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Both Canada and Mexico have agreed to strengthen border security with the United States in return for a 30-day pause in tariffs.

President Trump announced on Sunday he was imposing 25% taxes on goods from his country’s northern and southern neighbours.

Mexico was first to reach a deal with the White House. Its president, Claudia Sheinbaum, said she was sending 10,000 National Guard troops to the US border immediately in return for a tariff delay.

Mr Trump said the Mexican soldiers would be “specifically designated” to stop the flow of the synthetic opioid fentanyl into the US, as well as illegal migrants. Further negotiations will now be carried out, he added.

Ms Sheinbaum said she had a “good conversation” with him lasting at least 30 minutes just hours before the tariffs were due to begin.

She also extracted a concession from Mr Trump – after explaining the “seriousness” of high-powered weapons coming over the border from the US and getting into the hands of criminal groups.

“It gives them firepower,” she said. “We asked that the US also help our country by helping stop this arms trafficking… he agreed.”

Donald Trump as he hosted the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters
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Donald Trump hosting the 2024 Stanley Cup Champions, the Florida Panthers, at the White House. Pic: Reuters

Canada made similar moves. Prime Minister Justin Trudeau said almost 10,000 frontline personnel “are and will be working on protecting the border”.

He added on X that his country was appointing a “fentanyl czar”, drugs cartels would be listed as terrorists, and there would be “24/7 eyes on the border”.

There will also be a Canada-US joint strike force to “combat organised crime, fentanyl and money laundering”, Mr Trudeau announced.

Both Trudeau and Trump will view the deal as a win – Trump for seemingly forcing the US’s northern neighbour to act, and Trudeau for heading off sanctions with measures that for the most part (with the exception of the fentanyl czar) had already been announced in December.

Donald Trump said he was “very pleased with this initial outcome” and work will begin see how a “Final Economic Deal” with Canada can be structured.

Analysis: Has it all just been theatre?

First Mexico, now Canada. In another whirlwind day, both of America’s closest neighbours appear to have capitulated to President Trump.
The 25% tariffs on all goods from both countries were due to come into effect at midnight US Eastern time. But after calls between all three leaders, suddenly the tariffs were paused.

So what’s going on? Is this a clear signal of the power Trump wields? His blunt tool of using the threat of tariffs as a negotiating tool has paid off? Bullying tactics work? Well, maybe. At least that’s how Mr Trump wants everyone to think. Dance to my tune, or else.

And it’s absolutely the case that Mexico and Canada were in panic mode this weekend. But surely Donald Trump was panicking a little too when he saw the stock markets on Monday. He claimed this afternoon not to be taking any notice of their sharp falls. But we know he cares deeply about market reactions.

Here’s what’s interesting: the statement from Canadian Prime Minister Justin Trudeau sounded at first glance like it was announcing something new.
“Canada is implementing our $1.3bn border plan… nearly 10,000 frontline personnel are and will be working on protecting the border…”

But it’s not a new announcement. Look at the language – “are and will be”. In other words, “we’re doing this already Mr President, but if you want me to reiterate it to placate you, then I will…” All that Justin Trudeau has done today is reiterate a border plan he announced last December.

Mexico too has been doing an increasing amount in the fight against fentanyl though it could and probably now will do more.

So has it all been theatre this past 24 hours?

A show of brinkmanship from Donald Trump, which could have had a cliff-edge ending, but instead ended with him looking strong (and freaking out much of the developed world in the process) and his closest neighbours forced to reiterate their existing plans.

Regarding China, a 10% tariff – in addition to those already in place – is still set to go ahead, though the White House said Mr Trump is due to talk to President Xi Jinping.

The US president has, however, said 10% could be just the start.

“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said.

China has described fentanyl as America’s problem, and said it would challenge the tariffs at the World Trade Organisation, as well as taking other countermeasures.

But it also left the door open for talks.

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‘PM walking tightrope between Trump and EU’

What is the UK situation on tariffs?

