With many of his political opponents either jailed or exiled abroad, the 70-year-old Alexander Lukashenko is back on the ballot, all but certain to add a seventh presidential term. The last time Belarus staged a presidential election in 2020, authoritarian leader Alexander Lukashenko was declared the winner with 80% of the vote. That triggered cries of fraud, months of protests and a harsh crackdown with thousands of arrests. Not wanting to risk such unrest again by those opposing his three decades of iron-fisted rule, Lukashenko advanced the timing of the 2025 election — from the warmth of August to frigid January, when demonstrators are less likely to fill the streets. With many of his political opponents either jailed or exiled abroad, the 70-year-old Lukashenko is back on the ballot, and when the election concludes on Sunday, he is all but certain to add a seventh term as the only leader most people in post-Soviet Belarus have ever known. Here’s what to know about Belarus, its election and its relationship with Russia: ‘Europe’s last dictator’ and his reliance on Russia Belarus was part of the Soviet Union until its collapse in 1991. The Slavic nation of 9 million people is sandwiched between Russia and Ukraine, Latvia, Lithuania and Poland, the latter three all NATO members. It was overrun by Nazi Germany in World War II. It’s been closely allied with Moscow and Russian President Vladimir Putin — himself in power for a quarter century. Lukashenko, a former state farm director, was first elected in 1994, riding public anger over a catastrophic plunge in living standards after chaotic and painful free-market reforms. He promised to combat corruption. Throughout his rule, he’s relied on subsidies and political support from Russia, allowing it to use Belarusian territory to invade Ukraine in 2022 and later agreeing to host some of Russia’s tactical nuclear weapons. Lukashenko was dubbed “Europe’s last dictator” early in his tenure, and he has lived up to that nickname, harshly silencing dissent and extending his rule through elections that the West has called neither free nor fair. An open admirer of the Soviet Union, he has restored Soviet-style controls on the economy, discouraged use of the Belarusian language in favor of Russian, and pushed for abandoning the country’s red-and-white national flag in favor of one similar to what it used as a Soviet republic. Belarus’ top security agency kept its fearsome Soviet-era name of the KGB, and it’s the only country in Europe to keep the death penalty, with executions carried out with a gunshot to the back of the head. Flirtation with the West, repression at home As he bargained with the Kremlin over the years for more subsidies, Lukashenko periodically tried to appease the West by easing repressions. Such flirtations ended after he unleashed a violent suppression of dissent after the 2020 election. That election to his sixth term was widely seen at home and abroad as rigged, and it sparked months of massive protests, the largest ever seen in Belarus. Authorities responded with a sweeping crackdown in which over 65,000 people were arrested, thousands were beaten by police and hundreds of independent media outlets and nongovernmental organizations were closed and outlawed, drawing Western sanctions. Leading opposition figures have either been imprisoned or fled the country. Human rights activists say Belarus holds about 1,300 political prisoners, including Nobel Peace Prize laureate Ales Bialiatski, the founder of the country’s top rights group, Viasna. Lukashenko’s maneuvers before the election Although Lukashenko’s current term doesn’t expire until summer, the election was moved up in what officials said would allow him “to exercise his powers at the initial stage of strategic planning.” Belarusian political analyst Valery Karbalevich gave a different reason, saying “There won’t be mass protests in freezing January,” he said. In other maneuvering, Lukashenko has pardoned 250 people described as political prisoners by rights activists. The pardons, however, come amid heightened repressions aimed at uprooting any remaining signs of dissent. Hundreds have been arrested in raids that targeted relatives and friends of political prisoners. Other arrests include participants in online chats organized by residents of apartment buildings in various cities. Unlike the 2020 election, Lukashenko faces only token challengers, with other opposition candidates rejected for the ballot by the Central Election Commission. The election began with early voting Tuesday and concludes Sunday. “The politicians who once dared to challenge Lukashenko are now literally rotting in prison in torture conditions, there has been no contact with them for over a year, and some of them are in very poor health,” said Viasna representative Pavel Sapelka. Opposition leader-in-exile Sviatlana Tsikhanouskaya, who challenged Lukashenko in the 2020 election and was forced to flee the country afterward, says the latest vote is a farce and urged Belarusians to vote against every candidate. Her husband, activist Siarhei Tsikhanouski, tried to run four years ago but was jailed and remains imprisoned. Under Russia’s nuclear umbrella In December 2024, Lukashenko and Putin signed a treaty that gave security guarantees to Belarus that included the possible use of Russian nuclear weapons. The pact followed Moscow’s revision of its nuclear doctrine, which for the first time placed Belarus under the Russian nuclear umbrella amid tensions with the West over the war in Ukraine. Lukashenko says Belarus is hosting dozens of Russian tactical nuclear weapons. Their deployment extends Russia’s capability to target Ukraine and NATO allies in Europe. He also said Belarus will prepare to host Russia’s Oreshnik hypersonic missile that was used in Ukraine for the first time in November. Putin said the missiles could be deployed to Belarus in the second half of 2025, remaining under Moscow’s control while Minsk will select the targets.

