Trump Endorses Takaichi as Canada Pivots from US Amidst Tech Spending and Bitcoin Drop
Donald Trump endorsed Sanae Takaichi, Japan's Prime Minister, ahead of a snap election scheduled for Sunday, according to a Truth Social post on Thursday. The endorsement came as Canada unveiled a plan to bolster its auto industry and reduce reliance on the U.S., while Amazon shares tumbled following an announcement of increased spending on artificial intelligence (AI) projects. Simultaneously, the price of Bitcoin fell to its lowest level since October 2024, despite Trump's previous support for cryptocurrency.
Trump described Takaichi as "a strong, powerful, and wise leader... one that truly loves her country," adding, "She will not let the people of Japan down!" While it is rare for U.S. presidents to publicly back candidates in foreign elections, Trump has done so before, endorsing Argentina's Javier Milei and Hungary's Viktor Orban most recently, according to BBC World.
Meanwhile, Prime Minister Mark Carney announced new measures to support Canada's car industry and its electric vehicle transition at the Martinrea auto parts manufacturing facility in Woodbridge, Ontario, according to BBC Business. The initiatives, also announced on Thursday, include financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs. These measures are intended to reduce Canada's reliance on the U.S., following Trump's imposition last year of a 25% tariff on Canadian cars and car parts.
In the technology sector, Amazon announced plans to spend $200 billion this year on building out its business, with a significant portion allocated to AI, according to BBC Business. This represents a substantial increase from the $125 billion spent last year. However, investors did not react favorably, as Amazon's shares fell by more than 11% in after-hours trading. Amazon's spending plans are now the most aggressive among Big Tech companies, including Meta, Google, and Microsoft, which collectively expect to spend around $650 billion on AI and related projects.
The price of Bitcoin has fallen to $66,000, its lowest level since October 2024, according to BBC Business. This represents a 24% decrease since the start of the year. The drop occurred despite Trump's previous outspoken support for cryptocurrencies and promises to ease legislation on the industry. Bitcoin had previously reached an all-time high of $122,200 in October.
In other news, the U.S. launched an effort to form a trade zone for critical minerals, key to manufacturing smartphones and weapons, to counter China's dominance in the industry, according to BBC Technology. The State Department hosted the first Critical Minerals Ministerial event on Wednesday, attended by countries and organizations including the UK, European Union, Japan, India, South Korea, Australia, and the Democratic Republic of Congo. Delegates discussed the availability of and access to minerals crucial to manufacturing.
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