So much for moving to Florida to pay less due to taxes…

That’s because one Florida town has shocked residents by tripling HOA fees to over $3,300, according to The Daily Mail.

Winter Park Woods, near Orlando, raised its monthly fees dramatically, the Daily Mail reported, citing WESH. Longtime resident Lorraine Roy now pays $3,371.79 for her three-bedroom condo.

“This is way too high,” she said. “And I love this location, which is why I stayed here all this time, through the ups and downs.”

Roy is currently resisting offers to sell her condo but acknowledges it may be necessary in the future. The Winter Park Woods Condominiums Association raised fees due to millions owed to Orange County for code violations, WESH reported.

The Daily Mail report says that the hike also covers increased insurance costs and new legislative requirements following the 2021 Surfside condo collapse, which mandates structural inspections for condos over 30 years old and additional repair funds.

Insurance costs have risen due to more frequent natural disasters like hurricanes and flooding, pushing HOA fees higher for repairs and mitigation. “We underfunded the reserves, that has been happening,” Roy admitted.

Resident Shane Costa’s fee rose from $634 to over $2,100, prompting him to attempt to sell. However, an investor offered him only $70,000, far below the value. “The simple truth is developers are going to come in and redevelop these properties,” said Jeff Brandes, Founder & President of the Florida Policy Project.

Costa added, “I’m in a little bit better circumstance than most people right now, but there’s people losing their homes.” Steve Fieldman, another resident, agreed: “There are people who live here no more, and they just couldn’t withstand the pressure and had to sell out for a much lower price than they feel was fair.”

Joel Berner, a senior economist at Realtor.com, noted, “HOAs are getting tough all across the country lately, but especially in Florida.”

Authored by Tom Ozimek via The Epoch Times,

U.S. Air Force recruitment has surged to its highest level in 15 years, top military officials say.

Air Force Chief of Staff Gen. David Allvin announced on March 3 that recruiting numbers over the past three months—December through February—were the strongest in a decade and a half.

Calling the numbers “amazing,” Defense Secretary Pete Hegseth suggested that the increase reflects a broader resurgence of interest in military service, fueled by a renewed emphasis on combat readiness and discipline.

“Americans are excited to serve their Country again! The next generation of the American warfighter will be joining the greatest fighting force the world has ever known!” Hegseth wrote in a post on X.

Allvin did not disclose exact figures but stated that all recruiting metrics “look great,” even as the Air Force increased its recruitment goal by 20 percent for fiscal year 2025.

An Air Force public affairs staffer contacted by phone declined to provide more details.

Allvin confirmed that approximately 13,000 recruits are currently in the Delayed Entry Program (DEP)—a system allowing enlistees to postpone their ship date to boot camp while completing school, handling personal matters, or preparing for military training.

The surge in enlistments follows a disappointing fiscal year 2023, when the Air Force missed its recruiting goal for the first time since 1999. In response, the service adjusted certain enlistment standards, including relaxed policies on tattoos and body fat composition.

By the end of fiscal year 2024, the Air Force recruited 27,139 active-duty enlisted personnel and saw a major increase in DEP enrollment—from 8,000 in 2023 to 11,000 in 2024. For 2025, the Air Force is aiming to bring in 33,100 active-duty personnel.

The Air Force’s recruitment surge comes on the heels of similar progress in the U.S. Army, which also reported its strongest enlistment numbers in 15 years.

President Donald Trump has suggested that renewed enthusiasm for military service reflects a broader national shift.

“We’ve done lots of interviews and asked why this is happening now, and they just said there’s a spirit about our country that they haven’t seen in many, many years. And I happen to agree with that,” Trump told a crowd at the White House on Feb. 5.

He also credited his administration’s efforts to eliminate “woke lunacy” from the military, pointing to a Jan. 27 executive order that revoked gender identity policies in favor of prioritizing “readiness and effectiveness.”

Air Force Chief of Staff Gen. David Allvin gives a keynote address at the Air and Space Forces Association Warfare Symposium in Aurora, Colo., on March 3, 2025. Courtesy of U.S. Air Force/photo by Staff Sgt. Adam R. Shanks

Speaking at the Air & Space Forces Association (AFA) Warfare Symposium in Aurora, Colorado, on March 3, Allvin made the case for increased investment in the Air Force, aligning with the Trump administration’s objectives of rebuilding the U.S. military and restoring deterrence.

“America needs more Air Force,” Allvin said. But “more Air Force doesn’t just mean more of the same.”

Allvin highlighted two major challenges: pilots not getting enough flight time and the service being overburdened by excess infrastructure. Since the end of the Cold War, the Air Force has cut 60 percent of its squadrons and 40 percent of its personnel—yet only reduced 15 percent of its bases.

