World Economics: 

1. Trump’s 25% tariffs on steel and aluminium come into effect globally, with Europe and Canada announcing swift retaliation. As of Wednesday morning, European Commission President Ursula von der Leyen announced European countermeasures, stating that the measures are “strong but proportionate,” imposing €26 billion worth of tariffs on US goods from April 1st. Canada is also set to retaliate with $20.7 billion in tariffs, which could significantly impact the US economy, as Canada is its largest foreign supplier of steel and aluminium. 

2. Investors lose faith in Donald Trump as US stocks hit their lowest levels since September, wiping out $5 trillion in S&P 500 value, while the VIX volatility index rose by 4%. 

3. The Bank of Canada has lowered interest rates by a quarter of a percentage point to 2.75% to counter risks from US trade disputes. The central bank remains concerned about the impact of US tariffs on the Canadian economy. 

UK Economics: 

1. Chancellor Rachel Reeves’ spring budget statement is due to be delivered on March 26th, with expectations of “large cuts.” During a visit to Ukraine, Keir Starmer stated that he would be “ruthless” in cutting benefits. The cuts are intended to allow for increased defence spending, with the government describing it as “reducing the welfare bill by getting people off benefits and into work.” 

2. The UK will abolish the Payment Systems Regulator, merging it with the Financial Conduct Authority (FCA) in an attempt to reduce bureaucracy and improve efficiency, making financial regulation more straightforward for both businesses and consumers. 

3. Bank of England Governor Andrew Bailey said weak demand could ease inflation, though CPI is expected to rise to 3.7% this year. Bailey told MPs he believes the “underlying path” of price growth remains downward. 

UK politics: 

1. Prime Minister Keir Starmer has expressed that the UK is contemplating retaliatory tariffs in response to new US tariffs on steel and aluminium imports. While the government wishes to maintain a “pragmatic” approach, Starmer emphasised that all options, including retaliation, remain on the table.  

2. Former Scottish First Minister Nicola Sturgeon has declared she will not seek re-election to the Scottish Parliament next year. She states that she wishes to instead pursue new opportunities. 

3. Suspended Reform UK MP Rupert Lowe is under investigation by the Metropolitan Police following allegations of making physical threats toward party chair Zia Yusuf between December 2024 and February 2025. Lowe denies the allegations, but the investigation adds to a growing saga of existing internal conflicts within Reform UK.  

  World politics: 

1. On Sunday 9^th of March, Mark Carney was elected as Canada’s next Prime Minister, succeeding Justin Trudeau who resigned in January. The Prime Minister Elect, who won in a landslide victory of 85.8% of liberal votes, will be sworn in the next few days. In response to this, the leader of the opposition conservative party Pierre Poilievre and leader of the new democratic party Jagmeet Singh have confirmed that they will call a vote of no confidence once the parliament returns. 

2. After a heated exchange in the Oval Office between President Zelenskyy and President Trump when the US suspended military aid and intelligence sharing with Ukraine, things took a more optimistic turn. On Tuesday, the two countries agreed to a proposed temporary cease-fire with Russia. If Russia reciprocates with this agreement, this would allow Ukraine 30 days. 

3. On Tuesday evening, Portugal’s government lost a vote of confidence. The confidence vote was called by Social Democrat Prime Minister Luís Montenegro to confirm voters’ support for his government following his involvement with a scandal involving his family-owned data protection company. This will set the country on course for the third election in three years.