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CIUDAD JUÁREZ, Mexico (AP) — As soon as the sun glints over miles of border fence dividing the United States and Mexico, the engines of cargo trucks packed with auto and computer parts roar to life along border bridges and bleary-eyed workers file into factories to assemble a multitude of products geared toward the U.S. market. For more than half a century, this daily rhythm has helped fuel the heartbeat of a transnational machine that generated more than $800 billion in trade between the U.S. and Mexico in 2024 alone. Over the past year, however, President Donald Trump’s threatened 25% tariffs against Mexico and Canada have plunged manufacturing hubs all along the northern Mexican border into limbo, a state that persists despite a one-month reprieve to which Trump agreed on Monday. Tariffs would cripple Mexican border economies that are reliant on factories churning out products for the U.S. — auto parts, medical supplies, computer components, myriad electronics — and likely thrust the country into a recession, economic forecasters have warned. Some workers wonder how much longer they’ll have jobs, while business leaders say the uncertainty has already led many investors to start tightening their purse strings. “It’s a conflict between governments and we’re the ones most affected,” said 58-year-old truck driver Carlos Ponce, leaning against his rig at the customs border crossing between Ciudad Juárez and El Paso, Texas. “Tomorrow, who knows what will happen?” Ponce, who was driving a truck full of car shock absorbers, said he’s spent the past 35 years moving goods across the border, just as his father did before him. Now, he’s unsure how much longer that will last. Manufacturing in export-oriented assembly plants known as maquiladoras are the heart of Ciudad Juárez’s economy, with 97% of its goods going to the U.S., according to figures from Mexico’s Economic Ministry. The factories were born in the 1960s in an attempt to boost economic development in northern Mexico and lower prices for U.S. consumers. The maquiladora program later took off after the North American Free Trade Agreement, or NAFTA, was signed in 1994. The agreement was supplanted by a similar pact, the United States-Mexico-Canada Agreement, or USMCA, negotiated between the three countries during Trump’s first term. Today, neon signs with the dollar-to-peso exchange rate flash across the city, a reminder of the close ties binding both sides of the border. “Everything that happens in the United States: its economic, social policy … directly affects us because companies here in Mexico depend on what they sell in the United States,” said Thor Salayandia, head of his family’s auto-parts manufacturing facility in Ciudad Juárez. “The United States also needs Mexico to keep manufacturing, but they’re not seeing things like that.” This week, workers and business leaders alike breathed a sigh of relief when Mexican President Claudia Sheinbaum announced she had negotiated with Trump to delay tariffs one month. “Now, we’re buying time,” Salayandia said. Workers here assemble everything from auto parts to computer panels to T-shirts emblazoned with the American flag, logos of popular U.S. football teams and slogans such as “Proud to be a federal employee.” Parts can cross the border multiple times before the final product is sold to U.S. consumers. That economic interdependence has left many in the city struggling to imagine a future without it. One U.S. company said it would likely have to move part of its manufacturing in the city to the U.S., but at a sharp cost. Antonio Ruiz, a compliance officer at Tecma, a U.S. firm that helps foreign companies set up shop along the border, said his was among a number of businesses to call emergency meetings over the weekend as economic forecasters warned that the tariffs could drive Mexico into a recession. “It’s very difficult to be prepared for something that has never happened before,” Ruiz said. “As much as you want to prepare for it, the best you can do is prepare to brace yourself in the short term.” Salayandia and economists warn that any sort of tax could lead to cascading unemployment and rising prices on both sides of the border. In Mexico, they say, it could also spur a rise in violence in border areas by pushing the unemployed into the hands of drug cartels, as well as an increase in Mexican migration to the U.S. Manuel Sotelo, a leader of Mexico’s National Chamber of Freight Transportation who owns a fleet of trucks that cross the border every day, sees the tariff threats as more of a political power move than a future economic reality. “Both countries would be paralyzed,” said Sotelo, who sat at a desk covered with local newspapers carrying bold headlines on the tariffs, a Trump bobblehead positioned behind him. “Let’s say he did slap a 25% tariff (on Mexico), what would they do during the Super Bowl without avocados?” On the other hand, Sotelo acknowledges that the tariff talk has already inflicted some damage. He and other business leaders say that over the past year they’ve watched investment dip in Ciudad Juárez because of political uncertainty, as investors hesitate to funnel their money into businesses that could collapse with the stroke of a pen in Washington. While Trump’s election has been the primary driver of that uncertainty, June elections in Mexico and a controversial judicial reform carried out by Mexico’s governing party have added to it. Sotelo said he saw a 7% drop in business last year, and only expects that to continue until lingering tariff threats are resolved. One collective of maquiladoras in the city says it has seen at least three factories halt production. “Every time we hear this discourse from political leaders, the people running our governments, it sends shock waves through the border,” Salayandia said. “Because the border is a global thermometer. Our products go all over the world. Those companies will go look in other parts of the world where they offer conditions to keep competing.” Associated Press journalist Fernanda Pesce contributed to this report.