To address this, Allvin proposed closing unnecessary bases and redirecting those resources into modernizing aircraft and weapons. This includes investing in advanced autonomous drones designed to fly alongside piloted jets.

“I think we need more options for the President. And that’s what more Air Force provides,” Allvin said. “It means everything from rapid response all the way to decisive victory.”

He said that national security depends on expanding and reshaping the Air Force to counter emerging threats.

“We have to sustain and maintain the ability to go anytime, anywhere, into the densest threat environment and put ‘warheads on foreheads’ wherever the President requires,” he concluded.

Corporate media was out in full force on Wednesday, eagerly highlighting new data showing that Tesla sales in Europe plunged in February. These outlets claim that Elon Musk has alienated some EV buyers who oppose his DOGE initiative, which supports the president’s efforts to drain the DC swamp of corrupt officials and NGOs. 

Successive reports of slowing EV sales led to an abrupt top in Tesla shares in mid-December, around the $479 handle, and have since plunged 43% over the last few months. This bear market appears to be approaching the round-trip point of the post-election rally.

On Tuesday, Goldman Sachs analysts Mark Delaney, Will Bryant, and others provided clients with new commentary on Tesla, in which they revised their 1Q25 delivery estimate down due to softening in key markets, including China, Europe, and the US: 

Deliveries tracking softer in 1Q, we believe in part on the Model Y transition and partly due to weaker demand Tesla delivery data for January and February in key regions has been soft, which we believe is partly due to the Model Y changeover and partly due to somewhat weaker underlying demand than we had expected (as we think growth has also been slower than we had previously estimated for Model 3 and Cybertruck per delivery data, consumer surveys, incentives that Tesla has been utilizing, and the competitive landscape). We expect shipments to be stronger in the month of March driven by the refreshed Model Y ramp. Overall, we now expect deliveries of 375K in 1Q25, down from our prior 399K view and well below Visible Alpha consensus at 426K.

Delaney and Bryant provided more color on the slowdown on a regional basis: 

1. USA – Through February, deliveries are tracking flattish yoy per Wards and Motor Intelligence (with Wards showing a slight decline and Motor Intelligence reporting slight growth) but down meaningfully qoq as 1Q24 was impacted by the Model 3 transition;

2. Europe – European registration data for January shows a >40% yoy decline, and registration data from daily reporting countries (i.e. UK, Spain, Netherlands, Denmark, Sweden, Norway) indicates a mid to high 20% decline through February (although we note that this daily reporting data does not include Germany, which has been a larger source of weakness for the more complete January data);

3. China – CPCA data in January and registration data through February indicates a mid single digit decline in China retail sales yoy QTD, but assuming a stronger March as production of the new Model Y ramps, we think China could end up being more flattish yoy for 1Q25 overall.

Sales are slowing.

Since the analysts do not cover Germany and France in the note, Tesla sales in those countries plunged as well:

• Tesla registrations in Germany plummeted 76% last month, according to the German Federal Motor Transport Authority. This decline comes as Elon Musk publicly voiced his support for the AfD party.

• Tesla registrations in France plunged 44% last month.

• These two countries are the largest EV markets in the EU. 

The analysts emphasized: “While the Model Y transition is a key driver of the weakness, we also believe that underlying demand is somewhat weaker than we had previously expected.” 

HundredX data (which aggregates survey responses from US consumers) shows Tesla’s net purchase intent and net positive perception of the brand have been sliding since the summer of 2023. 

Google Search trends for Tesla Model 3 and Model Y worldwide remain stable. 

The analysts believe Tesla’s market share in China has eroded because of the “strong competitive environment” with domestic brands like Xiaomi and BYD. 

In addition to lowering their Q1 2025 delivery estimate, the analysts have also reduced their full-year 2025 forecast.

Here’s more:

We lower our 2025 deliveries estimate to 1.91 mn (up 7% yoy) from 1.96 (up 10% yoy), and our 2026/27 estimates to 2.25 mn/2.50 mn from 2.30 mn/2.60 mn reflecting lower assumptions for Tesla’s existing models and partly offset by a more positive view of shipments from Tesla’s upcoming new model launches (which could benefit from new form factors and lower prices). Our estimates are below VisibleAlpha consensus at 1.98 mn/2.37 mn/2.68 mn respectively. Separately, we lower our energy gross margin assumptions, reflecting higher tariffs on imports from China that are already in effect (given the battery sourcing for Megapacks) and the competitive landscape. However, our estimates do not include tariffs on imports from Mexico or Canada, which are evolving and could still be adjusted per media reports.

On FSD, the analyst said Tesla is facing a tough competitive environment in China:

As for shares, the analysts remain “Neutral” rated on the stock, lowering their 12-month price target to $320 from $345.

