conflict.

Starmer revealed that he was collaborating with France and a select group of nations to develop a proposal to halt the hostilities, which would then be presented to the United States.

French President Emmanuel Macron outlined the framework of this initiative in an interview with Le Figaro, stating that France and the UK had suggested a one-month limited ceasefire in Ukraine.

The initial phase of this Franco-British alternative peace plan would enforce a temporary truce covering air, sea, and energy infrastructures, Macron explained to the French publication. The next stage, he added, would address ground forces. CNN sought comments from Downing Street regarding the proposal.

This initiative appears to rival the negotiation process Trump’s administration launched with Russia the previous month. It also acknowledges the possibility that direct negotiations between Trump and Zelensky could reignite tensions rather than resolve them.

Nevertheless, securing American backing remains essential. During a Sunday press conference, Starmer reinforced this notion, stressing that the U.S. was “not an unreliable ally.” His reassurance came after Trump’s heated dispute with Zelensky deeply unsettled European leaders.

Sunday’s summit aimed to reignite momentum in peace efforts that had been making progress throughout the week, only to collapse after Friday’s confrontation. The meeting underscored European unity, as multiple leaders pushed back against the perception that the continent was merely a spectator in the ongoing negotiations.

“In the end, a deal will have to involve Russia, of course it will, but we can’t approach this on the basis that Russia dictates the terms of any security guarantee before we’ve even got to a deal – otherwise, we won’t make any progress at all,” Starmer asserted.

The UK and France have been working to assemble a “coalition of the willing” that would deploy to Ukraine once an agreement is secured. “If a deal is done, it has to be a deal that is then defended,” Starmer said.

Zelensky commended the summit on social media platform X, stating, “Europe’s unity is at an exceptionally high level, one that has not been seen in a long time.” Separately, he asserted that any potential peace agreement should begin with a prisoner exchange “and the return of children.” This step, he argued, would “demonstrate Russia’s true intention for peace.”

Macron highlighted the advantages of the Franco-British ceasefire proposal, noting its straightforward monitoring process. “We know how to measure it,” he stated. “In the event of a ceasefire, it would be very difficult to verify that the front is respected.”

Macron, who Le Figaro reported had spoken with Trump on Friday, clarified that “no European troops” would be deployed to Ukraine “in the coming weeks.” The French newspaper also reported that Macron remained skeptical about any ceasefire agreement negotiated solely between the U.S. and Russia, arguing that he was “convinced that Vladimir Putin will seek to humiliate Ukraine.”

When asked whether he was aware of the proposal, Zelensky responded that he was “aware of everything” but did not explicitly state whether he supported the ceasefire plan.

‘Nobody Wants to See That’

Zelensky received a warm reception from Starmer on Saturday, a stark contrast to the tense welcome he experienced at the White House. Additionally, King Charles met with the Ukrainian leader at his Sandringham estate on Sunday.

The earlier confrontation between Trump, Vice President J.D. Vance, and Zelensky, where they accused him of being ungrateful for American military aid and of risking “World War III” by resisting Russia’s invasion, cast a shadow over the weekend’s diplomatic efforts.

The episode encapsulated Europe’s worst fears. “Nobody wants to see that,” Starmer remarked to the BBC on Sunday. He disclosed that he immediately began reaching out to leaders after witnessing the heated exchange, adding, “My driving purpose has been to bridge this.”

Zelensky returned to Kyiv with more than just diplomatic assurances. On Saturday, Britain announced a plan to expedite$2.8 billion in loans to Ukraine. According to the UK government, the first installment of the funding would be released the following week.

In a Telegram post on Saturday, Zelensky stated, “The money will go toward the production of weapons in Ukraine. This is the fair way: the one who started the war should pay.” He further noted that “the loan will strengthen our defense capabilities.”

On Sunday, Starmer introduced another agreement permitting Ukraine to use £1.6 billion ($2 billion) in UK export finance to procure more than 5,000 advanced air defense missiles, which would be manufactured in Belfast.

‘A Once-in-a-Generation Moment’

“We gather here today because this is a once-in-a-generation moment for the security of Europe, and we all need to step up,” Starmer declared at the summit’s opening.

Downing Street outlined three primary objectives for the meeting: addressing Ukraine’s immediate requirements, securing a “lasting deal” to end the conflict, and formulating robust security guarantees.

“I hope you know that we are all with you and the people of Ukraine for as long as it takes, everyone around this table,” Starmer reassured Zelensky in his opening remarks.

The summit brought together key global figures, including French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau, and leaders from various European nations, along with representatives from the European Union and NATO.

Italian Prime Minister Giorgia Meloni emphasized the need for unity during her discussion with Starmer on Sunday, stressing that it is “very, very important that we avoid the risk that the West divides” over Ukraine.

Both Starmer and Meloni are expected to play crucial roles in advancing the peace process. Their established relationships with Trump may prove instrumental in persuading him to take European proposals seriously.

Europe finds itself in turmoil following a tense confrontation between former U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the White House. Reports indicate that the Trump administration is considering halting all military aid to Ukraine, raising concerns across European nations.

