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In the real world, stronger international economic linkages can be mutually beneficial—but only if managed through sensible rules, macroeconomic planning, and economic democracy.
Editor’s Note: The following is part of new series for Common Dreams based on “Game Changers: Economic Policies for a Working America,” a project spearheaded by the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst. Game Changers is a collaborative initiative bringing together leading economists and policy experts to develop bold, new ideas to build a stronger, fairer, greener, and more inclusive economy for all Americans.
In the following essay, Game Changers takes on corporate-friendly trade deals, including those in North America. And as the US-Canada trade war rages on, beyond the dizzying headlines—including renaming Lake Ontario to Lake America—what does this mean for North American workers, and what is a more sensible trade policy for North America?
This Thursday, Sept. 17th, the Game Changers webinar, Oh Canada: Trump Vs. North American Workers, will dig beyond the headlines to answer these questions, putting focus on the international trade collaboration we need to make the economy work for working America, not just big corporations. Register for the webinar here.
Corporate-driven free trade agreements have distorted global trade and investment relationships over the past 40 years – including in North America. The power and freedom they grant business has produced deindustrialization, job loss, and inequality for workers in the US, Canada, and Mexico. Donald Trump weaponized this hardship, but his erratic tariffs and other actions are only making things worse for workers in America.
NAFTA hurt workers in all three countries; Trump’s policies are making it worse
Starting in the 1980s, global business interests, backed by leaders of both main parties, pushed hard for an ambitious new approach to international trade policy. Instead of straightforward and mutual tariff reduction to promote two-way trade, they pioneered a new generation of trade agreements (bilateral, regional, and global through the World Trade Organization) that entrenched corporate rights, undermined national policy autonomy, and pitted workers in different countries against each other in a race to the bottom. This model was imposed in North America through a Canada-US deal in 1989, followed by the North American Free Trade Agreement (NAFTA, including Mexico) in 1994. NAFTA was negotiated by a Republican president, but passed under a Democrat, and it cemented corporate power across the continent, providing a template for future deals. Some changes were made to NAFTA (renamed the USMCA) in Donald Trump’s first term. But they didn’t fix the core threats facing workers in the US Now Trump’s unilateral, erratic, and destructive tariffs and unhinged attacks on our trading partners are causing chaos and uncertainty. US manufacturing employment is falling, while US companies (including the tech oligarchs) continue to profit from preferential rules that protect their profits, but undermine labor, environmental, and democratic standards.
Democratizing North American trade
Donald Trump claims his tariffs and other threats against trading partners (including challenging their very sovereignty) will help American workers. But the costs, supply bottlenecks and uncertainties he has imposed are damaging the efficiency and competitiveness of key North American industries (like auto manufacturing). US industry and employment are doing worse, not better. Instead of trying to conquer our neighbours through economic or even military force, American workers would do better through a cooperative continent-wide strategy to build a stronger, fairer, more sustainable, and more democratic North American economy.
A new plan for North American economic cooperation, development, and trade would focus on six key themes:
In addition to these six priorities, a strategy to democratize North American trade would address other concerns, including the energy transition, sustainable water management, and agriculture and food security. The three countries would also commit to complementary efforts to promote full employment and strong macroeconomic conditions throughout the continental economy. When all economies are growing strongly, each has more opportunity to benefit from expanded trade and mutual specialization. Above all, a vision of North American trade that protects and uplifts the ability of citizens and communities to make their own decisions over matters of economic, social, and environmental well-being, is a continental economy that will be democratic as well as prosperous.
Planned, managed, cooperative trade and development works better
Conventional market-oriented economic theories claim that free trade always benefits both sides. But those models are based on utopian assumptions (perfect competition, balanced trade, full employment, income distribution that automatically reflects productivity, no pricing power for large companies, and others) that have no relationship to reality. That’s why trade imbalances, capital flight, and unemployment – all things the neoclassical models rule out by assumption – are the normal state of affairs in modern trade.
In the real world, stronger international economic linkages can be mutually beneficial – but only if managed through sensible rules, macroeconomic planning, and economic democracy. A managed, mutual approach to boosting investment, job-creation, and living standards throughout the continent will benefit US workers far more than Trump’s imperial attacks on other countries. And a joint commitment to improving labor, environmental, and democratic practices across the continent will especially benefit US workers, who continue to suffer from labor laws that are the weakest of any industrial country.
What's needed are bold yet realistic policies that break cleanly from the corruption of the Trump years and the free-market fundamentalist era that preceded them. Righting the rules means an end to game-rigging by ruling elites and instead crafting rules that first and foremost protect the well-being of working people.
Editor's Note: The following is part of new series for Common Dreams based on "Game Changers: Economic Policies for a Working America," a project spearheaded by the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst. Game Changers is a collaborative initiative bringing together leading economists and policy experts to develop bold, new ideas to build a stronger, fairer, greener, and more inclusive economy for all Americans. Through dozens of policy briefs, supporting research papers, and online webinars, the project offers solutions designed to help working people thrive while preparing the country for the economic challenges ahead. ""People are looking for solutions that improve their daily lives—not just marginal changes around the edges," says economist Juliet Schor. "Our proposals make housing, care, and daily life more affordable."