President Trump hates trade deficits, and does not want to import more goods from another country than are sent there in return, says Sky’s economics and data editor, Ed Conway.

But Britain has bigger trade deficits than the US, Conway adds, and is one of the few countries in the world to import more goods from America than America imports from it.

Read more:
Trump threatens to cut off South Africa funding
Breaking economies could be just first step

In addition, because the UK is no longer part of the European Union, any tariffs imposed on Brussels will not affect London.

When asked about the UK, Mr Trump said: “I think that one can be worked out.”

Sir Keir Starmer said it was “early days”.

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US Federal Reserve defies calls from Donald Trump to cut interest rate

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US Federal Reserve defies calls from Donald Trump to cut interest rate

The Federal Reserve has defied calls from US President Donald Trump for a cut to the interest rate by leaving it unchanged.

The decision means it has an effective rate of 4.3%, where it has remained after the central bank, known as the Fed, reduced it three times last year.

“We’re keeping the rates high, and it’s hurting people from buying houses,” Mr Trump told reporters. “All because of the Fed.”

Money latest: Three major broadband firms hike prices

Mr Trump has repeatedly been asked whether he would fire Fed chair Jerome Powell if he failed to heed his demand to cut the rate.

In June, the US president labelled Mr Powell a “stupid person” after the Fed decided not to change rates. Then less than two weeks later, in a further attack, he said the Fed’s chair should “ashamed” and would “love” him to resign.

The US president has spent months verbally attacking Mr Powell.

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Fed chair has ‘done a bad job’, says Trump

There were clear tensions between the pair last Thursday as they toured the Federal Reserve in Washington DC, which is undergoing renovations.

When taking questions, Mr Trump said: “I’d love him to lower interest rates,” then laughed and slapped Powell’s arm.

Donald Trump and Federal Reserve Chair Jerome Powell
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There were clear tensions between the US President and Mr Powell during last week’s visit to the Federal Reserve. Pic: Reuters

The US president also challenged him, in front of reporters, about an alleged overspend on the renovations and produced paperwork to prove his point. Mr Powell shook his head as Trump made the claim.

When Mr Trump was asked what he would do as a real estate mogul if this happened to one of his projects, he said he’d fire his project manager – seemingly in reference to Mr Powell.

Donald Trump challenges Federal Reserve Chair Jerome Powell about the cost of renovations
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Donald Trump challenged Mr Powell in front of reporters. Pic: Reuters

Unlike the UK, the US interest rate is a range to guide lenders rather than a single percentage.

The Fed has expressed concern about the impact of Mr Trump’s signature economic policy of implementing new tariffs, taxes on imports to the US.

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Trump’s tariffs: What you need to know

On Wednesday, the president said he was still negotiating with India on trade after announcing the US will impose a 25% tariff on goods imported from the country from Friday.

Mr Trump also signed an executive order on Wednesday implementing an additional 40% tariff on Brazil, bringing the total tariff amount to 50%, excluding certain products, including oil and precious metals.

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The committee which sets rates voted 9 to 2 to keep the benchmark rate steady, the two dissenters were appointees of President Trump who believe monetary policy is too tight.

In a policy statement to explain their decision, the Federal Reserve said that “uncertainty about the economic outlook remains elevated” but growth “moderated in the first half of the year,” possibly bolstering the case to lower rates at a future meeting.

Nathan Thooft, chief investment officer at Manulife Investment Management, described the rate decision as a “kind of a nothing burger” and it was “widely expected”.

Tony Welch, chief investment officer at SignatureFD, agreed that it was “broadly as expected”. He added: “That explains why you’re not seeing a lot of movement in the market right now because there’s nothing that’s surprising.”

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Powerful 8.8-magnitude earthquake causes tsunami in Russia’s Far East – with warnings issued for Japan, Hawaii and Alaska

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Powerful 8.8-magnitude earthquake causes tsunami in Russia's Far East - with warnings issued for Japan, Hawaii and Alaska

A powerful 8.8-magnitude earthquake has struck off Russia’s far eastern Kamchatka Peninsula, causing a tsunami.