President Donald Trump has said the US does not need Canadian energy, vehicles or lumber as he spoke to global business leaders at the World Economic Forum. Trump also reiterated his threat to impose tariffs on the country, saying it can be avoided if the neighbouring nation chose to "become a state" of the US. "You can always become a state, and if you're a state, we won't have a deficit. We won't have to tariff you," he said to gasps in the hall in Davos. Trump has threatened to impose up to 25% tariffs on Canadian imports, possibly by 1 February. The renewed threat of tariffs has been met with deep unease by the trade-dependent Canada. But it has also said it will consider significant countermeasures, including a "dollar-for-dollar" response if the Trump administration follows through. Roughly 75% of Canada's exports head south. In contrast, Canada accounts for a much smaller 17% of US exports, though it is the second largest US trading partner, behind Mexico. Trump in his remarks on Thursday said Canada had been "very tough to deal with over the years". "We don't need them to make our cars, we make a lot of them, we don't need their lumber because we have our own forests... we don't need their oil and gas, we have more than anybody," he told forum attendees via video link from Washington DC. Trump reiterated the assertion that the US has a trade deficit with Canada of between $200bn and $250bn. It's not clear where he got that figure. The trade deficit with Canada - expected to be $45bn in 2024 - is mostly driven by US energy demands. The North American auto industry also has highly integrated supply chains. Auto parts can cross the borders between the US and Mexico and Canada multiple time before a vehicle is finally assembled. Trump has also tied the tariffs to border security, saying it will be imposed unless Canada increases security at the shared border. Canadian Prime Minister Justin Trudeau has repeatedly said that everything is on the table in response if the tariffs are imposed. That includes a tax or embargo on energy exports to the US, though some of Canada's provincial leaders disagree with that response. On Thursday, Trudeau told reporters that Canada's goal is to avoid US tariffs altogether but it will step up its response "gradually" to seek the quick removal of levies if they are imposed. Canada is also pitching itself as a reliable trading partner and a secure source to the US for energy and critical minerals as it lobbies American lawmakers in a bid to avoid the tariffs. Canada offers to help Trump as it scrambles to avert tariff war Trudeau says 'not a snowball's chance in hell' Canada will join US Economists suggest the US depends on Canadian products for energy security. In 2024, Canadian energy exports came to almost $170bn (C$244bn), according to a recent analysis by TD Bank economists. Trump also said on Thursday that businesses should make their products in the US if they want to avoid tariffs. Tariffs are a central part of Trump's economic vision - he sees them as a way of growing the US economy, protecting jobs and raising tax revenue. The new president has ordered federal officials to review US trade relationships for any unfair practices by 1 April. With reporting from Faisal Islam, economics editor, in Davos.

Facing a looming tariff war with the US, Prime Minister Justin Trudeau has threatened the stick - now, he's hoping a carrot will work. In a change of tone from his previous warnings about economic hardships, the Canadian leader is promising to help Donald Trump achieve America's "golden age," which was alluded to in the US president's inauguration speech. "Canada is a safe, secure and reliable partner in an uncertain world," Trudeau said this week. The alternative, he said, "would be more resources from Russia, China or Venezuela". The focus on American prosperity and national security is the latest pivot by Canadian officials as the country tries to find its footing with the new Trump administration, and - more urgently - avert the threat of blanket 25% import tariffs imposed by the US, its largest trade partner and closest ally. Canada has been preparing a retaliatory response for weeks, and was ready for a potentially devastating trade war to be launched as soon as President Donald Trump took office. On Monday, it looked like Canada had gotten a reprieve. In his inaugural address, Trump made no mention of Canada. But relief was short-lived. In an off-the-cuff response to a reporter's question in the Oval Office late on Monday night, Trump flipped the script by musing about placing steep levies on 1 February on both Canada and Mexico. Now with a deadline looming, Canada must decide which tactic to take - retaliation, or appeasement. In the get-tough approach, Ottawa has eyed targeted tariffs in return on goods like Florida orange juice - to send a message directly to Trump - as well as a "dollar-for-dollar" response. It is an approach that worked during Trump's first term when he placed tariffs on Canadian steel and aluminium. This time, however, the US president's objectives and timelines are less clear, and Canada has struggled to carve out a response. Making matters more difficult is a lack of consensus from Canadian officials on how to respond. Trudeau, who is deeply unpopular and will soon step down, has repeatedly signalled that everything is on the table, including the "nuclear option" to tax or embargo energy exports to the US. Not all are in agreement, with Premier Danielle Smith of the oil-rich province Alberta vehemently opposing using energy as a bargaining chip. Both Trudeau and Smith paid personal visits to Florida to appeal directly to Trump. In remarks on Tuesday, Trudeau appeared slightly exasperated. "We've been here before," he told reporters. "The first Trump presidency represented moments of uncertainty and threats of instability that we were able to work through constructively." Meanwhile, Canada's ambassador in Washington DC, Kirsten Hillman, signalled that the country might be closer to understanding the position of the Trump administration. "We have now moved from a more abstract discussion to a more concrete discussion", she said, pointing to the "America First" trade review Trump commissioned on Monday. It lays out US trade priorities - many centred on national security - and the Trump picks who will conduct that review. They include Scott Bessent, nominated for treasury secretary, Howard Lutnick for commerce, and Jamieson Greer for US Trade Representative. All still need to be confirmed by the US Senate. The tariff threat has been met with deep unease by trade-dependent Canada. Roughly 75% of its exports head south. In contrast, Canada accounts for a much smaller 17% of US exports. "The US can afford to have a long trade war with Canada, and Canada less so," Theo Argitis, managing director of the Ottawa-based public affairs firm Compass Rose Group, told the BBC. "You have this asymmetry there that puts Canada in a very difficult negotiating position." Has Trump promised too much on US economy? 