Norway, home to the world’s largest sovereign wealth fund valued at €1.7 trillion, has benefited from an estimated €109 billion in war-related profits due to surging gas prices in 2022 and 2023. Despite its vast financial resources, Norway has contributed only €3.35 billion to Ukraine’s war effort. This figure was strongly criticized by leading Swedish and Danish newspaper editors, who described the amount as “pathetic” and “reprehensible.” In comparison, Sweden and Denmark have donated €5.41 billion and €8.05 billion, respectively.

Liberal Party leader Guri Melby emphasized the need for increased contributions, stating on Saturday, “Norway is one of the few countries that has large amounts of money readily available, and we must therefore multiply our support for Ukraine immediately.”

Norway’s former Conservative Prime Minister, Erna Solberg, echoed the call for swift action. She urged a significant and rapid increase in aid, adding, “The government can safely assume there is will in Parliament to give more.”

In response to growing pressure, the Liberal Party and the Socialist Left Party have requested an emergency parliamentary session. However, Euractiv reports that they are now awaiting a formal proposal from the government before proceeding further.

Meanwhile, Sylvi Listhaug, leader of the conservative Progress Party—Norway’s second-largest party according to recent polls—proposed increasing defense spending to 3% of GDP by 2030. At present, Norway allocates approximately 2% of its GDP to defense.

The leader of the Green Party, which currently polls at 2.7%, took an even more ambitious stance, suggesting that Norway should commit €85.5 billion to support Ukraine.

A spokesperson from Norway’s foreign ministry defended the country’s contributions, asserting, “Norway is among the largest donors to Ukraine. We have so far committed at least NOK 167 billion (€14.7 billion) in support until 2030.” The spokesperson also emphasized the importance of long-term investments, noting that both Ukraine and NATO allies value the predictability of Norway’s assistance. “For 2025, based on a cross-party agreement in Norway’s parliament, we have so far pledged and allocated 35 billion NOK.”

Norwegian Prime Minister Jonas Gahr Støre assured that additional support measures are forthcoming. “We will present a proposal to increase Ukraine support for parliament soon,” he said. Støre is also set to participate in a meeting of European leaders in London tomorrow.

Calls to Utilize Sovereign Wealth Fund

Since 2001, Norway has adhered to a fiscal rule limiting annual withdrawals from its sovereign wealth fund to 4%, later reduced to 3%. This policy was established under the leadership of Jens Stoltenberg’s first cabinet and has enjoyed broad political backing. Stoltenberg, who previously served as NATO’s Secretary General, now holds the position of Norway’s finance minister, coinciding with renewed scrutiny of the budget rule.

Amid escalating security concerns, discussions on using the sovereign wealth fund to bolster European defense and support Ukraine have gained traction in Norway. One proposal suggests reallocating approximately €300 billion of the fund’s €450 billion in liquid bonds into European defense bonds, with the stipulation that the funds be used exclusively to enhance Europe’s defense capabilities.

On Friday, Solberg reinforced the argument for increased spending, stating that Norway must leverage its oil wealth to strengthen its own defense. Some of her party’s high-ranking members had previously advocated for tighter regulations on how the fund’s money should be allocated. “Peace is more important than shortsightedness and inflation,” she asserted.

However, Stoltenberg cautioned against altering the budgetary framework, warning on February 7, “It is a dangerous idea to break the budgetary rule to give more money to Ukraine.”

Norway’s Expansive Financial Resources

Despite adhering to its fiscal guidelines, Norway remains in a strong financial position to expand its aid commitments.

Sveinung Rotevatn, deputy chair and financial policy lead for the Liberal Party, revealed that a proposal currently under discussion in Norway’s Parliament, the Storting, aims to increase Ukraine support by an additional 100 billion Norwegian kroner this year. If approved, this would elevate Norway’s financial assistance to Ukraine for 2025 from €3 billion to €11.5 billion.

Norway’s Foreign Ministry declined to specify further details on potential increases in aid, instead referring to Prime Minister Støre’s recent statement on the matter.

Rotevatn underscored the urgency of the situation, declaring, “It has become unequivocally clear that all of Europe must shift gears in our support and policy towards Ukraine and to ensure security in Europe.”

Minister of Foreign Affairs Espen Barth Eide reinforced this stance, asserting, “All other policies we pursue assume that we are a free and independent country and that we have a functioning international world order.”

As European nations grapple with the potential consequences of the U.S. withdrawing military support from Ukraine, Norway faces increasing pressure to step up its financial commitments. With vast sovereign wealth at its disposal, the question remains: Will Norway heed the calls for greater contributions, or will it continue to adhere to its longstanding fiscal restraints?

Even before the dramatic Oval Office confrontation between President Donald Trump and Ukrainian President Volodymyr Zelenskyy, relations between the U.S. and Europe were growing increasingly strained.

Following Friday’s diplomatic breakdown between Trump, Zelenskyy, and Vice President JD Vance, the future of the trans-Atlantic alliance, which has endured for eight decades, appears uncertain.

In a striking rebuke to Trump, European leaders expressed their unwavering support for Zelenskyy. Trump had accused Zelenskyy of being “disrespectful” and “gambling with World War III” by continuing Ukraine’s resistance against Russia’s invasion.