The analysts do note: “We expect Tesla’s earnings growth to improve over the longer-term due in part to increased software revenue with FSD, although we have a more balanced view of Tesla’s monetization potential than we believe the company is targeting.” 

Via The Cradle

The Israeli army’s new Chief of Staff, Eyal Zamir, was officially sworn into the position on 5 March, making a speech and vowing that the “mission” against Hamas has “not yet been completed.”

The ceremony comes over one month after the resignation of his predecessor, Herzi Halevi, was announced. “The IDF has achieved impressive achievements on the battlefield. We won battles in Gaza and Lebanon; we struck far away in Yemen and Iran. Hamas received a heavy blow, but it has not yet been defeated. The mission has not yet been completed,” Zamir said in his speech. 

“Our moral duty is clear: Bring everyone back home, in any way possible and as quickly as possible,” he added, addressing the families of the Israeli captives held by the Palestinian resistance in Gaza.

Halevi made a speech during the ceremony, calling for the establishment of a commission to probe the events of October 7, 2023. 

“The establishment of a state commission of inquiry is necessary and vital. Not to find someone to blame, but first and foremost to reach the source of the problems and allow for repair,” he said. “On 7 October, the IDF failed. It was a deep failure. But such a failure on this scale cannot only be investigated in the IDF and the Shin Bet.”

Israeli Prime Minister Benjamin Netanyahu has consistently blocked such a commission from being formed. 

Herzi Halevi announced his resignation on January 21 over his failure to prevent Hamas’s Operation Al-Aqsa Flood. Several other military and intelligence officials also have intentions of resigning over 7 October, including the chief of Israel’s Shin Bet security service, Ronen Bar. 

Several reports have emerged since the war in Gaza began, revealing that Israeli authorities ignored multiple warnings about Operation Al-Aqsa Flood.

Halevi’s successor served as Netanyahu’s military secretary from 2012 to 2015. In his tenure as the head of the Israeli southern command, Zamir commanded troops in the 2018-2019 Great March of Return protests in Gaza, when over 150 Palestinians and 10,000 others were killed and wounded by the army. 

His inauguration comes as Israeli forces continue to violate two separate ceasefire deals – maintaining an occupation in south Lebanon and launching frequent attacks on the country, while obstructing the start of phase two in the Gaza agreement and threatening a return to war against the strip.

After President Trump and Vice President JD Vance accused Ukraine’s Zelensky of being ‘ungrateful’ amid last Friday’s explosive row in front of media cameras in the Oval Office, the White House on Monday announced the suspension of military aid to Ukraine. 

But it was initially unclear precisely when the pause in arms deliveries would take effect, or whether Trump was merely previewing a future suspension. New information revealed in fresh reports sheds more light on the matter, and clearly Trump means business. It was immediate upon the announcement.

“US weapons deliveries to Ukraine came to an abrupt halt on Monday evening after President Donald Trump ordered a pause on all aid to the war-torn country, the Pentagon confirmed on Tuesday,” USA Today reports, based on an admin official.

Inbound shipments on military and transport plans literally turned around midflight, per the report:

After the order was given, all U.S. weapons shipments to Ukraine came to a stop, as of 6 p.m. on Monday evening, according to a defense official. Planes carrying supplies en route to Ukraine would have had to turn around, the official said.

“It was unclear, as of Tuesday, whether Ukraine’s direct contracts with U.S. weapons manufacturers, procured through the Ukraine Security Assistance Initiative, would also be impacted,” USA Today continues. “As of mid-December, $1.7 billion out of the $21.2 billion fund had not been used.”

There was anticipation that Trump might have unveiled a signed minerals deal with Ukraine during Tuesday night’s lengthy 90-minute address to Congress, but that didn’t happen. Trump only referenced a vague letter from Zelensky saying Ukraine was merely interested in a minerals deal as well as achieving peace.

Meanwhile, some Democrats on Capitol Hill are panicking over how rapid the Washington relationship with Kiev is breaking down.

Senator Jeanne Shaheen (D-NH), ranking member of the Foreign Relations Committee, said in a statement: “This act of retribution against our ally, who is on the frontlines defending freedom and democracy, is not only shameful—it is dangerous.”

“I urge the administration to reverse course and remember that America’s values lie with the free world, not autocrats and murderous dictators,” she said. She ignored the reality of the escalatory build-up to WW3 of the last three years under Biden policy.

