GERMANY: CSU Approves Coalition Deal; SPD Migration Group Advocates 'No' Vote
The Christian Social Union (CSU), the Bavarian sister party of chancellor-in-waiting Friedrich Merz's centre-right Christian Democratic Union (CDU) has become the first party to formally approve the programme for gov't and give its go-ahead for the formation of a 'grand coalition' (GroKo) with the centre-left Social Democrats. CSU leader and Bavaria's Minister-President Markus Soeder said 'unanimous' approval was given in a conference call earlier today held between the CSU's party executive, it's parliamentary group in the Bundestag, and it's group in the Bavarian state parliament.
- Soeder said he hopes for a "speedy formation of a gov't", and called the agreement a "rehab and fitness programme" for the state.
- FAZ reports, "According to the CDU's statutes, a small party conference is scheduled to decide on the planned coalition, possibly on April 28."
- FAZ also reports on the first signs of pushback on the coalition from the left of the SPD. The paper quotes Aziz Bozkurt, chairman of the SPD's Migration and Diversity Working Group, saying that the coalition will become "a catalyst for right-wing forces," Bozkurt says that his committee rejects the draft coalition deal and calls on SPD members to vote it down.
- Despite objections from the left, the SPD membership is likely to approve the deal (its members vote from 15-29 April). Brandenburg's SPD Minister-President Dietmar Woidke said earlier, "I'm optimistic-at least as far as my party is concerned-that there will be approval, because the challenges facing this state are obviously significant,"
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US: CANADA: Trump Escalates Trade War With Canada
US President Donald Trump has escalated a trade war with Canada, increasing tariffs on Canadian metals set to take effect at 00:01 ET on March 12, in response to Ontario Premier Doug Ford's decision to hike the price of electricity exported to Michigan, Minnesota, and New York by 25%.
- Trump said on Truth Social: "I have instructed my Secretary of Commerce to ad an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA... This will go into effect [March 12th]."
- Trump added: "I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada."
- Trump repeated a regular comment that Canada should become the 51st US state, likely to inflame relations with Prime Minister designate Mark Carney: "This would make all Tariffs, and everything else, totally disappear," Trump said.
- Ford said yesterday: “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,”
- Quebec Premier François Legault has also indicated he is exploring a similar move with Politico noting that New York, "imported 7.7 terawatt hours of power from Ontario and Quebec last year — more than any other state."
US INFLATION: MNI US CPI Preview: Calm Before The Tariff Storm
We've just published our preview of the February CPI report, due for release on Wednesday March 12 at 0830ET.
USD: USDCAD jumps 80 pips
USDCAD jumped some 80 pips on those latest Tariffs comment from Trump.
USDCAD has found some offers at 1.4500 for now, fading back down to 1.4470 now.
Donald J. Trump@realDonaldTrump
"Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to ad an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING".
This was part of his Truth Comment.