When a system reaches the point of breakdown, it’s time for radical change. That was the lesson of the 1930s, when the Great Depression ignited transformative labor and social movements that reset national priorities. It was also the negative lesson of the 1980s, when elites responded to stagflation with a neoliberal turn to “free markets” and enhanced corporate power. The resulting intensification of income and wealth inequality has enabled state capture by a white supremacist authoritarian movement in alliance with tech and fossil fuel interests.
The antidote is increasingly clear: recognizing the equal dignity of every human being and working to guarantee their right to economic security, the opportunity to thrive, a livable planet, a world free of racism, and democratic governance of our lives, societies, and economies. Large majorities of the public understand that the current system is failing most of us and threatening democracy itself. They’re ready to begin building an economy that we deserve.
It’s time to “right the rules” to create an economy that meets individuals’ basic needs for food, shelter, care, education, health, and free time.
Social change, and especially major economic transformation, requires a compelling positive vision of the possible. The Game Changers project was formed to provide that vision. Rooted in new economic thinking and research to address the multiple dysfunctions of the current system, it offers far-reaching ideas that go beyond the failed policies of the past, both neoliberal and liberal, and the corrupt authoritarian practices of the present.
It’s time to “right the rules” to create an economy that meets individuals’ basic needs for food, shelter, care, education, health, and free time. We envision that happening in multiple ways: local public provisioning for health, child and long-term care; federal income supports; access to work with good wages and reasonable hours; raising wages at the bottom and the middle to address longstanding racial and other inequalities; and sensible and compassionate immigration policies. We lay out plans for new public infrastructures such as high-quality mixed-income public housing with renewable energy systems and a low-cost, efficient public payments system. We need to detoxify the natural environment, restore ecosystems, and stabilize the climate system.
Investments in individuals, communities, nations and the planet are key to prosperity. But we need more than that. Changing the game implies that the game is rigged. We offer policies that help working people build power, through collective organizations, in the workplace and the state. These organizing strategies address racial and other divisions that weaken communities. They’ll help redress the asymmetries of influence that plague this moment.
A new game also requires fundamental transformation of large-scale economic structures, such as the financial architecture, the international trading system, and the functioning of the macroeconomy. Our policies do that through breaking up concentrated power, penalizing rent-seeking, stabilizing the financial system, and forcing corporations to pay their fair share of taxes. These measures help fund the investments in people and planet that are required for a decent economy.
Game Changers: The Economy We Deserve
One throughline among the wide range of proposals we have developed is that they are based on strong economic research and reasoning, but they reject the economic story that has dominated policymaking. Conventional economic thinking has been shown to be misguided in area after area. Minimum wages don’t cause unemployment; rent control doesn’t reduce housing supply; and equality and efficiency are not opposed. Climate action is cheaper than inaction, worktime reduction and higher productivity go together, and investments in social goods can pay for themselves.
The economic logic of our approach is based on game theory, as well as common sense. Zero-sum, competitive games like the one the economy has been stuck in yield much worse outcomes than cooperative games. When we join together in communities, labor unions, civic associations, and business enterprises, outcomes are far better. This recognition is the basis of a powerful new economic paradigm: invest in each other, secure the future, and realize the promise of multi-racial democracy throughout society. It’s time to change the game.
The roots of our current predicament can be situated in the early 1970s, when the economic damage wrought by an earlier wrong-headed foreign adventure—the Vietnam War—coincided with an increase in oil prices resulting from conflict in the Middle East. The resulting economic crisis of inflation and recession brought to a head longstanding political, social and economic struggles. Workers mobilized and built power through militant trade union activities; African Americans gained voice and political influence via the Civil Rights movement; the women’s movement demanded equal treatment. These developments coincided with declining competitiveness of US business and a profit squeeze. Panic arose within the American business class as they feared they were losing control.
All the proposals share the goal of helping to build a positive-sum economy that works for all, rather than a zero-sum economy where the greed of the one percent trumps the well-being of the ninety-nine percent.
An additional factor was increased environmental awareness. The first Earth Day in 1970 attracted 20 million, the largest protest action in US history. Existential panic was especially present in the fossil fuel industries of oil, gas and coal. Fossil fuel interests, including Exxon and the Kochs, fought back, investing millions to capture politicians and state institutions. They joined with other business interests to support representatives of both parties who would break unions and negotiate trade agreements that undermined the power of US workers. They de-regulated banks and other financial institutions to allow them to grow bigger, more profitable and, as we were to discover in 2007 and 2008, more dangerous to our economy and livelihoods.
In wave after wave, the state cut taxes for the rich and reduced government resources for investing in and supporting people and communities. The capture of politics and politicians by big capital directed even more money to the military industrial complex. The economic vision associated with neoliberalism was summed up most up memorably by Ronald Reagan in his First Inaugural Address: “Government is not the solution to our problem; government is the problem.”
By the 2000s, this neoliberal approach had been adopted by a significant portion of the economics profession, and “laissez-faire” became the baseline and even touchstone for economic policy. But in reality, the push for laissez-fare was a cover for state policy that boosted the rich at the expense of everyone else. This helps to explain how policy could evolve in just a few decades from the neoliberalism of Reagan to the authoritarian corruption of the Trump administration and its allies.
