Trump escalates trade war with Canada after prime minister announces plan to recognize Palestine – US politics live | US news

The United States believes it has the makings of a trade deal with China, but it is “not 100% done,” Scott Bessent told CNBC in an interview, adding that he would talk to Donald Trump later on Thursday.

The US treasury secretary also said he did not know what would happen with trade with India, saying it had “not been a great global actor”.

Donald Trump again criticised Federal Reserve chairman Jerome Powell on Thursday, a day after the US central bank held interest rates steady in a 9-2 vote.

In a post on Truth Social, he wrote:

Jerome “Too Late” Powell has done it again!!! He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair.

He is costing our Country TRILLIONS OF DOLLARS, in addition to one of the most incompetent, or corrupt, renovations of a building(s) in the history of construction! Put another way, “Too Late” is a TOTAL LOSER, and our Country is paying the price!

The US Federal Reserve left its benchmark interest rate unchanged on Wednesday, even amid intense pressure from Donald Trump to lower rates.

Despite an onslaught of attacks from the White House against the Fed, officials at the central bank said that economic “uncertainty” remains too high to lower rates.

But two of the Fed’s governors voted against the decision – the first time that multiple governors have voted against the majority since 1993. Governors Christopher Waller and Michelle Bowman, both appointed by Trump, wanted rates to be lowered. Both have been floated as potential replacements for Fed chair Jerome Powell.

Data released on Wednesday underlined the resilience of the US economy, which bounced back faster than expected in the second quarter. US gross domestic product (GDP) grew at an annual rate of 3% in the second quarter of 2025, according to the latest official data, ahead of the average 2.5% forecast from economists.

This marked a significant acceleration from a 0.5% contraction in the first quarter, which was dragged down by a surge of imports as companies tried to get ahead of Trump’s tariffs. But the rebound was boosted by a 30% slump in imports.

Trump used the news to once again call for a rate cut and again insulted Powell, whom he has nicknamed “Too Late”. “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!” he wrote on Truth Social.

President Donald Trump on Wednesday slapped a 50% tariff on most Brazilian goods to fight what he has called a “witch hunt” against former president Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.

Trump announced the tariffs, some of the steepest levied on any economy in the US trade war, as his administration also unveiled sanctions on the Brazilian supreme court justice who has been overseeing Bolsonaro’s trial on charges of plotting a coup, Reuters reported.

“Alexandre de Moraes has taken it upon himself to be judge and jury in an unlawful witch hunt against US and Brazilian citizens and companies,” Treasury secretary Scott Bessent said in a statement.

Bessent said Moraes “is responsible for an oppressive campaign of censorship, arbitrary detentions that violate human rights, and politicized prosecutions” including against former president Jair Bolsonaro.”

Last week, the Brazilian justice levied search warrants and restraining orders against Bolsonaro over allegations he courted Trump’s interference in his criminal case, in which he is accused of plotting to stop President Luiz Inacio Lula da Silva from taking office in 2023.

The Trump administration is pushing an initiative for millions of Americans to upload personal health data and medical records on new apps and systems run by private tech companies, promising easier to access health records and wellness monitoring.

The new system will focus on diabetes and weight management, conversational artificial intelligence that helps patients, and digital tools such as QR codes and apps that register patients for check-ins or track medications.

The initiative, spearheaded by an administration that has already freely shared highly personal data about Americans in ways that have tested legal bounds, could put patients’ desires for more convenience at their doctor’s office on a collision course with their expectations that their medical information be kept private.

“There are enormous ethical and legal concerns,” said Lawrence Gostin, a Georgetown University law professor who specializes in public health. “Patients across America should be very worried that their medical records are going to be used in ways that harm them and their families.”

President Donald Trump said that the United States has done very little business with India, and that Russia and the US do almost no business together.

“I don’t care what India does with Russia”, he said in a Truth Social post on Thursday, adding that “they can take their dead economies down together, for all I care”.

In an earlier Truth Social post on Wednesday Trump talked about India’s trade with Russia when announcing the US would impose a 25% tariff on goods imported from India starting on Friday.

In response to the earlier Truth Social post, the Indian government said it was studying the implications of Trump’s announcements and remained dedicated to securing a fair trade deal.

Trump said that India has always bought a vast majority of their military equipment and energy from Russia, which was “not good”.

The US tariff rate on Malaysian goods will be announced on Friday, Malaysian premier Anwar Ibrahim said on Thursday after speaking to US president Donald Trump.

Malaysia is facing a 25% tariff on its exports to the United States unless a deal with Washington is reached by Friday.

The two countries have held multiple rounds of talks, with Malaysia’s trade minister saying several sticking points remained, particularly on non-trade barriers.

Anwar said he discussed tariffs “in the spirit and principle of free trade” during a phone conversation with Trump early on Thursday.

President Donald Trump said on Wednesday the US will charge a 15% tariff on imports from South Korea, down from a threatened 25%, as part of a deal that eases tensions with a top-10 trading partner and key Asian ally.

South Korea also agreed to invest $350 billion in the United States in projects selected by Trump and to purchase energy products worth $100 billion, Reuters reported.

The arrangement, announced after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements. Many countries are rushing to cut deals ahead of 1 August, when Trump has promised higher tariffs will kick in.

“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump wrote on Truth Social.

The negotiations were an early test for South Korean president Lee Jae Myung, who took office in June after a snap election. He said the deal eliminated uncertainty and set US tariffs lower than or at the same level as major competitors.

“We have crossed a big hurdle,” Lee said in a Facebook post. Trump said Lee would visit the White House “within the next two weeks” for his first meeting with the U.S. president.

South Korea will accept American products, including autos and agricultural goods into its markets and impose no import duties on them, Trump added.

South Korea’s top officials said the country’s rice and beef markets would not be opened further, and discussions over US demands on food regulations continue.

Good morning and welcome to our rolling coverage of US politics as Donald Trump intensified his trade war with Canada a day ahead of his 1 August deadline for a tariff agreement.

The president posted on his Truth Social platform:

Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!

Trump is set to impose a 35% tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement if the two countries do not reach an agreement by the deadline.

Canadian prime minister Mark Carney previously said tariff negotiations with Washington had been constructive, but the talks may not conclude by the deadline. Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports.

Carney followed France and Britain as he said on Wednesday that his country was planning to recognize Palestine at a meeting of the United Nations in September.

We’ll be bringing you all the developments on this story today. In other news: