Marc Ross Daily | March 13
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Marc Ross Daily will be on hiatus starting Monday, March 17, and will return on Monday, March 24.
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Here’s today’s Marc Ross Daily:
*** Ross Rant ***
Trump's trade war: America's self-inflicted economic madness
The mounting economic casualties from Trump's misguided trade war reveal an administration desperately clinging to an outdated vision of global commerce. As Canada and the European Union respond with retaliatory tariffs, the foolishness of instigating conflict with our closest allies shows no signs of stopping; where is the off-ramp?
The Trump administration's proposed tariffs target over $150 billion in imported consumer goods and raw materials like steel and aluminum, affecting products from baseball bats to caskets. This comes as major retailers like Kohl's report weak sales forecasts, joining other companies warning of declining household spending. Persil-owner Henkel notes that US policies are negatively impacting the North American market.
Meanwhile, the airline industry faces challenges as United Airlines and American Airlines warn of dropping domestic travel demand, and small business sentiment has deteriorated despite initial post-election optimism. The National Federation of Independent Business reported its small-business optimism index fell 2.1 points in February to 100.7, while the uncertainty index jumped to 104, its second-highest reading since tracking began in 1986.
The tragedy of Trump's trade war extends beyond immediate economic harm.
America's historical role as a champion of rules-based international trade has provided substantial diplomatic advantages. Nations have traditionally looked to the United States for leadership in creating frameworks for mutual prosperity, a position of influence that erodes with each passing day of needless trade conflict.
Most concerning, the Trump administration appears wedded to an antiquated vision of the American economy. While competitors invest heavily in automation, artificial intelligence, and renewable energy, Trump's economic policies - this is speculation since the president has never laid one out - focus on rebuilding the economy of the 1950s instead of building the economy of the 2050s. This backward-looking stance threatens America's future competitiveness.
Civic and business leaders must engage the Trump administration and pressure it to recommit to the principles that built American prosperity: championing open markets, fostering innovation, and leading by example.
When approached as a positive-sum game, trade creates mutual benefits rather than a zero-sum battle.
Ending this self-destructive trade war would signal renewed American leadership. Our economic vitality comes from participation, not isolation—not from breaking trade relationships but from strengthening them. The sooner the Trump administration recognizes this economic reality and abandons feel-good campaign rhetoric, the sooner America can reclaim its role as the world's premier economic power.
The wheels haven't just come off Trump's trade war wagon; they've rolled straight into the ditch of economic and political reality. For America's sake and the sake of the Western world, it is time for the Trump administration to ride a modern vehicle better suited for the road ahead.
For America's continued prosperity and global standing, we must have commonsense trade policies that address future opportunities while ensuring American soft-power leadership.
Enjoy the ride + plan accordingly.
-Marc
*** Globalization + Geopolitics ***
An unexpected Trump bump for the world’s centrists: As President Trump’s “shock and awe” policies radiate around the world, they are galvanizing support for moderate leaders and unifying Europe. NYT
Power, money, territory: How Trump shook the world in 50 days: The system America took 80 years to assemble proved surprisingly fragile in the face of Trump’s assault, a revolution in how the country exercises power across the globe. NYT
Trump’s economic messaging is spooking some of his own advisers: President’s team receives flood of calls from business executives concerned about mixed messaging on tariffs. WSJ
Trump’s erratic policy is harming the reputation of American assets: Like the stockmarket, the dollar is also suffering from falling confidence and rising confusion. Economist
How do you like the trade war now? Trump is furious that Canada won’t take his tariffs lying down. WSJ - Editorial
+ "We said from the beginning that this North American trade war is the dumbest in history, and we were being kind."
Is Trump throwing it away? His tariff circus undermines US standing just when it would be most useful. Holman W. Jenkins, Jr.
Toronto Star: CANADA STRIKES BACK
Toronto Star: Mark Carney says he’ll meet Donald Trump on trade when there’s ‘respect for Canadian sovereignty’
Even Americans don’t want Canada as 51st state amid Trump’s annexation threats, new poll finds: A mere six per cent of Americans say that the US should annex Canada “using political and economic pressure," a new poll found. Toronto Star
+ @CPAC_TV: "The excuse for those tariffs shifts every day. The only constant in this unjustified and unjustifiable trade war seems to be President Trump's talks of annexing our country through economic coercion," says Foreign Affairs Minister Mélanie Joly on ongoing Canada-US trade war.
+ @abcnews: #BREAKING: Australia will not be granted an exemption from US tariffs on aluminium and steel imports, the White House says.
Bourbon and scotch makers find a common enemy in tariffs: Weaponized trade is rattling the global whiskey business. Bloomberg
European Union plans to hit back against the 25% US tariffs on imports of the metals, the official - who asked not to be identified - said Britain would continue to engage with the US in an attempt to secure an exemption.