State capture has ensured that neither the economy nor the government works for most Americans. Naturally, and perhaps by design, this has led to general mistrust and even disdain by many Americans for the federal government, though there is less skepticism of state and local government. As a result, the potential for the public sector to act as a countervailing force against the power of big business is further undermined by angry and discouraged voters.
This top-heavy economic and political system is populated by corporations too often driven by short-term profit-seeking rather than long-term investments, and by a government that invests too little in people and communities and too much in fossil fuel interests and the military-industrial complex. The average worker’s standard of living has stagnated for decades despite large increases in productivity. Affordability may be a buzzword. It is also a pressing day-to-day issue for most American families.
The rise of billionaires and even one trillionaire, along with the enormous power of tech and fossil fuel capitalists in the Trump Administration, is in some ways the natural extension of this decades-long pattern. But we are also experiencing unprecedented perversions and pathologies, as reflected in the vast corruption exhibited by the Trump family and friends and the hyper-inequality of society, with a handful of billionaires striding over millions of Americans barely able to make ends meet. And now fossil fuel interests are redacting “climate change” from government’s—and possibly even society’s—to-do list.
It is long past time to break this destructive cycle and usher in a new economic structure, and a new paradigm to support it.
The Game Changers are examples of bold yet realistic policies that break cleanly from the corruption of the Trump years and the free-market fundamentalist era that preceded them. The policies address how both markets and government work, based on the premise that the role of government is not merely to clean up after the messes when markets fail, but to ensure that markets work consistently on behalf of working people rather than being rigged against them.
Game Changer policies span a broad canvas of economic issues—health care, housing, immigration, care work, labor, the environment, trade, and finance. All the proposals share the goal of helping to build a positive-sum economy that works for all, rather than a zero-sum economy where the greed of the one percent trumps the well-being of the ninety-nine percent. They are based on a simple set of propositions.
Childcare, health care, and a clean and safe environment are not commodities to be sold to those with the most purchasing power, nor are they privileges to be granted to those with the most political power. These are universal rights that should be shared by all.
Something is deeply wrong with an economy where people who play by the rules must struggle to get by, while the wealthy flaunt their power with impunity.
Investing in each other means strengthening personal connections by making sure that working people have time and energy to invest in their families and communities. It means uniting with those by our side who are striving for a better life. It means spurning attempts to pit us against each other—white against non-white, native-born against recent immigrant, worker against worker—to divert attention from the abuses perpetrated by those on top.
In short, investing in each other means building an economy in which everyone is free to survive, strive, and thrive.
Economic security should not be a privilege for the few. A secure economy must be resilient enough to safeguard present as well as future generations from workplace abuses, environmental destruction, and supply-chain fragility.
Securing our future means recognizing that there are things that all should be able to afford, like housing, education and care. It means recognizing that there are things we cannot afford, like the poisoning of our air and water and lavish tax breaks and handouts for the rich. And it means building an economy in which the lives of working people are not subjected to catastrophic disruptions that result from concentrated wealth and power in the hands of people who do not care.
Securing our future also means forging solidarity with others across the world with whom we share not only the same planet, but also the same struggle against transnational elites who seek to divide nations and peoples to pursue ever more wealth and power for themselves.
Today the rules for how markets and governments work are rigged in favor of the wealthy and powerful. Something is deeply wrong with an economy where people who play by the rules must struggle to get by, while the wealthy flaunt their power with impunity.
Righting the rules means ending reckless and predatory financial practices that siphon wealth from working families into the hands of speculators and banksters. It means reorienting housing markets to provide affordable homes for all rather than to maximize profits for real-estate barons. And it means ending the tragic squandering of lives and wealth to shore up a military-industrial complex that offers empty promises of national security even as it undermines the security of families and communities by engaging in immoral and unnecessary wars.
Righting the rules means an end to game-rigging by ruling elites and instead crafting rules that first and foremost protect the well-being of working people.
The call for changing the rules highlights a key aspect of our approach. Many of the Game Changer policies involve redesigning how the market works rather than calling for major new public spending. They transform market outcomes, thereby reducing the need for post-market redistributions to achieve more fairness. And in calling for more public spending in some areas, we also propose new revenue sources and fiscal priorities to improve the functioning of the economy, as detailed in the Game Changer on funding the future.
To animate the changes we are proposing, we need to restore people’s faith that change is possible. We’ve noted the existence of pervasive cynicism and disillusionment with government. In an age of state capture, when government has so frequently failed workers, communities of color, rural families, and distressed geographies, these feelings are warranted. Part of the difficulty of defending democracy against the current authoritarian threats is that the system has empowered elites while disempowering and discouraging working people.
As we’ve argued, changing the game requires far-reaching policies that offer improvements and are based on strong economic analysis. That’s a given. Overcoming cynicism and disillusionment requires something else as well: people’s actual lived experience fighting for and winning change. By being part of a truly democratic movement, and achieving victories, it’s possible to rebuild trust in government, businesses, and each other.