A tsunami of up to four metres (13 feet) was recorded in Kamchatka Peninsula, leading to evacuations and damaging buildings, officials said.

Tsunami warnings have been issued for Japan, the Philippines, Hawaii and parts of Alaska in the US.

The Honolulu Department of Emergency Management in Hawaii has called for the evacuation of some coastal areas, writing on X: “Take Action! Destructive tsunami waves expected.”

The first waves in Hawaii are expected to hit at 7pm local time (6am UK time).

The Pacific Tsunami Warning Center has said waves of one to three meters (three to 10 feet) above tide level were possible along some coastal areas of Hawaii, Chile, Japan and the Solomon Islands.

Kamchatka Governor Vladimir Solodov had earlier said: “Today’s earthquake was serious and the strongest in decades of tremors.”

Follow latest: Tsunami live updates

Several people in the region sought medical assistance following the quake, Oleg Melnikov, regional health minister told Russia’s Tass state news agency.

“Unfortunately, there are some people injured during the seismic event. Some were hurt while running outside, and one patient jumped out of a window. A woman was also injured inside the new airport terminal,” Mr Melnikov said.

Russia’s Tass news agency reported from the biggest city nearby, Petropavlovsk-Kamchatsky, that many people ran out into the street, while cabinets toppled inside homes, mirrors were broken, cars swayed on roads and balconies on buildings shook noticeably.

Power outages and mobile phone service failures were also reported in the capital of the Kamchatka region.

The first tsunami wave hit the coastal area of Severo-Kurilsk, the main settlement on Russia’s Kuril Islands in the Pacific, according to the local governor Valery Limarenko.

He said residents were safe and staying on high ground until the threat of a repeat wave was gone.

A regional branch of Russia’s geophysical service has said that “significant, noticeable” aftershocks with magnitudes of up to 7.5 after expected to continue for at least another month.

Japan issued a tsunami warning, saying it expects waves as high as three metres to arrive along large coastal areas along the Pacific Ocean.

Waves off the coast of the Hokkaido Prefecture in Japan after the tsunami warning was issued. Pic: AP
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Waves off the coast of the Hokkaido Prefecture in Japan after the tsunami warning was issued. Pic: AP

It has ordered the evacuation of some areas.

The National Tsunami Warning Center, based in Alaska, issued a tsunami warning for parts of the Alaska Aleutian Islands.

A tsunami warning also was extended to the US state of Hawaii, with the National Weather Service’s Pacific Tsunami Warning Center saying a tsunami from the quake had been generated that could cause damage along the coastlines of all the Hawaiian islands.

A tsunami “watch” was issued for portions of the West Coast, including California, Oregon, and Washington.

The US Geological Survey said the earthquake was shallow at a depth of 19.3 km (12 miles), and was centred about 125 km (80 miles) east-southeast of Petropavlovsk-Kamchatsky, a city of 165,000 along the coast of Avacha Bay. It revised the magnitude up twice from 8.0 and 8.7 to 8.8 earlier.

Meanwhile, New Zealand’s disaster management agency has warned that the country’s coastal areas could expect “strong and unusual currents and unpredictable surges at the shore”.

In a national advisory alert, Civil Defence New Zealand said there was no immediate need to evacuate but said citizens should stay away from beaches and shore areas.

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Trump claims Epstein ‘stole’ Prince Andrew accuser Virginia Giuffre from his Mar-a-Lago resort

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Trump claims Epstein 'stole' Prince Andrew accuser Virginia Giuffre from his Mar-a-Lago resort

Donald Trump has claimed billionaire paedophile Jeffrey Epstein “stole” prominent accuser Virginia Giuffre and other young women from his Mar-a-Lago resort in Florida.

Ms Giuffre became a household name after she sued Prince Andrew for sexual abuse in August 2021 – saying he had sex with her when she was 17 and had been trafficked by his friend Epstein.