EU, Canada retaliate against Trump’s tariffs as trade war escalates: WP reports as President Donald Trump’s global steel and aluminum tariffs took effect, the European Union announced tariffs on US exports and warned of further retaliation.
Reuters: UK will not respond to US steel tariffs, British official says
Back peace or I’ll ruin you, Trump tells Putin: The Times reports Europe hopes a pause in the fighting could come as soon as Thursday after Ukraine agreed to a truce plan in Jeddah.
US-backed cease-fire offer poses dilemma for Putin: NYT reports Russia’s leader recently rejected the idea of an interim truce in Ukraine. But he wants to maintain his relationship with President Trump.
Europe thinks the unthinkable on a nuclear bomb: Poland wants co-operation with France on a nuclear deterrent. That could take many forms. Economist
The UK questions its nuclear deterrent, which depends on the US: Le Monde reports although unthinkable just a few weeks ago, a debate is now taking shape on the possibility of calling into question the long-standing partnership with the United States and its implications.
The Russian threat to Britain spans every field Telegraph - Editorial
Was the North Sea collision an accident — or an act of sabotage? Marine accident investigators will be examining everything from the crews’ schedule to whether attempts were made to change course. The Times
Friedrich Merz, German chancellor before his time: Le Monde reports even though negotiations to form a coalition have not yet begun, the head of the Christian Democratic Union party, which came out on top in Germany's February 23 elections, has already embarked on major projects in his country and abroad.
Germany ‘buried’ spy report that COVID started in Wuhan lab: The Times reports Chancellors Merkel and Scholz are said to have kept secret an explosive intelligence assessment of how the pandemic began.
Reuters: If Europe builds the gigafactories, will an AI industry come?
+ The plan for the large public access data centres, unveiled by European Commission President Ursula von der Leyen last month, will face challenges ranging from obtaining chips to finding suitable sites and electricity.
Spain to impose massive fines for not labelling AI-generated content: Reuters reports Spain's government approved a bill on Tuesday imposing massive fines on companies that use content generated by artificial intelligence (AI) without properly labelling it as such, in a bid to curb the use of so-called "deepfakes."
AI should replace some work of civil servants, Starmer to announce: Guardian reports the new digital ‘mantra’ prompts unions to warn PM to stop blaming problems on Whitehall officials.
TST: Singapore, Vietnam to deepen ties across the board with wide-ranging pact
Indian government proposes AI oversight board and mandates bureaucrat training: The board is charged in evaluating and approving and reviewing AI applications utilized across the government, making sure they are in line with ethical and legal standards.
China is mapping the seabed to unlock new edge in warfare: Beijing’s exploration of distant waters brings security fears and complaints. WSJ
The railway that China hopes will take on the US in Africa: Tazara project showcases Beijing’s leaner approach to overseas development just as western aid appears to retreat. FT
+ @Dimi: @BrendanCarrFCC is creating a new national security council to counter China technology threats
Trump’s ‘reverse Nixon’ charade insults our intelligence: The US president’s crude goal is to separate Russia from China – sacrificing Ukraine as a pawn. Ambrose Evans-Pritchard
G+M: Mark Carney to be sworn in as prime minister on Friday, source says
The US has covertly destabilized nations. With Canada, it's being done in public: Intelligence experts say young, economically vulnerable people would be likely target. Evan Dyer
+ A former CISIS director says US covert operations on Canadian soil would likely offer the country little return in exchange for a great deal of risk. And Donald Trump is typically his own messenger, preferring the megaphone to the coded message.
Greenland’s election winners push back against Trump’s wish to take control of the island: AP reports a party that favors a gradual path to Greenland’s independence from Denmark won a surprise victory in parliamentary elections, held in the shadow of US President Donald Trump’s stated goal of taking control of the island.
*** US Politics + Elections ***
Senate Minority Leader Chuck Schumer (D-NY) threw a wrench into a Republican plan to avert a government shutdown this weekend, saying there wasn’t enough Democratic support to advance the measure funding federal agencies through Sept. 30.
+ Senate Democrats balk at funding extension, raising the risk of a shutdown
Senate Democrats say they will reject GOP's funding bill as shutdown draws near: NBC News reports after meeting with his conference, the Senate Minority Leader Chuck Schumer said "Republicans do not have the votes" to advance the House-approved measure.
+ Democrats seek bill to keep government open through April 11.
The whiplash presidency: The president and his aides are changing their minds at nauseating speed. David A. Graham
The cost of eggs in the US jumped 10.4% last month, the Consumer Price Index shows. Eggs are nearly 60% more expensive than a year ago.
Opinion of Trump's handling of economy: CNN poll conducted by SSRS - March 6-9:
Approve Disapprove
Now 44% 56%
March '20 54% 42%
March '19 51% 42%
March '18 48% 45%
March '17 55% 41%
+ The probability of a US recession taking place this year stands at around 40%, according to Bruce Kasman, JP Morgan’s chief global economist.
