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US and Canada avert trade escalation after tariff threats

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The US and Canada reached a mini-détente in their trade war on Tuesday, following a heated exchange between President Donald Trump and Ontario Premier Doug Ford.

After meeting with US Commerce Secretary Howard Lutnick, Ford announced Tuesday afternoon that Ontario would suspend its 25% tariffs on electricity exports to three US states, which had been imposed a day earlier.

In a joint statement, Ford and Lutnick said, “Secretary Lutnick has agreed to formally meet with Premier Ford in Washington on Thursday, March 13, along with the US Trade Representative, to discuss a renewed USMCA [US-Mexico-Canada trade agreement]. In return, Ontario has agreed to suspend its 25% surtax on electricity exports to Michigan, New York, and Minnesota.”

Following this, Trump told reporters at the White House that he would “probably” call off his threat to double tariffs on Canadian steel and aluminum, which were scheduled to take effect as his first order of business on Wednesday.

Trump said, “As you know, there’s a very strong gentleman in Canada who said he was going to charge a surcharge or a tariff on electricity coming into our country. He called, and he said he’s not going to do it. Okay, I’m not going to do it. It would have been a very bad thing if he did, and he’s not going to do it, so I respect that.”

White House spokesperson Kush Desai later confirmed in a statement that the tariffs would not be doubled.

Desai said, “President Trump has once again used the leverage of the American economy, the best and biggest in the world, to make the American people win. As per previous executive orders, the 25% tariff on steel and aluminum, with no exceptions or exemptions, will go into effect for Canada and all our other trading partners at midnight on March 12.”

The conciliatory statements followed several hours of heated rhetoric between the American and Canadian leaders, which began with a post by Trump on his social media platform, Truth Social, attacking Ontario’s electricity tariffs.

Ford had imposed the tariffs in retaliation for Trump’s initial 25% tariffs on all Canadian goods, which went into effect on March 4.

The White House later announced that it was rolling back most of those tariffs following pressure from US automakers, farmers, and other American industries.

In his post Tuesday morning, Trump wrote, “I HAVE INSTRUCTED MY COMMERCE SECRETARY TO ADD AN ADDITIONAL 25% TARIFF, FOR A TOTAL OF 50%, ON ALL STEEL AND ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS IN THE WORLD. This will go into effect TOMORROW MORNING, March 12.”

Trump also said in his lengthy Truth Social post that he would declare a national emergency over electricity, which would allow the US to “expeditiously do what has to be done to mitigate this threat of malice coming in from Canada.”

Repeating his demand that Canada join the US as the “51st state,” the President wrote, “The artificial dividing line drawn many years ago will finally be gone, and we will have the safest and most beautiful Nation anywhere in the world, and your gorgeous anthem ‘O Canada’ will continue to play, but now representing a BIG and POWERFUL STATE within the greatest Nation the World has ever seen!”

Ford immediately responded in an interview with MSNBC, saying, “It doesn’t make sense to fight this way, but I will respond appropriately on electricity. Stay tuned.”

Meanwhile, POLITICO reported that some of Trump’s allies are blaming Commerce Secretary Howard Lutnick for the tariff mishaps.

According to the report, White House and administration officials, as well as Trump’s outside allies, are increasingly frustrated with Lutnick and privately complain about his closeness to the president and his advising him on economic matters.

They claim that Lutnick, who has recently appeared on television, does not even understand the basics of how tariffs and the economy work, and they also point out that he has contradicted the President’s messages at many points in the past week.

One source, suggesting that Lutnick was trying to be a “mini-Trump,” said, “I don’t think he got the message that only Trump can be Trump.”

Lutnick, the former CEO of the financial services firm Cantor Fitzgerald, comes from Wall Street, which has traditionally been skeptical of tariffs, but shares the views of many in the pro-tariff community.

