Economy

The US should “fight fire with fire” and impose fees on Chinese-built vessels to fund subsidies for its own shipbuilders, Donald Trump’s new appointment to head America’s maritime regulator has said.“We need to offset the subsidies that China has given their shipbuilding industry, fight fire with fire,” Louis Sola, who was appointed chair of the Federal Maritime Commission (FMC) in January, told the Financial Times. “Where should that money [from fees on Chinese ships] go to? That money should be invested into American shipping.”Sola’s comments follow a recommendation by the US Trade Representative (USTR) to impose measures including fees of up to $1.5mn on Chinese-built ships calling at US ports. The Trump administration is expected to make a final decision on the proposal, made following an investigation begun under former president Joe Biden, after a public hearing in March.As many as 36,595 US port calls in 2024 could have been affected by the USTR measures, which could generate annual fee income as high as $52bn, according to researchers at shipbroker Clarksons.“I don’t want to take their Goliath and tie his legs together,” the FMC chair said. “I’d rather put my own champion out there against him and the only way you can do that is you have to fund them.”The proposal to impose punitive measures on Chinese ships calling at US ports is the latest effort to boost American competitiveness, a key aim for Trump. The US president told a joint session of Congress this month he would create an “Office of Shipbuilding” in the White House along with tax incentives for the industry.“To boost our defence industrial base, we are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding,” Trump told lawmakers.US shipbuilders are highly unlikely to come close to competing with Chinese rivals in the near future, however, said experts.Louis Sola, Federal Maritime Commission chair, said: ‘We need to offset the subsidies that China has given their shipbuilding industry’ More

Young Americans’ confidence in the apparatus of government has dropped dramatically to one of the lowest levels in any prosperous country, a Financial Times analysis of Gallup data shows. The Gallup polls, conducted by surveying 70,000 people globally over the course of 2023 and 2024, found that less than a third of under-30s in the US trust the government. The proportion of US young people who said they lack freedom to choose what to do with their lives also hit a record high at 31 per cent in 2024 — a level worse than all other rich economies, bar Greece and Italy. “[For younger people in the US] the future seems kind of bleak,” said Julie Ray, managing editor at Gallup. While the Gallup poll does not cover the direct repercussions of US President Donald Trump’s second term, experts believe that rising political polarisation is likely to lead to a sharp drop in trust in future surveys. Connor Brennan, a 25-year-old financial economics PhD student at the University of Chicago, and disillusioned Republican, said he trusted the “big figures” in politics “a little less” now than in the past. “Friends, families these days are more and more torn apart by politics and seeing that (politics) taken as almost entertainment,” Brennan said. “It should be boring . . . it really has become more and more like, you watch the latest episode of the sitcom.”Some content could not load. Check your internet connection or browser settings.The proportion of young people in the US reporting no confidence in the judicial system also hit a record high in 2024, while more than a third of under-30s also do not trust the police. “I would not say I trust the government — a lot of things that have changed quite recently that call the government’s ability to be honest with the American people into question,” said Daniel Quezada, a 22-year-old substitute teacher in Arkansas, adding that he also had a “profound, profound sense of scepticism” regarding the police after being peacefully involved in protests in 2020. Elsewhere in the world, young people in Greece and Italy are among the most dissatisfied with public services and confidence in institutions. Nordic economies, such as Finland, Denmark and Norway, tend to be the best performers.Some 61 per cent of young people in the US also reported having recently experienced stress, the third-highest proportion among advanced economies after Greece and Canada. Daniel Quezada: ‘A lot of things that have changed quite recently that call the government’s ability to be honest with the American people into question’ More