'Trump 2.0' looms large over the global economy Canada's oil patch rattled by Trump's tariff threat Would Donald Trump's tariffs hurt US consumers? Trump had initially tied the tariffs to border security, saying they will be implemented until Canada and Mexico make moves to limit the flow of fentanyl and unlawful migrants into the US. In a bid to avoid the tariffs altogether, Ottawa had promised to implement C$1.3bn ($900m; £700m) worth of new security measures along its US border. But this appears to not be enough, with Trump doubling down on his threats, accusing Canada on Tuesday for allowing "millions" of people to come into the US unlawfully. Trump has also criticised Canada over its defence spending and what he says is a trade deficit between the two countries. Experts say the deficit is due to a number of factors, including the fluctuating price of energy - one of the main commodities Canada sells to the US. There is also reported disagreement within Trump's orbit over when and how tariffs should be implemented. At a call with reporters before the president's inauguration, Canada's energy minister Jonathan Wilkinson said there is uncertainty about Trump's ultimate objectives. This "uncertainty and chaos" is often used by Trump as a negotiating strategy, Mr Argitis noted. "If he scares the hell out of us, he probably thinks that we're going to be ready to concede things. He may or may not be right there," he said. Tariffs seem to be part of a larger policy position by Trump, a self-described "Tariff Man" who has also threatened levies on Chinese, European and Russian exports. He has said he plans to create an External Revenue Service to collect "foreign trade-related revenues", including ones generated from tariffs. The Trump administration is also reviewing a long-standing free trade agreement between Canada, the US and Mexico ahead of its planned renegotiation in 2026. Sources have told US media that Trump wants to begin those talks sooner. The situation - and the uncertainty around it - has left Canada with few options. Economists have warned that Canada's GDP could take a hit of up to 5.6% if 25% blanket US tariffs are imposed on Canadian goods, depending on how, and whether, Canada retaliates. Given this, Mr Argitis said that Canada is focused primarily on avoiding the tariffs altogether, by pitching a stronger alliance with the US on energy and national security. Canada is also talking about diversifying trade to reduce its heavy reliance on the US as a partner, but Mr Argitis noted the country has struggled to do so in the past, primarily due to its close geographic and cultural proximity to the US. "There's been no evidence that Canada is able to diversify at all, and so we're kind of stuck with option number one, which is to avoid a trade war at all costs," he said. Ultimately, he added, the negotiating advantage rests with Trump.

After bracing for weeks for a trade war with the US, Canada has - for now - evaded tariffs that Donald Trump threatened to impose on the country as soon as he takes office. But Trump said on Monday the tariffs on Canada and Mexico could come on 1 February as he ordered federal officials to review US trade relationships for any unfair practices - including relationships with Canada, Mexico and China. The incoming president has pledged import duties of 25% on Canada and Mexico, as well as 10% on global imports and 60% on Chinese goods. Prime Minister Justin Trudeau said on Tuesday: "'If the president does choose to proceed with tariffs, Canada will respond - and everything is on the table." Canadian officials initially appeared relieved at the reprieve the review that Trump has ordered offered, but warned the tariff threat was still real. Then in the Oval Office late in the evening, Trump told reporters he was considering 1 February as a date his administration might impose 25% levies on Canada and Mexico. Canada is highly dependent on trade with the US, with roughly 75% of its exports heading south. Trudeau, speaking to reporters on Tuesday morning, said there was "always going to be a certain amount of unpredictability and rhetoric coming out from this administration". He said Canada offered the US "a safe, secure and reliable partner in an uncertain world". In an appeal to Trump's promise of an American "golden age", Trudeau noted Canada is a source of commodities like energy and critical minerals the "American economy is going to need in order to grow". In November, Trump said his administration would impose across -the-board tariffs on Canadian and Mexican goods in an effort to force the countries to crack down on illegal immigration and drug smuggling into the US. Canada's Foreign Minister Melanie Joly last week had warned the tariffs could spark the "biggest trade war between Canada and the US in decades". Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars. Trudeau said he supports "the principle of dollar-for-dollar matching tariffs". Members of Trudeau's cabinet are gathered in Quebec for two days of meetings focused on the US-Canada relationship. Canadian officials say they will continue with their efforts to lobby US counterparts on the benefits of trade between the two nations, which totaled an estimated $909bn in 2022. IN PICTURES: Key moments of the inauguration WATCH: Inauguration day in two minutes FASHION: Melania's striking hat and other eye-catching looks Canada, the US and Mexico renegotiated a trilateral free trade deal during Trump's first term in office. The presidential memo Trump signed after his inauguration directs federal agencies to assess how that deal affects American "workers, farmers, ranchers, service providers, and other businesses". It also asked the commerce and homeland security secretaries to assess the "unlawful migration and fentanyl flows" from Canada and Mexico. That review is due on 1 April. While both the northern and southern US borders have reported unlawful crossings and drug seizures, the numbers at the border with Canada are considerably lower than those at the Mexico border, according to official data. In December, Canada promised to implement C$1.3bn ($900m; £700m) worth of new security measures along its US border, including strengthened surveillance and a joint "strike force" to target transnational organised crime. Tariffs are a central part of Trump's economic vision - he sees them as a way of growing the US economy, protecting jobs and raising tax revenue. But many economists have warned the policy could lead to higher prices for Americans and pain for companies hit by foreign retaliation.

