Accounting
Canada, Mexico hit back at Trump tariffs, China vows action
Canada and Mexico vowed to hit back at the U.S. after President Donald Trump followed through on threats to impose 25% tariffs on imports of their goods, instigating a trade war that’s set to reshape global supply chains.
Canadian Prime Minister Justin Trudeau said the country will impose 25% tariffs against C$155 billion ($106 billion) of U.S. goods, while Mexican President Claudia Sheinbaum also pledged retaliation. China vowed “corresponding countermeasures” to Trump’s 10% levy on Chinese products, without immediately announcing any new tariffs.
A tit-for-tat tariff fight among the world’s major economies — Trump has
“It marks a new phase of the trade war, which targets multiple countries, including allies and China, to meet US economic and geopolitical policy goals,” said Gary Ng, senior economist at Natixis SA.
Bloomberg Economics estimated that Trump’s move will raise the average U.S. tariff rate to 10.7% from near 3% currently and “deal a significant supply shock” to the domestic economy. U.S. gross domestic product would suffer a 1.2% hit and a widely watched gauge of core inflation would increase by 0.7%.
Emergency declared
In an executive order
The responses from three of America’s biggest trading partners came shortly after he signed orders for the U.S. tariffs on Saturday. The measures take effect at 12:01 a.m. on Tuesday, leaving only a small window for last-minute negotiations.
The risk of a trade war has helped fuel a rally in the dollar since Trump’s re-election on the assumption tariffs would fuel inflation and thus support U.S. interest rates, as well as the greenback’s safe-haven status.
Trump’s threats last week drove the Bloomberg Dollar Spot Index up nearly 1%, its steepest climb since mid-November. The Mexican peso and the Canadian dollar each slumped.
WTO case
China’s Commerce Ministry
Trump’s tariffs deliver on a warning to the three countries for what he says is a failure to prevent the flow of undocumented migrants and illegal drugs, though he had also teased the possibility of a reprieve if Mexico and Canada took steps to address his concerns.
The Republican’s orders also included retaliation clauses that would increase US tariffs if the countries respond in kind. The new measures will be on top of existing trade levies on those countries.
Energy imports from Canada, including oil and electricity, will be spared from the full 25% levy and will face a 10% tariff. White House officials said that was intended to minimize upward pressure on gasoline and home-heating oil prices.
Trump’s move is explosive in scale and goes well beyond his first-term tariffs. Steep tariffs will raise the cost of key goods like food, housing and gasoline for Americans, while the overall fallout threatens to spill widely across the countries, which are the largest three sources of U.S. imports, accounting for almost half of total volume.
“We’d expect big tariffs to have big impacts — and what Trump has just announced is huge,” wrote Nicole Gorton-Caratelli, Maeva Cousin and Tom Orlik of Bloomberg Economics.
Trump campaigned on a platform of extensive tariffs and he followed through, though dialing back planned measures on China while increasing them on his neighbors. Most mainstream economists and many business groups
Sweeping measures
The move represents yet another instance where Trump is testing the bounds of his emergency authorities under federal law — already a hallmark of his second term in the White House.
The tariff orders invoke the International Emergency Economic Powers Act and expand an earlier declaration to address what he calls a “threat to the safety and security of Americans.”
Markets have been gripped by uncertainty as they awaited Trump’s decision on the tariffs, and there are now looming questions about how the levies will impact stocks, as well as companies and consumers.
Automakers such as General Motors Co., Ford Motor Co. and Stellantis NV, which have global supply chains and massive exposure to Mexico and Canada, could see significant swings. Industry groups warned that because of the tight integration of U.S. and Canadian manufacturing, the imminent tariffs could have a steep impact on the industry.
“The imposition of tariffs will be detrimental to American jobs, investment and consumers,” Jennifer Safavian, the president of Autos Drive America, said in an emailed statement. “U.S. automakers would be better served by policies that reduce barriers for manufacturers, ease regulations that hinder production and create greater export opportunities.”
Trump’s actions also closed a loophole that exempted packages worth less than $800 from tariffs. Extinguishing the so-called de minimis exemption for small parcels sent to the U.S. from the three countries could significantly impact online retail — though the scope of the measure wasn’t immediately clear. While such changes would most directly affect Chinese retailers, American consumers who benefit from those platforms’ cheap goods would likely suffer, too.
The U.S. loses a tremendous amount of tariff revenue by using the exemption, a U.S. official told reporters on a briefing call.
Parts of the U.S., including the Pacific Northwest and Northeast U.S., are deeply reliant on electricity or gas flows from Canada. Under an energy emergency Trump declared on his first day in office, refined gasoline and diesel, uranium, coal, biofuels and critical minerals were all given the lower 10% tariff.
Oil industry advocates, however, have warned against even a 10% increase in the cost of crude inputs into Midwestern refineries that have few near-term options to substitute with U.S. supplies.