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This article is an on-site version of our The Week Ahead newsletter. Subscribers can sign up here to get the newsletter delivered every Sunday. Explore all of our newsletters hereHello and welcome to the working week.I’m not sure anyone has ever asked what US President Donald Trump thinks about the Bill Clinton era White House line that “it’s the economy, stupid”. But this week we’re going to get a fair degree of feedback on what the current White House occupant’s trade brinkmanship is doing to the global economy.We start the week with the OECD’s take on events in its Interim Economic Outlook Report, published on Monday. GDP growth will be a key part of the story.Inflation and the battle to tame it will take up much of the week’s agenda, with a clutch of significant central banks deciding what to do with interest rates. The US Federal Reserve is likely to announce a 25 basis point decrease on Wednesday, following last week’s better than expected inflation figure. So good was the news that futures markets are pricing in another rate cut this year with about 85 per cent chance of a third.Some content could not load. Check your internet connection or browser settings.However, the Fed is walking a tightrope as it attempts to reduce inflation without triggering a recession, amid intensifying fears that Trump’s aggressive tariff skirmishes are undermining American economic growth.It’s a different story for the UK. On Thursday, the Bank of England’s Monetary Policy Committee will most likely hold rates at 4.5 per cent at its meeting as signs of a rebound in inflation outweigh the unexpected contraction in GDP in January, recorded last week. The BoE had already cut its economic growth forecast for the first quarter of 2025 to 0.1 per cent, from the 0.4 per cent expected in November. Observers expect the central bank is waiting to see the impact of the rise in employers’ national insurance contributions that are about to come into force. Thursday will also see the publication of UK unemployment figures.The Bank of Japan is expected to raise rates, but most likely not when it makes its latest announcement on Wednesday. The country’s most recent GDP growth figure signalled an economy in fair shape despite the difficult adjustments following the BoJ’s move last year to “normalise” monetary policy and begin a cycle of interest rate rises.The big corporate event of the week will be chipmaker Nvidia’s GTC conference starting on Monday in San Jose, California, nicknamed “AI Woodstock” by a group of Bank of America analysts. Practically everyone in the semiconductor and AI space will be there, including most of the big US tech companies and their Chinese competitors. It is a chance for Nvidia to showcase on the conference floor its vast partner network — a whole economy that has sprung up around the company.The company’s co-founder and chief executive Jensen Huang gives his keynote address on Tuesday morning local time, attracting folks who might not even understand what he’s talking about but just want to see him. Analysts expect Huang to speak about Nvidia’s new Rubin AI chip, a more powerful “ultra” version of the company’s Blackwell chip, which sold about $11bn of units since its launch last year, as well as more on AI and robots, which he made a big deal out of at his keynote at the CES conference in Las Vegas in January.There is a steady flow, rather than a rush, of other economic and corporate news over the coming days. There will no doubt be much discussion about what gets added and removed from the basket of goods to decide the UK inflation figure. The cost of living will be a theme elsewhere with producer price index and consumer price index updates from Germany, Japan and Canada. One item that will continue to hog headlines without a specific agenda this week will be Russia’s war in Ukraine. Looking further ahead, the FT will be holding a subscriber webinar on March 27 from 1-2pm GMT, analysing developments in the war as Ukrainian President Volodymyr Zelenskyy faces mounting pressure, US support wanes and Russian President Vladimir Putin enjoys a freer hand amid the Trump presidency. Register for free to submit your question to the panel. One more thing . . . The International Olympic Committee gathers in Greece this week, picking a new chair on Thursday from a list of seven candidates. But the big question, according to the FT’s Big Read team, is whether the global sporting contest even has a future.What does your more immediate future hold? As ever, email me at jonathan.moules@ft.com or, if you are reading this from your inbox, hit reply.Key economic and company reportsHere is a more complete list of what to expect in terms of company reports and economic data this week.MondayNvidia GTC AI, a five-day conference, beginsOECD Interim Economic Outlook Report on the near-term prospects for the global economyUK: Make UK/BDO Manufacturing Outlook Survey and Economic Forecasts. Also, the March Rightmove House Index.Results: F&C Investment Trust FY, Marshalls FY, Phoenix Group FYTuesdayBenjamin Smith, chief executive of Air France-KLM, and his counterpart at Air France, Anne Rigail, present the French national carrier’s new La Premiere travel experience in ParisLip-Bu Tan takes up