When Innocent James completed his chores after school, he would light a kerosene lamp and lay down to read his books. There was no electricity in James’ part of Arusha, a region in northern Tanzania, and so his family was forced to burn expensive oil for him to learn after dark. Today, James is 33, and many parents in rural Tanzania – where all year round the sun sets at around 7pm – must still choose between saving money and allowing their children to read at night. But now, James’ company, Soma Bags, is providing a solution: backpacks equipped with solar panels that charge a reading light. What started as a small-scale project with some discarded cement bags, a sewing machine, and a solar panel, has become a business attracting charities and fashion brands from around the world. Last year, Soma Bags (“Reading Bags” in Swahili) sold 36,000 solar backpacks to people across Africa, providing an invaluable energy source for when the sun goes down. Affordable light for rural households James was brought up by his mother and grandmother, both schoolteachers, to love reading. At university in Mwanza, James was shocked at the number of schoolchildren he noticed on the street skipping class to ask for money, largely to spend in local video game cafés. He wanted to help them find the taste for learning that he remembered from his childhood. “I was frustrated,” James said, “I could see that the problem was much, much bigger than I thought.” Before his last semester, James dropped out of university and used the last of his tuition money to buy a mobile library cart. He began visiting schools, attracting hundreds of children to his reading clubs. But for all his hard work, there was a problem: children would borrow books from him and then return them unread. James soon realized that while they were eager to read, they could not afford to do so. Fewer than half of households in mainland Tanzania are connected to electricity. This falls to just over a third in rural areas. Consequently, many families rely on kerosene lamps to provide light after dark. These lamps produce dim light and are expensive to fill. They also pollute the air and carry the risk of burns. Parents often opt to send their children to bed, James explained, rather than allowing them to use the lamp to read. James’ solution – flexible solar panels sewn onto the outside of bags to power a reading light – was inspired by a university professor who carried around a solar charger for his phone, sewn into a fabric pouch. “It gave me the confidence that what I want is going to work,” said James. He started in 2016 by handmaking 80 backpacks per month, sewing on a solar panel sourced from China that charged during the children’s walk to and from school. By the time they returned home, they would have enough power for a reading light. A fully charged bag can power a light for six to eight hours, meaning that one day of bright weather can allow for multiple nights of reading, even if cloudy weather arrives. James says the solar backpacks are more affordable than using an oil lamp. A solar bag costs between 12,000 and 22,500 Tanzanian shillings (approximately $4-8), with the reading light included – the same price as 12-22.5 days of using a kerosene lamp, according to an average cost estimated in a survey of Soma Bags customers. Building the business Sold mainly from his growing franchise of mobile library carts, the bags became popular, and James increased production. He founded Soma Bags in 2019 and oversaw the construction of his own factory in the village of Bulale, in the Mwanza region, in 2020. The company now employs 65 staff. Made from repurposed cement bags found on the streets of Mwanza, where James lives, the backpack material is durable, lightweight, zero waste, and comes at no cost. The backpacks look good, too – in the middle of the bags, the white silhouette of a giraffe appears within bright yellow or green stripes. “It’s innovative,” said Joseph Manirakiza, of the UN Development Programme (UNDP), which has supported Soma Bags since 2023. “I never thought someone would think of turning waste cement bags into something useful.” James’ customers are, in the main, families and schools in rural Tanzania – people and institutions with whom he is familiar from his library cart days. But the company is expanding; over 200 charities have bought bags from James to distribute amongst children in need, and Soma Bags is becoming increasingly popular in urban areas. While inside Soma’s smaller backpacks are battery-powered reading lights, its bigger bags now have in-built charging systems with a greater capacity, enabling them to power other electronic devices, like phone chargers. The company has also branched out into travel, sports, and cosmetic bags that aren’t solar-powered. James has sold backpacks to charities in Nigeria, Rwanda, Madagascar, and the Democratic Republic of Congo, and to fashion brands in Poland, Germany, the Netherlands and Kenya. A growing industry Around 600 million Africans do not have access to electricity. Companies that produce solar-powered lamps are abundant on the continent, and the UN’s Solar Light Distribution Programme is part of a global effort to light up rural areas with affordable and sustainable energy. The hybrid social enterprise Smart Girls Uganda has produced and distributed over 12,000 of its own solar bags to children in Africa. “It is important for multiple companies to produce solar-powered bags across the continent,” said its CEO, Jamila Mayanja. “It’s more than just lighting; it’s about giving them control over their education, their future, and ultimately helping to break the cycle of poverty in their communities.” Soma Bags has been recognized by numerous awards and institutions, including the UNDP and the British government. “There is a crop of young people [in Tanzania] who are coming up, and they have realized that they have to take the future into their own hands,” said Manirakiza. “Innocent represents a group of young people using their talent to do something meaningful.” As his company continues to expand, James is becoming increasingly busy, but he still finds time to run reading groups for children from his mobile cart twice a week. Now, kids arrive for his readings with his bags on their backs. “Sometimes I see a kid with the bag, and I’m like, wow,” said James, smiling, “I can’t really believe it.”

