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Canadian prime minister visits Trump as relations between the longtime allies sit at a low point

Canadian Prime Minister Mark Carney will meet with President Trump in the Oval Office on Tuesday at a time when one of the world’s most durable and amicable alliances has been fractured by Trump’s trade war and annexation threats.

Carney’s second visit to the White House comes ahead of a review next year of the free trade agreement, which is critical to Canada’s economy. More than 77% of Canada’s exports go to the U.S.

Trump’s talk of making Canada the 51st state and his tariffs have Canadians feeling an undeniable sense of betrayal. Relations with Canada’s southern neighbor and longtime ally haven’t been worse.

“We’ve had ups and downs, but this is the lowest point in relations that I can recall,” said Frank McKenna, a former Canadian ambassador to the United States and current deputy chairman of TD Bank.

“Canadians aren’t being instructed what to do. They are simply voting with their feet,” he said. “I talk every day to ordinary citizens who are changing their vacation plans, and I talk to large business owners who are moving reward trips away or executive business trips. There is an outright rebellion.”

There is fear in Canada over what will happen to the U.S.-Mexico-Canada Agreement. Carney is looking to get some relief on some sector-specific tariffs, but expectations are low.

“Improving relations with the White House ahead of the USMCA review is certainly an objective of the trip, but opposition parties and part of the Canadian public will criticize Prime Minister Carney if he doesn’t achieve some progress on the tariff front at this stage,” said Daniel Béland, a political science professor at McGill University in Montreal.

Trump said Monday that he anticipated Carney wanted to use the meeting to discuss trade.

“I guess he’s going to ask about tariffs, because a lot of companies from Canada are moving into the United States,” Trump, a Republican, told reporters after signing an executive order related to Alaska. “He’s losing a lot of companies in Canada.”

Carney has said the USMCA, which is up for review in 2026, is an advantage for Canada at a time when it is clear that the U.S. is charging for access to its market. Carney has said the commitment of the U.S. to the core of USMCA means that more than 85% of Canada-U.S. trade continues to be free of tariffs. He said the U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners.

But Trump has some sector-specific tariffs on Canada, known as Section 232 tariffs, that are having an impact. There are 50% tariffs on steel and aluminum imports, for example.

McKenna said he is hearing Canada might get some relief in steel and aluminum. “It could be 50% to 25% or agreeing on tariff-free quotas to allow the steel and aluminum to go through at last year’s levels,” he said.

The ties between the two countries are without parallel. About $2.5 billion (nearly $3.6 billion Canadian) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states. There is close cooperation on defense, border security and law enforcement, and a vast overlap in culture, traditions and pastimes.

About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports are from Canada.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.

“The bigger prize would be getting a mutual agreement to negotiate as quickly as possible the free trade relationship,” McKenna said. “If the United States were to threaten us with the six months’ notice of termination, I think it would represent a deep chill all across North America.”

Gillies writes for the Associated Press.

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Trump’s politically motivated sanctions against Brazil strain relations among old allies

President Trump has made clear who his new Latin America priority is: former Brazilian President Jair Bolsonaro, a personal and political ally.

In doing so, he has damaged one of the Western hemisphere’s most important and long-standing relationships, by levying 50% tariffs that begin to take effect Wednesday on the largest Latin America economy, sanctioning its main justice and bringing relations between the two countries to the lowest point in decades.

The White House has appeared to embrace a narrative pushed by Bolsonaro allies in the U.S., that the former Brazilian president’s prosecution for attempting to overturn his 2022 election loss is part of a “deliberate breakdown in the rule of law,” with the government engaging in “politically motivated intimidation” and committing “human rights abuses,” according to Trump’s statement announcing the tariffs.

The message was clear earlier, when Trump described Bolsonaro’s prosecution by Brazil’s Supreme Court as a “witch hunt” — using the same phrase he has employed for the numerous investigations he has faced since his first term. Bolsonaro faces charges of orchestrating a coup attempt to stay in power after losing the 2022 election to President Luiz Inácio Lula da Silva. A conviction could come in the next few months.

The U.S. has a long history of meddling with the affairs of Latin American governments, but Trump’s latest moves are unprecedented, said Steven Levitsky, a political scientist at Harvard University.

“This is a personalistic government that is adopting policies according to Trump’s whims,” Levitsky said.

Bolsonaro’s sons, he noted, have close connections to Trump’s inner circle. The argument has been bolstered by parallels between Bolsonaro’s prosecution and the attempted prosecution of Trump for trying to overturn his 2020 election loss, which ended when he won his second term last November.

“He’s been convinced Bolsonaro is a kindred spirit suffering a similar witch hunt,” Levitsky said.

