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Canada, Europe hit back after US metals tariffs kick in

Philipp von Ditfurth/picture alliance via Getty Images

(LONDON) — The European Union and Canada announced retaliatory tariffs on Wednesday after the Trump administration’s metals duties went into effect, broadening a trade war with several of America’s top trading partners.

The U.S. at midnight began imposing 25% tariffs on all steel and aluminum imports from all trading partners, with no exceptions or exemptions, the White House said.

Global trade tensions rattled U.S. stocks. The Dow Jones Industrial Average fell 330 points, or 0.8%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq ticked up 0.25%.

Officials representing the European Union said member states would place countermeasures on some 26 billion euros, or about $28 billion, worth of U.S. goods. Ursula von der Leyen, president of the European Commission, said in a statement that the EU “must act to protect consumers and business.”

“Tariffs are taxes. They are bad for business, and even worse for consumers,” von der Leyen said. “These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States.”

Canada followed by announcing tariffs on about 29.8 billion Canadian dollars, or about $20.7 billion, in U.S. goods expected to be imported, government officials said. The U.S. imports more steel and aluminum from Canada than any other country.

“Our sole focus is to stand up for Canada interests, Canadian jobs and Canadian workers,” Dominic LeBlanc, minister of Intergovernmental Affairs of Canada, said in a press conference in Ottawa.

The Canadian tariffs will begin at 12:01 a.m. on Thursday, LeBlanc said. They were designed to be proportional to the U.S. tariffs, he said.

The European measures were also designed to match the scope of those U.S. tariffs, which the European Union said would be worth about $28 billion. The countermeasures were expected to begin on April 1 and be fully in place by April 13, the commission said.

“In the meantime, we will always remain open to negotiation,” von der Leyen said.

The countermeasures comprise two steps, the first of which is to restore on April 1 a set of previously suspended 2018 and 2020 countermeasures against the U.S. on a range of products.

For step two, member states will then put in place by mid-April new countermeasures targeting about 18 billion euros worth of U.S. goods entering the bloc.

Those new countermeasures will target both industrial and agricultural products, including steel and aluminum, home appliances, wood products, poultry, beef and other food imports, according to a fact sheet released on Wednesday.

Maros Sefcovic, the EU’s trade commissioner, said European officials would continue working with their U.S. counterparts toward a “win-win” outcome, but the “unjustified tariffs on our exports will not go unanswered.”

“We should be making this great relationship stronger, not weaker,” he said in a statement.

ABC News’ Zunaira Zaki contributed to this report.

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National

LA schools superintendent says closing of DOE would bring ‘catastrophic harm’

Bill Clark/CQ-Roll Call, Inc via Getty Images

(LOS ANGELES) — With mass layoffs taking place at the Department of Education, the superintendent for the nation’s second largest public school system says the closure of the department would bring “catastrophic harm” if there is any reduction to the federal funding that students in his district receive.

In a video statement, Los Angeles Unified School District Superintendent Alberto Carvalho said the county receives hundreds of millions of dollars for low-income students and others.

“We receive an excess of $750 million earmarked for poor students, English language learners, students with disabilities, and connectivity investments so that students can be connected with their learning, breakfast and lunch programs,” Carvalho said.

The Department of Education initiated mass layoffs on Tuesday night, reducing its workforce by nearly 50%, sources told ABC News.

The “reduction in force” notices began to go out Tuesday at about 6 p.m. ET

Some 1,315 employees were affected by the RIFs, leaving 2,183 employed by the department, according to senior officials at the DOE.

“Any reduction at the federal level, specific to these investments will bring about catastrophic harm in Los Angeles and across the country,” Carvalho said.

A statement released Tuesday from the Department of Education said that the DOE will “continue to deliver on all statutory programs that fall under the agency’s purview, including formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking.”

“This is primarily a streamlining effort for internal facing roles and not external facing roles,” a senior DOE official said of the layoffs.

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Business

Stock market teeters amid trade war, recession fears

Spencer Platt/Getty Images

(NEW YORK) — U.S. stocks teetered in early trading on Wednesday, posting shaky performance amid an escalating global trade war and concerns about a possible recession.