Diplomacy

FIFA abandons $4.2 billion commercial stake sale following widespread revolt

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FIFA and Gianni Infantino have backed down from plans to sell a stake in the organization’s commercial and event operations following widespread backlash.

In a statement issued late Friday night, the embattled FIFA president said:

“After carefully listening to all views, it has become clear that this project, regardless of the level of support, causes divisions that are now contrary to the interests of the objective originally established. Our goal has always been, and will always be, to unite and improve. As a result, this proposal will not be implemented.”

Infantino’s proposal met with fierce resistance from UEFA, CONCACAF, and the Asian Football Confederation (AFC).

UEFA indicated that all 55 of its members would boycott FIFA competitions, including the World Cup, if the plans remained on the table.

In its statement, FIFA noted that “nobody is selling football,” and while asserting that it “acknowledges and respects the feedback and concerns expressed publicly,” emphasized that it would continue to implement suggestions.

It added that it “reaffirms its commitment to an open and democratic process of consultation.”

Shortly after FIFA issued its statement, the AFC released its own declaration of solidarity with UEFA and the Confederation of North, Central America and Caribbean Association Football (CONCACAF).

Infantino subsequently suffered two major internal blows.

First, his adviser Carlos Cordeiro resigned from his position, sharply criticizing the plan in a statement as “a bad deal for FIFA member associations, a bad deal for football, and a bad deal for the long-term future of the game.”

Then, FIFA Chief Operating Officer Kevin Lamour told the Associated Press that staff felt “deceived” by Infantino and that after raising the issue, he would “sleep better, even at the cost of losing his job.”

Lamour said:

“This is the project of a single person. Leaving aside that this project should not proceed… it is now time for the political leaders of world football to ask themselves the right questions and make the right decisions.”

These developments left Infantino cornered, and by Friday afternoon, numerous figures within the organization—speaking to The Athletic on condition of anonymity to protect their jobs—believed it was no longer a question of “if” the cord would be cut, but “when.”

Joshua Kushner’s venture capital firm Thrive had not withdrawn from the deal as of Friday night, but that became moot when FIFA management ultimately decided to kill the project via a public statement.

Joshua Kushner is the brother of Jared Kushner, the son-in-law of Donald Trump.

On Tuesday, world football’s governing body had announced its intention to establish FIFA Forward Enterprises (FFE), a new private entity to manage its flagship events, including the World Cup and the Club World Cup, with plans to sell a 21% minority stake in FFE to external investors.

The sale was targeted to generate $4.2 billion (£3.2 billion) in revenue. FIFA stated that this amount could be immediately distributed to its 211 member associations under a new funding stream named the “FIFA Fast-Forward Program” (FFFP).

Under the plan, FIFA’s total development funding would have exceeded $10 billion over the next four years.

Despite mounting criticism in recent days, FIFA confirmed that if member associations opposed the FFE plan but the proposal was accepted, the dissenting federations would each receive $20 million (£14.9 million) for the 2027–30 cycle, regardless of whether shares in FFE were sold to private investors (to be followed by $22 million for 2031–34 and $24 million for 2035–38).

However, had a given member association accepted the FFE proposal, it would have received $40 million for the 2027–30 period, with subsequent payouts remaining the same.

The three confederations that explicitly took a stand against FIFA’s plan represent 137 of the 211 FIFA member associations.

FIFA had stated that for the proposal to move forward, it required the approval of a majority of the 211 member associations as well as the 37-member FIFA Council, which consists of Infantino and eight FIFA vice presidents.

Strategic reactions and leadership crisis

South American football confederation CONMEBOL did not reject the plans in a statement on Friday, but noted that financial and commercial decisions “must always serve the interests of football and never take precedence over the essence of the game.”

According to a report by The Athletic, Infantino’s future leadership of FIFA was called into question during UEFA and CONCACAF meetings held on Thursday.

Infantino assumed the FIFA presidency in February 2016, succeeding Sepp Blatter, and was expected to run unopposed in the next election scheduled for March 2027.