European Commission President Ursula von der Leyen praised Zelenskyy’s resolve, posting on X, “Zelenskyy’s dignity honors the bravery of the Ukrainian people. Be strong, be brave, be fearless. You are never alone, dear President Zelenskyy. We will continue working with you for a just and lasting peace.”

Germany’s likely next leader, Friedrich Merz, reaffirmed his stance, emphasizing that “we must never confuse aggressor and victim in this terrible war.” French President Emmanuel Macron also voiced strong support, stressing the importance of respecting the Ukrainians “fighting for their dignity, their independence, for their children and for the security of Europe.”

Perhaps the most striking statement came from European Union foreign minister Kaja Kallas, who asserted, “Today it became clear that the free world needs a new leader. It’s up to us, Europeans, to take this challenge.”

However, not everyone sided against Trump. Hungarian Prime Minister Viktor Orban characterized the tense Oval Office meeting as “difficult” but commended Trump, saying he “stood bravely for peace.” Meanwhile, some observers argued that Zelenskyy escalated tensions unnecessarily by publicly challenging a far more powerful negotiating partner upon whom Ukraine heavily depends.

For Zelenskyy’s supporters, these European leaders’ strong backing reflects a belief that Ukraine’s struggle is not just a localized war but part of a broader hybrid conflict. They contend that Russia’s aggression extends beyond the battlefield, encompassing cyberattacks on Western democracies. They fear that granting Moscow a symbolic victory in Ukraine could embolden further expansionist moves. This concern is heightened by accusations that Trump is undermining the alliance by pressuring U.S. allies while fostering closer ties with Russian President Vladimir Putin, who is widely regarded in Europe as a war criminal.

This growing unease explains why U.S.-Europe relations were fraying even before the recent diplomatic debacle. Over the past several weeks, there have been increasing indications that European powers are seeking greater autonomy from their long-standing reliance on Washington.

Following his center-right Christian Democratic Union party’s victory in Germany’s elections, Merz signaled a shift in priorities. “My absolute priority will be to strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the U.S.,” he declared. He also questioned whether NATO’s upcoming June summit would maintain the alliance in its current form or require the rapid establishment of an independent European defense structure.

His remarks were particularly striking, given his traditionally pro-American stance. They suggested not only a willingness to boost defense spending—something Trump has long demanded—but also a desire for Europe to chart its own course. “I never thought I would have to say such a thing on a television program,” he admitted.

Yet, many questions remain about what this European military independence would entail. Would it require Europe to match U.S. defense spending within NATO? Leaders like Macron and British Prime Minister Keir Starmer have expressed no desire to reduce cooperation with Washington. Alternatively, would the U.S. gradually withdraw from its European commitments altogether?

Regardless of the approach, the challenges are immense. The U.S. military’s deep integration into Europe means that its removal would leave critical gaps in air defense, military satellites, and cyber capabilities. Sven Biscop, a director at the Brussels-based Egmont Institute, warned that such a shift would create “huge holes” in European security infrastructure.

Since World War II, the U.S. has provided military protection to Europe in exchange for influence across the continent. Unraveling this interdependence would require hundreds of billions of dollars—costs that would likely fall on European taxpayers already struggling with a cost-of-living crisis and cuts to public services.

Last year, the European Union’s collective defense budget stood at $457 billion, far below the U.S. defense budget of $968 billion. Even Russia’s military spending, at $462 billion, surpassed that of the EU, despite Russia’s smaller economy. Since its invasion of Ukraine three years ago, Moscow has refocused its entire economy on military production.

Achieving full European military deterrence without U.S. support would take a minimum of five years, according to Luigi Scazzieri, assistant director at the London-based Centre for European Reform. “You can probably get something that fills a large part of the gap in two to three years—but only with a lot of urgency,” he added.

Despite these logistical hurdles, Merz’s statements reflect an acknowledgment that trans-Atlantic relations are entering a new phase. Sophia Besch, a senior Europe fellow at the Carnegie Endowment for International Peace, noted that the Trump administration “no longer acknowledges shared community of values, shared interests, and puts forward a very ‘great power competition’ view of the world, where Europe is a side player and Russia is an equal.”

Merz is not alone in his call for European self-reliance. Macron has long advocated for Europe to reduce its dependence on Washington. In response to Merz’s remarks, Macron declared, “We are experiencing a historic moment. It can lead to an unprecedented Franco-German agreement.”

Biscop believes that European leaders must act swiftly to organize this shift in defense strategy. He suggested forming a European “war Cabinet” to coordinate efforts, potentially including leaders such as Britain’s Starmer, Polish Prime Minister Donald Tusk, NATO Secretary-General Mark Rutte, and the EU’s von der Leyen.

“They need agility and they need to move fast,” Biscop urged. “Even faster on Ukraine—because the Americans and Russians are already negotiating.”

As tensions between Washington and Europe continue to rise, the question remains whether Europe can truly break free from its historical reliance on U.S. military and economic support. For now, leaders across the continent appear determined to chart a new course—one that may redefine the future of the trans-Atlantic alliance.