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1. International parties respond to US metals tariff
President Donald Trump's steel and aluminum import tariff of 25% went into effect Wednesday, and the world responded accordingly.
After previously announcing retaliatory tariffs on electricity imported to the U.S., Ontario, Canada's Premier Doug Ford backed off on this promise. Trump, who had vowed to double tariffs to 50% following Ford's announcement, also backed down after Ford conceded. For now, Canada will face the same 25% tariff on metals, The New York Times reports. However, a senior Canadian government official said Wednesday that the country plans to enact retaliatory tariffs valued at 29.8 billion Canadian dollars ($20.7 billion), the AP reports.
Meanwhile, the European Union responded with its own retaliatory tariffs on the U.S. on Wednesday. The EU's tax will span more than just metals imported from the U.S., including textiles, home appliances and agricultural goods, and will affect goods worth about €26 billion ($28 billion), the Associated Press reports.
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” European Commission President Ursula von der Leyen said.
Australia, which also is expected to be affected by the new tariffs, will not implement their own taxes in response, the country's Prime Minister Anthony Albanese said, calling the U.S. trade actions "unjustified."
2. Inflation cools slightly in February
The U.S. Bureau of Labor Statistics reported on Wednesday that inflation in February was not as bad as expected, according to a CNBC article.
The consumer price index found last month's inflation rate up a seasonally adjusted 0.2% for the month. This marks the annual inflation rate at 2.8%, per the report.
"Economists surveyed by Dow Jones had been looking for 0.3% increases on both headline and core, with respective annual rates of 2.9% and 3.2%, meaning that all of the rates were 0.1 percentage point less than expected," the article reads.
3. Airline CEOs predict slower domestic travel
Three U.S. airline CEOs have adjusted their earnings forecasts, pointing to slower domestic travel activity, CNBC reports. Delta, American and Southwest have cut their first-quarter profit and sales estimates this week.
In Delta's outlook filing, the airline said its outlook was “impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand.”
American also pointed to a softness in the market, as well as the fatal crash of one of its regional jets and an Army helicopter in Washington, D.C., in January. On Tuesday, the National Transportation Safety Board recommended restricting helicopter flights around the D.C. airport, citing an "intolerable risk to aviation safety," the BBC reports.
4. Hotel operators, owners call for better alignment with brands on renovations
Hotel operators and owners recently weighed in on a lack of alignment with brands when it comes to renovation efforts, Hotel News Now's Bryan Wroten reports.
During the latest meeting of the Lodging Industry Investment Council, executives from hotel ownership and management companies said they want brand partners to focus on capital projects that generate a return for owners and invest more in technology to improve guest engagement.
Aperture Hotels CEO Charles Oswald cautioned that taking a one-size-fits-all approach and saying because something is old it should be replaced isn’t helpful, adding that hotel brands should instead look at the guidelines and see how the condition of the property compares.
5. Cruise lines sail toward more on-shore developments
In December, Royal Caribbean is planning to open a private beach club in the Bahamas, following its success of its Bahamian private island, CocoCay. The $165 million project will have three swimming pools, a large swim-up bar and themed beach zones, The New York Times reports.
The announcement is the latest in a trend of cruise lines investing in on-shore developments. Carnival is building a beach club called Celebration Key, slated to open in July on Grand Bahama Island. Royal Caribbean is developing two beach destinations in Mexico that will open in 2026 and 2027, according to NYT.
Royal Caribbean's Bahamas project faces backlash from the local residents of the island who don't appreciate being priced out by foreign investors and see these types of venues detracting from opportunities for local tourism vendors.
For its part, Royal Caribbean partnered with the Bahamian government to give Bahamians a 49% equity ownership stake in the club, with an additional 1% of gross profits going toward improving local attractions, per the article.