America’s annual inflation rate fell to 2.8% in February, below forecasts of 2.9%. The core rate, which excludes volatile food and energy prices, was 3.1%. The figures raised expectations that the Federal Reserve would pursue more aggressive interest-rate cuts. However, the data predates most of Donald Trump’s new tariffs, raising concerns that price pressures could rise further.
Russia said it was waiting to hear from America about a proposal for an “immediate” 30-day ceasefire in Ukraine. America agreed the idea in principle with Ukraine during talks in Saudi Arabia on Tuesday; it also said it would “immediately” unblock the flow of American weapons and intelligence to the embattled country. A Kremlin spokesperson said Russia needed “detailed information” about the talks.
Canada announced $21bn in tariffs on American goods in response to Mr Trump’s steel and aluminum duties, which came into effect on Wednesday. On making the announcement Dominic LeBlanc, Canada’s finance minister, called America’s tariffs “unjustified”. The move follows the European Union’s decision to introduce $28bn in retaliatory tariffs. Shares in American automakers fell on the news.
Meanwhile the Bank of Canada cut interest rates by a quarter of a percentage point, to 2.75%, while warning that Mr Trump’s tariffs had caused a “new crisis”. The central bank, which has eased rates seven times in nine months, said that uncertainty was already hurting investment. But it said it will proceed cautiously with further cuts, balancing inflation risks with weak growth.
Northvolt, a Swedish battery-maker once seen as Europe’s best hope to rival Chinese firms, filed for bankruptcy after failing to secure $1bn in new financing. The company had raised $15bn from investors including Volkswagen and Goldman Sachs since its founding in 2016. But rapid expansion and high costs drained its funds. The firm’s collapse is a major blow to Europe’s electric-vehicle ambitions.
A court in Georgia sentenced Mikheil Saakashvili to nine more years in prison on embezzlement charges. The country’s former president, who calls the charges politically motivated, was already serving a six-year prison term. Mr Saakashvili pursued strong relations with the West during a nine-year presidency, before losing power to Georgian Dream, an increasingly Kremlin-friendly party, in 2013.
Britain’s financial regulators scrapped plans to impose stricter diversity, equity and inclusion rules on firms, citing concerns over costs. The government is pressurising such agencies to prioritise economic growth. The Financial Conduct Authority also abandoned proposals to publicly identify firms under investigation; industry groups opposed the move, arguing it could damage companies before wrongdoing is proven.
Figure of the day: 1trn yuan ($140bn), the size of the venture-capital fund that China’s government wants to set up for tech-focused investment. Read the full story.
Donald Trump’s return to the presidency has brought exceptional changes to American politics—with consequences for the rest of the world, too. Read The US in brief, a daily update of the domestic political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.