We must reject the false tensions between collective strategies and individual dreams, between worker welfare and business health, between climate caution and economic prosperity.
A transformative agenda won’t be enacted in one stroke. It may start with smaller victories and incremental steps. Each successful campaign engages people who can then be part of the next, bigger effort. Or perhaps we notch an early win with a big, bold Game Changer. That can be followed by smaller steps to make sure it’s implemented fairly and successfully. Social and economic restructuring will come in the form of changes, big and small. And with each positive step, trust in government—and each other—increases.
We are optimistic about the possibilities for deep transformation. Our reasoning is based on the episodes we began with—the paradigm-shifting moments in which new economic models arise and stick. While such shifts can be connected to intellectual trends, they are often more rooted in social conditions and political coalitions: New Deal thinking and labor mobilization in the context of the Great Depression, or neoliberal economics and business opportunism in the context of the stagflation of the 1970s and early 1980s.
In this moment of crisis, we need both new perspectives and new coalitions. We must reject the false tensions between collective strategies and individual dreams, between worker welfare and business health, between climate caution and economic prosperity. We must build a broad movement that includes workers, communities of color, small businesses, professionals concerned about AI, community leaders sickened by division, and anyone and everyone who knows that democracy cannot stand when oligarchy thrives.
The traditional American motto, “out of many, one” is often used to refer to the power of our diversity. Forging a broad and unified force for a better future will be key for the many—movement builders, unionists, community organizers, civic leaders, and all who stand with them—to triumph against the one percent. A transformative policy package, like the Game Changers, is one part of the coalition-building needed for the future we deserve.
"The most serious risk is premature death," said one physician.
A senior Iranian health official on Tuesday accused the United States of deliberately targeting Iran's medical infrastructure amid a worsening shortage of critical medicines as President Donald Trump's illegal US-Israeli war of choice against Iran drags on.
Iran's pharmaceutical system is straining under US bombing, blockade, and sanctions that have severely disrupted trade and transportation in the Middle East nation of around 90 million people. Iranian officials say shortages of roughly 800 medicines—including dozens of essential drugs—are affecting the treatment of cancer and other serious illnesses.
“The enemy has identified medicine as one of the sensitive areas of the country, and is trying to denigrate and portray Iran’s conditions as unfavorable by releasing content in the press and social media," Deputy Health Minister Mahdi Pirsalehi, who also heads Iran's Food and Drug Administration, told Al Jazeera.
Pirsalehi has said that more than 50 factories and pharmacies have been damaged or destroyed by US and Israeli bombing during the six-month war. The attacks have exacerbated existing shortages.
One gastroenterologist and university professor in Tehran, who spoke to Al Jazeera on condition of anonymity, sounded the alarm on what she called a "staggering" rise in drug prices—including for domestically produced generic medications—caused in significant part by the US naval blockade.
“Reports that rotavirus vaccine imports have been halted because of the maritime blockade—and that influenza vaccines may soon face the same problem—represent a serious and alarming threat to nationwide efforts to prevent vaccine-preventable communicable diseases,” she said.
“Runaway inflation, poverty, and inadequate access to essential food groups among vulnerable populations, including infants, children, and pregnant women, signal the onset and spread of malnutrition,” she added, warning of the risk “of both communicable and noncommunicable diseases, creating a vicious cycle in which malnutrition develops and progressively worsens."
For ordinary Iranians, empty pharmacy shelves, delayed treatments, and prohibitively expensive prescription drugs have become the new normal.
One Iranian pharmaceutical company recently announced price increases for scores of drugs, including a 543% rise in the price of the Alzheimer's medication donepezil, a 308% higher cost for the antibiotic clarithromycin, and a 135% spike in acetaminophen and diphenhydramine syrups, according to reporting by Tasnim News Agency.
Dr. Hassan Nayeb Hashem told Deutsche Welle last month that "for many specific diseases, there is effectively no substitute" for prescribed drugs.
"If the medicine becomes inaccessible, patients can develop complications much sooner," he said. "The most serious risk is premature death."
One patient requiring testing for an abdominal and pelvic mass recently told Iran International that CT and MRI scans now cost over $100, even with Social Security insurance—the equivalent of a month's pay for many Iranians.
“How are we supposed to pay these costs with such meager incomes?” they asked.
A 33-year-old man said the exorbitant cost of dental treatment has left him without half of his teeth.
“I feel like I’m 60,” he said. “The bitter part is that this humiliating way of life has become normal for me.”
Another Iranian said they feared what would happen if anyone in their family got sick this winter.
“We’re stressed about where we would get the money for treatment," they said, "if God forbid we or our children even catch a cold."
"Come on down! All this could be yours... except the price is WRONG because of Trump's tariffs."
Modeled on the familiar logo of a long-running daytime game show, US Senate candidate Abdul El-Sayed displayed a hand-drawn picture of a dollar sign along with the words "The Price Is Wrong" in a video posted to his official social media accounts Tuesday—and offered Michigan voters the chance to play his version of the game, inspired by President Donald Trump's policies.
"This is probably true of everything you're buying right now," said El-Sayed, who is running against former Republican Rep. Mike Rogers after winning the Democratic primary election last month, as he pointed to the handmade sign. "We're going to ask Michiganders about just how much everything has gotten more expensive over the last year because of Trump's tariffs and his war in Iran."
First up, a voter learned that a container of 100 Tide detergent pods, which now costs nearly $30, cost just under $22 a year ago at this time—before Trump joined Israel in attacking Iran, leading to the retaliatory measure of Iran's closure of the Strait of Hormuz and the resulting spike in oil and gas prices.
"That's almost a 30% increase in price for the same Tide pods," said El-Sayed.
A package of Target brand toilet paper cost $6 last year, and another voter guessed it's currently marked at $8.50—off by 50 cents, said El-Sayed, who revealed the package would now cost $9 at a Target store in Michigan.
Target-branded protein powder cost $40 last year, and Trump's policies have raised the price to $54 this year, said El-Sayed, while a one-pound bag of coffee beans from Tim Hortons is nearly a dollar more than it was last year, priced now at $9.32.
El-Sayed released the video as Canada imposed its new retaliatory tariffs targeting about $20 billion in US imports, in response to the 50% tariffs Trump announced late last month on a range of Canadian goods including dairy products, paper, and cement.
According to a June poll by Epic-MRA, 63% of Michiganders—including 35% of Republicans—opposed Trump's tariffs on Canadian goods, which he first announced last year along with levies on numerous other countries that he said had treated the US unfairly in trade.
About three-quarters of voters in that poll said they thought Trump's tariff policy was fueling higher prices for everyday goods.
The Midwest Economic Policy Institute found in July that due to Michigan's shared border with Canada and the close ties shared between the auto industries in Michigan and Ontario, Michigan households were paying as much as $3,200 in extra costs due to Trump's tariffs—about 142% more than the rest of the US.
“Donald Trump is launching this trade war for his own vanity, and he’s asking Michigan families to pay the price,” El-Sayed said in a statement last month. “Trump has been failing Michigan through these chaotic tariffs and bad trade deals for far too long, and Mike Rogers won’t do anything but rubber-stamp them.”
At Michigan Advance, columnist Rick Haglund warned last month that Michigan would likely "pay a steep price for Trump’s reckless actions."
"Canada is Michigan’s largest trading partner with about $70 billion in goods flowing across their borders in 2024, the latest available data," said Haglund. "Thousands of jobs are connected to Michigan auto parts manufacturers, farmers, and others who export goods to Canada."
Trump's unprovoked war on Iran has also been linked to spiking diesel prices, which is driving up transportation costs—and as a result, consumer prices—for many everyday goods like those featured in El-Sayed's mock game show.
"Americans are paying way more for everyday goods they have to buy at the grocery store, all because of this insane war that is spiking the price of gas, spiking the price of diesel, spiking the price of your everyday goods," said El-Sayed. "And now, a trade war that's expanded with Canada."
"Americans are sick and tired of playing 'The Price Is Wrong,'" he added. "I think it's time for us to play 'The Price Is Right.'"
The United Kingdom's Labour government is set to announce a ban on trade with illegal Israeli settlements in the West Bank.
The United Kingdom on Tuesday is expected to announce a ban on trade with illegal Israeli settlements in the West Bank, a plan that prompted a furious response from far-right Israeli and American officials even as British diplomats privately acknowledged that the new sanctions package would be mostly symbolic.
"Expel the British ambassador tonight!" Israeli Finance Minister Bezalel Smotrich wrote in a social media post ahead of the official announcement. "We will not be a doormat trampled by an antisemitic government, in a country conquered by radical Islam, trying to save itself from economic and social decline by attacking Jews and the State of Israel."
UK Foreign Secretary Ed Miliband, who is Jewish, is set to unveil the trade ban as the Israeli government aggressively accelerates its unlawful land grabs and expulsion of Palestinians in the West Bank, where violent rampages by Israeli settlers have reached unprecedented levels. The trade ban was developed after the Israeli government advanced a plan to build more than 1,200 new settlement homes in the West Bank.
The Guardian reported Monday that "in his statement to MPs, Miliband is expected to use firmer language than his recent predecessors in calling out the humanitarian injustices suffered by Palestinians in Gaza."
"The steps he lays out are likely to fall short of the full set of demands made by Palestinian advocacy groups," the outlet added, "but they will still be seen as a sign that the UK is moving beyond traditional rhetorical support for a two-state solution towards active steps to forestall the expansion of illegal settlements in the West Bank—widely seen as intended to destroy the prospect of a Palestinian state."
New UK Prime Minister Andy Burnham reportedly spoke with US President Donald Trump on Monday about the impending trade ban, which drew condemnation from the US ambassador to Israel, Mike Huckabee.
Behind the scenes, according to Bloomberg, UK diplomats "privately told the US that the sanctions are largely symbolic and will have no material impact on the UK’s wider relationship with Israel on trade or security, in a bid to soothe the Trump administration’s response."
Francesca Albanese, the United Nations special rapporteur on the occupied Palestinian territories, told The Guardian that a ban on trade with Israeli settlements would be an "absolutely important" change in UK government policy.