the role of chief executive at US chipmaker IntelCanada: February consumer price index (CPI) inflation rate dataUK: annual update of the CPI basket of goods and services, including owner occupiers’ housing costs weights. Also, UK Finance card spending statisticsResults: Close Brothers HY, Computacenter FY, Continental FY, Eni FY, H&T Group FY, Springer Nature FY, SThree Q1 trading update, Trustpilot FY, Yu Group FYWednesdayBrazil: Banco Central do Brasil interest rate decision announcementJapan: Bank of Japan interest rate announcementUS: Federal Reserve interest rate announcement, plus economic projectionsResults: Essentra FY, General Mills Q3, M&G FY, Prudential FY, Softcat HY, Swatch FY, Tencent Q4ThursdayBank of Canada governor Tiff Macklem gives a speech at the Calgary Economic Development eventAustralia: February labour force figures, including the unemployment rateChina: People’s Loan Rate announcementEU: European Central Bank Economic BulletinGermany: February producer price index (PPI) inflation rate figures for industrial productsJapan: Vernal Equinox Day. Financial markets closedUK: Bank of England’s interest rate decision, released alongside the minutes from the Monetary Policy Committee’s meeting. Also, March labour market figuresResults: Accenture Q2, Bloomsbury Publishing trading update, CK Hutchison Holdings FY, Darden Restaurants Q3, FedEx Q3, Investec pre-close trading update, James Fisher & Sons FY, Lloyd’s of London FY, Micron Technology Q2, Nike Q3, RTL FY, RWE FY, Wickes FYFridayGermany: February PPI inflation rate data for servicesJapan: February CPI inflation rate figuresUK: February public sector finances dataResults: Carnival Q1, JD Wetherspoon HYWorld eventsFinally, here is a rundown of other events and milestones this week. MondaySt Patrick’s Day, commemorated at events around the world on the feast day of the patron saint of IrelandIndia: The Raisina Dialogue, a three-day annual conference on geopolitics and geoeconomics, bringing together leaders from politics, business and the media, begins in New DelhiUK: National Audit Office publishes a report on the Home Office’s approach to managing the skilled worker immigration route, following reports of changes to the programme creating a shift in hiringUS: World Bank Global Digital Summit begins in Washington, running until Thursday. This year’s theme is Digital Pathways for AllTuesday60th anniversary of USSR cosmonaut Alexei Leonov becoming the first man to walk in space, floating outside his Voskhod 2 capsule for more than 10 minutesBelgium: European Commission President Ursula von der Leyen meets World Trade Organization director-general Ngozi Okonjo-Iweala in BrusselsWednesdayGreece: 144th International Olympic Committee Session begins at the Romanos Resort in Costa Navarino. The three-day meeting will include the election (on Thursday) of the new IOC president, selected from Britain’s Lord Sebastian Coe, Prince Faisal bin Hussein of Jordan, France’s David Lappartient, Sweden’s Johan Eliasch, Juan Antonio Samaranch of Spain, Zimbabwe’s Kirsty Coventry and Morinari Watanabe of JapanThursdayVernal Equinox, the first day of spring in the northern hemisphere, when the day’s length equals that of the night and the Earth’s poles are the same distance from the SunBelgium: European Council meeting of EU heads of state and government in Brussels, chaired by the European Council President António CostaChina: Beijing imposes retaliatory tariffs on more than $2.6bn worth of Canadian agricultural and food products after Canada imposed 100 per cent tariff on Chinese electric vehicles, and 25 per cent on steel and aluminium last OctoberIran: Nowruz new year celebrationsUS: 2025 National Cherry Blossom Festival kicks off in Washington, continuing until April 13. Peak bloom for the American capital is due later in the monthFridayChina: 2025 World Athletics Indoor Championships begin in Nanjing, finishing on SundayNamibia: Netumbo Nandi-Ndaitwah, the nation’s first female president, is sworn into office on the country’s 35th Independence DayUK: Liberal Democrat party Spring Conference begins in Harrogate. Lib Dem leader Sir Ed Davey will address delegates on Sunday, the last day of the eventSaturdayWorld Wildlife Fund for Nature’s Earth Hour rolls across the globe with famous landmarks, skylines, businesses and homes switching their lights off for one hour at 8:30pm local time to focus attention on climate change. You can calculate your carbon impact with the WWF’s footprint calculatorEgypt: 80th anniversary of the formation of the League of Arab States in CairoUK: Scottish National party conference is held in PerthSundayChina: China Development Forum, an annual meeting of international business and academic groups with China’s top decision makers, economic planners and leading academicsPakistan: Republic Day is commemorated with a military parade, a display of nuclear-capable weapons, tanks, jets, drones and other weapons systemsUK: fifth anniversary of the then prime minister Boris Johnson announcing a nationwide lockdown to prevent the spread of Covid-19Recommended newsletters for youWhite House Watch — What Trump’s second term means for Washington, business and the world. Sign up hereFT Opinion — Insights and judgments from top commentators. Sign up here More