MANKATO, Minn. (AP) — Contractors on Wednesday blew up the remnants of a damaged southern Minnesota bridge that almost collapsed last summer after a bout of heavy rain that prompted a federal emergency declaration for the area near Mankato. Explosives were used to destroy the beams of County Road 9 Bridge, Blue Earth County officials said in a Facebook post. Video shows synchronized blasts followed by eruptions of billowing black and beige clouds as huge sections of the bridge crashed into the frozen Blue Earth River below. County commissioners last year voted to replace the bridge and remove the nearby Rapidan Dam, both of which were at risk of crumbling after last year’s deluge. Residents had used the roughly 40-year-old bridge to commute across the dam from rural patches of land to nearby towns. Officials anticipate a yearslong rebuilding process. The river’s water levels rose dramatically in late June and early July after heavy rain pummeled the Midwest for days. While the structures held up in the end, floodwaters forged a new river channel around the dam and cut deeply into a steep riverbank, toppling utility poles, wrecking a substation, swallowing a home and forcing the removal of a beloved store. Mankato is about 80 miles (130 kilometers) south of Minneapolis.

The nation’s growing home insurance crisis is in the spotlight as Californians begin the long road to rebuilding after the deadly Eaton and Palisades wildfires. For neighbors Louise Hamlin and Chris Wilson, the difference in insurance coverage on their nearly identical homes in Altadena reveals how unequal that recovery will be. Hamlin was privately insured and has already been paid out nearly a million dollars. She is searching for contractors to rebuild her house. Wilson will receive a fraction of what he needs because he was covered by the California Fair Access to Insurance Requirements Plan — the state’s bare-bones insurance program known as the FAIR Plan. He is contemplating loans, lawsuits and moving his family out of California. How do people get on the FAIR Plan? The plan is a temporary coverage option created by the state as a last resort for homeowners who can’t find private insurance. More Californians are relying on it than ever after several major insurance companies either paused or restricted new business in the state in recent years. In Wilson’s case, his private insurer declined to renew his policy last year although he offered to install various fire mitigation efforts. No other insurers were willing to write him a new policy, forcing Wilson to get on the FAIR Plan to satisfy his mortgage requirements. The number of FAIR residential policies issued in the state more than doubled between 2020 and 2024, reaching nearly 452,000 policies Higher premiums, less coverage Under the FAIR Plan, Wilson paid about 60% more in premiums related to the fire than Hamlin, though he is slated to receive less than half the coverage. And his true home insurance cost was actually much higher because he also had to buy “wrap-around insurance” for issues the FAIR Plan doesn’t cover, such as burst pipes or falling objects. The Insurance Information Institute, which represents many major insurers, said the FAIR Plan provides a lifeline for homeowners who cannot find private insurance, and that outcomes would be far worse if homeowners had no coverage at all. What are the solutions? State officials have rolled out several new regulations to give insurers more latitude to raise premiums in exchange for issuing more policies in high-risk areas. That includes allowing insurers to consider climate change when setting their prices and allowing them pass on the costs of reinsurance to California consumers. Governments also have to shoulder the costs for serious mitigation efforts, or the price of California’s fire risk will remain unequal and left to the homeowners, said Stephen Collier, a professor of urban planning at University of California, Berkeley. California is proposing to direct roughly $25 million from a voter-approved climate bond to bolster fire mitigation requirements around homes.