After some initial modest gains, the Dow Jones Industrial Average fell 330 points, or 0.8%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq ticked up 0.25%.

Trading opened minutes after a fresh inflation report showed price increases had eased more than expected in February, the first full month under President Donald Trump.

Tit-for-tat tariffs continued to rattle global trade early Wednesday, however.

Trump’s 25% tariffs on all imported steel and aluminum products went into effect overnight. In response, Canada and the European Union slapped retaliatory duties on U.S. goods.

Tesla, the electric carmaker run by Elon Musk, soared about 6% in early trading on Wednesday. The gains came a day after Trump touted the company alongside Musk in an event at the White House.

Some economists say that while the U.S. tariffs could boost the local steel industry in the United States, they could also lead to higher prices for industries that purchase steel. Those higher prices may eventually reach consumers.

The U.S. relies heavily on imported aluminum and those costs are expected go up as well.

This is a developing story. Please check back for updates.

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World news

190 people rescued from Pakistani train after 450 passengers taken hostage

Mazhar Chandio/Anadolu via Getty Images

(LONDON) — At least 190 people have been rescued from a train in Pakistan as of Wednesday after it was attacked one day prior and hundreds were taken hostage by the militant Balochistan Liberation Army, according to a Pakistani military official.

At least 17 people have been injured and 30 terrorists, members of the BLA, have been killed as a military operation continues, according to the official.

On Tuesday, a U.S. official told ABC News at least 450 people were taken hostage on the train and said six Pakistani military personnel were killed.

The separatist militant group claimed it had taken 182 military and security personnel hostage on the train, according to a post on Telegram, but said they had released the majority of the civilians on board. The group claimed a higher number of casualties in the attack, saying they killed 20 Pakistani military personnel and shot down a drone.

The BLA had threatened to kill all the hostages if Pakistan’s military tries to rescue them, the official said.

The BLA blew up part of the track, forcing the train to stop, before they boarded and took control, according to the official.

The attack happened in mountainous area right before a tunnel, making a rescue very difficult, they said.

Pakistani Interior Minister Mohsin Naqvi condemned the attack and said the government would not make any concessions to “beasts who fire on innocent passengers.”

The train was trapped in a tunnel after the tracks were blown up and militants opened fire on it, reportedly injuring the driver, local authorities and police have told media.

The BLA believes the Balochistan region of Pakistan, in the country’s far west bordering Iran and Afghanistan, should be allowed to break off from Pakistan. They are well-known for committing terror attacks in Pakistan. The BLA also attacked Jaffar Express trains in August 2013 and October 2016.

This is a developing story. Please check back for updates.

 

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National

Tesla vehicles destroyed, vandalized since Musk began role at White House, authorities say

Robert Alexander/Getty Images

(NEW YORK) — Tesla vehicles, dealerships and charging stations have been vandalized, suffered arson attacks and faced protests since the company’s CEO Elon Musk began his work with the Department of Government Efficiency, or DOGE, leading to mass layoffs of federal workers, authorities said.

The latest suspicious incident occurred overnight in Dedham, Massachusetts, where three Teslas were vandalized, according to the Dedham Police Department. Officials said “words had been spray-painted” on two Tesla Cyber-trucks, with all four tires of the trucks and a Tesla Model S being “reportedly damaged.”

Teslas were also damaged in Seattle on Sunday night, where crews had to extinguish a fire involving four electric vehicles, according to the Seattle Fire Department. Officials said other vehicles were moved away to prevent the spreading of the fire.

There were no buildings involved in the fire nor any injuries, according to the fire department.

The Seattle Police Department said the cause of the fire and whether or not foul play was a factor has not been determined. Other incidents in the U.S. were deliberately aimed at the company and it’s chief executive.

Six Teslas were also vandalized at a Tesla dealership in Lynnwood, Washington, on Saturday, with one black Tesla Cyber-truck graffitied with swastikas, according to the Lynnwood Police Department.