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This article is an on-site version of Free Lunch newsletter. Premium subscribers can sign up here to get the newsletter delivered every Thursday and Sunday. Standard subscribers can upgrade to Premium here, or explore all FT newslettersHappy Sunday. In a 2023 column, I asked why Canada was not an economic giant. The musing stirred up over 600 comments.The mountainous North American nation is the subject of this week’s newsletter. The near-term outlook for the Canadian economy isn’t great. The US’s proposed 25 per cent tariffs on goods from Canada could lower its GDP growth by around 4 percentage points over two years (assuming they come into force and Canada retaliates), according to a Bank of Canada estimate.But in this edition I take a decades-long view, arguing that with an ambitious policy agenda, the G7 nation can become a major economic force. First, a word on its potential.Canada is the second-largest country by land mass, with the world’s longest coastline. It is bookended by the Pacific and Atlantic oceans, making it ideally situated for global trade.Marko Papic, chief strategist at BCA Research, also reckons Canada could be better off in a warmer world. “Global warming could increase agricultural yields, open up large swaths of the country to mineral exploration, and allow for new trade routes through the Arctic,” he said.The country is energy independent, with the world’s largest deposits of high-grade uranium and the third-largest proven oil reserves. It is also the fifth-largest producer of natural gas. Canada boasts a huge supply of other commodities too, including the largest potash reserves (used to make fertiliser), over one-third of the world’s certified forests and a fifth of the planet’s surface freshwater. Plus, it has an abundance of cobalt, graphite, lithium and other rare earth elements, which are used in renewable technologies.“Canada absolutely has potential to be a global superpower,” added Papic. But the nation has lacked the visionary leadership and policy framework to capitalise on its advantages. US President Donald Trump’s tariff threat has, however, shifted the Overton window. There is now a growing political consensus to unlock Canada’s economic potential and reduce its dependence on exports to its southern neighbour. That task will fall to either Prime Minister Mark Carney or opposition leader Pierre Poilievre following an election this year. Canada’s GDP has long trailed its G7 peers, ranking 16th globally in purchasing power parity terms. A country with its geography could clearly generate higher output. To do so, the Canadian economy needs to become more efficient, raise investment and attract more high-skilled workers. Here’s how.Some content could not load. Check your internet connection or browser settings.The country’s mountainous terrain impedes its dynamism. But Canada places significant bureaucratic burdens on the movement of people and goods too. This includes restrictions on the sale of certain goods across provincial borders, and variations in licences and technical standards that hinder scaling, competition and efficient resource allocation across the country. For measure, Canadian provinces export more to America than they do among themselves. A 2022 study by the Macdonald-Laurier Institute found that Canada’s economy could grow by 4.4 to 7.9 per cent in the long term — up to $200bn a year — if it eliminated internal trade barriers via mutual recognition policies. Similar reforms in Australia in the 1990s helped to boost productivity there.Faced with the threat of US tariffs, a provincewide consensus is emerging. An Angus Reid survey found 95 per cent of Canadians now support the removal of internal trade barriers. Some content could not load. Check your internet connection or browser settings.Simplifying its complex tax system, expediting planning processes, easing red tape for foreign direct investment and developing economic partnership mechanisms for indigenous populations, in tandem with internal trade reforms, would help businesses across the industrial supply chain tap into the nation’s vast energy and mineral resources.Canada can play a significant role in meeting the global demand for natural gas, uranium (used in nuclear reactors) and rare-earth minerals, especially as renewables and defence sectors are booming. The country’s natural resources, as well as its potential in higher value-add production and refinement activities, are also valuable assets as nations consider diversifying their supply chains from China, Russia — and even the US. Developing natural resource clusters around the country would support the agglomeration of related economic activities, including in advanced manufacturing, finance, and research and development. This means boosting connectivity to support trading outlets to Asia and Europe is key. Right now, around three-quarters of Canadian goods exports go to America. (Any future, friendlier US administration would then be a bonus.)Some content could not load. Check your internet connection or browser settings.“Canada must continue to build up its trade and energy infrastructure coast to coast, including ports, roads, railways and pipelines”, says Varun Srivatsan, director of policy at the Royal Bank of Canada. The country ranks 103rd out of 113 for port turnaround times, according to the World Bank.Next, people. With a population of just 40mn, Canada is one of the world’s least densely populated countries. But remarkably, it also has one of the developed world’s worst housing shortages. Average house prices have tripled in the past two decades, with high mortgage debt straining consumer spending.This is both a demand and supply problem. Immigration jumped under former Prime Minister Justin Trudeau, helping to expand the country’s sparse labour market. But it also strained public infrastructure, which did not develop at the same pace.Some content could not load. Check your internet connection or browser settings.Tighter immigration controls will provide temporary reprieve. But with an ageing population and a relatively small labour force, Canada needs to continue to attract talent over the long term. (Artificial intelligence and robotics — which both require investment — can only go so far.)This shouldn’t be too difficult. Canada outperforms the average on the OECD Better Life Index in education, health and life satisfaction. Calgary, Vancouver and Toronto are ranked among the best cities to live in. And Canada is the world’s most appealing destination for the university educated, according to the Economist, which estimates about 17mn graduates would move there if they could.Building more homes will ensure it remains attractive and affordable for both domestic and international workers. (Canada doesn’t utilise immigrants’ skills as efficiently as it could either. A harmonised, nationwide recognition of foreign credentials would help, notes the OECD.)Some content could not load. Check your internet connection or browser settings.This is not an exhaustive list of policies. But they ought to be among the long-term priorities for any Canadian administration seeking to capitalise on the nation’s enormous, latent potential. Does Canada have the money? It has the G7’s lowest net debt and deficit levels as a percentage of GDP. So growth-enhancing investment could be financed in part by borrowing. But gross debt is high.Canada also has vast pools of capital and expertise in its world-class pension funds — the “Maple Eight” (its largest pension pots) oversee $1.6tn in assets. They could back lucrative capital investments in the country. Natural resource revenues could be channelled into a sovereign wealth fund as in Norway with provincial buy-in. And so long as infrastructure and less red tape enable it, FDI would be plentiful. The Canadian economy is at a crossroads. The belligerence of its main trading partner is driving consensus around boosting the national economy. The world needs what Canada has in abundance. The nation has a unique chance to reach its potential. If it wants to.Rebuttals? Thoughts? Message me at freelunch@ft.com or on X @tejparikh90.Food for thoughtHere’s another possible explanation for Britain’s productivity puzzle. Kallum Pickering, chief economist at Peel Hunt, ran an interesting analysis that linked falling electricity supply to weak productivity growth in the UK. Could it be that Britain has simply lacked the energy to grow faster?Recommended newsletters for youTrade Secrets — A must-read on the changing face of international trade and globalisation. Sign up hereUnhedged — Robert Armstrong dissects the most important market trends and discusses how Wall Street’s best minds respond to them. Sign up here More

