President Donald Trump enacts stiff tariffs on imports from Mexico, Canada, and China, sparking a trade war with America's North American neighbors. Outgoing Canadian Prime Minister Justin Trudeau retaliates with a 25% tariff on USD 155 billion worth of American imports, while Mexican President Claudia Sheinbaum vows to respond with tariffs of her own. The move has potential consequences for the global economy and may hinder Trump's efforts to lower consumer prices, despite his claims of protecting Americans and curbing illegal activity.
Trade War Erupts Between US and Canada
Background
On June 1, 2018, President Donald Trump announced tariffs on imports of steel and aluminum from Canada, Mexico, and the European Union. The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962, which allows the President to restrict imports for reasons of national security.
Canada and Mexico retaliated by imposing tariffs on a range of US exports, including steel, whiskey, and dairy products. The US responded by adding tariffs to Mexican avocados and Canadian cars.
The trade war between the US and Canada escalated further on July 6, 2018, when Canada imposed a 25% tariff on USD 155 billion worth of US imports. The Mexican government also vowed to respond with tariffs of its own.
Consequences
The trade war between the US and Canada has had a number of negative consequences for both countries.
FAQs
President Trump imposed tariffs on Canada under Section 232 of the Trade Expansion Act of 1962, which allows the President to restrict imports for reasons of national security.
Canada is retaliating by imposing tariffs on a range of US imports, including steel, whiskey, and dairy products.
The trade war between the US and Canada could have a number of negative consequences, including economic growth, job losses, price increases, and political tensions.
There are a number of things that can be done to resolve the trade war, including negotiating a new trade deal, lifting the tariffs, or agreeing to a truce.
The US and Canada have a history of trade disputes, including the Softwood Lumber Dispute and the Auto Pact Dispute. However, the current trade war is the most severe in recent history.
During her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class. However, this exemption only applies if a taxpayer takes relief under various sections of the income tax act. No major announcements were made for the railway sector, as the budget focuses more on increasing allocations for railways over highways.
With the announcement of the new tax regime, Finance Minister Nirmala Sitharaman has announced significant changes to the slabs and rates to benefit all taxpayers. Under the new system, taxpayers with normal income up to Rs 12 Lakhs will not have to pay any taxes, and those with income up to Rs 4 Lakhs will be exempted. The time limit for filing returns has also been extended to 4 years.
The Bharatiya Janata Party (BJP) has launched an aggressive campaign targeting the Aam Aadmi Party (AAP) ahead of the February 5 elections in Delhi. The BJP is projecting itself as the only solution to the capital's issues, accusing the AAP government of mismanagement and neglect in several key areas. The BJP is promoting a "double-engine government" with a BJP-led administration in both Delhi and the Centre, claiming it will ensure faster and more effective development. The AAP, BJP, and Congress are all vying for victory in the upcoming elections.
Indian Prime Minister, Shri Narendra Modi, inaugurated the 2550th Bhagwan Mahaveer Nirvan Mahotsav in New Delhi and paid tribute to the Jain saint by releasing a commemorative stamp and coin. He praised the youth for their commitment towards the values of Bhagwan Mahaveer and stated that India will continue to celebrate these values for thousands of years. Modi also acknowledged the importance of spiritual teachings in a world plagued by numerous wars. He expressed his belief that India's identity lies in its pride and that modernity is its body and spirituality its soul.
Parliamentarians from various parties have hailed the Union Budget 2025 for its inclusive development approach and focus on key areas such as infrastructure and economic growth. Special attention has been given to the state of Bihar, with MPs expressing gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their commitment to a 'Viksit Bharat'. While critics have linked these provisions to the upcoming Bihar elections, former Union Minister Ravi Shankar Prasad defended the budget, stating that the state deserves these developments regardless.
Zakia Jafri, the wife of former Congress MP Ehsan Jafri who was killed in the Gujarat riots, passed away at the age of 86. She was a determined activist who fought for justice for the victims of the post-Godhra riots and filed a legal battle in the Supreme Court to hold top political leaders accountable for their role in the violence. Her passing is a loss for the human rights community and her legacy will be remembered by family, friends, and the nation.
Zakia Jafri, a survivor of the Gulberg Society massacre during the 2002 Gujarat riots, has died at the age of 86 due to age-related issues. She has been a prominent figure in the fight for justice for the victims of the riots and had filed a plea in the Supreme Court against the clean chit given to then Gujarat CM Narendra Modi. The FM has announced income tax rebates and lower tax rates for various income categories.
In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced a revamp of the existing PM SVANidhi scheme for street vendors, aimed at boosting incomes for the urban poor. The revamped scheme will offer enhanced loans from banks, UPI-linked credit cards with a limit of Rs 30,000, and capacity-building support. The minister also announced the setting up of an 'Urban Challenge Fund' of Rs 1 lakh crore and an allocation of Rs 10,000 crore for 2025-26 to finance and implement proposals for cities as growth hubs.
Finance Minister Nirmala Sitharaman's Union Budget 2025-26 announcement has sparked excitement in Bihar as the state received noteworthy developments, including Greenfield airports, aid for farmers, and a boost in economic progress. As Assembly elections approach, netizens have taken to social media with hilarious memes and witty reactions, including Swiggy's clever post celebrating "Bihar supremacy." One user even humorously shared an edited image depicting a futuristic Bihar under the Budget's influence.