Democrats wasted no time in pouncing on messaging around how the trade moves could impact families’ budgets. “These tariffs will be devastating for American consumers,” Congressman Greg Stanton, an Arizona Democrat, and some 40 colleagues wrote in a Saturday
“Trump’s tariffs on Mexico and Canada will make your life more expensive,” Stanton said more bluntly in a separate
Retaliatory steps
Mexico was strident in rejecting the Trump administration’s allegation that it had alliances with drug traffickers, and suggested the U.S. government curb demand and use of narcotics internally.
“Drug use and distribution is in your country and that is a public health problem that you have not addressed,” Mexican President Sheinbaum
Mexico will also implement non-tariff measures, while calling for cooperation with the U.S. on topics including security and addressing the fentanyl public health crisis, she said.
The Mexican economy could enter a “severe recession” if Trump’s tariffs remain in place for more than a quarter, according to Gabriela Siller, director of economic analysis at Grupo Financiero Base. “If the tariffs last several months, the Mexican peso depreciation could reach record highs.”
Canada’s Trudeau said American beer, wine, food and appliances will be among the many items subject to Canadian tariffs, and his country is also considering measures related to critical minerals. He encouraged Canadians to buy locally made products and skip U.S. vacations.
The orders enacting the tariffs do create a process to remove them. Homeland Security Secretary Kristi Noem can inform Trump if the countries have taken adequate steps to alleviate concerns over migration and drugs, and the tariffs are removed if he agrees.
It’s not clear how realistic a prospect that is. Canada, for instance, already took steps to tighten its border to appease Trump, and it didn’t deter him.
In a speech Saturday night, Trudeau invoked Canada’s long history of partnership with the U.S. “We have fought and died alongside you,” he said, citing World War II, the Korean War and the recent war in Afghanistan.
Beginning of talks
“Together, we’ve built the most successful economic, military and security partnership the world has ever seen,” Trudeau said, urging Trump to partner with Canada on their shared challenges.
Although the European Union wasn’t among the targets of Trump’s executive actions on trade over the weekend, he’s often complained about what he sees as unfair treatment of American exports such as cars sold in Europe.
On Sunday, German Finance Minister Joerg Kukies cautioned against over-reacting.
“One should not react in panic to the first decision, but rather see it as the beginning of negotiations, not the end,” Kukies told German business representatives in Riyadh at the start of a trip aimed at improving trade ties in the Middle East.
Jody Padar, an author and speaker known as “The Radical CPA,” and Katie Tolin, a growth strategist for CPAs, together launched a training and technology platform called XcelLabs.
XcelLabs provides solutions to help accountants use artificial technology fluently and strategically. The Pennsylvania Institute of CPAs and CPA Crossings joined with Padar and Tolin as strategic partners and investors.
“To reinvent the profession, we must start by training the professional who can then transform their firms,” Padar said in a statement. “By equipping people with data and insights that help them see things differently, they can provide better advice to their clients and firm.”
The platform includes XcelLabs Academy, a series of educational online courses on the basics of AI, being a better advisor, leadership and practice management; Navi, a proprietary tool that uses AI to help accountants turn unstructured data like emails, phone calls and meetings into insights; and training and consulting services. These offerings are currently in beta testing.
“Accountants know they need to be more advisory, but not everyone can figure out how to do it,” Tolin said in a statement. “Couple that with the fact that AI will be doing a lot of the lower-level work accountants do today, and we need to create that next level advisor now. By showing accountants how to unlock patterns in their actions and turn client conversations into emotionally intelligent advice, we can create the accounting professional of the future.”
“AI is transforming how CPAs work, and XcelLabs is focused on helping the profession evolve with it,” PICPA CEO Jennifer Cryder said in a statement. “At PICPA, we’re proud to support a mission that aligns so closely with ours: empowering firms to use AI not just for efficiency, but to drive growth, value and long-term relevance.”
The accountant the world urgently needs has evolved far beyond the traditional role we recognized just a few years ago.
The transformation of the accounting profession is not merely an anticipated change; it is a pressing reality that is currently shaping business decisions, academic programs and the expected contributions of professionals. Yet, in many areas, accounting education stubbornly clings to outdated, overly technical models that fail to connect with the actual demands of the market. We must confront a critical question: If we continue to train accountants solely to file tax reports, are we truly equipping them for the challenges of today’s world?
This shift in mindset extends beyond individual countries or educational systems; it is a global movement. The recent announcement of the
The CIMA/CGMA proposal for 2026 is not just a curriculum update; it is a powerful manifesto. This new program positions analytical thinking, strategic business partnering and technology application at the core of accounting education. It unequivocally highlights sustainability, aligning with IFRS S1 and S2, and expands the accountant’s responsibilities beyond mere numbers to encompass conscious leadership, environmental impact and corporate governance.
The current changes in the accounting profession underscore an urgent shift in expectations from both educators and employers. Today, companies of all sizes and industries demand accountants who can do far more than interpret balance sheets. They expect professionals who grasp the deeper context behind the numbers, identify inconsistencies, anticipate potential issues before they escalate into losses, and act decisively as a bridge between data and decision making.
To meet these expectations, a radical mindset shift is essential. There are firms still operating on autopilot, mindlessly repeating tasks with minimal critical analysis. Likewise, many academic programs continue to treat accounting as purely a technical discipline, disregarding the vital elements of reflection, strategy and behavioral insight. This outdated approach creates a significant mismatch. While the world forges ahead, parts of the accounting profession remain stuck in the past.
The consequences of this shift are already becoming evident. The demand for compliance, transparency and sustainability now applies not only to large corporations but also to small and mid-sized businesses. Many of these organizations rely on professionals ill-equipped to drive the necessary changes, putting both business performance and the reputation of the profession at risk.
The positive news is that accountants who are ready to thrive in this new era do not necessarily need additional degrees. What they truly need is a commitment to awareness, a dedication to continuous learning, and the courage to step beyond their comfort zones. The future of accounting is here, and it is firmly rooted in analytical, strategic and human-oriented perspectives. The 2026 curriculum is a clear indication of the changes underway. Those who fail to think critically and holistically will be left behind.
In contrast, accountants who see the big picture, understand the ripple effects of their decisions, and actively contribute to the financial and ethical health of organizations will undeniably remain indispensable, anywhere in the world.
Congressional Republicans are siding with Donald Trump in the messy divorce between the president and Elon Musk, an optimistic sign for eventual passage of a tax cut bill at the root of the two billionaires’ public feud.
Lawmakers are largely taking their cues from Trump and sticking by the $3 trillion bill at the center of the White House’s economic agenda. Musk, the biggest political donor of the 2024 cycle, has threatened to help primary anyone who votes for the legislation, but lawmakers are betting that staying in the president’s good graces is the safer path to political survival.
“The tax bill is not in jeopardy. We are going to deliver on that,” House Speaker Mike Johnson told reporters on Friday.
“I’ll tell you what — do not doubt, don’t second guess and do not challenge the President of the United States Donald Trump,” he added. “He is the leader of the party. He’s the most consequential political figure of our time.”
A fight between Trump and Musk exploded into public view this week. The sparring started with the tech titan calling the president’s tax bill a “disgusting abomination,” but quickly escalated to more personal attacks and Trump threatening to cancel all federal contracts and subsidies to Musk’s companies, such as Tesla Inc. and SpaceX which have benefitted from government ties.
Republicans on Capitol Hill, who had — until recently — publicly embraced Musk, said they weren’t swayed by the billionaire’s criticism that the bill cost too much. Lawmakers have refuted official estimates of the package, saying that the tax cuts for households, small businesses and politically important groups — including hospitality and hourly workers — will generate enough economic growth to offset the price tag.
“I don’t tell my friend Elon, I don’t argue with him about how to build rockets, and I wish he wouldn’t argue with me about how to craft legislation and pass it,” Johnson told CNBC earlier Friday.
House Budget Committee Chair Jodey Arrington told reporters that House lawmakers are focused on working with the Senate as it revises the bill to make sure the legislation has the political support in both chambers to make it to Trump’s desk for his signature.
“We move past the drama and we get the substance of what is needed to make the modest improvements that can be made,” he said.
House fiscal hawks said that they hadn’t changed their prior positions on the legislation based on Musk’s statements. They also said they agree with GOP leaders that there will be other chances to make further spending cuts outside the tax bill.
Representative Tom McClintock, a fiscal conservative, said “the bill will pass because it has to pass,” adding that both Musk and Trump needed to calm down. “They both need to take a nap,” he said.
Even some of the House bill’s most vociferous critics appeared resigned to its passage. Kentucky Representative Thomas Massie, who voted against the House version, predicted that despite Musk’s objections, the Senate will make only small changes.
“The speaker is right about one thing. This barely passed the House. If they muck with it too much in the Senate, it may not pass the House again,” he said.
Trump is pressuring lawmakers to move at breakneck speed to pass the tax-cut bill, demanding they vote on the bill before the July 4 holiday. The president has been quick to blast critics of the bill — including calling Senator Rand Paul
As the legislation worked its way through the House last month, Trump took to social media to criticize holdouts and invited undecided members to the White House to compel them to support the package. It passed by one vote.
Senate Majority Leader John Thune — who is planning to unveil his chamber’s version of the bill as soon as next week — said his timeline is unmoved by Musk.
“We are already pretty far down the trail,” he said.
Mastering Bookkeeping Tasks During Peak Business Seasons
Forgotten 401(k) fees cost workers thousands in retirement savings
‘What’s the point’ of saving money
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
Are American progressives making themselves sad?
-
Blog Post1 week agoCommon Bookkeeping Challenges and Solutions for Small Businesses
-
Economics1 week agoWhy the president must not be lexicographer-in-chief
-
Finance1 week agoThis is why Jamie Dimon is so gloomy on the economy
-
Economics1 week agoAmerica has found a new lever to squeeze foreigners for cash
-
Economics1 week agoWhy would Texas Republicans object to conservative, pro-family developers?
-
Personal Finance1 week agoU.S. birth rate drop outpaces policy response, raising future concerns
-
Accounting1 week agoSteinhoff fraud trial moved to South Africa’s high court
-
Economics1 week agoGerman inflation May 2025