After months of speculation about his political ambitions, former Bank of Canada and Bank of England governor Mark Carney has announced his run for leader of Canada's governing Liberal Party. Mr Carney formally launched his bid in his hometown of Edmonton, Alberta, on Thursday at a hockey rink where he learned how to skate as a young boy. "I'm doing this because Canada is the best country in the world, but it could still be even better," Mr Carney said, as he stood before a backdrop of a giant Canadian flag. If he wins, the 59-year-old will succeed Prime Minister Justin Trudeau and lead the country into the next general election, which will take place this year. Earlier this month, Trudeau announced his intent to resign after nine years in office once a new Liberal leader is selected. At Thursday's announcement, Mr Carney sought to ground himself to his Canadian roots and distinguish himself from both Trudeau and his opponents across the political aisle. While he has recently served as an economic advisor to Trudeau, Mr Carney is the only candidate in the Liberal Party's leadership race who is not an elected member of Trudeau's government. Who might replace Trudeau as Liberal Party leader? The man who could become Canada's future PM Mark Carney, the 'unreliable boyfriend' who ran UK's central bank He has branded himself as an outsider who brings a wealth of financial knowledge to a country that is struggling with a sluggish economy. Under Liberal Party rules, any member of the party - including those who are not elected officials - can run for leadership. They are expected to seek a seat in parliament in the next election, however, which Mr Carney said he intends to do. In his pitch to Canadians, Mr Carney outlined challenges facing the country, like a housing affordability crisis, stagnant wages and the threat of climate change. "Too many people are falling behind," he said. He also noted the tariff threat from US President-elect Donald Trump, who takes office on Monday, saying that Canada is facing extraordinary times. Trump has suggested imposing potential 25% tariffs on Canadian goods. "I've helped managed multiple crises and I've helped save two economies," Mr Carney said. "I know how business works, and I know how to make it work for you." Mr Carney, who is Harvard and Oxford educated, brings a range of economic experience to the race. He previously worked at the investment bank Goldman Sachs, and served as Canada's central banker, from 2008 - when the country became the first G7 nation to raise interest rates after the financial crisis - to 2013. He then moved to London, where he served as governor of the Bank of England until 2020. During his tenure, he led efforts to support the UK economy through Brexit, though he faced criticism that some of his early interventions were overly political. Mr Carney is also known as an advocate for environmental sustainability. In 2019 became a UN Special Envoy for Climate Change, and in 2021 launched the Glasgow Financial Alliance for Net Zero, a grouping of banks and financial institutions working to combat climate change. In recent months, Mr Carney advised Trudeau on economic matters. On Thursday, he criticised the sitting prime minister for his handling of the file. "I know I'm not the only Liberal in Canada who believes that the prime minister and his team let their attention wander from the economy too often," Mr Carney said. Mr Carney's opponents in the Liberal leadership race include a number of sitting members of parliament. Former finance minister Chrystia Freeland is also expected to announce a bid in the coming days. Freeland resigned from her post in December over a break from Trudeau for his handling of Canada's fiscal matters. Whoever wins the Liberal leadership race will face-off against the opposition Conservatives, who have a strong lead in the polls. Their leader, Pierre Poilievre, has championed a small government and a return to "common sense" politics. Mr Carney called Poilievre's ideas for Canada "naïve" and "dangerous". The Conservatives have sought to link Mr Carney with Trudeau's unpopular government, saying he is "just like Justin". They also note he has been a champion of carbon pricing, which is Trudeau's signature climate policy and has been met with a mixed reaction in Canada. Mr Carney has advocated for a price on carbon, but appeared to recently back away from the policy, telling a Senate committee in May that it has "served a purpose up until now". On Thursday, he said that the carbon tax should be replaced with a policy "that is at least, if not more, effective" on climate without hurting Canadians' bottom line. Liberals are scheduled to elect their next leader on 9 March. The next Canadian general election must be held on or before October of this year, and could come as early as this spring.

