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Canada to drop some of its retaliatory tariffs on the US

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Canada to drop some of its retaliatory tariffs on the US


Canada’s Prime Minister Mark Carney said on Friday that his country will drop some of its billions of dollars in retaliatory tariffs on US goods, though it will keep levies on autos, steel and aluminium.

It comes a day after he and President Donald Trump spoke over the phone for the first time since the two countries missed a self-imposed deadline to reach a trade agreement.

Canada had placed a 25% levy on about C$30bn (£16bn; $21.7bn) worth of US goods on an array of products, including orange juice and washing machines.

The tax hike was in retaliation to US tariffs on Canada, which as of August are valued at 35% on all goods not compliant with the countries’ existing free trade deal.

Carney said Canada will now match the US by ending its tariffs on goods compliant with the US-Mexico-Canada free trade agreement (USMCA). He said that would “re-establish free trade for the vast majority” of goods that move between the two countries.

The decision will go into effect on 1 September, Carney said.

In a statement to the BBC’s US news partner CBS, the White House said it welcomes Canada’s move, adding that it is “long overdue” and that the US looks forward to continuing discussions with its northern neighbour about trade and national security.

Trump later told reporters on Friday that he and Carney will speak again over the phone soon.

Canada is one of many countries tariffed by the US as part of Trump’s global trade strategy, but it is one of only two countries – along with China – that have placed retaliatory levies on American goods in response.

Polling shows the majority of Canadians support retaliatory tariffs on the US.

Carney, who was elected in an April general election, campaigned on an aggressive “elbows up” approach to negotiating with Trump, referencing a popular ice hockey term.

Conservative leader Pierre Poilievre criticised Carney for dropping the counter-tariffs, telling reporters that the prime minister’s “elbows have mysteriously gone missing”.

“It is yet another capitulation and climb down by Mark Carney,” Poilievre said.

Asked by reporters about whether Canada was softening its approach, Carney said it has a better tariff deal with the US than many other countries because of the free trade carve-out.

That puts the actual tariff rate on Canadian goods at about 5.6%, much lower than the average of around 16% for other countries, he said.

“As we work to address outstanding trade issues with the US, it’s important we do everything we can to preserve this unique advantage for Canadian workers and businesses,” he said.

Since returning to the White House in January, Trump has imposed tariffs or raising them on goods from around the world, and threatened to go higher as he works to negotiate trade deals he sees as favourable to the US.

The US ambassador to Canada, Pete Hoekstra, said that Canada was jeopardising trade talks by keeping its counter tariffs in place, telling Canadian outlet Global News last week that “it has pulled the rug out from USMCA”.

Washington is also struggling with rhetoric coming from some Canadian politicians against Trump and the US negotiating team, he said.

“They will attack them personally, not on the policy, but them personally,” Hoekstra said. “Again, that is a Canadian decision. All we do is respond to it.”

Carney said the focus will now turn to accelerating negotiations on autos, steel, aluminium and lumber, and other significant sectors ahead of a scheduled review of the USMCA free trade agreement next year.

The US has placed a 50% tariff on all steel and aluminium imports, except for those from the UK, as well as copper imports, along with tariffs on auto imports.

Canada, for its part, has placed 25% tariffs on American steel, aluminium and autos, which will remain in place for now.

Economists have warned that US tariffs on steel and aluminium are “hugely disruptive” to Canada, as it is a major supplier of both metals to the US. Canadian companies have already reported cutbacks and contract cancellations as a result.

Auto manufacturing could also be vulnerable, given how intertwined all three North American countries are in making cars. Typically a car crosses the borders between the US, Canada and Mexico multiple times as it is assembled and prepared to be sold.

The province of Ontario, the centre of auto industry in Canada, has already reported losing 38,000 jobs in the last three months, the bulk of which were in manufacturing.



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Serial rail fare evader faces jail over 112 unpaid tickets

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Serial rail fare evader faces jail over 112 unpaid tickets


One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.

Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.

He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.

He will be sentenced next month.

District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.

He pleaded guilty to 76 offences on Thursday.

It came after he was convicted in his absence of 36 charges at a previous hearing.

During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.

They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.

But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.



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John Swinney under fire over ‘smallest tax cut in history’ after Scottish Budget

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John Swinney under fire over ‘smallest tax cut in history’ after Scottish Budget



John Swinney has been pressed over whether this week’s Scottish Budget gives some workers the “smallest tax cut in history” – with Tory leader Russell Findlay branding the reduction “miserly” and “insulting”.

The Scottish Conservative leader challenged the First Minister after Tuesday’s Holyrood Budget effectively cut taxes for lower earners, by increasing the threshold for the basic and intermediate bands of income tax.

But Mr Findlay said that would leave workers at most £31.75 a year better off – saying this amounts to a saving of just £61p a week

“That wouldn’t even buy you a bag of peanuts,” the Scottish Tory leader said.