A Tesla charging station in South Carolina was targeted on Friday, where an unknown individual spray-painted an expletive directed at President Donald Trump along with “LONG LIVE UKRAINE” on the ground in red paint and threw homemade Molotov cocktails at the station, according to the North Charleston Police Department.

The suspect fled on foot before authorities arrived on the scene, police said.

Police “cut the power to the three charging stations that were burned by the homemade Molotov Cocktails,” officials said in a statement.

There have been no arrests made for this attack, police said.

Similarly, seven Tesla charging stations sustained heavy fire-related damage in Massachusetts on March 3, according to the Littleton Police Department. Officials determined the fires to be “deliberately” set, and the investigation is still ongoing to find the arsonist.

Shots were also fired at at Tesla dealership in Tigard, Oregon, where seven bullets damaged three cars and shattered windows on March 6, according to the Tigard Police Department.

Police said they are unaware of the motive of this specific incident, but were aware that “other Tesla dealerships have been targeted across Oregon and the nation for political reasons.”

On March 2, another Tesla dealership was spray-painted in Owings Mills, Maryland, where “NO MUSK” was written in red spray paint on the windows, followed by a symbol police originally thought was antisemitic.

“The graffiti was instead used against Elon Musk, and the graffiti was an ‘X’ inside of a circle, which we assume is for Twitter, which Musk owns,” Detective Anthony Shelton said in a statement obtained by Baltimore, Maryland, ABC affiliate WMAR.

Another incendiary event occurred in Colorado, where a woman was arrested on Feb. 27 after police caught her with explosives at a Tesla dealership, according to the Loveland Police Department. Lucy Grace Nelson, 40, was arrested after police launched an investigation following a series of vandalizations at the Tesla dealership, police said.

Nelson was charged with explosives or incendiary devices use during felony, criminal mischief and criminal attempt to commit a Class 3 felony, authorities said.

Protests against Tesla have also occurred at dealerships nationwide. Illinois State Treasurer Michael Frerichs told ABC News the demonstrations and the company’s plummeting stocks — which have tumbled nearly 48% this year — can all “be tied to [Musk’s] time at DOGE.”

“It has been a distraction for the company and it’s been a problem for the brand,” Frerichs said.

Amid the crime sprees and protests, some Tesla owners have even placed stickers on their vehicles that read, “I bought this before Elon went crazy,” ABC News reported.

Trump said on Truth Social on Monday night that he is in support of Musk and is going to “buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk.”

Musk, the owner of X, has reposted some reactions that criticized the attacks and called the incident in Seattle “crazy.”

Republican Rep. Marjorie Taylor Greene labeled the vandalisms as “domestic terrorism” and urged U.S. Attorney General Pam Bondi and FBI Director Kash Patel to “prioritize a thorough investigation into these matters” in a letter posted to X on Wednesday.

“These attacks, which seem to involve coordinated acts of vandalism, arson and other acts of violence, seriously threaten public safety,” Greene said in a letter posted to X.

A spokesperson for Tesla did not immediately respond to ABC News’ request for comment.

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National

Mom missing for 6 days found alive stranded in car: ‘She had given up hope’

Newton County Sheriff’s Office

(NEWTON COUNTY, Ind.) — A 41-year-old mother of three was found alive in her wrecked car in Indiana after being trapped for six days, authorities said.

A man was operating equipment for a drainage and excavation company on Tuesday when he spotted a car off a roadway, out of view from passing traffic, the Newton County Sheriff’s Office said.

He called his supervisor, Jeremy Vanderwall, who’s an assistant chief at a local volunteer fire department, and the two checked the car and found Brieonna Cassell inside, the sheriff’s office said.

“She was she was very conscious, very alert, very aware of how severe her injuries were,” Vanderwall told ABC News.

“She said, ‘I didn’t think anybody was gonna find me. I thought I was gonna die in this ditch,'” Vanderwall recalled.

Cassell was flown to a hospital in Chicago, which is about 75 miles north of Newton County.

Cassell had been trapped since Thursday night when she fell asleep at the wheel and veered off the road into a deep ditch under a bridge, according to her father, Delmar Caldwell.