President Donald Trump’s controversial plans for tariffs and comments about Canada becoming a state has angered the country’s consumers and politicians.
Canada has long been a key ally and trade partner for the U.S., with residents shopping American brands and flocking south of the border for vacations.

A “Shop Canadian” sign is seen at the entrance of a supermarket in Vancouver, British Columbia, Canada, March 4, 2025. 
Liang Seng | Xinhua News Agency | Getty Images

Canadians are swapping their friendly auras for a fierce sense of nationalism amid U.S. President Donald Trump’s attacks on the country’s trade and sovereignty.
Trump’s mostly delayed plans for 25% tariffs on Canadian goods and his calls for the country to become an American state has spurned citizens of the U.S.’s northern neighbor and key trade partner. As a result, Canadians have rejected American imports and issued other economic punishments in an unusual show of patriotism.

“It really feels for most Canadians like we’ve been backstabbed, that the person that we trusted the most is now sort of turning on us and attacking us for no apparent reason,” said Joel Bilt, an economics professor focused on international trade at the University of Waterloo in Ontario. “That has really unified people.”
Grocery stores have encouraged visitors to “shop Canadian” with signs and special labels in aisles alerting them to which products were made domestically. A popular Facebook group focused on buying Canadian-made goods first reported on by NBC News has seen its membership more than double since early February as the on-again-off-again tariff policy played out.

