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Trump’s trade war with Canada adds a challenge in Senate races

President Trump’s trade war with Canada could intensify the headwinds Republicans are navigating ahead of the November midterms, with its effects poised to reverberate in northern battleground states with crucial Senate races.

With the election less than six weeks away, Republicans are facing an increasingly bleak outlook, as new polls this week showed voters favoring Democrats by as much as 12 points amid widespread cost-of-living anxiety and low approval for Trump.

The escalating beef with Canada — Trump attacked the country anew on social media Wednesday — stands to heighten voters’ economic worries and add to the GOP’s political challenge in dead-heat races, analysts said.

“It doesn’t make things easier. It’s not helping,” said Rusty Hills, a University of Michigan public policy professor and onetime chair of the Michigan Republican Party.

The president’s unpopular policies on the war in Iran, the economy and data centers have already handed Republican candidates the tough task of appearing responsive to Americans’ frustration with cost-of-living issues without alienating Trump and his voter base.

The trade war, said Lance Dutson, a Maine Republican media strategist, puts “another log on the fire” of the affordability issue.

The tariffs have appeared unpopular in recent polling, including among a majority of independent voters. Though they are not expected to dramatically increase consumer prices, they could affect voters’ perception of the economy — and even small economic impacts on certain industries, such as auto manufacturing in Michigan, could have an effect in very close midterm races, experts said.

Trump’s new import bans on some Canadian goods are set to begin next week, a response to retaliatory tariffs Canada levied earlier this month. Trump argues that Canada has “been ripping off” the United States and that tariffs will help domestic manufacturers.

On Wednesday, the president inaccurately claimed on Truth Social that Canada is allowing “millions and millions” of immigrants into its country.

“It is a Liberal takeover that will end very badly. Already showing up in their numbers. Big unemployment. ‘Oh Canada!” the president wrote on social media Wednesday morning.

Five of the nine states most likely to decide Senate control border Canada — Alaska, Ohio, Michigan, New Hampshire and Maine. Two more, Texas and Iowa, also do substantial trade with Canada.

Democrats must retain their Senate seats including New Hampshire and Michigan and flip four of the other states to win a majority, a tall task. As the landscape worsens for Republicans, however, some are testing how much they can distance themselves from Trump.

“It’s a tightrope, there’s no question,” Hills said. “[Candidates] are looking for some wiggle room on some of these issues like the war and prices and Canada tariffs, because they need every independent and swing voter they can get.”

A majority of Americans oppose raising tariffs on Canadian goods, including 64% of independents, an Economist/YouGov poll found. Only 14% of independents said they supported additional U.S. tariffs on Canada in a late August Ipsos poll.

And in Michigan, 68% of independent voters disapprove of the tariffs, a poll this month from the Washington Post and Schar School found.

“The more we put tariffs on stuff, the more they put tariffs on stuff … prices are just ultimately going to go up for all of us,” said one Michigan swing voter in a Sept. 9 focus group conducted by the firm Engagious, in which 11 of 13 participants said the trade war was bad for the state.

The highest costs of the tariffs will be concentrated within a few industries, including auto and other manufacturing, dairy, and alcohol and spirits, said Alex Durante, a senior economist at the Tax Foundation. The tariffs likely won’t create a major change for consumers, but the general impression that tariffs can contribute to higher prices might turn off voters who are already worried about inflation, he said.

Counter-tariffs imposed by Canada in response to U.S tariffs last year resulted in a 6% increase in the prices of affected goods, researchers found in paper published by the Journal of Monetary Economics.

Canadian lumber products at Gutherie Lumber in Livonia, Mich., in August.

Canadian lumber products at Gutherie Lumber in Livonia, Mich., in August.

(Paul Sancya / Associated Press)

“This trade war is certainly not helping the president and his party in the midterms,” Durante said. “What’s weighing on the top of people’s minds is this general affordability crisis … and they realize that tariffs are another factor that is impacting affordability.”

The latest escalation of the trade dispute began in July, when Trump threatened new 50% tariffs on some Canadian goods, reinvigorating a conflict that began with tariffs the president imposed in 2025.

The two countries began trade talks, but the negotiations fell apart in late August, and Trump imposed tariffs on about $20-billion worth of Canadian goods. Canada retaliated with tariffs on about $20-billion worth of American goods that took effect Sept. 8. Trump then announced import bans on some Canadian goods, including certain alcohol and dairy products, which go into effect next week.