She suffered serious injuries to her legs and wrist, and her phone was dead under the passenger seat, Caldwell told ABC News.

Cassell could hear cars going by and she screamed, but no one could see or hear her, Caldwell said.

“I’m sure that was demoralizing,” Vanderwall said.

“She was stuck in the car and could not get out. But she was able to reach the water from the car,” Caldwell said. “The only way she was able to survive was using her hoodie and dipping it into the water in a ditch and sucking the water, or bringing the the water into her mouth from the ditch.”

“To have the wherewithal to use her shirt to get water, knowing that she had to have water to survive … just survival skills, man,” Vanderwall added.

On Tuesday morning, “she had given up hope of being found,” Caldwell said. “And then, by the grace of God and the prayers and everything, she was found.”

“Everybody that helped to find her and the volunteers and everything … it was a wonderful miracle,” Caldwell said.

Cassell is now in “good spirits” and “eating a lot,” he said.

Newton County Sheriff Shannon Cothran called Cassell’s survival “an incredible testament to her will to live.”

The sheriff also commended Johnny Martinez, the passerby who found Cassell’s car.

Vanderwall said Martinez could spot the car because he was driving a tall tractor.

“I myself had traveled that road at least three to four times since she crashed and did not see her,” Vanderwall noted.

Caldwell said his daughter’s missing person report was well-known in the area, so Martinez knew who Cassell was when he found her.

“In my book, Mr. Martinez is a hero, and we can never thank him enough for his keen eye and quick action,” the sheriff said in a statement.

Vanderwall added, “If he hadn’t seen her and hadn’t pushed for me to go back and check on her, she could have laid there for who knows how much longer, and the outcome might not be the same.”
 

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Politics

Judges considering blocking mass firings, transgender servicemember ban

Witthaya Prasongsin/Getty Images

(WASHINGTON) — A federal judge on Wednesday will consider the fate of more than 20,000 government employees fired by the Trump administration.

Twenty Democratic attorneys general sued to block the firings last week. Now, U.S. District Judge James Bredar will consider issuing a temporary restraining order that would block future firings and reinstate the probationary employees.

“These large-scale, indiscriminate firings are not only subjecting the Plaintiff States and communities across the country to chaos. They are also against the law,” they argued in their complaint, which named 41 agencies and agency heads as defendants.

The attorneys general have argued that the Trump administration violated federal law with the firings by failing to give a required 60-day notice for a reduction in force, opting to pursue the terminations “suddenly and without any advance notice.”

Lawyers with the Department of Justice have argued that the states lack standing because they “cannot interject themselves into the employment relationship between the United States and government workers,” and that to grant the TRO would “circumvent” the administrative process for challenging the firings.

Two other federal judges have declined to immediately block the firings and reinstate the employees.

“The third time is not the charm. Like the unions and the organizational plaintiffs, the States are strangers to the employment relationships at issue and cannot disrupt the exclusive remedial scheme that Congress put in place to adjudicate these disputes,” lawyers with the DOJ argued.

The Pentagon’s new policy to separate transgender U.S. service members from the military will face its first legal test on Wednesday when U.S. District Judge Ana Reyes considers issuing an order blocking the policy from taking effect.

The plaintiffs have argued that the DOD’s policy — which was finalized in late February and bans most transgender service members from serving with some exceptions — violates the Fifth Amendment’s right to equal protection and causes irreparable harm by denigrating transgender soldiers, disrupting unit cohesion and weakening the military.

“This case is a test of the core democratic principle that makes our country worth defending—that every person is of equal dignity and worth and is entitled to equal protection of the laws,” the plaintiffs argued.

Lawyers with the Department of Justice have defended the policy by arguing the court should not intervene in military decision making, describing gender dysphoria as a condition that causes “clinically significant distress or impairment in social, occupational, or other important areas of human functioning.”

“DoD has been particularly cautious about service by individuals with mental health conditions, given the unique mental and emotional stresses of military service,” government lawyers argued.