SPARROWS POINT, Md. — Almost a year after the deadly collapse of Baltimore’s Francis Scott Key Bridge, Maryland officials on Tuesday unveiled their designs for its replacement, which will be taller and better protected against ship strikes. Construction of the state’s first cable-stayed bridge could be completed in 2028 and cost upwards of $1.7 billion. With its graceful outline and delicate design, officials said the new bridge will modernize Baltimore’s skyline, becoming a symbol of resilience, progress and economic growth. The design features two towers with cables radiating down to the deck. “This is a great day for the state of Maryland,” Gov. Wes Moore said Feb. 4 at a late-morning news conference. “But it’s not lost on me that today’s triumph was born out of tragedy.” The original Key Bridge, a 1.6-mile steel span at the mouth of Baltimore’s harbor, took five years to construct and opened to traffic in 1977. It connected various port-oriented industrial communities around Baltimore and allowed drivers to easily bypass downtown. The bridge was destroyed when a massive container ship lost power and slammed into one of its supporting columns. The March 26 collapse killed six construction workers who were filling potholes when the structure crumbled beneath them. Baltimore’s port was closed for months after the collapse, and increased traffic congestion remains a problem for drivers across the region. Officials quickly promised to rebuild the bridge — a longstanding Baltimore landmark and a vital piece of transportation infrastructure. Demolition of the remaining pieces will take place this spring, with construction of its replacement to follow, officials said Tuesday. They held Tuesday’s news conference at Tradepoint Atlantic, a shipping hub in the Port of Baltimore that played a major role in cleanup and recovery efforts following the collapse. The facility is revitalizing the site of a former Bethlehem Steel plant just northeast of Baltimore as maritime shipping continues to fuel the regional economy. “Maryland is a bridge between America and the rest of the world. We get cars from Michigan out to market. We bring sugars and spices to Louisiana. We haul farm equipment from the East Coast deep into the heartland,” Moore said. “Commerce and trade are the bedrock of our state, and we will continue to make investments that honor our tradition.” In August, the state awarded a $73 million contract for the first phase of the rebuild to Kiewit Infrastructure, a major construction and engineering firm. Officials said the project would advance in two phases, with the first focusing on the design work and other necessary steps before construction begins. Moore promised to “employ many Marylanders” throughout the process. Maryland Transportation Secretary Paul Wiedefeld said the design will include the latest in pier protection technology, which has become increasingly important as ships keep getting bigger and carrying more cargo. The bridge will also be taller to provide more clearance. He said the plans were developed with the project’s cost and construction timeline in mind. “While this is a beautiful bridge, it will also be a working bridge for a working city,” Wiedefeld said. The federal government has agreed to cover the full price tag for rebuilding. Congress recently passed a spending bill that included a funding provision for the project. Officials have said they expect that federal taxpayers will eventually be made whole through insurance payouts and damages, but that could take a while. A sprawling civil case will ultimately determine the assignments of liability in what could become one of the most expensive maritime disasters in U.S. history. The National Transportation Safety Board has not yet released its final report on the collapse, though officials said a loose cable in the ship’s electrical switchboard likely contributed to its power issues. Federal agents boarded the cargo ship Dali amid a criminal investigation last year. By Lea Skene, The Associated Press

SOUTH FULTON, Ga. — Media outlets in the Atlanta area including WSB-TV reported that several roads in the City of South Fulton, a city just south of Atlanta were shut down on Tuesday morning after a crash between a train and a tractor-trailer. South Fulton police report that the incident occurred just before 10 p.m. on Monday night. That is when officers were called to Roosevelt Hwy. and Roberts Rd. where a tractor-trailer was trying to get into Strategic Material when the trailer was hit by a CSX train while crossing the tracks. The driver of the tractor-trailer wasn’t hurt, but the trailer and the front of the train were significantly damaged.

BEIJING (AP) — China countered President Donald Trump’s across-the-board tariffs on Chinese products with tariffs on select U.S. imports Tuesday, as well as announcing an antitrust investigation into Google and other trade measures. U.S. tariffs on products from Canada and Mexico were also set to go into effect Tuesday before Trump agreed to a 30-day pause as the two countries acted to appease his concerns about border security and drug trafficking. Trump planned to talk with Chinese President Xi Jinping in the next few days. The Chinese response was “measured,” said John Gong, a professor at the University of International Business and Economics in Beijing. “I don’t think they want the trade war escalating,” he said. “And they see this example from Canada and Mexico and probably they are hoping for the same thing.” This isn’t the first round of tit-for-tat actions between the two countries. China and the U.S. had engaged in a trade war in 2018 when Trump raised tariffs on Chinese goods and China responded in kind. This time, analysts said, China is much better prepared to counter, with the government announcing a slew of measures that cut across different sectors of the economy, from energy to individual U.S. companies. Counter tariffs China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday. “The U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization,” the State Council Tariff Commission said in a statement. “It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the U.S.” The impact on U.S. exports may be limited. Though the U.S. is the biggest exporter of liquid natural gas globally, it does not export much to China. In 2023, the U.S. exported 173,247 million cubic feet of LNG to China, representing about 2.3% of total natural gas exports, according to the U.S. Energy Information Administration. China imported only about 700,000 cars overall last year, and the leading importers are from Europe and Japan, said Bill Russo, the founder of the Automobility Limited consultancy in Shanghai. Further export controls on critical minerals China announced export controls on several elements critical to the production of modern high-tech products. They include tungsten, tellurium, bismuth, molybdenum and indium, many of which are designated as critical minerals by the U.S. Geological Survey, meaning they are essential to U.S. economic or national security that have supply chains vulnerable to disruption. The export controls are in addition to ones China placed in December on key elements such as gallium. “They have a much more developed export control regime,” Philip Luck, an economist at the Center for Strategic and International Studies and former State Department official, said at a panel discussion on Monday. “We depend on them for a lot of critical minerals: gallium, germanium, graphite, a host of others,” he said. “So … they could put some significant harm on our economy.” US companies also impacted In addition, China’s State Administration for Market Regulation said Tuesday it is investigating Google on suspicion of violating antitrust laws. The announcement did not mention the tariffs but came just minutes after Trump’s 10% tariffs on China were to take effect. It is unclear how the probe will affect Google’s operations. The company has long faced complaints from Chinese smartphone makers over its business practices surrounding the Android operating system, Gong said. Otherwise, Google has a limited presence in China, and its search engine is blocked in the country like most other Western platforms. Google exited the Chinese market in 2010 after refusing to comply with censorship requests from the Chinese government and following a series of cyberattacks on the company. Google did not immediately comment. The Commerce Ministry also placed two American companies on an unreliable entities list: PVH Group, which owns Calvin Klein and Tommy Hilfiger, and Illumina, which is a biotechnology company with offices in China. The listing could bar them from engaging in China-related import or export activities and from making new investments in the country. Beijing began investigating PVH Group in September last year over “improper Xinjiang-related behavior” after the company allegedly boycotted the use of Xinjiang cotton. The response from China appears calculated and measured, said Stephen Dover, chief market strategist and head of the Franklin Templeton Institute. However, the world is braced for further impact. “A risk is that this is the beginning of a tit-for-tat trade war, which could result in lower GDP growth everywhere, higher U.S. inflation, a stronger dollar and upside pressure on U.S. interest rates,” Dover said. Wu reported from Bangkok. AP writers Zen Soo in Hong Kong and Christopher Bodeen in Taipei, Taiwan, contributed to this report.