Prince Andrew reached an out-of-court settlement with Ms Giuffre but has repeatedly denied the claims and has not been charged with any criminal offences.

Mr Trump made his remarks about Ms Giuffre as his administration has faced growing pressure in recent weeks, including from within his “MAGA” base, to release files related to Epstein after he promised to do so during his 2024 presidential campaign.

The US president was speaking to reporters on Tuesday when he was asked about comments he made over the weekend about a falling-out with Epstein over employees taken from his business.

“He took people that worked for me. And I told him, ‘Don’t do it anymore.’ And he did it,” Mr Trump told reporters while on board Air Force One as he returned to the US from Scotland.

“I said, ‘Stay the hell out of here’,” the US president added.

Prince Andrew and Virginia Roberts in 2001. Pic: Shutterstock 

Prince Andrew, Virginia Roberts, aged 17, and Ghislaine Maxwell at Ghislaine Maxwell's townhouse in London, Britain on March 13 2001

2001
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Prince Andrew and Virginia Giuffre in 2001. Pic: Shutterstock

Pressed about whether any of the employees he referred to were young women, Mr Trump said many of them worked in the spa at Mar-a-Lago.

“The answer is yes, they were in the spa,” he said. “I told him, I said, ‘Listen, we don’t want you taking our people, whether it was spa or not spa.’ … And he was fine. And then not too long after that, he did it again.”

Asked if Ms Giuffre was one of the employees poached by Epstein, the US president replied: “I think she worked at the spa… I think so. I think that was one of the people. He stole her, and by the way, she had no complaints about us, as you know, none whatsoever.”

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Trump dismisses Epstein ‘witch hunt’

The White House said in a statement last week that Mr Trump banned Epstein from Mar-a-Lago because he was acting like a “creep”.

Epstein took his own life in a Manhattan prison cell in August 2019 as he awaited trial on sex trafficking charges.

On Tuesday, lawyer’s for his former girlfriend Ghislaine Maxwell, who is serving 20 years in prison for recruiting young girls for the financier, said that they are open to her answering more questions from US Congress if she is granted immunity from future prosecution.

However a spokeswoman for the House Oversight Committee, which requested the interview with Maxwell, said the panel would not consider granting the immunity she requested.

Undated picture of Ghislaine Maxwell with Jeffrey Epstein. File pic: US Department of Justice
Image:
Undated picture of Ghislaine Maxwell with Jeffrey Epstein. File pic: US Department of Justice

The former British socialite was interviewed inside a Florida courthouse by US Deputy Attorney General Todd Blanche last week.

Officials have not publicly disclosed what she said.

Mr Blanche had earlier said that Maxwell would be interviewed because of Mr Trump’s directive to gather and release any credible evidence about others who may have committed crimes in relation to the Epstein case.

Separately, Maxwell’s lawyers have urged the Supreme Court to review her conviction, saying she did not receive a fair trial.

They also say that one way she would testify “openly and honestly, in public”, is in the event of a pardon by Mr Trump, who has told reporters that such a move is within his rights but that he has not been not asked to make it.

File pic: AP
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Virginia Giuffre in 2019. File pic: AP

What had Ms Giuffre said about Mar-a-Lago?

Ms Giuffre, who took her own life in April, claimed Maxwell spotted her while she was working as a spa attendant at Mar-a-Lago when she was a teenager in 2000.

She added that Maxwell hired her as Epstein’s masseuse, which led to sexual abuse.

She accused Epstein of pressuring her into having sex with powerful men.

Why is the Epstein case such a problem for Trump?

Rumours have circulated since Epstein’s death about who he may have supplied underage girls to and who visited his private island.

Some of those rumours quickly spiralled into conspiracy theories, which Mr Trump fanned the flames of during his campaign for a second term.

Mr Trump promised to release more Epstein files to the public if he was elected president for a second time – but is now facing a backlash from his voter base after carrying out a complete U-turn on the move.

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