A “Shop Canadian” sign is seen at the entrance of a supermarket in Vancouver, British Columbia, Canada, March 4, 2025. 
Liang Seng | Xinhua News Agency | Getty Images

More than 60% of Canadians reported buying fewer American products when shopping either in store or online, according to a survey from market research firm Leger of more than 1,500 residents conducted between March 7 and March 10. Just over seven out of 10 said they upped their purchases of goods made within the country, which has the ninth largest economy in the world.
The Liquor Control Board of Ontario went even further, barring its members from ordering American alcohol. Because the LCBO sells upwards of $1 billion in American liquor each year, the move has raised alarm for U.S.-based spirit makers like Jack Daniel’s parent Brown-Forman.
“That’s worse than a tariff,” said Lawson Whiting, chief executive of Brown-Forman, on the Kentucky-based company’s earnings call this month. “It’s literally taking your sales away.”

Empty shelves remain with signs ”Buy Canadian Instead” after the top five U.S. liquor brands were removed from sale at a B.C. Liquor Store, as part of a response to U.S. President Donald Trump’s 25% tariffs on Canadian goods, in Vancouver, British Columbia, Canada, February 2, 2025. 
Chris Helgren | Reuters

Ontario also said it would implement a 25% surcharge on electricity exported to Michigan, Minnesota and New York. But Ontario Premier Doug Ford said that he would temporarily halt this tax after U.S. Commerce Secretary Howard Lutnick agreed to restart negotiations.
Trump initially responded by calling to raise tariffs on Canadian steel and aluminum to 50%, but the White House told CNBC that he backed down following the conversation between Lutnick and Ford.
Still, Trump’s now-withdrawn plan for higher taxes on the metals put the United Steelworkers union — which represents about 850,000 people in the U.S., Canada and the Caribbean — on alert. USW International President David McCall said in a March 11 statement that the North American arms of the international trade organization would “fight together” against the proposed levies, which he said threatens jobs on both sides of the U.S.-Canadian border.

A ‘pushback’

Even as the tariff negotiations remain in flux, travel to the U.S. is already taking a hit. Return trips by Canadians from the U.S. by vehicle tumbled around 23% in February from the same month a year ago, according to government statistics.

Government data also showed the number of Canadians flying back into the country from international locations declined in February from a year ago, signaling a pullback in tourism abroad. That comes as Air Canada announced plans to cut capacity to warm U.S. locations like Florida, Arizona and Nevada beginning this month.
Trump’s threats have prompted some cancellations to the Wildwoods in New Jersey, a popular beach destination for travelers from places like Montreal and Quebec, according to Ben Rose, marketing and public relations director at the Greater Wildwoods Tourism Authority. But he said these rescissions haven’t been as widespread as initially expected. Canadians are also weighing concerns around the exchange rate, he added.

Air Canada planes are seen at the gates at Montréal-Pierre Elliott Trudeau International Airport in Dorval, Quebec, Canada on April 2, 2024. 
Daniel Slim | Afp | Getty Images

At consumer travel shows in Toronto and Montreal, the authority received some comments from potential Canadian travelers about how Trump’s plan for levies has deterred vacationing in America. Rose said his team reminds uneasy Canadians that it has been a welcoming destination for them over several decades and provides unique value as a location within driving distance.
“Some of the pushback we’ve been getting is that: ‘You know we love Americans, and we know they love us, but we’ll see you in four years,'” Rose said. “They can’t go along with the administration.”

Political, cultural efforts

Canadians’ stance against Trump’s policies has spilled into culture and media as the issue captured the country’s interest.
Canadians booed the U.S. national anthem before major-league sporting games against American teams. During an appearance on Saturday Night Live this month, Canadian celebrity Mike Myers donned a shirt that reads “Canada is not for sale” alongside the country’s red-and-white flag.

(l-r) Musical guest Tate McRae, host Shane Gillis, and special guest Mike Myers during Goodnights & Credits on Saturday, March 1, 2025.
Will Heath | NBCUniversal | Getty Images

