Inflation slides to 1.9% in Europe, as worries shift from prices to Trump and tariffs
FRANKFURT, Germany — Inflation in the 20 countries that use the euro fell to 1.9 per cent in May from 2.2 per cent in April, clearing the way for more rate cuts from the European Central Bank to support growth in the face of U.S. President Donald Trump's tariff offensive.
Lower energy prices helped bring consumer prices in May to below the ECB's 2 per cent target for the first time since September. Increasing signs that inflation is back under control after a painful outbreak in 2021-23 leaves room for the ECB to turn its attention to worries about the impact of a slew of new import taxes on EU goods in the US that threaten to slow Europe's export-oriented economy.
Reductions in the ECB's benchmark rate, currently at 2.25 per cent, lower borrowing costs throughout the economy, making it easier to buy things on credit and stimulating economic activity and investment. Higher rates combat inflation, but for the moment that battle appears to have been won.
The ECB's rate-setting council meets on Thursday under bank President Christine Lagarde to determine the next step on rates. Analysts expect a cut of a quarter percentage point and for Lagarde to indicate that at least one more cut is possible at future meetings.
Trump has raised tariffs on steel, aluminum and autos from almost all trading partners to 25 per cent, and has now said he will raise the rate to 50 per cent on steel, as well as proposing a 20 per cent tariff on all European Union goods. That last tariff has been paused ahead of a July 14 deadline pending negotiations with EU officials. Worries about the impact of tariffs on growth led the European Union's executive commission to cut its growth forecast for the 20 euro member countries this year to 0.9 per cent from 1.3 per cent in its fall 2024 forecast.
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Globe and Mail
37 minutes ago
- Globe and Mail
The number of Americans filing for jobless benefits last week rises to highest level in eight months
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Toronto Sun
40 minutes ago
- Toronto Sun
Afghans who helped America during war plead for exemption from Trump travel ban
Published Jun 05, 2025 • 2 minute read President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. Photo by Mark Schiefelbein / AP ISLAMABAD — Afghans who worked for the U.S. during its war against the Taliban urged President Donald Trump Thursday to exempt them from a travel ban that could lead to them being deported to Afghanistan, where they say they will face persecution. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Their appeal came hours after Trump announced a U.S. entry ban on citizens from 12 countries, including Afghanistan. It affects thousands of Afghans who fled Taliban rule and had been approved for resettlement through a U.S. program assisting people at risk due to their work with the American government, media organizations, and humanitarian groups. But Trump suspended that program in January, leaving Afghans stranded in several locations, including Pakistan and Qatar. Pakistan, meanwhile, has been deporting foreigners it says are living in the country illegally, mostly Afghan, adding to the refugees' sense of peril. 'This is heartbreaking and sad news,' said one Afghan, who worked closely with U.S. agencies before the Taliban returned to power in 2021. He spoke on condition of anonymity to discuss the issue, fearing Taliban reprisals and potential arrest by Pakistani authorities. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. He said the travel ban on an estimated 20,000 Afghans in Pakistan could encourage the government to begin deporting Afghans awaiting resettlement in the U.S. 'President Trump has shattered hopes,' he told The Associated Press. He said his life would be at risk if he returned to Afghanistan with his family because he previously worked for the U.S. Embassy in Kabul on public awareness campaigns promoting education. 'You know the Taliban are against the education of girls. America has the right to shape its immigration policy, but it should not abandon those who stood with it, risked their life, and who were promised a good future.' Another Afghan, Khalid Khan, said the new restrictions could expose him and thousands of others to arrest in Pakistan. This advertisement has not loaded yet, but your article continues below. He said police had previously left him and his family alone at the request of the U.S. Embassy. 'I worked for the U.S. military for eight years, and I feel abandoned. Every month, Trump is making a new rule,' said Khan. He fled to Pakistan three years ago. 'I don't know what to say. Returning to Afghanistan will jeopardize my daughter's education. You know the Taliban have banned girls from attending school beyond sixth grade. My daughter will remain uneducated if we return.' He said it no longer mattered whether people spoke out against Trump's policies. 'So long as Trump is there, we are nowhere. I have left all of my matters to Allah.' There was no immediate comment on the travel ban from the Taliban-run government. Pakistan previously said it was working with host countries to resettle Afghans. Nobody was available to comment on Trump's latest executive order. NHL Columnists Columnists Sunshine Girls Sunshine Girls
Winnipeg Free Press
41 minutes ago
- Winnipeg Free Press
Changing the channel
Opinion If stress and anger shorten one's life, U.S. President Donald Trump has reduced mine significantly. His appalling antics over the past months and years sometimes have even driven me to avoid the daily news. I suppose that's akin to putting my head in the sand. If I'm not aware of it, I won't worry about it. But that approach hasn't worked, so I've decided to try something different. I'm going to think about the positive effects Trump might be having on Canada. My plan is to no longer agonize over his economic assault, the risks of crossing our southern border, and his threats to annex us into the American nightmare. So, here I go, thinking positive thoughts: Because of Trump… Some Canadian sectors might see benefits. Industry conventions might move northward so attendees can avoid the States. The 'Buy Canada' trend could help local businesses. Local tourism might benefit as Canadians stay close to home and international vacationers avoid our neighbour. Our ability to recruit medical practitioners, research scientists, and others could experience a notable boost. Maybe we'll even start producing our own beverage cans. We might significantly improve our military capabilities. There might, finally, be sufficient popular support and political courage to move our defence forces from being well intentioned to impressively capable. We're already planning to diversify our international trade. Being so thoroughly dependent on the U.S. for commercial goods has never been wise. Neither has our reliance on the States as our primary supplier of military gear. An especially satisfying improvement could come from enabling more inter-provincial trade. That change could be a direct result of our Trump-induced, increased national unity. If that unity morphs into a shared vision of Canada's future, perhaps some positive national projects could move ahead. Among my favourites would be a national energy grid that facilitates the development and cross-Canada sharing of our abundant power-generation capabilities. Of course, that grid must favour and promote clean energy sources. Given our national expertise and natural resources, we might collectively develop crucial industries that the world needs to combat climate change. We could learn to grow more of our own food, thereby avoiding the pollution-intensive transportation needed to import it. We could mine rare-earth minerals, use our energy resources to produce hydrogen fuel, and use oil industry expertise and equipment to develop large-scale geothermal projects. We could produce and use our own electric car. We already produce electric buses, but we could expand that dramatically. We could ramp up our own solar and wind power-generation industries. As climate-change pressure mounts, we might even revive our nuclear-power capabilities. And there could be more. History has shown that in times of exceptional stress, a country's determination can foster amazing innovation. It happened in the Second World War. It happened when the Americans were worried by Soviet technology and raced toward landing on the moon. It's happening now as Ukraine creatively adapts drone technology to protect itself from Russia. In Canada, necessity could become the mother of invention. New industries might emerge that are currently difficult to foresee. I'll add one more benefit. Watching Trump's rise to power and his subsequent actions might be educational. People in Canada, in the United States, and elsewhere might finally be realizing what a right-wing, populist government can become. They might also be learning how much truth matters and how dangerous a fact-challenged politician can be. However, those thoughts might be stretching my optimism a bit far. For the positive changes to occur, a big challenge will be to sustain our national unity and motivation. That might require a creative and continual promotional campaign. It will certainly require sharing the benefits equitably across Canada. It might even need a system of proportional representation for electing our parliamentary representatives. That's so a minority of voters could no longer get majority control of Parliament — as is readily permitted by our frustrating, first-past-the-post system — and potentially impede the progress craved by most Canadians. Donald Trump's erratic, irrational behaviour could be providing the impetus we need to free our country from its precarious attachment to the United States and to make our own bold moves forward. Enduring the angst and seizing the opportunity will require impressively effective leadership and our collective determination. A healthy dose of optimism could be important, too. Calvin Brown writes from his home in the RM of St. Andrews.
