Trump Threatens to Increase Canada Tariffs over Wildfire Smoke Pollution

Light reflects off the water as the sun sets through wildfire smoke over Edmonton, Alberta, Friday, July 17, 2026. (AP Photo/Andy Bao)
Light reflects off the water as the sun sets through wildfire smoke over Edmonton, Alberta, Friday, July 17, 2026. (AP Photo/Andy Bao)
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Trump Threatens to Increase Canada Tariffs over Wildfire Smoke Pollution

Light reflects off the water as the sun sets through wildfire smoke over Edmonton, Alberta, Friday, July 17, 2026. (AP Photo/Andy Bao)
Light reflects off the water as the sun sets through wildfire smoke over Edmonton, Alberta, Friday, July 17, 2026. (AP Photo/Andy Bao)

US President Donald Trump threatened on Friday a tariff increase on Canada to cover the cost of smoke pollution from wildfires that have choked large parts of the United States.

Dense wildfire smoke billowing down from Canada and northern Minnesota has set off unhealthy air quality alerts across the US.

As of Saturday, there were 937 active fires in Canada, most of which were burning out of control, according to the Canadian Wildland Fire Information System.

"This is Willful Negligence, and becoming a yearly occurrence, costing the United States Billions of Dollars," Trump said on Truth Social, adding that the "cost of this pollution must of necessity be added to the TARIFFS Canada is currently paying."

Trump accused Canada of "not properly maintaining" their forests, failing to carry out "basic Forest Management and Debris Removal."

AFP quoted him as saying he would call Prime Minister Mark Carney "to find out what they are going to do about" the smoke.

Canada's emergency management minister Eleanor Olszewski said Canada and the United States were in "constant contact," pointing toward their "long history of working together to fight wildfires."

She added that Canada has invested $12 billion in forests sustainability and fire prevention since 2020.

Detroit, in the US Midwest, remained the most polluted city in the world on Friday, according to tracker IQAir. Washington and Chicago weren't far behind, and officials warned against spending unnecessary time outside.

The pollution triggered concern over the World Cup final on Sunday in an open stadium in New Jersey.

In New Jersey and New York, the metro area was experiencing air that could be unhealthy for sensitive groups, an improvement after smog on Thursday made the Manhattan skyline barely visible.

But the National Weather Service (NWS) warned the smoke may thicken overnight into Saturday morning.

Tournament organizers are "monitoring closely," White House World Cup task force executive director Andrew Giuliani told a briefing.

Peter Mullinax, a meteorologist for NWS, told AFP that winds over the Great Lakes could push more smoke into the Northeast, which could keep skies hazy.

He said forecasts for that region do expect some improvement.

"I don't believe that this should be as impactful as if you might be playing a game today," Mullinax said.

The issue for Sunday's game, said Joel Dreessen, an air quality forecaster for the state of Maryland, is whether more smoke spills south after weekend storm systems.

"Some of the models are starting to indicate that we'll start to pull down some smoke," he told AFP.

In cities across the Midwest and Northeast, people wore masks outdoors to filter out the dangerous air. In New York, libraries and train stations were handing them out for free.

Chris Carlsten, who studies the health impacts of fire smoke at the University of British Columbia, told AFP that the fine pollution particles from wildfires are particularly impactful on the lungs, whereas vehicle pollution skews slightly towards heart impacts.

He said plumes can be filled with wood and vegetation debris but also paint, plastic or metal.

And as smoke plumes travel, they undergo "photochemical aging," a series of reactions that Carlsten said "seem to make, from everything we understand in the chemistry, the aerosol more toxic."

The upper Midwest that is closer to the fires has faced especially bad air, with parts of Michigan, Minnesota and Wisconsin all recording air quality readings deep into the "hazardous" range for days.

Advocates have stressed the connection between repeated episodes of wildfire smoke and climate change.

Mark Parrington, a scientist at the Copernicus Atmosphere Monitoring Service, told AFP that climate change was providing conditions for a longer fire season, with higher surface air temperatures and lower soil moisture.

So, he explained, "when there's an ignition we see these really large-scale, persistent burning where these fires can burn for weeks and weeks at a time through summer."

The blazes were worsening on Friday in Canada, especially in Ontario, according to authorities there.

Fires in Ontario have not caused any casualties, and several remote communities have been evacuated, as dozens of aircraft battle the blazes.

Meanwhile 16 active fires were burning in the Superior National Forest, on Minnesota's border with Canada.

"The forecast for erratic weather, shifting winds and the potential for isolated damaging wind gusts and thunderstorms will be a challenge for firefighting efforts," the US forest service said.



Oman and Yemen Sign Two Cooperation Agreements on Electricity Interconnection

Two cooperation agreements were signed on electricity interconnection between Oman and Yemen (Oman News Agency)
Two cooperation agreements were signed on electricity interconnection between Oman and Yemen (Oman News Agency)
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Oman and Yemen Sign Two Cooperation Agreements on Electricity Interconnection

Two cooperation agreements were signed on electricity interconnection between Oman and Yemen (Oman News Agency)
Two cooperation agreements were signed on electricity interconnection between Oman and Yemen (Oman News Agency)

Oman and Yemen signed two joint cooperation agreements on Sunday concerning an electricity interconnection project between the power grid in Oman's Dhofar Governorate and the power grid in Yemen's Al Mahrah Governorate, as part of the two countries' cooperation in the energy sector.