Former Canadian Finance Minister Chrystia Freeland intends to run to lead the country's governing Liberal Party. In a statement posted on Friday to X, formerly known as Twitter, Freeland expressed her intention to run and said she would hold a formal campaign launch in the coming days. "I'm running to fight for Canada," she wrote. Freeland recently fell out with Prime Minister Justin Trudeau over the direction of the country's financial policies. Her resignation from her post in December was a blow to Trudeau's already-shaky hold on the Canadian government, helping to usher in his own resignation after nine years as prime minister. Who might replace Trudeau as Liberal Party leader? Canada's finance minister quits over Trump tariff dispute with Trudeau Freeland had long been one of Trudeau's closest allies in his Liberal Party. She held the key role of Canada's finance minister starting in 2020 - the first woman to hold the position - and helped to lead the country through the pandemic and its aftermath. The two disagreed on how to address US President-elect Donald Trump's threat of tariffs, among other financial policies as Canada faced a C$60b deficit ($42bn; £33bn). Following his win in November, Trump, who takes office on Monday, suggested that he would impose potential 25% tariffs on Canadian goods. In a public resignation letter, Freeland criticised Trudeau's leadership, denounced his use of "costly political gimmicks" and said Canada must push "back against 'America First' economic nationalism". Freeland further addressed Trump's tariff threats in a piece she penned on Friday for the Toronto Star newspaper, arguing that Canada "must take President Trump at his word." "Florida orange growers, Michigan dishwasher manufacturers and Wisconsin dairy farmers: brace yourselves," she wrote, arguing that Canada should retaliate hurts if Trump imposes his promised 25% tariffs. With Trudeau stepping down, his party must now find a new leader to compete in a general election. Liberals will vote for their new leader on 9 March. Former Bank of Canada and Bank of England governor Mark Carney announced his run on Thursday. Freeland had been expected to run against him in seeking the party's top position. The two already have received endorsements from a handful of Liberal MPs. Born to a Ukrainian mother in the western province of Alberta, the 56-year-old, who attended Oxford as a Rhodes Scholar, was a journalist before entering politics. She entered the House of Commons in 2013, representing a central Toronto riding, and two years later joined Trudeau's cabinet with a trade brief after he swept the party to power. Freeland has been credited with helping renegotiate the free trade agreement with Canada, the US and Mexico during Trump's first term in office, in talks that were often described as tense. After her resignation in December, Trump referred to her as "toxic" in a post on Truth Social, and remarked that "she will not be missed." If Freeland wins the Liberal Party leadership, she would face-off with Conservative leader Pierre Poilievre, whose party is leading in national polls, in the next general election. On Friday morning, Poilievre released a video highlighting her partnership with Trudeau over the years under his government. "She's just like Justin," the Conservative leader said. The next Canadian general election must be held on or before October of this year, and could come as early as this spring.

Canadian political leaders say "nothing is off the table" when it comes to responding to potential 25% tariffs from the US, days before they could come into force. But strains are showing in "Team Canada" when it comes to whether energy supply should be a tool in a possible tariff war with the US. President-elect Donald Trump, who takes office on Monday, has threatened to immediately impose levies on Canadian goods in an effort to force the country to crack down on illegal immigration and drug smuggling into the US. On Wednesday, Canadian Prime Minister Justin Trudeau met provincial and territorial premiers to discuss the country's coordinated response. "Nothing is off the table," Trudeau said at a news conference with the premiers after the day-long meeting. "What we've agreed on is we have to respond to the challenge we're facing and that the burden is shared across the country." "We will stand up for Canada, we will protect Canadians," he added. The prime minister also said there would "absolutely" be support for sectors affected should the tariffs materialise. Roughly 75% of Canadian exports go to the US, and economists say the levies would be devastating for the country. Canada is preparing a number of counter measures should the Trump administration move forward either with a blanket 25% levy on all goods or with a more targeted approach. Canadian legislators have been lobbying US counterparts in recent weeks in a bid to avoid the tariffs, including personal visits to Trump's Mar-a-Lago resort in Florida. Ottawa also promised to implement C$1.3bn ($900m; £700m) in sweeping new security measures along the country's nearly 9,000km-long (6,000 mile) border with the US to allay some of Trump's concerns. But there has been a growing worry that the tariffs - at least in some form - are inevitable. Trump has long been a proponent of trade tariffs, calling them the "greatest thing ever invented". They are a central part of his economic vision. He sees them as a way of growing the US economy, protecting jobs and raising tax revenue. Canadian