WASHINGTON — President Donald Trump on Monday agreed to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking. The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth, causing prices to soar and ending two of the United States’ most critical partnerships. “I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final Economic deal with Canada can be structured,” Trump posted on social media. “FAIRNESS FOR ALL!” Canadian Prime Minister Justin Trudeau posted Monday afternoon on X that the pause would occur “while we work together,” saying that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.” The pause followed a similar move with Mexico that allows for a period of negotiations over drug smuggling and illegal immigration. The 10% tariff that Trump ordered on China is still set to go into effect as scheduled on Tuesday, Feb. 4, though Trump planned to talk with Chinese President Xi Jinping in the next few days. While the trade war feared by investors, companies and political leaders now seems less likely to erupt, that doesn’t mean the drama over Trump’s tariff threats has ended. Canada and Mexico bought some additional time, but Trump could easily renew his tariffs and already plans to announce taxes on imports from the European Union. All of that leaves the global economy uncertain about whether a crisis has been averted or if a possible catastrophe could still be coming in the weeks ahead. Trump on Saturday had directed 25% tariffs on imports from Mexico and Canada, with another 10% tariff on Canadian oil, natural gas and electricity. The U.S. president had repeatedly previewed these moves, yet they still managed to shock many investors, lawmakers, businesses and consumers. Multiple analyses by the Tax Foundation, the Tax Policy Center and the Peterson Institute for International Economics showed that the tariffs could hurt growth, lower incomes and push up prices. But Trump repeatedly insisted — despite promises to curb inflation — that tariffs were necessary tools to get other nations to stop illegal immigration, prevent fentanyl smuggling and treat the United States, in his mind, with respect. Trump and Mexican President Claudia Sheinbaum announced the monthlong pause on increased tariffs against one another after what Trump described on social media as a “very friendly conversation,” and he said he looked forward to the upcoming talks. “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” the president said on social media. Trump said the talks would be headed by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Secretary of Commerce nominee Howard Lutnick and high-level representatives of Mexico. Sheinbaum said she was reinforcing the border with 10,000 members of her country’s National Guard and that the U.S. government would commit “to work to stop the trafficking of high-powered weapons to Mexico.” In 2019, when Mexico’s government also avoided tariffs from Trump’s administration, the government announced it would send 15,000 soldiers to its northern border. But for much of Monday, the outlook was worrisomely different for Canada, only for an agreement to come together. A senior Canadian official said Canada was not confident it could avoid the looming tariffs as Mexico did. That’s because Canada feels as if the Trump administration has been shifting its requests of Canada more than it did for Mexico. The official spoke on condition of anonymity, having not been authorized to speak publicly. Asked Monday afternoon what Canada could offer in talks to prevent tariffs, Trump told reporters gathered in the Oval Office: “I don’t know.” He mused about trying to make Canada the 51st state, part of ongoing antagonism despite decades of friendship with Canada in a partnership that has ranged from World War II to the response to the 9/11 terrorist attacks. The U.S. president also indicated that more import taxes could be coming against China: “If we can’t make a deal with China, then the tariffs will be very, very substantial.” White House press secretary Karoline Leavitt told reporters that Trump would speak with Chinese President Xi Jinping in the next couple of days and that the White House would provide a report on the discussion. Financial markets, businesses and consumers on Monday were still trying to prepare for the possibility of the new tariffs. For example, Stew Leonard Jr., president and CEO of Stew Leonard’s, a supermarket chain that operates stores in Connecticut, New York and New Jersey, said his buyers were considering stocking up on Mexico’s Casamigos tequila ahead of the tariffs and switching from Canadian to Norwegian salmon. Stock markets sold off slightly, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived. Trump even inquired Monday how the financial markets were doing as reporters were leaving the Oval Office. The situation reflected a deep uncertainty about a Republican president who has talked with adoration about tariffs, even saying the U.S. government made a mistake in 1913 by switching to income taxes as its primary revenue source. Kevin Hassett, director of the White House National Economic Council, said Monday that it was misleading to characterize the showdown as a trade war despite the planned retaliations and risk of escalation. “Read the executive order where President