And anti-Russia hawk Senator Richard Blumenthal (D-CT) lashed out at Trump, writing the following on X:

Trump is inviting a military catastrophe&humanitarian nightmare—suspending aid for air defense against Russia’s bloody slaughter of civilians as well as arms necessary for battle worn soldiers to hold the line against brutal attacks. His withholding this aid is illegal&immoral. https://t.co/0itBFqTkWS

— Richard Blumenthal (@SenBlumenthal) March 4, 2025

The White House followed the weapons halt by lately ordering an intelligence-sharing pause as well, which has reportedly involved leaning on the UK to halt the sharing of intel information with Kiev, though it doesn’t necessarily impact other European allies.

Was that it for the Atlanta Fed recession (which as we described, managed to fool everyone into believing the US economy is crashing because of… surging gold imports)?

Two months after the December Beige Book (published in January) reported that in the last month of Biden’s presidency, “economic activity increased slightly to moderately across the twelve Federal Reserve Districts in late November and December”, moments ago – and with everyone expecting fire and brimstone and perhaps a confirmation that the US is now neck deep in a recession if not depression (at least based on how the 10Y and USD are trading) – the latest Fed Beige Book found that in February, or one month into Trump’s 3rd 2nd presidency, economic activity actually “rose slightly since mid-January.”

Reading the latest Fed report we find that six districts reported no change, four reported modest or moderate growth, and two noted slight contractions. 

Here are the specific details: 

• Consumer spending was lower on balance, with reports of solid demand for essential goods mixed with increased price sensitivity for discretionary items, particularly among lower-income shoppers. 
• Unusual weather conditions in some regions over recent weeks weakened demand for leisure and hospitality services. 
• Vehicle sales were modestly lower on balance. 
• Manufacturing activity exhibited slight to modest increases across a majority of Districts. 
• Contacts in manufacturing, ranging from petrochemical products to office equipment, expressed concerns over the potential impact of looming trade policy changes. 
• Banking activity was slightly higher on balance among Districts that reported on it. 
• Residential real estate markets were mixed, and reports pointed to ongoing inventory constraints. 
• Construction activity declined modestly for both residential and nonresidential units. 
• Some contacts in the sector also expressed nervousness around the impact of potential tariffs on the price of lumber and other materials. 
• Agricultural conditions deteriorated some among reporting Districts.

Yet despite this mixed picture, overall expectations for economic activity over the coming months were slightly optimistic.

Taking a closer at the labor market, the Beige Book found that employment nudged slightly higher on balance, with four Districts reporting a slight increase, seven reporting no change, and one reporting a slight decline. 

• Multiple Districts cited job growth in health care and finance, while employment declines were reported in manufacturing and information technology. 
• Labor availability improved for many sectors and Districts, though there were occasional reports of a tight labor market in targeted sectors or occupations. 
• Contacts in multiple Districts said rising uncertainty over immigration and other matters was influencing current and future labor demand. 
• Wages grew at a modest-to-moderate pace, which was slightly slower than the previous report, with several Districts noting that wage pressures were easing.

Turning to inflation, not surprisingly (to anyone who shops) prices increased moderately in most Districts, but several Districts reported an uptick in the pace of increase relative to the previous reporting period. 

• Input price pressures were generally greater than sales price pressures, particularly in manufacturing and construction. 
• Many Districts noted that higher prices for eggs and other food ingredients were impacting food processors and restaurants. 
• Reports of substantial increases in insurance and freight transportation costs were also widespread. Firms in multiple Districts noted difficulty passing input costs on to customers. 
• However, contacts in most Districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively.

Here is a snapshot of highlights by Fed District:

• Boston: Economic activity increased slowly, boosted by a surge in home sales. Prices increased modestly on average, but contacts perceived that upward pressure on prices could emerge in response to tariffs. Employment declined slightly, and wages increased modestly. Expectations were mostly optimistic but marked by growing uncertainty.
• New York: Regional economic activity was little changed in early 2025. Employment grew slightly and wage growth was moderate, with labor supply and labor demand coming back into balance. Selling price increases picked up to a moderate pace after some slowing last period. Many businesses noted heightened economic uncertainty and expressed concern about tariffs.
• Philadelphia: Business activity declined slightly during the current Beige Book period after a slight increase last period. Employment continued to grow slightly; wages and prices grew modestly. Contacts noted that changes in fiscal and trade policies pose a risk of higher inflation. Generally, sentiment fell, but firms remain optimistic about future growth amid economic uncertainty.
• Cleveland: District business activity was flat in recent weeks, although contacts expected activity to increase in the months ahead. Consumer spending was down, and some contacts noted declining consumer confidence. Employment levels remained flat. Contact reports suggest that nonlabor input costs edged up, while reported price increases continued to be modest.
• Richmond: The regional economy grew modestly in recent weeks. Consumer spending increased modestly, down from the moderate rate previously reported. Nonfinancial services firms also reported modest growth while manufacturing activity was unchanged. Price growth remained moderate, but firms across sectors expressed concerns about overall uncertainty in the economy and about tariffs potentially leading to future price increases.
• Atlanta: The economy of the Sixth District expanded at a modest pace. Employment was steady. Wages, input costs, and prices increased modestly. Retail sales fell slightly. Travel and tourism were steady. Home sales declined somewhat. Transportation activity grew modestly. Loan growth was moderate. Manufacturing expanded slightly. Energy demand increased modestly.
• Chicago: Economic activity was little changed. Employment was up slightly; consumer and business spending were flat; nonbusiness contacts saw little change in activity; and construction and real estate and manufacturing activity decreased slightly. Prices increased modestly; wages rose moderately; and financial conditions were unchanged. Farm income in 2025 was expected to be similar to 2024.
• St. Louis: Economic activity and employment have been flat. Prices continued to increase moderately but were above expectations. Contacts noted that they were holding off investment due to policy uncertainty and indicated that tariffs would result in higher prices. The outlook has declined from slightly optimistic in our previous report to neutral.
• Minneapolis: Economic activity was steady. Employment grew but labor demand and hiring softened. Wage and price increases were moderate. Consumer spending was flat with improvements in travel and tourism. Manufacturing experienced modest improvements. Construction of nonresidential units slowed but accelerated modestly for residential units. Commercial real estate was mostly unchanged, and home sales improved. Agricultural conditions were flat.
• Kansas City: Economic activity was unchanged on balance, but consumer spending decreased moderately. Prices rose at a moderate pace. While higher prices deterred spending, business contacts indicated they were more likely to scale back rather than take a hit on margins by softening pricing. Employment levels remained steady, though contacts noted a rise in labor force churn.
• Dallas: The Eleventh District economy continued to expand moderately. Nonfinancial services activity grew while retail sales were flat, and manufacturing activity was rather volatile. Lending picked up notably and commercial real estate activity improved, though housing demand was tepid. Employment held steady, and little change was seen in wage and price growth. Contacts noted sharply higher uncertainty around the outlook.
• San Francisco: Economic activity ticked down. Employment levels were stable. Price levels and wages grew slightly. Retail sales fell modestly and demand for services weakened a bit. Manufacturing activity improved somewhat, while conditions in agriculture and residential real estate softened. Commercial real estate and lending activity were steady.

Confirming that contraray to conventional wisdom the economic picture improved notably since January, the latest February Beige Book saw just 2 mentions of recessions, down sharply from 6 two months prior. But more notably, while mentions of “slow” extended their decline to 35 from 38, mentions of inflation rose to a two year high of 15, up from 11 last month…

… suggesting that the US economy – while hardly on fire as it was during the hyperinflationary period of Biden’s admin – continues to chug along and is hardly collapsing as so many Trump foes would like to see.

Source: Federal Reserve

Update (1415ET): It’s official, President Trump is exempting automakers from newly imposed tariffs on Mexico and Canada for one month, the White House said Wednesday.

“We are going to give a one month exemption on any autos coming through USMCA,” said WH spox Caroline Leavitt, referring to the trade deal negotiated with Canada and Mexico in Trump’s first term.

“Reciprocal tariffs will still go into effect on April, 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.”

As noted below, the announcement came after administration officials met Tuesday to discuss the matter with the heads of Ford, GM and Stellantis.

Trump and Trudeau Have It Out

As the Epoch Times noted earlier, following a phone call with Prime Minister Justin Trudeau to discuss recently imposed tariffs, President Donald Trump said he told the Canadian leader there hasn’t been enough done to stem the flow of fentanyl.

Trump also accused Trudeau of using the tariff issue to “stay in power.”

Trump discussed his phone call with Trudeau in two posts made on his Truth Social platform on the afternoon of March 5.

“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs,” Trump wrote. “I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped.”

Trump also wrote that the call ended in a “’somewhat’ friendly manner,” while also accusing Trudeau of using the tariff issue to hold onto power in his final days in office.

“He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power,” Trump said.

Trump’s social media posts came amid comments earlier that day from U.S. Commerce Secretary Howard Lutnick, who said he would announce a change to the tariffs policy.

“He’s going to come up with a plan this afternoon, we’re going to announce that plan,” Lutnick told Bloomberg on March 5.

Repeating comments made the previous day, Lutnick mentioned finding some “middle” ground on tariffs with Canada and Mexico.

“There’s going to be 25 percent tariffs,” Lutnick clarified. “It’s not the ’middle’ as in a number. I think it’s a middle in terms of USMCA [or] not USMCA,” suggesting items covered by the free trade deal between the countries would receive a different tariff treatment.