Construction and farm equipment in Illinois, aluminum and pipe products in New York, and iron and steel products in Ohio are among the goods targeted by Canada’s counter-tariffs, the Canadian Broadcasting Corp. reported. In California, about 10.5% of the state’s Canadian imports are exposed to the counter-tariffs imposed by Canada.

Democrats have seized on the issue as another way to tie Republican candidates to Trump’s policies, something that analysts said may have varying degrees of success in different swing states.

Susan Collins stands in front of a red and white bus with her name on it while holding a megaphone as a man looks on

Maine Republican Sen. Susan Collins campaigns in August in Kittery, Maine.

(CJ Gunther / Getty Images)

In Maine and New Hampshire, where the Republican Senate nominees have criticized Trump’s move, the tariff issue may be less likely to stick. Efforts to tie Republicans to Trump have historically been less successful in the region because of its independent streak, said Jim Merrill, a veteran Republican strategist in New Hampshire.

Maine Republican Sen. Susan Collins warned the White House against imposing tariffs and successfully pushed for the administration to exempt road salt and cement this month. She told Politico that the Trump administration had “very much underestimated” the effect of the tariffs on Maine residents.

Republican John Sununu, a former senator who is running to retake the seat in New Hampshire, has also criticized the tariffs, saying a trade war with Canada “doesn’t make any sense.” He indicated he would support legislation in Congress to restrain the president’s tariff powers.

Elsewhere, Senate nominees have walked a careful line on tariffs. In Alaska, Sen. Dan Sullivan has largely avoided the issue, even as Democrats there have used it to ramp up attacks on his record in recent days. In Ohio, former Sen. Jon Husted told the National Review in August that the public “would like to understand the strategy behind what the president’s trying to do.”

Former Rep. Mike Rogers of Michigan, the Republican Senate nominee, told reporters over the weekend that he was in favor of “good” tariffs that would help Michigan and opposed to “bad” tariffs that would hurt the state.

Focusing on issues other than tariffs may be the right strategy on the campaign trail, Hills said.

“He’d much rather be talking about the Republican plan for affordability,” Hills suggested. “There’s interesting things we need to be talking about in order to win this election, and this isn’t one of them.”

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Volkswagen exits Euro Stoxx 50 as index removal adds to pressure on troubled firm

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Volkswagen, Europe’s largest automaker, is no longer among the eurozone’s blue chips.


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Index provider Stoxx confirmed the change in its annual review at the start of September, and it came into force before trading began on Monday, with Finnish telecoms group Nokia returning to the index and French utility Engie joining.

Dutch information-services group Wolters Kluwer was also dropped.

The removal is mechanical rather than a judgement, as the index is weighted by free-float market value, and Volkswagen’s shrinking valuation no longer cleared the threshold.

However, the consequences are real, as funds that track the benchmark must now sell their Volkswagen holdings, adding to pressure on a stock already under strain. Stellantis suffered the same fate last year.

Volkswagen shares have fallen almost 30% since the start of the year and are down over 6% since last Monday’s open, trading at roughly €76 at the time of writing.

A profit warning to match

The timing could hardly have been worse.

On Friday, Volkswagen flagged around €10 billion in one-off charges and cut its operating margin forecast for 2026 to no more than 1%, down from a previous range of 4% to 5.5%. Analysts had expected 4.1%.

More than €6 billion of the charges stem from a writedown at Porsche, in which Volkswagen holds a 75.4% stake, after the sports car maker lowered its medium-term expectations.

Porsche has been hit hard by American tariffs and weak Chinese demand for foreign luxury brands, and managed a margin of just 1.1% last year.

A further €2 billion or more covers expanded early retirement schemes, impairments in China and the planned sale of Volkswagen Osnabrück GmbH, a wholly owned subsidiary and automotive manufacturing plant located in the northwest German city of Osnabrück.

The company warned of “further deterioration in the market environment, especially in China, as well as an accelerated shift in demand in favour of battery-electric vehicles.”

The warning came two weeks after it agreed its largest-ever restructuring, doubling planned job cuts to 100,000 and halving its model line-up.

However, not everyone reads the numbers as a collapse.

Stripping out the one-off items, Volkswagen puts its underlying margin at around 4%, and it kept its cash flow and liquidity forecasts unchanged.

Deutsche Bank, which rates the shares a buy with a €115 price target, said it believes “the headline significantly overstates the deterioration in the underlying business.”