Nick Dearden, director of the UK-based advocacy group Global Justice Now, wrote on social media that "a settlement ban is welcome but we must go further."
"Hope the government will include services and will announce new bans of weapons sales and military coordination tomorrow," Dearden added. "The comms is an improvement but we need action."
Reuters reported that the impact of the policy move on bilateral trade with Israel is "likely to be minimal, with details unclear of how the UK will differentiate between goods originating in West Bank settlements [and] products made in Israel."
One petroleum industry analyst now projects potential record-breaking prices for diesel fuel by Labor Day.
More than six months after starting an illegal war with Iran, President Donald Trump is now threatening to rename the Strait of Hormuz, whose closure at the start of the conflict led to a global spike in energy prices.
In a Wednesday social media post, Trump falsely claimed that the strait is "under USA control" and then mused on whether to "change the name... to TRUMP STRAIT???"
"Like America itself, it would be 'hotter' than ever before!" the president added. "Thank you for your attention to this matter."
In reality—despite Trump's previous threats to declare the vital commercial waterway a US territory—the US does not have control of the Strait of Hormuz, through which roughly 20% of the world’s oil supply travels.
Al Jazeera reported on Wednesday that Iran's Persian Gulf Strait authority has added eleven more ships to its list of more than 50 vessels that are banned from traveling in the strait.
Iran's Islamic Revolutionary Guard Corps (IRGC) on Wednesday also claimed that two oil tankers that were traversing the strait caught fire after striking sea mines, according to Al Jazeera.
The price of Brent crude petroleum rose once again during Wednesday trading, climbing up over $95 per barrel. Data released Wednesday by the American Automobile Association (AAA) showed that the price of gas in the US has risen to $4.12 per gallon, while the price of diesel fuel has risen to $5.69 per gallon.
While most Americans deal with the price of gasoline on a daily basis, the price of diesel fuel might have an even larger impact on the overall economy given that diesel is used to power the vehicles that ship consumer goods in the US.
In a Wednesday social media post, petroleum industry analyst Patrick De Haan wrote that diesel prices are rising so quickly that "we could even break the all-time diesel record ($5.819/gal) by Labor Day."
Last month, Trump responded to collapsed trade talks with Canada by renaming Lake Ontario as "Lake America." Much like the illegal war with Iran, Trump's trade war with Canada is raising prices on goods paid for by US consumers.
Canadian Prime Minister Mark Carney said his nation is not "going to accept" an "attitude at the negotiation table that Canada is a subsidiary of the United States."
Canada announced Tuesday that it will impose roughly $20 billion in retaliatory tariffs on American imports in response to President Donald Trump's 50% tariff on many of its goods after bilateral negotiations collapsed amid what Ottawa said were last-minute concessions that damaged the Canadian economy and intruded on its sovereignty.
The government of center-left Canadian Prime Minister Mark Carney said its countermeasures will cover roughly C$27.6 billion ($20 billion) worth of American products, with tariffs ranging from 15% to 50% on hundreds of categories including steel, aluminum, appliances, clothing, seafood, electronics, furniture, and dairy. The measures are scheduled to take effect September 8. Ottawa also unveiled billions of dollars in assistance for workers and businesses expected to be hurt by the conflict.
"Canada must respond, and today we are, in a proportionate, targeted, and strategic way," Canadian Finance Minister François-Philippe Champagne said during a press conference in Ottawa. "Today I'm announcing that Canada will match the United States tariffs dollar for dollar, rate for rate."
"Canada's counter-tariffs are designed primarily to provide protection for Canadian industry impacted by US tariffs and allow them to compete against US products in the Canadian market," he added. "It's all about fairness, it's all about a level playing field, it's all about supporting Canadian workers and Canadian businesses."
It's also apparently about political calculation ahead of November's midterm elections, in which the congressional balance of power—and therefore Trump's ability to pursue his agenda—is at stake.
The administration's trade war with Canada is hitting industries concentrated in states where Republicans are fighting to defend vulnerable US Senate seats, including Maine's lobster industry and Michigan's auto sector, while Ohio and other Midwestern states face exposure via cross-border manufacturing and supply chains.
Whatever you call it, you just made all the goods we buy that come across our border more expensive. Michigan, he’s asking us to pay for his vanity trade war with our money.
[image or embed]
— Abdul El-Sayed (@abdulelsayed.bsky.social) August 25, 2026 at 7:12 AM
On Monday, Trump told Canadian leaders to "fall in line" or face "far WORSE" consequences than the new tariffs.
Carney retorted that Canadians are not "going to accept" an "attitude at the negotiation table that Canada is a subsidiary of the United States."
Canadian anger toward Trump has surged as the US president has repeatedly threatened Canada's sovereignty, including his frequent talk of making Canada the "51st state." Canadian political leaders and labor organizations have largely rallied behind a tougher response, while a growing grassroots boycott of US products has become a symbol of national resistance.
"Canadians understand that maintaining our sovereignty and independence will entail consequences and sacrifices," Calgary-based commentator Jen Gerson wrote Tuesday in The Guardian. "We did not bring this trade war on ourselves; we have merely refused to comply in advance to the unreasonable demands of a bad-faith actor. We will be punished for it. We have accepted this."