officials argue they would undermine the US economy, increase inflation for American consumers - including raising prices at the petrol pump - and hamper investment. They also warn tariffs could undermine national security, given Canada, a US ally, is a key source of energy and critical minerals. Would Donald Trump’s tariffs hurt US consumers? Canada’s oil patch rattled by Trump's tariff threat Trump tariff threat puts a strain on Canada-Mexico ties While there has been a push for a unified approach to the threat, cracks in the coalition were apparent on Wednesday. Alberta Premier Danielle Smith did not sign the joint statement released after the meeting, which she attended virtually. On social media, she said the oil-rich province will not agree to export tariffs on energy or other products, or a ban on their exports. "We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies," she said. Trudeau and the premiers of Ontario, Quebec, and Newfoundland are among those open to either imposing counter tariffs on energy or cutting off energy exports to the US. "I see energy as Canada's queen in this game of chess," said Newfoundland and Labrador Premier Andrew Furey prior to the meeting. "We don't need to expose our queen too early. The opposition does need to know the queen exists but they don't need to know what we do with the queen." Around 40% of the crude that runs through US oil refineries is imported, and the vast majority of it comes from Canada. It also supplies the US with natural gas and electricity. "We're all united in that we have to act in the robust way," said Trudeau when asked about Smith's response. According to various analyses, Canada's GDP could take a hit of between 1.8% and 3.38% and 2.6% to 5.6% if 25% blanket tariffs are imposed on Canadian goods, depending on how, and whether, Canada retaliates. The US GDP would be pinched by between 0.9% to 1.6%, according to those reports. Knowing the pain of responding is not proportional "means that we have to be smarter in how we [Canada] respond - and that's tricky," said Drew Fagan, a professor at the University of Toronto's Munk School of Global Affairs and Public Policy. "It's hard to be strategic with an administration like this whose thinking is often a little bit more off the cuff." Ontario Premier Doug Ford has suggested up to 500,000 jobs could be lost in his province - which forms core part of the country's auto sector - under the current proposed tariffs. Alberta could see 50,000 jobs lost, according to financial forecasts. The expected tariff fight comes as Canada is facing domestic political challenges. Trudeau will step down as prime minister once his governing Liberal Party selects a new leader in March. He said on Wednesday he would not run in the next election. An election will be held this year in Canada, possibly as early as this spring. With additional reporting by Nadine Yousif in Toronto.

Canadian Prime Minister Justin Trudeau has re-iterated that Canada has no intention to become the 51st state of the US. "It's not going to happen," he said. Speaking to former White House press secretary Jen Psaki on MSNBC's "Inside" on Sunday, Trudeau discussed President-Elect Donald Trump's repeated comments that Canada could become a part of the US. "I know as a successful negotiator he likes to keep people off balance. The 51st state, it's not going to happen," he said. The prime minister, who has faced growing unpopularity in the polls ahead of a national election, announced that he will step down in March after his Liberal Party picks a new leader. Trump has upped the ante recently with repeated comments about annexing Canada. "You get rid of that artificially drawn line, and you take a look at what that looks like, and it would also be much better for national security," Trump said at a press conference at his Florida Mar-a Lago home on Tuesday. "Canada and the United States, that would really be something." He has even gone so far as to call the prime minister "Governor Trudeau," a position usually held by leaders of US states. But on television on Sunday, Trudeau said he pays those jabs no mind. "I tend to focus on the substantive things, and not on people choosing nicknames for me. I mean, if I was that thin-skinned I probably wouldn't last that long in politics." One of the big reasons Canada will not join America, Trudeau said, is simple: Canadians do not want to. When trying to define their national identity, Trudeau said Canadians are likely to say "we're not Americans", amongst other things. Earlier this week, Trudeau put it more bluntly, saying there was not "a snowball's chance in hell" that the two countries would become one. Trudeau said that what he is concerned about is the impact of tariffs on Canadians and Americans. Tensions between Trump and Canada have been simmering since the president-elect announced his plan to implement 25% tariffs on goods coming from Canada. The move would have a significant impact on Canada's economy, and could lead to retaliatory tariffs. "Canadians are incredibly proud of being Canadian, but people are now talking about that rather than the impact that 25 percent tariffs," Trudeau said. "No American wants to pay 25 percent more for electricity or oil and gas coming in from Canada." Meanwhile, Alberta Premier Danielle Smith posted on social media that she had met with Trump at his Mar-a-Lago residence over the weekend to discuss the important of US-Canada energy partnerships. Alberta is a major oil and gas exporter.

