US and Canada clash over steel and autos

Good morning, The world moves like a high-stakes chess game—bold moves, shifting tides, and a race for the future. Tensions rise, markets tremble, and innovation pushes ahead. The pieces are set, and the next move could change everything.

Stay sharp and have a great day ahead!

WORLD
Tariffs, threats & auto industry fallout

President Trump has intensified his trade standoff with Canada, threatening steep tariffs on steel, aluminium, and automobiles in response to Ontario’s 25% surcharge on electricity exports to the U.S. The move sent stock markets tumbling, with the Dow dropping 1.6%.

Trump announced plans to double tariffs on Canadian steel and aluminium to 50% and hinted at a potential 250% tariff on dairy products. He also warned that auto tariffs could cripple Canada’s car industry, arguing those vehicles could be made in the U.S. instead.

Ontario Premier Doug Ford responded by threatening to cut electricity exports to the U.S. and vowed to maintain counter-tariffs until America commits to fair trade. Canada’s incoming leader, Mark Carney, echoed this stance, saying his government would keep the pressure on Washington.

Economists warn the tariffs could backfire, as Canada is the U.S.’s largest supplier of steel and aluminium. Business leaders caution that rising costs on essential goods, from cars to appliances, could hurt American jobs and consumers. Former Treasury Secretary Larry Summers called Trump’s trade policy a “self-inflicted wound” amid growing recession risks.

WHAT’S GOING ON
US restores aid as Ukraine opens ceasefire talks

The Trump administration has reinstated military aid and intelligence sharing with Ukraine, coinciding with Kyiv’s willingness to negotiate a 30-day ceasefire—provided Moscow agrees. This development follows high-stakes discussions in Saudi Arabia, where U.S. officials, including Secretary of State Marco Rubio, emphasized their intent to push Russia toward talks.

Meanwhile, the war rages on. Ukraine launched its biggest drone strike yet, while Russia continued its relentless bombardment. Ukrainian officials stress the need for security guarantees, fearing a ceasefire could let Russia regroup. The Kremlin remains firm, demanding Ukraine drop NATO ambitions and recognize occupied territories. Peace remains elusive.

ECONOMY
White House rejects recession

Despite growing economic uncertainty, the White House pushed back against recession concerns on Monday. National Economic Council head Kevin Hassett remained optimistic, attributing market turbulence to temporary factors, including Trump’s tariff policies. He insisted the economy would rebound once trade uncertainties settled.

However, consumer confidence is slipping, and stocks have dropped since Trump took office. The S&P 500 fell 2.7%, the Nasdaq dropped 4%, and markets lost nearly $4.9 trillion since February.

Economists warn that Trump’s tariffs on China, Canada, and Mexico could fuel inflation and slow growth. While the administration remains bullish, businesses fear the promised economic benefits may not offset trade instability.

ENERGY
SMRs struggle amid rising power demand

As AI-driven data centres push U.S. electricity demand higher, small modular reactors (SMRs) are seen as a solution. However, high costs, regulatory delays, and competition from cheaper energy sources hinder progress.

Unlike Russia and China, where centralized policies aid SMR deployment, the U.S. faces licensing and financing roadblocks. Even approved projects like NuScale have been scrapped due to soaring costs.

Tech giants like Amazon and Google are investing in nuclear, but concerns over uranium supply and waste persist. Meanwhile, AI efficiency improvements could reduce projected power needs, casting doubt on SMRs' long-term demand.

AI & TECHNOLOGY
Hugging Face fuels LeRobot with a driving data boost

Hugging Face, in collaboration with AI startup Yaak, is enhancing its LeRobot platform with a new self-driving dataset, Learning to Drive (L2D). Sourced from German driving schools, L2D exceeds a petabyte in size and includes sensor data capturing real-world driving conditions, from intersections to highways.

Unlike existing datasets focused on object detection, L2D supports "end-to-end" learning, enabling AI models to predict driving actions directly from sensor inputs. Hugging Face and Yaak plan real-world testing this summer and invite AI researchers to contribute models for evaluation in tasks like roundabout navigation and parking.