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Market Turmoil: S&P 500 Enters Correction Amid Escalating Trade War

                                                                 The stock market faced a sharp downturn on Thursday, with the S&P 500 officially entering correction territory. The index fell 1.4%, marking a 10% decline from its recent high. The Dow Jones Industrial Average dropped 1.3%, while the tech-heavy Nasdaq plummeted nearly 2%. This market turbulence comes as trade tensions escalate. The European Union's retaliatory tariffs on U.S. goods, including a 50% tax on American whiskey, prompted the U.S. administration to threaten a 200% tariff on European wines and spirits. These developments have left investors on edge, fearing the economic repercussions of a prolonged trade war. Adding to the uncertainty, debates over a stop-gap spending bill to prevent a government shutdown have further ...

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High Stakes Negotiations: Trudeau and Trump to Address Trade War Turmoil

 

In a dramatic escalation of North American trade tensions, President Donald Trump has recently imposed steep new tariffs on Canadian exports, a move that has reignited fears of a full-blown trade war across the continent. The tariffs—which include a 25% levy on a broad range of goods—are aimed at reducing the United States’ trade deficit and curbing illegal immigration and drug trafficking, claims Trump has reiterated in recent statements.

In response, outgoing Canadian Prime Minister Justin Trudeau is scheduled to speak with Trump later today. Trudeau’s office confirmed the call as Canadian leaders scramble to prepare a robust retaliatory strategy that could involve matching tariffs on American goods, a move that Trudeau warned would ultimately drive up prices for U.S. consumers by disrupting key markets such as automobiles, lumber, and energy citeturn0search18. “We know that if the United States is going to see an increase in jobs and growth, it will require more of our essential products,” Trudeau noted, emphasizing that only a minuscule portion of the issues cited by Trump—such as illegal drug flows—originate from Canada .

As both leaders face domestic pressures—Trudeau with a pending leadership transition and Trump with promises of an economic “golden age”—today’s conversation is expected to be a critical test of their ability to navigate complex economic interdependencies and avert long-term damage to one of the world’s most integrated trading relationships. Both sides appear determined to protect their national interests, even if it means higher costs for consumers and potential disruptions in North American supply chains.

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