The bank does not expect the pain to end there as it wrote that “additional restructuring charges simply confirm that the transformation process is very expensive and complex […] we expect more to follow over the coming months.”

Volkswagen’s third-quarter results are due on 29 October.

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Harry Styles’ Together Together adds dates, 2 L.A. shows

Harry Styles isn’t ready to end his Together Together tour just quite yet.

The three-time Grammy winner and One Direction alum announced on Thursday that he will extend his tour well into 2027. The newest leg will include additional stops across several locations including Los Angeles, where he will take over the Rose Bowl in Pasadena on April 23 and 24 with some assistance from Kylie Minogue.

Styles begins his tour extension in April with Tinashe in Phoenix before later hitting the road with additional guests including LCD Soundsystem, the Womack Sisters and Caroline Polachek. His stateside shows include stops in Dallas, Atlanta and Chicago. The “As It Was” and “Watermelon Sugar” singer will also take his music back across the Atlantic for concerts in Berlin, Paris, Madrid and London, where he will close out the tour in late August.

The 32-year-old musician launched his Together Together tour in May and is currently in the second month of his marathon 30-night residency at Madison Square Garden. He obviously knows a thing or two about going the distance.

Styles announced his Together Together tour in January, with some help from NBC’s Steve Kornacki, ahead of the release of his latest album “Kiss All The Time. Disco, Occasionally.” This year’s album marked Styles’ fourth solo release, following 2022’s “Harry’s House,” which earned the singer two Grammy awards including album of the year in 2023.



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US adds 162,000 jobs in August, raising Fed rate hike expectations | Business and Economy News

The United States economy has added 162,000 jobs in August, with large gains in local government education and food services.

The unemployment rate remained unchanged, according to the monthly jobs report released by the US Department of Labor’s Bureau of Labor Statistics (BLS) on Friday.

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The data was well above analysts’ expectations. Economists polled by Reuters had forecast 56,000 gains, the Wall Street Journal forecast 53,000, and Bloomberg had forecast 55,000, following a loss of 23,000 in July.

Local government education, or public schools, accounted for nearly 42,000 of the jobs added as the 2026–27 school year begins across much of the US. Teachers typically fall off payrolls during the summer months when school is not in session.

Food service jobs also saw large increases, with the sector adding 59,000 jobs for the month of August compared with the month prior.

There were also gains in construction, which added 22,000 jobs, and healthcare, which added 12,000.

The information sector, which accounts for industries like data processing, web hosting, publishing, broadcasting and telecommunications, fell by 23,000, with notable layoffs at companies including Scripps TV and Zillow, which fall under the umbrella of these industries.

The financial activities sector, which accounts for industries like insurance, commercial banking and real estate, dropped by 12,000.

Mixed data

The data comes in sharp contrast to the ADP national employment report, which tracks private payrolls and found 38,000 jobs added across the US economy.

Meanwhile, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report released on Tuesday revealed job openings were slightly changed, with 7.3 million in July, up from 7.2 million the previous month, while total separations fell to 5.1 million in July from 5.3 million in June.

The move in job gains comes ahead of the US Federal Reserve’s policy meeting later this month, where the central bank will vote on interest rates. Amid the job gains, CME Group’s FedWatch, which tracks the likelihood of monetary policy decisions, had a 60 percent chance of a 25 basis point rate increase to 3.75–4.00 percent, up from 49 percent on Thursday.

US President Donald Trump was quick to comment on the jobs report and push for rate cuts.

“Lower the interest rates because the U.S.A. is a much stronger credit than it was a short time ago!” he said in a post on his social media platform Truth Social.

He also ramped up threats to cut off trade with nations that the US has a deficit with if the central bank does not cut rates.

Despite a strong jobs report, US markets are trending downwards. The Nasdaq is down 0.2 percent, the Dow Jones Industrial Average is down 0.5 percent, and the S&P 500 is down 0.3 percent amid Trump’s comments.

Meanwhile, Canada released its jobs report amid the ongoing trade dispute with the US. The Canadian economy lost 41,700 jobs, according to Statistics Canada, with the unemployment rate holding steady at 6.4 percent.

“We expect the economy will continue struggling to create jobs in the near term as mounting headwinds from new US-Canada tariffs, greater uncertainty from a flare-up in the trade war, and the ongoing Iran conflict and a shrinking population weigh on hiring,” Tony Stillo, director of Canada Economics at Oxford Economics, said in a note provided to Al Jazeera.

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