CEOs don’t plan to openly question Trump. Ask again if the market crashes 20%. Behind closed doors, business leaders air plenty of concerns about the administration and its policies. WSJ
Donald Trump bought a $90,000 Tesla with 37 recall notices against it: Wired reports, here’s hoping Elon Musk won’t have to personally fix President Trump’s new EV anytime soon.
Elon Musk’s self-destruction: The cost for Donald Trump of keeping the world’s richest man by his side is growing. Edward Luce
Donald Trump Jr: Championing the MAGA economy : ESG and DEI are out as the US president’s son makes lucrative investments that align with his father’s vision of America. FT
Bloomberg: Trump’s FTC moves ahead with broad Microsoft antitrust probe
Stuck NASA astronauts prepare to return after nine months in space: WP reports the scheduled SpaceX Dragon launch Wednesday would set in motion plans for the return of Sunita Williams and Barry “Butch” Wilmore from the International Space Station.
Wind and solar overtake coal power for first time in US: WSJ reports the two renewable energy sources accounted for 17% of the country’s power mix while coal fell to a low of 15%. Natural gas remains by far the largest source of electricity, accounting for 43%.
NH-SEN: Senator Jeanne Shaheen (D-NH) will not seek re-election in 2026.
Gavin Newsom finds some surprising common ground with Steve Bannon: The California governor hosted one of the architects of President Trump’s political movement on his new podcast, and their friendly sparring revealed a few points of agreement. NYT
Rahm Emanuel is gearing up to run for president: The former Chicago mayor is already on the hustings, finding new ways to attack Trumpism from the center. Jonathan Martin
+ Ross Rant: Rahm Emanuel 2028. Book it.
Politico: Bannon refuses to rule out presidential run in 2028
HR Drive: California senator introduces ‘No Robo Bosses Act’ in bid to regulate AI at work
+ States will likely take the lead on AI regulation “for the foreseeable future”
+ CA State Sen. Jerry McNerney, D-Pleasanton, announced his introduction of SB7, otherwise known as the “No Robo Bosses Act,” on March 6 to require human oversight of artificial intelligence in the workplace
*** Distribution + Innovation ***
When AI gets a board seat: Lab experiments show that AI can outperform humans, but outside of the lab, when making decisions, executives face shifting challenges, often with insufficient or inaccurate data. A team of BCG consultants wanted to understand: What happens if they take AI out of the lab into a real company? Over the past year they joined a series of executive team meetings at Giesswein, an $85 million revenue company based in Austria, that sells organic, eco-friendly wool sneakers. The idea was to experiment with different ways of integrating AI into their executive meetings to understand what works and how. HBR
+ @tomfgoodwin: The people who think AI is most amazing are the sort of people that think "word clouds" offer insight.
1trn yuan: The size of the venture-capital fund that China’s government wants to set up for tech-focused investment.
Everyone in AI is talking about Manus. We put it to the test. The new general AI agent from China had some system crashes and server overload—but it’s highly intuitive and shows real promise for the future of AI helpers. MIT TR
Reuters: DeepSeek AI cranks open the spigots on Chinese venture capital
+ “People are rushing just to find the next DeepSeek,” said Annabelle Yu Long, founding and managing partner of BAI Capital in Beijing.
Reuters: OpenAI launches new developer tools as Chinese AI startups gain ground
Google DeepMind unveils new AI models in race to make robots useful: FT reports company claims ‘leap forward’ with new technology that helps machines adapt to complex environments.
WTF is ‘shadow AI,’ and why should publishers care? Digiday
Bloomberg: Starbucks to add seating, power outlets to attract customers
Paris's La Défense business district is (still) trying to work out its future: Owners of these big office skyscrapers are worried about the fate of this key European business district at a time of decline in commercial real estate and global warming. Le Monde
Elon Musk’s antics are not the only problem for Tesla: The carmaker’s sales are sinking for other reasons too. Economist
*** Culture ***
This Michelin-recommended Mexican spot in Toronto is closing. The chef opens up about the mental health toll of running a high profile restaurant: Chef Iván Castro is closing his vegan Mexican restaurant in Little Italy after five years. TS
The true story behind Paramount’s Landman: This explosive new series is Paramount's most successful original series debut. Country + Townhouse
People: Lisa Vanderpump and Caesars Entertainment to Open The Vanderpump Hotel on Las Vegas Strip in 2026
*** Sport ***
Can Formula One ever be sustainable? The motor sport famed for its fast cars, glamorous lifestyle and Champagne finishes is trying to halve its emissions by 2030. WSJ
Eminem has joined an effort to bring a WNBA expansion team to Detroit.
30 hours in a hurricane, on a race with no course: Why would hundreds of people trek overnight through the wilderness with nothing but a compass? Because it’s the best feeling in the world. NYT
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
Marc Ross Daily | March 13