Trump was absolutely, 100% clear that this is not a trade war,” Hassett said. “This is a drug war.” But even if the orders are focused on illegal drugs, Trump’s own remarks have often been more about his perceived sense that foreign countries are ripping off the United States by running trade surpluses. On Sunday, Trump said that tariffs would be coming soon on countries in the European Union. On Monday afternoon, he suggested a willingness to keep using tariff threats because the size of the U.S. economy as the world’s largest made them effective. “Tariffs are very powerful both economically and in getting everything else you want,” Trump told reporters. Tariffs for us, nobody can compete with us because we’re the pot of gold. But if we don’t keep winning and keep doing well, we won’t be the pot of gold.” By Josh Boak, Fabiola Sánchez and Rob Gillies, The Associated Press. Gillies reported from Toronto, and Sánchez reported from Mexico City. Associated Press Writer Anne D’Innocenzio in New York contributed to this report.

WASHINGTON (AP) — Mexican President Claudia Sheinbaum said Monday that after a conversation with U.S. President Donald Trump that the planned tariffs are on hold for a month, a statement confirmed by the White House. “Mexico will reinforce the northern border with 10,000 members of the National Guard immediately, to stop drug trafficking from Mexico to the United States, in particular fentanyl,” Sheinbaum posted on X. “The United States commits to work to stop the trafficking of high powered weapons to Mexico.” The Mexican president added that the two countries would continue talks on security and trade and that “the tariffs are put on pause for a month from now.” The pause added to the drama as Trump’s tariffs against Canada and China are still slated to go into effect on Tuesday. Uncertainty remains about the durability of any deals and whether the tariffs are a harbinger of a broader trade war as Trump has promised more import taxes to come. Trump posted on social media that he spoke Monday morning with Canadian Prime Minister Justin Trudeau and would “be speaking to him again at 3:00 P.M.” Both Canada and Mexico had plans to levy their own tariffs in response to U.S. actions, but Mexico is holding off for the moment. Trump used his Monday social media post to repeat his complaints that Canada has been uncooperative, despite decades of friendship and partnerships that range from World War II to the response to the 9/11 terrorist attacks on the United States. “Canada doesn’t even allow U.S. Banks to open or do business there,” Trump posted. “What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada.” Financial markets, businesses and consumers are trying to prepare for the possibility of the new tariffs. Stock market indices opened with a modest selloff, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived. But the outlook reflected a deep uncertainty about a Republican president who has talked with adoration about tariffs, even saying the U.S. government made a mistake in 1913 by switching to income taxes as its primary revenue source. Trump said Sunday the tariffs would lift if Canada and Mexico did more to crack down on illegal immigration and fentanyl smuggling, though there are no clear benchmarks. Trump also said the U.S. can no longer run a trade imbalance with its two largest trade partners. Mexico is facing a 25% tariff, while Canada would be charged 25% on its imports to the United States and 10% on its energy products. China is facing a 10% additional tariff due to its role in the making and selling of fentanyl, the Trump White House said. Kevin Hassett, director of the White House National Economic Council, said Monday that it was misleading to characterize the showdown as a trade war despite the planned retaliations and risk of escalation. “Read the executive order where President Trump was absolutely, 100% clear that this is not a trade war,” Hassett said. “This is a drug war.” But even if the orders are focused on illegal drugs, Trump’s own remarks have often been more about his perceived sense that foreign countries are ripping off the United States by running trade surpluses. On Sunday, Trump said that tariffs would be coming soon on countries in the European Union. He has discussed tariffs as both a diplomatic tool on national security issues, a way to raise revenues and a vehicle for renegotiating existing trade pacts. Multiple economists outside the administration have warned that the tariffs would push up prices and hamper growth, with Trump himself saying there would be some short term pain after having campaigned last year on the promise that he could tame inflation. Joe Brusuelas, chief economist at the consultancy RSM, said the United States was unlikely to fall into a recession this year, but the tariffs would hurt growth and push up the cost of government borrowing, which would potentially keep the interest rates charged on mortgages and auto loans elevated. “If there is no resolution, the impact on the U.S. economy will be significant,” he said. “Growth will slow notably from the 2.9% average over the past three years as inflation and interest rates rise. The yield on the 10-year Treasury, currently around 4.5%, could climb to a range between 4.75% and 5%.”