Tariffs have become a focal point of Canada’s government, which saw ex-central banker Mark Carney clinch the prime minister title this month. Carney succeeds Justin Trudeau, who Trump had begun referring to as “governor” in reference to his hopes of making Canada a U.S. state.
The British Columbia government and its power operator said they would exclude Tesla products from certain green-energy rebates as of March 12, an action done to give “preference” to Canadian-made alternatives. Tesla is run by CEO Elon Musk, who has come under fire from critics for his leadership of Trump’s controversial government efficiency initiative.
Waterloo’s Bilt said Canadians’ anger is focused mainly on Trump rather than Americans at large, meaning personal relationships between citizens of each country likely wouldn’t be frayed as a result. However, he said American businesses should expect Canadians — once known as a laid-back, polite group that didn’t think twice about shopping U.S. brands or vacationing south of its border — to rebuff them until Trump backs down.
“It really has elicited the kind of response that I have never seen before,” Bilt said. “Canadians are not fundamentally nationalistic, but this really sort of hit something strong at the core of the average Canadian.”
— NBC News and CNBC’s Dan Mangan and Laya Neelakandan contributed to this report.
Disclosure: Saturday Night Live is part of NBCUniversal, which also owns CNBC. More

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.China’s President Xi Jinping has declined an initial invitation to visit Brussels for a summit to mark the 50th anniversary of ties, as the EU questions the sincerity of recent Chinese overtures.Beijing told EU officials that China’s second-ranked leader Premier Li Qiang would meet the presidents of the European Council and Commission in Brussels for the summit rather than Xi, two people familiar with the matter said. The hosting of EU-China summits traditionally alternates between Brussels and Beijing. The premier usually attends the summit in Brussels, and Xi hosts it in Beijing, but the EU believes the importance of this meeting — to commemorate half a century of diplomatic relations — means that China’s president should attend, the people said. Both sides said talks continued, but the initial snub has confirmed the view among many in Brussels that China will not add concrete action to its warm words about the need to co-operate in the face of US President Donald Trump’s assault on the multilateral world order.This year’s summit comes at a particularly sensitive time for EU-China relations. Tensions between Brussels and Beijing have grown since Russia’s full-scale invasion of Ukraine in 2022, with the EU accusing China of backing the Kremlin. The bloc has also imposed tariffs on Chinese electric vehicle imports, claiming they are subsidised. EU officials say China, which last year had a €304.5bn trade surplus with the bloc, is not doing enough to rebalance trade by reducing subsidies for its industries and lowering trade barriers for foreign companies doing business in the world’s second-largest economy.“The relationship is on ice,” said a senior EU diplomat. “It is a change of tone not substance. Their policy is not going to change and the same is true for us.”Lu Shaye, China’s former outspoken ambassador to France who is now Beijing’s special representative for European affairs, said China’s policy towards Europe had always “advocated peace, friendship, co-operation,and mutual benefit”. “This has never changed. It is just that the contrast with the current US policy towards Europe makes China’s policy towards Europe appear even more visionary, fair and reasonable. I hope this could serve as a wake-up call [for Europe],” he said. Known as a “wolf warrior” diplomat for his aggressive diplomacy, Lu caused an uproar in Europe last year when he questioned whether Crimea was part of Ukraine and the sovereignty of former Soviet republics such as EU members Latvia, Estonia and Lithuania.His appointment to manage China’s diplomatic relationship with Europe was seen by some commentators as a hardening of Beijing’s stance, but at the same time, another EU diplomat said, “there is a Chinese charm offensive under way”.“China even said that they expect Europe to have a seat at the negotiating table [in Ukraine peace talks],” the diplomat added. “I also hear less talk about EU-China trade frictions. They still exist, but there is less focus on it.”The EU’s trade chief Maroš Šefčovič is set to visit China at the end of this month. Spanish foreign minister José Manuel Albares told the Financial Times last month that the EU should also see potential opportunities. When China “can be a partner — let’s take advantage of that”, Albares said.Ursula von der Leyen, European Commission president, said in February that while the EU would keep “de-risking” by protecting its industry, “we can find agreements that could even expand our trade and investment ties”. Trump’s 25 per cent tariffs on steel and aluminium have forced the EU to respond, even as industry groups warn of the damage it will cause. But a senior EU official said a critical focus when it came to China was defensive measures to keep out “a wave” of Chinese products displaced from the US market by the tariffs.On Friday the EU opened an anti-dumping investigation against Chinese exports of adipic acid, used to produce nylon and many other products. It is the 11th case since October, including those regarding sweetcorn, metal screws and candles.“Informal discussions are ongoing both about setting the date for the EU China summit this year and the level of representation,” said an EU official.China’s ministry of foreign affairs said it did not have “any information to provide” regarding the matter. More