Inflation, interest rates and tariffs mean 2025 is shaping up to be an intriguing year for the global economy. One in which growth is expected to remain at a "stable yet underwhelming" 3.2%, according to the International Monetary Fund. So what might that mean for all of us? Exactly a week before Christmas there was a welcome gift for millions of American borrowers - a third interest rate cut in a row. However, stock markets fell sharply because the world's most powerful central banker, US Federal Reserve chair Jerome Powell, made clear they shouldn't expect as many further cuts in 2025 as they might have hoped for, as the battle against inflation continues. "From here, it's a new phase, and we're going to be cautious about further cuts," he said. In recent years, the Covid pandemic and the war in Ukraine have led to sharp price rises around the world, and although prices are still increasing the pace has slowed markedly. Despite that, November saw inflation push up in the US, eurozone and UK to to 2.7%, 2.2% and 2.6% respectively. It highlights the difficulties many central banks face in the so-called "last mile" of their battle against inflation. Their target is 2%, and it might be easier to achieve if economies are growing. However, the biggest difficulty for global growth "is uncertainty, and the uncertainty is coming from what may come out of the US under Trump 2.0", says Luis Oganes, who is head of global macro research at investment bank JP Morgan. Since Donald Trump won November's election he's continued to threaten new tariffs against key US trading partners, China, Canada and Mexico. "The US is going into a more isolationist policy stance, raising tariffs, trying to provide more effective protection to US manufacturing," says Mr Oganes. "And even though that is going to support US growth, at least in the short term, certainly it's going to hurt many countries that rely on trade with the US." New tariffs "could be particularly devastating" for Mexico and Canada, but also be "harmful" to the US, according to Maurice Obstfeld, a former chief economist at the International Monetary Fund, and a previous economic advisor to President Obama. He cites car manufacturing as an example of an industry that "depends on a supply chain that is spread across the three countries. If you disrupt that supply chain, you have massive disruptions in the auto market". That has the potential to push up prices, reduce demand for products, and hurt company profits, which could in turn drag down investment levels, he explains. Mr Obstfeld, who is now with the Peterson Institute for International Economics, adds: "Introducing these types of tariffs into a world that is heavily dependent on trade could be harmful to growth, could throw the world into recession." The tariffs threats have also played a role in forcing the resignation of Canada's Prime Minister Justin Trudeau. Even though the majority of what the US and China sell each other is already subject to tariffs from Donald Trump's first term in office, the threat of new tariffs is a key challenge for the world's second-biggest economy in the year ahead. In his new year address President Xi Jinping acknowledged the "challenges of uncertainties in the external environment", but said the economy was on "an upward trajectory". Exports of cheap goods from its factories are crucial to China's economy. A drop off in demand because tariffs push prices up would compound the many domestic challenges, including weak consumer spending and business investment, that the government is trying to tackle. Those efforts are helping, according to the World Bank, which at the end of December increased its forecast for China's growth from 4.1% to 4.5% in 2025. Beijing has yet to set a growth target for 2025, but thinks it's on course for 5% last year. "Addressing challenges in the property sector, strengthening social safety nets, and improving local government finances will be essential to unlocking a sustained recovery," according to the World Bank's country director for China, Mara Warwick. Those domestic struggles mean the Chinese government is "more welcoming" of foreign investment, according to Michael Hart, who is president of the American Chamber of Commerce in China. Tensions between the US and China, and tariffs have grown under the Biden presidency, meaning some companies have looked to move production elsewhere. However, Mr Hart points out that "it took 30 to 40 years for China to emerge as such a strong supplier manufacturer", and whilst "companies have tried to mitigate some of those risks... no one's prepared now to completely replace China." One industry that is likely to continue to be at the heart of global trade battles is electric vehicles. More than 10 million were made in China last year, and that dominance led the US, Canada and European Union (EU) to impose tariffs on them. Beijing says they're unfair, and is challenging them at the World Trade Organization. However, it's the prospect of Donald Trump imposing tariffs that is concerning the EU. "Restrictions on trade, protectionist measures, are not conducive to growth, and ultimately have an impact on inflation that is largely uncertain," the president of the European Central Bank, Christine Lagarde, said last month. "[But] in the short term, it's probably net inflationary." Germany and France are the traditional engines of Europe's economic growth. But their poor performance amid political instability over the past year means that, despite a recent uptick in growth, the eurozone risks losing momentum in the year ahead. That is, unless consumers spend more and businesses increase their investments. In the UK higher prices could also come as a result of tax and wage increases, according to one survey. One barrier to cutting eurozone interest rates is that domestic inflation, which focuses on the prices of items that are less prone to influence from external factors, remains at 4.2%. That's more than double the overall inflation target of 2%, and strong wage pressure has been a barrier getting it down further. It's been similar in the US according to Sander van 't Noordende, the chief executive of Randstad, the world's biggest recruitment firm. "In the US, for instance, [wage inflation] is still going to be around 4% in 2024. In some Western European countries, it's even higher than that. "I think there's two factors there. There's the talent scarcity, but there's also, of course, the inflation and people demanding to get more for the work they do." Mr van 't Noordende adds that many companies are passing those extra costs on to their customers, which is adding upward pressure to general inflation. A slowdown in the global jobs market reflects a lack of "dynamism" from companies and economic growth is key to reversing that, he says. "If the economy is doing well, businesses are growing, they start hiring. People see interesting opportunities, and you just start seeing people moving around". One person starting a new role in 2025 is Donald Trump, and a raft of economic plans including tax cuts and deregulation could help the US economy to continue to thrive. Whilst much won't be revealed before he's back in the White House on 20 January, "everything points to continued US exceptionalism at the expense of the rest of the world," says JP Morgan's Mr Oganes. He's hopeful that inflation and interest rates can continue to come down around the world, but warns that "a lot of it will depend on what are the policies that get deployed, particularly from the US."