Canada responded to the U.S. tariffs by announcing an initial CA$30 billion surtax on a variety of U.S. goods from orange juice to motorcycles. The plan is for an additional CA$125 billion of goods to be slapped with a 25 percent surtax three weeks later if U.S. tariffs remain in place.

Trump imposed 25 percent tariffs on Canadian goods and 10 percent on its energy imports on March 4, after a 30-day pause expired. The pause had been applied for the Trump administration to assess measures taken by Canada to strengthen border security and counter fentanyl trafficking.
Trump said on March 3 there was “no room left” for Canada and Mexico to avoid tariffs and that “vast amounts of fentanyl” is entering the United States from the bordering countries.

In reaction to the U.S. tariffs on March 4, Trudeau said he doubts fentanyl is the issue, and instead suggested Trump is using them to cause the collapse of the Canadian economy to facilitate “annexation.”

Trudeau and his ministers have said that a very small amount of fentanyl from Canada crosses into the United States and that, nonetheless, the Canadian government has stepped up measures to combat the problem. Ottawa has also stressed that both countries’ economies are intricately linked and that consumers and businesses on both sides will lose in the trade war.

“They’ve chosen to launch a trade war that will, first and foremost, harm American families,” Trudeau said. “They’ve chosen to sabotage their own agenda that was supposed to usher in a new golden age for the United States and they’ve chosen to undermine the incredible work we’ve done together to tackle the scourge that is fentanyl, a drug that must be wiped from the face of the earth.”

Lutnick was asked by reporters on March 4 to respond to Trudeau’s comments about annexation made earlier that day, and noted the prime minister is in his last days in office.

“Justin Trudeau is running the end of his term and I don’t really want to think about the ridiculous things he said the last couple of days,” he said. “It’s sad, it’s time for him to go and let’s move on, have a new government in Canada.”

Along with the border and fentanyl-related tariffs, Canada is facing the threat of 25 percent tariffs on steel and aluminum, which Trump said would be levied against every country on March 12.

A broader U.S. trade action is slated for April 2, with details about reciprocal tariffs expected to be announced. The Trump administration has already said it considers Canada’s federal sales tax (GST), its Digital Services Tax aimed at tech giants, and its supply management system for goods like poultry and dairy as trade barriers acting as tariffs against the United States.

Trump and Lutnick have also spoken about bringing car manufacturing back to the United States, which could have a significant impact for the Canadian auto industry which is deeply integrated across the border.

*  *  *

Update (1216ET): The Trump administration is considering giving automakers a one-month reprieve from newly imposed tariffs on Mexico and Canada, after administration officials met Tuesday to discuss the matter with the heads of Ford, GM and Stellantis, Bloomberg reports, citing anonymous officials.

The major Detroit automakers have aggressively sought to halt or revise Trump’s tariffs over concerns that they would have potentially catastrophic effects. (so, make your cars in the US?)

According to carmakers and experts cited, a rise in costs from the 25% tariffs imposed on US neighbors this week could send car prices skyrocketing by thousands of dollars almost immediately – and seize up supply chains.

In recent days, Commerce Secretary Howard Lutnick has hinted that there may be some carve-out exceptions to the initial tariffs – telling BBG television that the changes could be announced on Wednesday, including a potential reprieve for the auto sector in order to buy time to come up with plans to move both investments and production to the US.

The move sent both stocks and the Peso higher in mid-day trade.

*  *  *

President Trump reiterated his focus on reciprocal tariffs in a speech overnight to a joint session of Congress, noting that there would be a “little disturbance” but that we are “ok with that.”

Global equity markets braced for a potential trade decision with Canada and Mexico overnight and into the US morning. This follows Trump imposing a 25% tariff on imported goods from Mexico and Canada on Tuesday and increased tariffs on Chinese goods to 20%, up from 10%. 

On Tuesday afternoon, US Commerce Secretary Howard Lutnick stated on Fox Business, “I think the president is going to work something out with them,” adding, “It’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out, you do more, and I’ll meet you in the middle some way, and we’re going to probably be announcing that tomorrow.”

Lutnick, speaking on Bloomberg on Wednesday morning, also reiterated that he expects a decision regarding Canada and Mexico this afternoon.

Latest trade headlines (courtesy of Bloomberg): 

• LUTNICK: TRUMP CANADA, MEXICO DECISION EXPECTED THIS AFTERNOON

• LUTNICK: TRUMP MAYBE, MAYBE WILL CONSIDER GIVING RELIEF

• LUTNICK: AIMING FOR ‘SOMEWHERE IN THE MIDDLE’ ON CANADA, MEXICO

Ahead of the potential trade decision with America’s neighbors to the north and south, Goldman’s Brooke Roach, Kate McShane, and others outlined to clients late Tuesday companies within their coverage universe that have sourcing exposure to Mexico and Canada. They pointed out that clothing company Kontoor Brands has the most exposure to Mexico, while Canada Goose has the most exposure to… you guessed it: Canada

Roach and McShane noted that in their hardline stock universe coverage, many companies have either not disclosed their sourcing from Mexico and Canada or have a moderate level of exposure. 