Brazil’s institutions hold firm against political pressure

After Bolsonaro’s defeat in 2022, Trump and his supporters echoed his baseless election fraud claims, treating him as a conservative icon and hosting him at the Conservative Political Action Conference. Steve Bannon, the former Trump adviser, recently told Brazil’s news website UOL that the U.S. would lift tariffs if Bolsonaro’s prosecution were dropped.

Meeting that demand, however, is impossible for several reasons.

Brazilian officials have consistently emphasized that the judiciary is independent. The executive branch, which manages foreign relations, has no control over Supreme Court justices, who in turn have stated they won’t yield to political pressure.

On Monday, the court ordered that Bolsonaro be placed under house arrest for violating court orders by spreading messages on social media through his sons’ accounts.

Justice Alexandre de Moraes, who oversees the case against Bolsonaro, was sanctioned under the U.S. Magnitsky Act, which is supposed to target serious human rights offenders. De Moraes has argued that defendants were granted full due process and said he would ignore the sanctions and continue his work.

“The ask for Lula was undoable,” said Bruna Santos of the Inter-American Dialogue in Washington, D.C., about dropping the charges against Bolsonaro. “In the long run, you are leaving a scar on the relationship between the two largest democracies in the hemisphere.”

Magnitsky sanctions ‘twist the law’

Three key factors explain the souring of U.S.-Brazil ties in recent months, said Oliver Stuenkel, a senior fellow at the Carnegie Endowment for International Peace: growing alignment between the far-right in both countries; Brazil’s refusal to cave to tariff threats; and the country’s lack of lobbying in Washington.

Lawmaker Eduardo Bolsonaro, Jair Bolsonaro’s third son, has been a central figure linking Brazil’s far-right with Trump’s MAGA movement.

He took a leave from Brazil’s Congress and moved to the U.S. in March, but he has long cultivated ties in Trump’s orbit. Eduardo openly called for Magnitsky sanctions against de Moraes and publicly thanked Trump after the 50% tariffs were announced in early July.

Democratic Massachusetts Rep. Jim McGovern, author of the Magnitsky Act, which allows the U.S. to sanction individual foreign officials who violate human rights, called the administration’s actions “horrible.”

“They make things up to protect someone who says nice things about Donald Trump,” McGovern told The Associated Press.

Bolsonaro’s son helps connect far right in U.S. and Brazil

Eduardo Bolsonaro’s international campaign began immediately after his father’s 2022 loss. Just days after the elections, he met with Trump at his Mar-a-Lago estate in Florida.

As investigations against Bolsonaro and his allies deepened, the Brazilian far right adopted a narrative of judicial persecution and censorship, an echo of Trump and his allies who have claimed the U.S. justice system was weaponized against him.

Brazil’s Supreme Court and Electoral Court are among the world’s strictest regulators of online discourse: they can order social media takedowns and arrests for spreading misinformation or other content it rules “anti-democratic.”

But until recently, few believed Eduardo’s efforts to punish Brazil’s justices would succeed.

That began to change last year when billionaire Elon Musk clashed with de Moraes over censorship on X and threatened to defy court orders by pulling its legal representative from Brazil. In response, de Moraes suspended the social media platform from operating in the country for a month and threatened operations of another Musk company, Starlink. In the end, Musk blinked.

Fábio de Sá e Silva, a professor of international and Brazilian studies at the University of Oklahoma, said Eduardo’s influence became evident in May 2024, when he and other right-wing allies secured a hearing before the U.S. House Foreign Affairs Committee.

“It revealed clear coordination between Bolsonaro supporters and sectors of the U.S. Republican Party,” he said. “It’s a strategy to pressure Brazilian democracy from the outside.”

A last-minute tariff push yields some wins

Brazil has a diplomatic tradition of maintaining a low-key presence in Washington, Stuenkel said. That vacuum created an opportunity for Eduardo Bolsonaro to promote a distorted narrative about Brazil among Republicans and those closest to Trump.

“Now Brazil is paying the price,” he said.

After Trump announced sweeping tariffs in April, Brazil began negotiations. President Lula and Vice President Geraldo Alckmin — Brazil’s lead trade negotiator — said they have held numerous meetings with U.S. trade officials since then.

Lula and Trump have never spoken, and the Brazilian president has repeatedly said Washington ignored Brazil’s efforts to negotiate ahead of the tariffs’ implementation.

Privately, diplomats say they felt the decisions were made inside the White House, within Trump’s inner circle — a group they had no access to.

A delegation of Brazilian senators traveled to Washington in the final week of July in a last-ditch effort to defuse tensions. The group, led by Senator Nelsinho Trad, met with business leaders with ties to Brazil and nine U.S. senators — only one of them Republican, Thom Tillis of North Carolina.

“We found views on Brazil were ideologically charged,” Trad told The AP. “But we made an effort to present economic arguments.”