“John Swinney’s Budget might even have broken a world record, because a Scottish Government tax adviser says it ‘maybe the smallest tax cut in history’.”

Raising the “miserly cut” at First Minister’s Questions in the Scottish Parliament, Mr Findlay demanded to know if the SNP leader believed his “insulting tax cut will actually help Scotland’s struggling households”.

The attack came as the Tory accused the SNP government of increasing taxes on higher earners, with its freeze on higher income tax thresholds, which will pull more Scots into these brackets.

This is needed to pay for the “SNP’s out of control, unaffordable benefits bill”, the Conservative added.

Mr Findlay said: “The Scottish Conservatives will not back and cannot back a Budget that does nothing to help Scotland’s workers and businesses.

“It hammers people with higher taxes to fund a bloated benefits system.”

Hitting out at Labour – whose leader Anas Sarwar has already declared they will not block the government’s Budget – Mr Findlay said: “It is absolutely mind-blowing that Labour and other so-called opposition parties will let this SNP boorach of a budget pass.

“Don’t the people of Scotland deserve lower taxes, fairer benefits and a government focused on economic growth?”

Mr Swinney said the Budget “delivers on the priorities of the people of Scotland” by “strengthening our National Health Service and supporting people and businesses with the challenges of the cost of living”.

He insisted income tax decisions in the Budget would mean that in 2026-27 “55% of Scottish taxpayers are now expected to pay less income tax than if they lived in England”.

The First Minister went on to say that showed “the people of Scotland have a Government that is on their side”.

Referring to polls putting his party on course to win the Holyrood elections in May, the SNP leader added that “all the current indications show the people of Scotland want to have this Government here for the long term”.

Benefits funding is “keeping children out of poverty”, he told MSPs, adding the Budget contained a “range of measures” that would build on existing support.

The First Minister said: “What that is a demonstration of is a Government that is on the side of the people of Scotland and I am proud of the measures we set out in the Budget on Tuesday.”

Meanwhile he said the Tories wanted to make tax cuts that would cost £1 billion, with “not a scrap of detail about how that would be delivered”.

With the weekly leaders’ question time clash coming less than 48 hours after the draft 2026-27 Budget was unveiled, the First Minister also faced questions from Scottish Labour’s Anas Sarwar, who insisted that the proposals “lacks ambition for Scotland”.

Pressing his SNP rival, the Scottish Labour leader said: “While he brags about his £6 a year tax cut for the lowest paid, one million Scots including nurses, teachers and police officers face being forced to pay more.

“Even his own tax adviser says this is a political stunt. So why does John Swinney believe that someone earning £33,500 has the broadest shoulders and therefore should pay more tax in Scotland?”

Mr Swinney, however, said that many public sector workers would be better off in Scotland.

He told the Scottish Labour leader: “A band six nurse at the bottom of the scale will take home an additional £1,994 after tax compared to the same band in England.

“A qualified teacher at the bottom of the band will take home £6,365 more after tax in Scotland than the equivalent in England. There are the facts for Mr Sarwar.”



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BP cautions over ‘weak’ oil trading and reveals up to £3.7bn in write-downs

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BP cautions over ‘weak’ oil trading and reveals up to £3.7bn in write-downs



BP has warned it expects to book up to five billion dollars (£3.7 billion) in write-downs across its gas and low-carbon energy division as it also said oil trading had been weak in its final quarter.

The oil giant joined FTSE 100 rival Shell, after it also last week cautioned over a weaker performance from trading, which comes amid a drop in the cost of crude.

BP said Brent crude prices averaged 63.73 dollars per barrel in the fourth quarter of last year compared with 69.13 dollars a barrel in the previous three months.

Oil prices have slumped in recent weeks, partly driven lower due to US President Donald Trump’s move to oust and detain Venezuela’s leader and lay claim to crude in the region, leading to fears of a supply glut.

In its update ahead of full-year results, BP also said it expects to book a four billion dollar (£3 billion) to five billion dollar (£3.7 billion) impairment in its so-called transition businesses, largely relating to its gas and low-carbon energy division.

But it said further progress had been made in slashing debts, with its net debt falling to between 22 billion and 23 billion dollars (£16.4 billion to £17.1 billion) at the end of 2025, down from 26.1 billion dollars (£19.4 billion) at the end of September.

It comes after the firm’s surprise move last month to appoint Woodside Energy boss Meg O’Neill as its new chief executive as Murray Auchincloss stepped down after less than two years in the role.

Ms O’Neill will start in the role on April 1, with Carol Howle, current executive vice president of supply, trading and shipping at BP, acting as chief executive on an interim basis until the new boss joins.

Ms O’Neill’s appointment has made history as she will become the first woman to run BP – and also the first to head up a top five global oil company – as well as being the first ever outsider to take on the post at BP.

Shares in BP fell 1% in morning trading on Wednesday after the latest update.



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