"If nothing else, let the [United States'] retaliation be a warning to the rest of the Western alliance," Gerson added. "Run, run. Protect yourselves. Move faster."
Trump—the self-proclaimed “peace president" who has attacked more countries than any other US leader in modern history—has menaced a string of allies. He's threatened to retake the Panama Canal, launch armed attacks on Colombia and Mexico, "bomb the shit" out of Oman, and take over Greenland.
Longtime US allies have taken notice—and action. Just as Russia's invasion of Ukraine spooked Sweden and Finland into the North Atlantic Treaty Organization, Trump's erratic aggression has pushed other countries in directions once thought highly unlikely. European Union membership for Iceland, long a politically moribund proposition, is now politically plausible amid developments including Trump's Arctic saber-rattling. US tariff pressure on India is even incentivizing India to seek closer economic ties with China, a traditional adversary.
Trump's increasingly aggressive and condescending rhetoric has left many Canadians feeling like their relationship with their southern neighbor has irreparably changed.
"America has changed, and... we will not return to our old relationship," Carney said after Trump announced the 50% tariffs over the weekend.
"You’re at war when you get attacked," the prime minister also said. "We got attacked."
Such rhetoric was once the realm of comedy, like the 1995 satirical film Canadian Bacon, directed by Michael Moore and starring John Candy and Dan Aykroyd, about a struggling US president who manufactures a shooting war with Canada, invasion and all, in hopes of rallying Americans around a foreign enemy.
The premise was absurd because the notion of Washington deliberately provoking its peaceful northern neighbor into war seemed preposterous. Many critics have noted that under Trump, absurdity has become the new normal.
On Tuesday, Trump said he's considering changing the name of Lake Ontario to "Lake America," because, as one Bluesky account noted, "Trump likes to slap the name of America on everything."
President Trump likes to slap the name of America on everything. Gulf of Mexico? Gulf of America. Strait of Hormuz? Strait of of America. Lake Ontario? Lake America. Epstein Island? America Island.
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— Missing The Point (@missingthept.bsky.social) August 25, 2026 at 7:27 AM
"Gulf of Mexico? Gulf of America. Strait of Hormuz? Strait of America. Lake Ontario? Lake America," the account quipped, adding one more suggestion: "Epstein Island? America Island."
"We can put massive pain on the US," said Ontario Premier Doug Ford.
Politicians from Canada's two biggest political parties vowed on Monday to hit back hard against US President Donald Trump's trade war against their country.
Trade negotiations between the two countries collapsed last week after Trump reportedly sought to restrict Canada from striking trade deals with other nations, while also pressuring the country to scrap requirements aimed at preserving the use of the French language.
Speaking to reporters on Monday, Canadian Prime Minister Mark Carney warned that Trump's aggression would come back to hurt US workers.
"It's not a surprise that the US would take some form of reprisal to our response to their unjustified tariffs," said Carney, a member of the center-left Liberal Party. "But what message does that send to the workers in Michigan and Ohio and Kentucky and Alabama who rely on Canadian demand? We're their largest customer for automobiles, more than the European Union, Japan, Korea."
Mark Carney: "It's not a surprise that the US would take some form of reprisal to our response to their unjustified tariffs, which was on top of other unjustified tariffs. But what message does that send to the workers in Michigan and Ohio and Kentucky and Alabama who rely on… pic.twitter.com/2o5rbEmQAo
— Aaron Rupar (@atrupar) August 24, 2026
Carney also said there was an "attitude at the negotiating table" from US officials that "Canada is a subsidiary of the United States," which is "not something we're going to accept."
Ontario Premier Doug Ford, a member of the rival center-right Progressive Conservative Party, delivered a more strident rebuke to Trump, vowing that Canada's response would deliver a hit to the president's voters.
"The red states, we're going to hit hard," said Ford.
The Ontario premier then outlined all the ways his country can make life more painful for US consumers so long as Trump keeps trying to undermine Canadian sovereignty.
"If it gets really, really bad, I say everything's on the table," Ford said. "We need everyone to be on Team Canada and throw everything and the kitchen sink at them, no matter if it's electricity, if it's fuel, again, if it's potash, if it's uranium. We need to have everything on the table... we can put massive pain on the US. President Trump underestimates us. And that's the biggest mistake."
Ontario Premier Doug Ford: "We need to throw everything and the kitchen sink that them -- electricity, fuel, potash, uranium ... we can put massive pain on the US. President Trump underestimates us. And that's a mistake." pic.twitter.com/IRIidj0iYS
— Aaron Rupar (@atrupar) August 24, 2026
Trump lashed out at both Carney and Ford in a Monday morning Truth Social post.
"The USA will always be far bigger, richer, and stronger than Canada," Trump wrote. "Without the United States, Canada couldn’t survive—it’s where they get all of their money and, because of their current bad leadership, primarily Governor Carney, and his Flunky, Ford, they will not be allowed to keep taking advantage of the United States—their key to survival."
The question I ask myself is how much worse will his behavior have to get before Republicans do a damn thing to put an end to this?