While the delegation was in Washington, Trump signed the order imposing the 50% tariff. But there was relief: not all Brazilian imports would be hit. Exemptions included civil aircraft and parts, aluminum, tin, wood pulp, energy products and fertilizers.

Trad believes Brazil’s outreach may have helped soften the final terms.

“I think the path has to remain one of dialogue and reason so we can make progress on other fronts,” he said.

Pessoa and Riccardi write for the Associated Press. AP writer Mauricio Savarese in Sao Paulo contributed to this report.

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What has Musk accused Trump of in relation to the Epstein files? | Donald Trump News

The tech billionaire and owner of Tesla and Starlink, Elon Musk, has accused United States President Donald Trump of being one of the names in the still-sealed Epstein files, and claims that this is the real reason key documents are still being withheld from the public.

In January 2024, many of the so-called “Epstein files” compiled by US federal investigators were released to the public. However, some remained sealed.

Trump’s presidency began with a strong boost from Musk, who donated large sums to Trump’s presidential campaign and was appointed to lead a newly formed federal agency aimed at streamlining government operations, the Department of Government Efficiency (DOGE).

But that relationship fractured after Musk resigned from the role in May 2025, following mounting public backlash over fiscal policies and a sharp decline in Tesla’s stock.

Since then, Musk has become increasingly vocal in his criticism of Trump, calling his “One Big Beautiful Bill” a “disgusting abomination” for increasing the national debt and eliminating electric vehicle subsidies, and, now, accusing him of links to Epstein.

Here’s what we know about the Epstein files and Musk’s accusations.

What are the Epstein files?

The “Epstein files” are a collection of documents compiled by US federal authorities during investigations into the activities of Jeffrey Epstein, the now-deceased financier and convicted sex offender.

These files include flight logs, contact lists, court records and other materials documenting his activities and associations with high-profile individuals.

The first major release of the documents took place in January 2024, when a federal judge ordered the unsealing of records from a 2015 defamation lawsuit against Epstein’s associate, Ghislaine Maxwell.

In February 2025, the Department of Justice and Federal Bureau of Investigation (FBI) followed up with an official declassification of additional documents, many of which had already leaked, featuring redacted flight logs and contact books.

However, many documents remain sealed or heavily redacted, prompting public calls for full disclosure.

US Attorney General Pamela Bondi stated that the FBI is reviewing tens of thousands of documents, with further releases pending necessary redactions to protect victims and ongoing investigations.

What has Musk said about the Epstein files?

On Thursday, Musk publicly accused President Donald Trump of being named in the unreleased Epstein files.

In a post on his social media platform X, Musk wrote: “@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.” He did not provide any evidence to support this claim.

Has Trump responded?

Trump has not directly addressed Musk’s claim regarding the Epstein files.

However, during a meeting with German Chancellor Friedrich Merz at the White House on Thursday, Trump said he was “very disappointed” by Musk’s criticism of the fiscal bill and suggested that Musk’s opposition was down to the elimination of electric vehicle subsidies.

“Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post on Thursday.

Trump also threatened to terminate federal contracts and subsidies for Musk’s companies, including Tesla and SpaceX, stating that this would save the US government billions of dollars.

What do we know about Trump’s relationship with Epstein?

Trump and Epstein were acquaintances in the 1980s and 1990s, often seen at social occasions together in New York and Palm Beach, Florida. Their appearances together were documented in news coverage and social pages at the time, while US media reported the two became close during the 1990s when Epstein bought a mansion near Trump’s Mar-a-Lago compound in Palm Beach.

A 1992 video published by NBC News shows Trump and Epstein socialising and watching dancers at a party hosted at Mar-a-Lago.

In a 2002 profile of Epstein by New York Magazine, Trump was quoted describing Epstein as a “terrific guy” who enjoyed the company of beautiful women “on the younger side”.

“I’ve known Jeff for 15 years. Terrific guy. He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side,” Trump said.

Flight logs released during court proceedings against Maxwell show that Trump flew on Epstein’s private jet at least seven times between 1993 and 1997, occasionally with family members.

Epstein’s “Black Book” – a contact directory obtained in 2015 by Gawker, a now-defunct US blog that covered celebrities and media – was later submitted as court evidence and listed multiple phone numbers and addresses for Trump, including his office, home and Mar-a-Lago.

What happens now?

Once allies, Musk’s relationship with Trump has deteriorated significantly since his criticism of Trump’s fiscal policy and subsequent allegations about the Epstein files.

Trump’s threats to cut federal contracts with Musk’s companies led to a 14 percent drop in Tesla’s stock value. Musk has since called for Trump’s impeachment and replacement with US Vice President JD Vance.

This public spat has also drawn attention from political figures, with some Democrats demanding the release of the full Epstein files and questioning whether they are being withheld due to potential implications for Trump.



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