5 things you need to know this morning: March 4, 2025

Start your day off right with five things you need to know this morning.

Five things you need to know

1. Stocks plunge as Trump goes ahead with trade war against Canada, Mexico and China

There's been something of a bloodbath in the world of stocks – with the Dow Jones Industrial Average falling more than 600 points – after Donald Trump's 25 per cent tariffs on Canadian and Mexican goods went into effect at midnight. The president has also hit China with a new 10 per cent tariff and targeted Canadian energy imports with a 10 per cent levy. Meanwhile, economists have warned Canada faces a recession if the tariffs remain in place.

#NEW: Canadian recession looms this year if U.S. tariffs stay in place, economists say. https://t.co/O4IDaZ1qBi

— CityNews Toronto (@CityNewsTO) March 4, 2025

2. Doug Ford says US factories could 'shut down' within a week due to Trump's tariffs

Ontario Premier Doug Ford has warned that assembly lines in the US could be "shut down" within a week after Trump's decision to embark on a trade war with his closest economic partners. Ford, speaking with CNN this morning, apologized to the American people, adding: "It is not you. It is your president that is causing this problem.”

Ontario Premier Doug Ford appeared on CNN after tariffs were activated on Canada overnight.

His message to Americans: "This is not right. We love America. We love the people. The president needs to be stopped. Simple as that." pic.twitter.com/vHsRGdcMOY

— Trending Politics (@tpbreaking) March 4, 2025

3. China pledges to fight Americans 'to the bitter end' in trade war 'or any other kind of war'

China has vowed to fight the US to the "bitter end" if Trump's trade war with the country continues. The Chinese now face a 20 per cent blanket tariff on the goods they send to the US, on top of sector-specific penalties, but the Communist Party has come out in defiance, telling the Americans: "If the United States ... persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end."

'We'll fight to the bitter end': China and Canada retaliate against new Trump tariffs https://t.co/HNWS1ZjpLK

— USA TODAY (@USATODAY) March 4, 2025

4. Vance rebuked after jibe about 'random country that hasn't fought a war in 30 or 40 years'

It's not all about Trump today, however, as his chief deputy, JD Vance, has also got himself in a heap of trouble. It happened when Vance referred to plans for "20,000 troops from some random country that hasn't fought a war in 30 or 40 years" to be deployed to Ukraine. The UK and France have both said they would send soldiers to Ukraine, while Canada has hinted it could also join in. After severe pushback from the French and British, Vance said both peoples had "fought bravely alongside the US over the last 20 years, and beyond."

Bad news for Starmer and Macron. Vance confirms the only US security guarantee in Ukraine will be the mineral deal. He also plays down British & French peacekeeping troops as “20k troops from some random country that hasn’t fought a war in 30 or 40 years”.pic.twitter.com/6bujpsjygX

— Antonello Guerrera (@antoguerrera) March 4, 2025

5. US commerce secretary: Tariffs part of 'drug war,' not 'trade war'

US Commerce Secretary Howard Lutnick has said this morning that the tariffs against Canada, Mexico and China do not represent a "trade war" but rather a "drug war." He told CNBC that Canada has done "a nice job on the border" but hasn't "stopped the flow of fentanyl." He said Trump would "remove these tariffs" if Canada were to "stop the flow of fentanyl."

"You can't kill Americans and get away with it!" Mexico, China, and Canada must stop the flow of fentanyl and opioids into our country. The President is not going to take this laying down.

This morning, I had the opportunity to deliver that message to @SquawkCNBC, @JoeSquawk,… pic.twitter.com/JU1yTSNOBA

— Howard Lutnick (@howardlutnick) March 4, 2025

Thumbnail photo credit: The White House