ATLANTA (AP) — President Donald Trump has taken executive action to impose new tariffs on imports from Canada, China and Mexico. The move fulfills campaign promises but also sparked retaliatory moves that could signal an extended trade war with key trading partners and, in the case of Mexico and Canada, the closest U.S. neighbors and allies. Unlike during the 2024 campaign, when Trump billed his economic agenda as a sure-fire way to reduce the cost of living for Americans, the president now is acknowledging what many economists have long forecasted: that the levies could yield higher prices and lower supplies across the market. Here are some things to know about Trump’s actions, the counters from U.S. trading partners and what it means for American consumers: The moves affect the three largest U.S. trading partners Trump declared an economic emergency to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at 10%. The tariffs on the United States’ three largest trading partners will go into effect on Tuesday. The tariffs reach across the U.S. market. To name a few: oil and lumber from Canada; produce, clothing, liquor and auto parts from Mexico; plastics, textiles and computer chips from China. Trump’s order contained no mechanism for granting exceptions to U.S. importers. Underscoring the potential effects, Canada provides more than 4.3 million barrels of oil a day to the United States. The U.S. tends to consume about 20 million barrels a day, according to the U.S. Energy Information Administration. It has been producing domestically about 13.2 million barrels daily. Trump says these levies are about immigration and drugs – downplaying economics The president talked often as a candidate – and for decades before he entered politics – about U.S. trade deficits. He blasted international trade deals and bemoaned the steady flow of manufacturing jobs out of the U.S. to other countries. But he has framed his latest actions as leverage on immigration and drugs. Trump is blaming the three U.S. partners for not doing enough to stop the flow of fentanyl into U.S. markets. He blames Mexico and, to a lesser extent, Canada for an inflow of migrants across U.S. borders. “It is my duty as president to ensure the safety of all,” Trump said on social media. Canada, China and Mexico have responded Trump’s order included a promise to escalate the tariffs if U.S. trading partners answered with their own. That threat did not prevent a swift response. Mexican President Claudia Sheinbaum immediately ordered retaliatory tariffs and Canadian Prime Minister Justin Trudeau said he would put matching 25% tariffs on up to $155 billion in U.S. imports. Trudeau urged Canadians to “choose Canadian products” when shopping, effectively urging a boycott of U.S. goods. Locally, multiple premiers of Canadian provinces said they would be removing American alcohol brands from government store shelves altogether. As of Sunday afternoon, China had not imposed new tariffs on U.S. goods. But its Ministry of Foreign Affairs said the Beijing government will take “necessary countermeasures to defend its legitimate rights and interests.” The Ministry of Commerce said it would file a lawsuit with the World Trade Organization for the “wrongful practices of the U.S.” Consumers will see the effects, even if businesses pay the actual tariffs End-line consumers don’t pay tariffs directly. It’s usually whatever company – a foreign-based exporter or U.S-based importer – is transporting goods across the border. But that adds to the overall cost of getting goods to their final retail stop, and each player in that process is certain to increase their prices as a result. Gregory Daco, chief economist at the tax and consulting firm EY, calculates the tariffs would increase inflation, which was running at a 2.9% annual rate in December, by 0.4 percentage points this year. Daco projects the U.S. economy, which grew 2.8% last year, would fall by 1.5% this year and 2.1% in 2026. The Budget Lab at Yale University estimates Trump’s tariffs would cost the average American household $1,000 to $1,200 in annual purchasing power. The effects reach even to companies and products billed as “made in the U.S.A.” Because sometimes that label means only that a product is assembled or otherwise finished in a U.S. facility but still includes raw materials, parts or packaging from elsewhere. And as Trump himself said often during the campaign, energy costs – which become transportation costs in the supply chain – also drive consumer pricing. Given Canada’s share of the U.S. energy supply, gas prices could increase, especially in the Midwest, where so much Canadian crude oil is refined. Trump has changed his tune on the consequences for consumers Candidate Trump made sweeping, fantastical promises about the U.S. economy. For example, he promised to lower grocery prices “immediately” and cut utility bills in half within a year of taking office. He repeatedly hammered the Biden administration as a failure because of inflation and invited the votes of Americans frustrated over a higher cost-of-living. Vice President JD Vance, in a Fox News interview ahead of the tariff announcement, maintained that Trump’s policies would mean “more take-home pay” for U.S. workers. Trump is now backing off such claims. “Will there be some pain? Yes, maybe (and maybe not),” Trump wrote Sunday morning on social media. “But we will make America great again, and it will all be worth the price that must be paid.” Associated Press writers Josh Boak in Palm Beach, Florida, and Rob Gillies in Toronto contributed.