The analysts also identified which companies in their softlines coverage universe are most heavily exposed to the escalating trade war with China.

Hardlines coverage…

Comments on tariff headwind and mitigation commentary on softline coverage.

Comments on tariff headwind and mitigation commentary on hardline coverage.

Canada Goose shares in New York have been battered by same-store sales, weak wholesale orders, fierce competition, and a sluggish Chinese market. Also weighing on shares have been trade war concerns, as it sources 80% of its products from Canada. Shares are trading at a five-year low, with 22.5% of the float sold short.

The question remains for GOOS: Will positive US-Canada trade headlines be enough to ignite a squeeze? 

Authored by Jeremy Portnoy via RealClearInvestigations,

Topline: The Biden administration gave Canadian electric bus maker The Lion Electric Company $160 million in subsidies to manufacture 435 buses for schools around the U.S. The company is nearing bankruptcy and laid off almost half its employees, but $95 million of the buses have still not been provided, according to the Washington Free Beacon. 

Some of the $65 million worth of buses that were delivered are not without problems. The Environmental Protection Agency is investigating Lion Electric for fraud after the buses it sent to Winthrop Public Schools in Maine were unusable for a year and a half due to faulty parts.

Key facts: Lion Electric received the third most money of all manufacturers subsidized by President Biden’s $5 billion Clean School Bus program, yet there are still 55 school districts waiting for their buses, the Free Beacon reported.

Meanwhile, Lion Electric’s stock has fallen to $.08 per share compared to $33.48 in January 2021. The company has also allegedly faced issues with properly disclosing its finances. A group of investors sued the company last year for its allegedly “grossly unrealistic financial projections,” and the Securities and Exchange Commission issued a warning last August over inaccurate numbers 

The issues were already clear when the government awarded its grant to Lion Electric in October 2022. The company had reported $17.2 million in losses in the previous three months, the Free Beacon reported. 

Winthrop Public Schools in Maine is in a particularly tough spot. The school is required to either use the EV buses or pay back the federal grant used to buy them. Many of the buses are out of commission, and the school says Lion Electric has not provided support.

Lion Electric is required to pay Winthrop back for any time the buses spend off the road, but the school told Central Maine they don’t expect to get the $57,000 they are owed.

The company nearly received another $50 million subsidy from the State of Illinois, but it failed to keep the required number of employees on staff.

Search all federal, state and local government salaries and vendor spending with the AI search bot, Benjamin, at OpenTheBooks.com. 

Summary: Americans deserve investments in companies that are fully vetted and do what they promise to do.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

Authored by Katabella Roberts via RealInvestmentAdvice.com,

Comments made by President Donald Trump on Tuesday night are being used in a lawsuit challenging the legality of his administration’s Department of Government Efficiency (DOGE).

In a filing with the U.S. Court for the District of Columbia, the National Security Counselors, a public interest law group, highlighted remarks made by Trump during his speech to a joint session of Congress.

“To further combat inflation, we will not only be reducing the cost of energy, but will be ending the flagrant waste of taxpayer dollars,” Trump told lawmakers in attendance.

“And to that end, I have created the brand-new Department of Government Efficiency, DOGE. Perhaps you’ve heard of it.”

Trump said DOGE, which is not an official government department, “is headed by Elon Musk, who is in the gallery tonight.” 

He then went on to thank the billionaire businessman for “working very hard.”

“He didn’t need this,” Trump said of Musk. 

He added that he was sure that lawmakers from the Democratic Party also appreciated Musk’s efforts to slash wasteful government spending but “don’t want to admit that.”

Formally, the White House last week announced that Amy Gleason is the acting administrator of DOGE.

A recent court filing from the Office of Administration states that Musk is a senior adviser to the president, has no authority to make government decisions, and is not an employee of DOGE.

In their filing with the court, the National Security Counselors said Trump’s remark “conclusively demonstrates that expedited discovery is urgently needed” to “ascertain the nature of the Department of Government Efficiency and its relationship to the United States DOGE Service.”

The filing is part of a lawsuit the National Security Counselors filed against Musk, Trump, and others in January.

It argues that DOGE is operating as a federal advisory committee, putting it in violation of the Federal Advisory Committee Act (FACA) which governs the establishment, operation, and termination of advisory committees within the executive branch of the federal government.