There is also talk among European officials of putting forward Nasser Al-Khelaifi, the Qatari CEO of beIN Media, to run against Infantino.

Lise Klaveness, President of the Norwegian Football Federation, told VG: “My clear impression right now is that he has suffered a major loss of trust. We did not vote for him last time and were skeptical about this. There are many good aspects to FIFA, but if you take a lax approach to governance principles and rules, you lose trust quickly.”

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Defense Priorities director warns US air strategy in Middle East faces tactical limits

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The collapse of a tentative memorandum of understanding between Washington and Tehran, coupled with the diminishing strategic returns of American air power, has left the United States locked in an unsustainable, low-intensity conflict with Iran, according to Benjamin Friedman, Policy Director at the Washington-based think tank Defense Priorities.

Speaking in an interview on the YouTube channel Harici with host Sarp Sinan Hacır, Friedman attributed the failure of the short-lived US-Iran memorandum primarily to the Trump administration’s diplomatic missteps, vague draft language, and unrealistic expectations regarding a comprehensive settlement.

“Both sides really deserve some blame, but the Trump administration deserves the bulk of the blame for drafting an agreement that was so vague on key terms,” Friedman said, citing ambiguities surrounding the timeline for unfreezing Iranian assets and the scope of American commitments to restrain Israeli military operations in Lebanon.

Friedman emphasized that deep-seated mistrust in Tehran, exacerbated by repeated instances where diplomatic engagement was followed by Israeli or American military strikes, led Iranian negotiators to adopt an unyielding posture. At the same time, he noted that Iran likely miscalculated by using disruptions in the Strait of Hormuz to aggressively force leverage.

“The Trump administration remained intent on this sort of grand bargain that would restrain Iran seeking weapons development… and I think they continue to misread the Iranian willingness to sign that kind of deal,” Friedman noted, adding that Tehran viewed its leverage over the Strait of Hormuz as essential despite the risk of provoking further strikes.

Expressing deep skepticism over the prospects for a lasting diplomatic breakthrough, Friedman criticized the administration’s reliance on informal envoys such as Steve Bannon and Jared Kushner over professional diplomatic channels, predicting that the baseline outcome will remain an unpredictable, episodic conflict.

“What’s more likely is a kind of on-off-again kind of war—sort of what we’re in now, where we have occasional strikes, with the United States perhaps by accident adopting the Israeli model of ‘mowing the lawn’ periodically,” Friedman said.

Addressing the efficacy of US air power, Friedman argued that military operations against Iranian targets have reached a point of diminishing returns. While early strikes successfully eliminated critical high-value assets—such as over-the-horizon radar systems that targeted anti-ship missiles—Iran’s ballistic missile and long-range drone capabilities remain largely intact and operational.

He pointed to a recent strike on a base hosting US personnel in Jordan, launched from western Iran over a distance exceeding 1,000 kilometers, as evidence of Tehran’s sustained strike precision and the tactical limits of American interdiction efforts.

“The war is a failure for air power even in a tactical sense,” Friedman stated. “Initially, we looked at it and said we had a lot of success in destroying targets, but as more information came out, it turned out they had maybe more than half of their missiles and launchers survive the initial phase of the war.”

Friedman observed that the global proliferation of low-cost, high-precision guidance technology has permanently altered the strategic landscape, neutralizing the traditional invulnerability of forward-deployed US installations. “The precise effects of air power that used to be almost a monopoly of the United States… is actually making our posture in the region less sustainable,” he said, warning that similar vulnerabilities would be vastly amplified in any potential high-intensity conflict with China.

As an alternative to open-ended military engagement, Friedman suggested that Washington consider a complete military withdrawal from the region, even if it entails accepting Iranian transit fees on commercial shipping through the Strait of Hormuz. “The cost of preventing that through perpetual outbursts of warfare is much higher than just accepting it,” he noted.