During a hearing last month, Judge Reyes — a Biden appointee who was the first LGBT judge on the DC District Court — signaled deep skepticism with the government’s claim that transgender service members lessen the military’s lethality or readiness, though she declined to intervene until the DOD finalized their policy.

When the policy was formalized last month, she quickly ordered the government to clarify key tenets of their policy, including identifying what “mental health constraint” other than gender dysphoria that conflicts with the military’s standards of “honesty, humility, and integrity.”

She also raised doubts about the government’s claims about the exceptions to the policy, flagging on the court’s docket a recent DOD social media post that “transgender troops are disqualified from service without an exemption.”

The hearing comes amid an increasingly hostile relationship between Judge Reyes and the Department of Justice.

After Judge Reyes excoriated a DOJ lawyer last month during a hearing in the case, the Department of Justice filed a complaint with an appeals judge about what they alleged was Reyes’ “hostile and egregious misconduct.”

Attorney General Pam Bondi’s chief of staff Chad Mizelle alleged that Reyes demonstrated a political bias, compromised the dignity of the proceedings and inappropriately questioned a DOJ attorney about his religious beliefs.

“At minimum, this matter warrants further investigation to determine whether these incidents represent a pattern of misconduct that requires more significant remedial measures,” Mizelle wrote.

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Business

Inflation cools in first full month of Trump term

Noel Hendrickson/Getty Images

(NEW YORK) — Consumer prices rose 2.8% in February compared to a year ago, easing slightly over the first full month under President Donald Trump and offering welcome news for markets roiled by a global trade war. Inflation cooled more than economists expected.

Price increases slowed from a 3% inflation rate recorded in January, though inflation remain nearly a percentage point higher than the Federal Reserve’s target of 2%.

Egg prices, a closely watched symbol of price increases, soared 58.8% in February compared to a year ago, accelerating from the previous month. Bird flu has decimated the egg supply, lifting prices higher.

The Justice Department opened an investigation into egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.

Prices dropped for tomatoes, cereal, cupcakes and cookies over the past year. Some grocery prices increased faster than the pace of overall inflation, however, including beef, biscuits and apples.

A rise in housing costs accounted for nearly half of the price increases last month, the U.S. Bureau of Labor Statistics said. A decline in the price of airline tickets and gasoline helped offset some of the increased costs, the agency said.

The inflation report arrived hours after the U.S. imposed 25% tariffs on steel and aluminum, prompting near-immediate retaliatory duties from the European Union and marking the latest escalation of trade tensions.

Tariffs are widely expected to raise prices for consumers, since importers typically pass along a share of the added cost to shoppers.

The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.

The report on Wednesday may soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.

Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers.

The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.

“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”

On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”

A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.

Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.

The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.

On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.

Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.

The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.

A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.

The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.

ABC News’ Katherine Faulders and Soo Youn contributed to this report.

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Entertainment

In brief: ‘Mufasa: The Lion King’ to begin streaming on Disney+ and more

If you just can’t wait to watch Mufasa: The Lion King at home, you’re in luck. The film will begin streaming on Disney+ on March 26. This means it will come to streaming after a 96-day theatrical window. The musical film was directed by Barry Jenkins and features songs from Lin-Manuel Miranda

The Cruel Intentions show has come to an end. Prime Video has canceled the series after one season, as Variety first reported. It premiered on the streamer in November 2024. The show was based on the 1999 film of the same name, which itself was based on the novel Les Liaisons Dangereuses. Sarah Catherine Hook, Zac Burgess, Savannah Lee Smith, Sara Silva, John Harlan Kim, Khobe Clarke, Sean Patrick Thomas and Brooke Lena Johnson starred in the show from co-showrunners, writers and executive producers Sara Goodman and Phoebe Fisher

The Legally Blonde prequel series has cast June Diane Raphael as Elle Woods’ mother. Deadline first reported the news that Raphael will star opposite Lexi Minetree in the series, which is called Elle. Reese Witherspoon is executive producing the prequel show about the character she famously portrayed. Elle’s mom, named Eva, is polished, pragmatic and thrives on keeping things picture-perfect …

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