WASHINGTON (AP) — President Donald Trump on Saturday, Feb. 1, signed an order to impose stiff tariffs on imports from Mexico, Canada and China, drawing swift retaliation and an undeniable sense of betrayal from the country’s North American neighbors as a trade war erupted among the longtime allies. The Republican president posted on social media that the tariffs were necessary “to protect Americans,” pressing the three nations to do more to curb the manufacture and export of illicit fentanyl and for Canada and Mexico to reduce illegal immigration into the U.S. The tariffs, if sustained, could cause inflation to significantly worsen, threatening the trust that many voters placed in Trump to lower the prices of groceries, gasoline, housing, autos and other goods as he promised. They also risked throwing the global economy and Trump’s political mandate into turmoil just two weeks into his second term. Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate. Trump’s order includes a mechanism to escalate the rates charged by the U.S. against retaliation by the other countries, raising the specter of an even more severe economic disruption. “The actions taken today by the White House split us apart instead of bringing us together,” Canadian Prime Minister Justin Trudeau said in a somber tone as he announced that his country would put matching 25% tariffs on up to $155 billion in U.S. imports, including alcohol and fruit. He channeled the betrayal that many Canadians are feeling, reminding Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina. “We were always there standing with you, grieving with you, the American people,” he said. Mexico’s president also ordered retaliatory tariffs. China did not immediately respond to Trump’s action. “We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory,” Mexican President Claudia Sheinbaum wrote in a post on X while saying she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests. “If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population.” The premier of the Canadian province of British Columbia, David Eby, specifically called on residents to stop buying liquor from U.S. “red” states and said it was removing American alcohol brands from government store shelves as a response to the tariffs. The tariffs will go into effect on Tuesday, setting up a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the U.S. economy, saying the average household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen — and the situation could be even worse with retaliation from other countries. Democrats were quick to warn that any inflation going forward was the result of Trump’s actions. “You’re worried about grocery prices. Don’s raising prices with his tariffs,” Senate Democratic leader Chuck Schumer of New York wrote in a series of posts on X. “You’re worried about tomato prices. Wait till Trump’s Mexico tariffs raise your tomato prices,” read another. “You’re worried about car prices. Wait till Trump’s Canada tariffs raise your car prices,” read another. A senior U.S. administration official, speaking on condition of anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize disruptive increases on the price of gasoline or utilities. That’s a sign White House officials understand the gamble they’re taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped return Trump to the White House. The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries. The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction. The order would also allow for tariffs on Canadian imports of less than $800. Imports below that sum are currently able to cross into the United States without customs and duties. “It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former U.S. trade official. “Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive … Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’ With the tariffs, Trump is honoring promises that are at the core of his economic and national security philosophy. But the announcement showed his seriousness around the issue as some Trump allies had played down the threat of higher import taxes as mere negotiating tactics. The president is preparing more import taxes in a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil and natural gas, as well as copper, pharmaceutical drugs and imports from the European Union — moves that could essentially pit the U.S. against much of the global economy. Trudeau warned of economic pain as the tariffs take effect and encouraged Canadians to “choose Canadian products and services rather than American ones.” But he also voiced optimism in the enduring relationship between the two countries. “It is going to have real consequences for people, for workers on both sides of our border. We don’t want to be here. We didn’t ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States,” Trudeau said.

PHILADELPHIA (AP) — A medical transport jet with a child patient and five others aboard crashed into a Philadelphia neighborhood shortly after takeoff Friday evening, exploding in a fireball that engulfed several homes. Jet Rescue Air Ambulance said the patient and another passenger were on board along with four crew members. “We cannot confirm any survivors,” the company said in a statement. “Our immediate concern is for the patient’s family, our personnel, their families and other victims that may have been hurt on the ground.” Mayor Cherelle Parker said Wednesday night at a news conference that information on fatalities wasn’t immediately known but several homes and vehicles had been damaged. “This is still an active scene under investigation,” she said. The crash came just two days after the deadliest U.S. air disaster in a generation. On Wednesday night, an American Airlines jet carrying 60 passengers and four crew members collided in midair in Washington, D.C., with an Army helicopter carrying three soldiers. There were no survivors in that crash. Over Philadelphia, a doorbell camera captured footage of the plane plunging in a streak of white and exploding as it hit the ground near a shopping mall and major roadway.

