Trump imposes 50% tariffs on Canadian goods, unraveling a gas-price mystery, Israel’s Gaza barrier

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In the news today: Trump’s latest tariff move against Canada; gas prices; and Israel builds a miles-long barrier inside Gaza. Also, United Airlines offers a row with an empty middle seat, for a price.

Trump imposes 50% tariffs on Canadian goods, citing disputes over autos, alcohol and cheese

The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before President Donald Trump’s return to the White House. The administration official previewing the action said that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable. Read more.

Why this matters:

• The White House said in a fact sheet that the tariffs would go into effect in 30 days, meaning there is time for negotiations as Trump has not always followed through on his announced tax hikes on imports.
• Canadian Prime Minister Mark Carney said in a statement that his government believes in the “benefits of free and fair trade,” having signed “more than 20 new economic and security partnerships.” He said Canada is prepared to negotiate with the Trump administration. “This trade dispute has raised costs for families, particularly in the U.S.,” Carney said. Still, the tariffs could escalate into a wider trade war as Canada seeks to defend its economy.

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The men behind Trump’s $3.47 gas: An NFL coach, a GOP fundraiser and two New Jersey brothers

President Donald Trump and his White House have enthusiastically promoted the Freedom Fuel Network. Read more.

What to know:

• Records indicate the chain, which was launched last month, is run by a disparate collection of businessmen that includes an NFL kicking coach, a GOP fundraiser and a New Jersey entrepreneur who this year was ordered, along with his brother, to pay civil damages for unlawfully taking more than 200,000 gallons of fuel. How the stations got Trump’s attention remains a mystery, and the four businessmen declined to — or could not be reached for — comment.
• The White House denied Trump had any personal connection to the venture, but declined to say how the project was developed. It acknowledged having discussions with individuals who set up the network of gas stations.

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WATCH: Gas prices back up to an average of $4 a gallon as US and Iran launch attacks

Israel is building a miles-long earthen barrier inside Gaza, entrenching its division

The Israeli military is quietly but quickly building a giant earthen barrier separating the over 50% of the Gaza Strip it controls from the rest of the territory, according to satellite imagery, further entrenching the division of the tiny Palestinian enclave. Read more.

Why this matters:

• When presented with the satellite images, Israel’s military confirmed to The Associated Press it has built a physical barrier in the area of the so-called yellow line, the boundary to which Israeli troops withdrew under the October ceasefire deal with Hamas. The line was envisioned in the U.S.-backed agreement as a temporary division of the territory pending a fuller Israeli withdrawal. But as the truce stagnates, it appears Israel is digging in, heightening Palestinian fears that the line is morphing into a border.

Related coverage →

US and Iran dig in over the Strait of Hormuz, showing the limits of intensifying airstrikes

Yemen’s Iranian-backed Houthis say they will block Saudi shipping at Red Sea gateway

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Empty middle seat is a new perk United Airlines will offer on some flights

Nadja is flying back from her vacation today and fully with us again tomorrow morning. Hopefully she scores a comfortable seat on the plane. One of the developments in air travel AP is reporting on recently is the United’s new offer of an empty middle seat. For a price, travelers will get a row where the aisle or window seat has a shared table in between, instead of another passenger to wrestle with for a precious armrest. As we’ve also reported, U.S. airlines are focusing heavily on premium passengers, so we’ll see if the empty middle seat concept catches on for the rest of us traveling in economy.

This is our flagship newsletter Morning Wire. You can subscribe here and we’ll email it to you daily.