Lawsuit Argues DOGE Lacks Transparency

According to the lawsuit, FACA dictates that federal advisory committees must be “fairly balanced in terms of the points of view represented and the functions to be performed by the advisory committee.”

Such committees should also maintain “fairly balanced” membership, hold public meetings, keep detailed minutes of meetings, and file a charter, it states.

The lawsuit argues that “due to DOGE’s lack of transparency, little is publicly known about its structure or membership,” putting it in violation of the act.

It further contends that DOGE is in violation of FACA because “not a single member of DOGE is a federal employee or represents the perspective of federal employees, despite the evidence that DOGE intends to provide recommendations regarding federal employment practices and ways to reduce the size of the federal workforce.”

Plaintiffs are seeking an injunction barring DOGE from operating until it complies with FACA.

They have also asked the court to declare that DOGE is “not properly constituted” and that any report or recommendation made by the advisory body “does not reflect the views of a lawfully constituted advisory committee.”

Jerald Lentini, an attorney for National Security Counselors and elected official in Manchester, Connecticut, and Joshua Erlich, an employment lawyer, are listed as co-plaintiffs in the lawsuit.

Both men sent in applications to be hired by DOGE but have yet to hear back, according to the lawsuit.

“Plaintiffs conclude that, upon information and belief, neither Lentini nor Erlich, nor anyone similarly situated who would represent the perspectives of federal employees (including national security employees), unions, or accountability and transparency advocates, will be selected for DOGE,” the lawsuit states.

The Epoch Times has contacted the White House for comment.

Last month, the Trump administration released receipts of federal contracts that DOGE identified in its efforts to downsize government spending.

On Feb. 12, White House press secretary Karoline Leavitt said, “We have contracts upon contracts that we can send and provide this information to you. Let me be very clear, we are not trying to hide anything. We have been incredibly transparent, and we will continue to be.”

The United States and Israel have quickly rejected a new Gaza peace and reconstruction plan proposed by the Arab League under Egypt’s leadership, which was unveiled Tuesday.

A counterproposal to Trump’s provocative Gaza ‘takeover’ plan which advocates the removal of the Palestinian population to neighboring Arab states, the Egyptian plan would of course allow its roughly two million inhabitants to remain.

The $53 billion plan approved by the Arab League aims to rebuild the destroyed Gaza Strip by 2030, while setting up hundreds of thousands of temporary housing units so that Palestinians won’t have to leave. Arab leaders have blasted Trump’s prior proposals as but greenlighting an Israeli ethnic cleansing campaign, and Jordan and Egypt in particular have vehemently rejected the possibility of resettling Palestinians in their territories.

It calls on UN Security Council to deploy an international peacekeeping force in Gaza and the occupied West Bank, which would establish security while reconstruction takes place – and foresees the recycling of rubble to expand Gaza’s coastline and even “sustainable, green and walkable” housing and urban areas, also utilizing renewable energy.

Further, according to the Associated Press, “The communique said Egypt will host an international conference in cooperation with the United Nations for Gaza’s reconstruction, and a World Bank-overseen trust fund will be established to receive pledges to implement the early recovery and reconstruction plan.”

Hamas has welcomed the plan, despite that it says the West Bank-based Palestinian Authority (PA) would eventually take over governance and management of the Gaza Strip.

“We welcome the Gaza reconstruction plan adopted in the summit’s final statement and call for ensuring all necessary resources for its success,” the group said. The Islamist militant group further expressed support for “the formation of the Community Support Committee to oversee relief efforts, reconstruction and governance in Gaza.”

An Israeli government statement said the Arab League’s plan ultimately “fails to address the realities of the situation following October 7th, 2023, remaining rooted in outdated perspectives.” It also blasted the Arab body for failing to condemn the Hamas Oct.7 terror attack in its statement announcing the plan.

Instead, the Israeli Foreign Ministry said, “Now, with President Trump’s idea, there is an opportunity for the Gazans to have free choice based on their free will. This should be encouraged! Instead, Arab states have rejected this opportunity, without giving it a fair chance, and continue to level baseless accusations against Israel.”

If this article is to be believed, Israel is gearing up to re-invade and occupy Gaza even more ruthlessly than they did before, empowered by the backing of Trump, whose Gaza takeover plan they are taking very “seriously” — not just as some vague “negotiating” feint pic.twitter.com/Y1FFRDv6tm

— Michael Tracey (@mtracey) February 28, 2025

The White House also responded negatively, with White House National Security Council spokesman Brian Hughes asserting that the Arab plan did “not address the reality that Gaza is currently uninhabitable and residents cannot humanely live in a territory covered in debris and unexploded ordnance.”

“President Trump stands by his vision to rebuild Gaza free from Hamas. We look forward to further talks to bring peace and prosperity to the region,” he added.