US markets continued their sharp decline as recession fears intensified amid Trump's expanding trade conflicts. The selloff deepened after Trump doubled tariffs on Canadian steel and aluminum to 50%, explicitly responding to Ontario's 25% electricity surcharge while suggesting Canada should join the US as its 51st state. By evening, Ontario backed down, suspending the electricity surcharge.
Morning reports detailed Moscow facing its largest drone barrage of the war, with Russia claiming 337 Ukrainian drones intercepted. By afternoon, Ukraine-US peace talks in Saudi Arabia yielded surprising progress, with Ukraine accepting a 30-day ceasefire proposal. The US immediately announced resumption of military aid and intelligence sharing that had been frozen since last week.
House Republicans narrowly passed a government funding bill to avert shutdown, while the Education Department prepared to lay off approximately half its workforce—about 2,100 staff—as part of Musk-led downsizing efforts.