The Republican-controlled Senate on Wednesday confirmed Lee Zeldin to lead the Environmental Protection Agency, a key role to help President Donald Trump fulfill his pledge to roll back major environmental regulations, including those aimed at slowing climate change and encouraging use of electric vehicles. The vote was 56-42 in Zeldin’s favor. Three Democrats — Sens. Ruben Gallego and Mark Kelly of Arizona and John Fetterman of Pennsylvania — supported Zeldin, along with all 53 Republicans. Zeldin, a former Republican congressman from New York, is a longtime Trump ally and served on Trump’s defense team during his first impeachment. He voted against certifying Trump’s 2020 election loss to President Joe Biden. Zeldin, 44, said during his confirmation hearing that he has a moral responsibility to be a good steward of the environment and pledged to support career staff who have dedicated themselves to the agency’s mission to protect human health and the environment. Reactions are pouring in from those Zeldin will look to partner with as the EPA’s new boss. Clean Freight Coalition Executive Director Jim Mullen extended his congratulations to Administrator Lee Zeldin on his confirmation to serve as the leader of the U.S. Environmental Protection Agency. “On behalf of The Clean Freight Coalition and our growing membership of truck and bus transportation stakeholders, we extend our congratulations to Administrator Zeldin on his confirmation. Administrator Zeldin’s leadership comes at a crucial time and offers the incoming Administration an opportunity to expand on their efforts to provide greater stability for the commercial motor vehicle industry. Truckload Carriers Association President Jim Ward issued a statement extending “congratulations to former Congressman Lee Zeldin on his appointment as the new Environmental Protection Agency (EPA) Administrator. TCA is committed to working alongside the EPA under Administrator Zeldin’s leadership to address the complex challenges associated with emission reductions.” “As an active participant in the Clean Freight Coalition, TCA has consistently supported renewable diesel and other alternative fuels as vital steps toward achieving a more sustainable future. We remain committed to advocating for practical and achievable timelines for implementing emission-reduction technologies to ensure the trucking industry’s continued success,” he added. In their release, the American Trucking Association said, “the trucking industry congratulates Administrator Zeldin on his confirmation, and we look forward to the restoration of common sense in our nation’s environmental policies under his leadership of EPA.” “Over the past several years, the mad dash to zero and a patchwork of unachievable mandates on unrealistic timelines have posed a grave threat to the trucking industry, the supply chain, and our economy,” ATA’s statement read. “The enormous price tag of this haphazard transition would have significantly raised costs for American consumers without delivering the promised environmental benefits.  This was deeply regrettable, because our industry and EPA had worked together for decades to promote major advances in engines and emissions control systems that are 99% cleaner.  As a result, 60 trucks today emit the same amount as one truck manufactured in 1988.” “Administrator Zeldin is a proven, collaborative leader America’s truckers deserve to restore balance at EPA,” the ATA added. “By reviving the productive partnership with our industry, he can build on our impressive environmental achievements without disrupting the supply chain.  We look forward to working with Administrator Zeldin to replace electric-truck mandates with national emission standards that are technologically achievable, encourage innovation, and account for the operational realities of our essential industry.” The Associated Press contributed to this story.

WASHINGTON — Ranking member of the House Committee on Transportation and Infrastructure Rick Larsen and vice ranking member Emilia Sykes, along with 29 other Democratic committee members, are reacting to President Trump’s executive order halting the funding of important infrastructure investments. “The President’s rapid-fire executive orders issued last week affecting infrastructure spending rules and air traffic controller staffing, doubled down on with this week’s guidance from the Office of Management and Budget pausing all federal financial assistance, are putting billions of dollars, hundreds of thousands of jobs, and tens of thousands of projects at risk,” the members said. “These actions are sowing chaos in an industry that counts on long-term certainty and will raise project costs.” In a letter sent to U.S. Department of Transportation Secretary Sean Duffy,  the members voiced their concerns. “Unfortunately, the actions in the first week of this administration show a fundamental miscalculation of the bipartisan support infrastructure investment enjoys in Congress and how much governors, mayors, county commissioners, city council members, and state legislators across the country count on federal infrastructure dollars,” the letter said. Requested Actions   The members also urged Secretary Duffy to stem the “chaotic effect” of President Trump’s actions by:  Providing clear guidance on DOT’s planned actions to implement the President’s objectives with respect to infrastructure spending and eligibilities.  Making publicly available an up-to-date list of all grants subject to or under review pursuant to these executive order. Communicating to Congress in advance of changes to grant solicitations or grant requirements, including reissuance of Notices of Funding Opportunity. Providing clarity to project sponsors on how to demonstrate compliance with the longstanding and routinely reauthorized DOT Disadvantaged Business Enterprise.  Infrastructure Investments are Crucial “Democrats on the House Transportation and Infrastructure (T&I) Committee stand ready to be strong partners in investing in infrastructure and creating jobs building, maintaining and operating the nation’s roads, bridges, transit, rail, ports, aviation system, maritime transportation system and waterways,” the letter said. “We understand deeply how the work of this Committee affects the economy, supply chains, jobs, safety, mobility, opportunity and quality of life for the women and men we represent.” The letter noted that the committee has witnessed what happens when Congress does the right thing and funds  infrastructure. “…funds flow to projects and support local economies in every single Congressional district in the country. We want to keep it going by working across the aisle in the 119th Congress.” To read the full letter, click here.