Not exactly a war, but a trade war — which will impose huge costs on both American consumers and on Canada.
As I said, Trump is now completely and utterly out of his mind.
The very idea of a trade war with Canada — our neighbor, our ally, our closest friend, a nation that’s peaceful and whose people have a reputation for kindness — is absurd.
But Trump is doing it anyway. He’s imposing a 50 percent tariff on goods coming from Canada — which, remember, is an import tax paid by you and me. The tariffs account for $20 billion of the $382 billion worth of products Americans bought from Canada last year and cover a wide array of goods (the full list of more than 500 products can be found here, here, and here).
Trump has singled out several Canadian industries — especially forestry, including building products like plywood.
The obvious effect will be to make it more expensive to build houses in the United States. Couple this with the rise in long-term interest rates — i.e. mortgage interest rates — courtesy of Trump’s war spending, his tax cuts mainly for the rich and big corporations, and the giant corporate AI debt (encouraged by Trump) — and the result will be to make housing even less affordable than it already is.
This is another example of Trump’s perverse rage. I say “perverse” because I’ve come to believe that his insanity is expressing itself in ways deliberately contrary to what’s expected of a president of the United States — ways considered wrong if not stupid by most serious observers — which makes him want to do it all the more.
He’s lost his war in Iran, most Americans are struggling financially, his mass deportations are unpopular — so what does he do? He flips the finger at Canada because Canada is exactly the kind of nation that an American bully targets. Bullies always go after targets that won’t or can’t fight back.
Trump has been bullying Canada since the start of his second term. Six months ago Trump suggested the border between Canada and the U.S. was an “arbitrary” line. He’s repeatedly proposed that Canada be annexed as the 51st state. He said he’s willing to inflict “economic pain” on Canada to get what he wants. On July 1, Canada’s national holiday, Trump declined to renew the United States-Mexico-Canada Agreement on trade, which means the agreement will now undergo annual reviews.
Mostly, though, Trump is enraged that Canadian prime minister Mark Carney asserted in January at the World Economic Forum in Davos, Switzerland, that the U.S. is no longer a guarantor of stability in the world and that middle powers like Canada must unite in order to survive. It was a forceful speech — and the first time that a U.S. ally has stood up to Trump.
The day after Carney gave his speech, Trump told the same World Economic Forum:
“Canada gets a lot of freebies from us. By the way, they should be grateful also, but they’re not. I watched your prime minister yesterday. He wasn’t so grateful — they should be grateful to us, Canada. Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”
Trump is a peevish, angry, perverse child.
The question I ask myself is how much worse will his behavior have to get before Republicans and suck-ups around him take some action to stop him?
US President Donald Trump on Monday invoked an arcane legal provision to impose 50% tariffs on most imported goods from Canada, a move that critics said will hit US consumers already reeling from an unabated cost-of-living crisis and further strain relations with the nation's second-largest trade partner.
Trump invoked Section 338 of the Tariff Act of 1930, an unprecedented move the White House said is aimed at "offsetting the burden and disadvantage on US commerce from Canada’s discriminatory treatment of US commerce" and "leveling the playing field for crucial American exports—cars, alcohol, and dairy."
The new tariffs exempt energy products, potash, fish, and critical minerals.
“While the administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national security-sensitive sectors,” US Trade Representative Jamieson Greer said in a statement.
“Specifically, Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States," Greer added. "Today, President Trump took decisive action to hold Canada accountable for its retaliation and discrimination, delivering on his promise to correct trade imbalances and ensure fairness for American workers, farmers, and businesses.”
While the administration's official communications cite economic reasons for the new tariffs, Trump in recent days has repeatedly cited the Canadian wildfires as justification for the move.
“I told them. I mean, you got to stop these fires from coming in, and you know poisoning our air," Trump said of Canada on Sunday evening. "Our air has been poisoned. Maybe they should pay us some damages or something, or we should do some tariffs."
The president's linkage of the wildfires and tariffs drew widespread ridicule, with Democratic New York Gov. Kathy Hochul posting on X, "Only Donald Trump could see wildfire smoke and decide the answer is more tariffs."
Pod Save America co-host Dan Pfeiffer said on social media, "Americans have to pay high prices because Trump doesn’t understand how wind works."
According to We Pay the Tariffs, a small business coalition, Trump’s capricious tariffs have cost American businesses and consumers upward of $317 billion since March 2025.
That month, Trump imposed 25% tariffs on many Canadian goods and 10% on Canadian energy products. The administration later modified or paused some of those tariffs.
Ottawa has criticized the tariffs and rejected the US justification that Canada is unfairly restricting American products.
"I’ll never stop fighting to protect Ontario," Doug Ford, the province's right-wing premier, said in response to Trump's move. "If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar."
Some Democratic US lawmakers blasted the new tariffs.
"Trump is raising prices on Americans, again, by jacking up tariffs by 50% on Canadian goods bought by Americans," Rep. Ted Lieu (D-Calif.) said on social media. "Democrats will flip the House. And on day one of next term, Democrats will introduce legislation to repeal Trump’s disastrous tariffs. And we will pass it."