Turning to regional dynamics, Friedman addressed Israel’s current absence from active strike operations against Iran, characterizing it as a calculated move to preserve its own air defense interceptors while relying on Washington to bear the operational and political burdens of containment.

On European security and the broader alliance structure, Friedman offered a critical assessment of the NATO summit in Ankara and the administration’s “NATO 3.0” concept. He described the white paper led by Defense Secretary Pete Hegseth as an effort to coerce European states into escalating defense expenditures and purchasing American hardware under the threat of reduced security guarantees, rather than executing a structured, strategic US posture adjustment.

“This is not a real US withdrawal; it’s a kind of pressure to up your loyalty in a particular way,” Friedman said, noting that major European powers such as Germany, France, and the UK lack a compelling existential incentive to construct independent, large-scale conventional war-fighting capabilities.

Regarding bilateral relations with Ankara, Friedman noted that US-Turkish tensions have eased considerably following the shift in American posture in Syria and progress toward resolving long-standing friction points, including the F-35 program and S-400 procurement. He added that while Israeli leadership under Prime Minister Benjamin Netanyahu has expressed frustration over Washington’s constructive engagement with President Recep Tayyip Erdoğan, the White House has maintained its strategic course despite pressure from domestic pro-Israel lobbying groups.

Addressing internal Republican Party dynamics, Friedman highlighted the evolving public stance of Vice President J.D. Vance, whose cautious criticism of Israeli influence and emphasis on divergent national interests reflects broader ideological shifts within the conservative base.

“Vance is more representative of the shift in the Republican Party,” Friedman said. “He’s criticizing them in a limited way and saying, ‘Our interests are different.’ From the perspective of those of us who would like the United States to have a more distant relationship from Israel, it’s progress.”

Looking ahead to the upcoming US midterm elections, Friedman anticipated that a loss of congressional control by the Republican Party would severely curtail the administration’s domestic executive overreach, though its structural impact on foreign policy execution and Middle Eastern operations would remain comparatively limited.

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UK Prime Minister Andy Burnham pledges full support to Ukraine in meeting with Zelenskyy

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UK Prime Minister Andy Burnham has met with Ukrainian President Volodymyr Zelenskyy in Portsmouth, England.

Zelenskyy is the first world leader Burnham has met in person since taking office, with the prime minister committing to building a “firm partnership” between the United Kingdom and Ukraine.

Demonstrating their support, the two leaders toured a military base in Portsmouth where 200 Ukrainian troops are currently undergoing naval training exercises.

Burnham described his meeting with the Ukrainian president as “warm” and said he plans to visit Ukraine soon.

“We will build this together and address the various issues President Zelenskyy is facing, many of which we discussed today,” Burnham said.

The meeting follows an announcement by London that it will share intellectual property rights to assist Kyiv’s war effort.

The new prime minister announced that the UK will share the “Stone Cloak” electronic warfare system—which is fitted to drones to prevent detection—and will assist Ukraine in mass-producing the technology.

Burnham has focused primarily on domestic matters since replacing Keir Starmer, who faced criticism from elements within his own party for spending too much time abroad and focusing heavily on foreign affairs.

However, Burnham sought to signal continuity in Britain’s policy toward Ukraine. In one of his first phone calls after becoming prime minister last week, Burnham invited Zelenskyy to visit the UK “as soon as possible.”

Starmer spent his final full day as prime minister in Kyiv, where he announced £255 million in funding for Ukraine.

Speaking to Sky on Monday, Zelenskyy said his telephone conversation with Burnham had been “very good.”

The Ukrainian leader noted that Starmer had previously assured him that “the new government would maintain the policy of supporting Ukraine during the war.”

The new prime minister told the Ukrainian leader it was “no coincidence” that he was his first international visitor since moving into Downing Street.

“The purpose of this is to send a very clear message. We stand 100% with Ukraine, I personally stand 100% with you, and I will fully deliver on every commitment this country has made to Ukraine,” Burnham said.

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