According to the Oman News Agency, the two agreements include supplying electricity to several areas in Al Mahrah, including Hawf and Shahan, as a first phase, through the electricity distribution network.

The planned loads are estimated at 3 megawatts for Hawf and 5 megawatts for Shahan, eventually reaching the city of Al Ghaydah with loads of up to 50 megawatts.

The agency said the project is part of efforts to support the stability and availability of electricity supplies in the beneficiary areas of Al Mahrah by connecting them to the electricity grid in Dhofar.

It added that the agreements aim to strengthen energy infrastructure, address electricity needs in the beneficiary areas, and promote stability, development, and the advancement of the social and commercial sectors.

According to the agency, the first agreement was signed on the Omani side by Ali Shammas, CEO of Nama Dhofar Services, and on the Yemeni side by Othman Owaid, Director General of the Public Electricity Corporation in Al Mahrah Governorate.

The second agreement was signed on the Omani side by Ahmed Al Abri, CEO of Dama Power and Water Procurement Company, while the Yemeni side was represented by engineer Mohsen Ali Balhaf, Director of the Yemeni Oil Company in Al Mahrah Governorate.


Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman Reaffirm Commitment to Market Stability

FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman Reaffirm Commitment to Market Stability

FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The seven OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman met virtually on September 6, 2026, to review global market conditions and outlook, SPA reported.

The seven participating countries decided to maintain September 2026 required production for October 2026 as detailed in the table below.

The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation.

The seven OPEC+ countries will continue to hold monthly meetings to review market conditions.

The next meeting will be held on October 4, 2026.


South Korean Chips Head to Saudi Arabia: From Manufacturing to Computing

An AI chip with the South Korean flag (Reuters
An AI chip with the South Korean flag (Reuters
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South Korean Chips Head to Saudi Arabia: From Manufacturing to Computing

An AI chip with the South Korean flag (Reuters
An AI chip with the South Korean flag (Reuters

Chips are no longer merely electronic components hidden inside devices. They have become the foundation of the artificial intelligence economy, as global competition shifts from developing models to having the capacity to run them efficiently and at scale.

As demand for computing chips rises, the semiconductor industry is converging with energy, data centers, and digital infrastructure, creating a new map of technological power that extends beyond countries that manufacture chips to countries capable of hosting and operating the computing power they require.

In this race, Saudi Arabia is emerging as a growing destination for Asian chip and AI companies, driven by the availability of energy, the rapid expansion of data centers, and its ambition to build a sovereign AI ecosystem. South Korea, meanwhile, is moving to strengthen its position at the heart of the value chain by increasing government spending on chips, AI, and the infrastructure that supports both.

The decision by South Korean AI chipmaker Rebellions to establish its regional headquarters in Riyadh embodies this new intersection between those who make chips and those who have the capacity to run them. Its CEO, Sunghyun Park, told Asharq Al-Awsat that three main factors make Saudi Arabia an attractive destination for the company: high levels of energy availability, a commitment to developing AI infrastructure, and strong ambitions in sovereign AI.

Park added that the combination of these factors makes Riyadh a suitable location for Rebellions to expand its AI chip business.

The Korean company's move comes as Saudi Arabia works to expand its ability to accommodate growing demand for computing, alongside rising investment in data centers and AI projects.

Sunghyun Park, CEO of South Korean AI chipmaker Rebellions (Asharq Al-Awsat)

821 Trillion Won in Spending in 2027

South Korea proposed this week the largest government budget in its history, worth 821 trillion won ($596.92 billion) for 2027, an increase of 12.8 percent from the current year and the largest annual increase ever. A significant portion of the spending will be directed toward AI, semiconductors, and related infrastructure.

Seoul is betting on increased public spending to maintain its position in the semiconductor industry, one of the most important drivers of its economy, as global demand rises for chips used in AI applications.

The proposed budget includes 21.3 trillion won for industrial water systems, electricity grids, and logistics services needed to support the next generation of semiconductor infrastructure, along with 2.6 trillion won in a dedicated semiconductor budget.

South Korea is benefiting from the global surge in demand for high-bandwidth memory (HBM), which is used in AI systems, with Samsung Electronics and SK Hynix reporting strong profits driven by this demand.

"Sovereign AI" Connects Riyadh and Seoul

Park believes that the sovereign dimension of AI has become an important factor in countries' decisions about the technologies they use, particularly as some data and applications are tied to sensitive sectors. He said the need for AI technologies that can be managed locally is linked, among other things, to "national security," noting that sensitive information, such as nuclear energy or weapons programs, requires governments to control how AI is used, set its boundaries, and operate it entirely within the country.

This reflects one of the major trends in the AI market. Governments and companies are no longer focused solely on gaining access to advanced models. They are also concerned with where data is stored, where models are run, and who owns the infrastructure on which they depend.

Aramco and HUMAIN in the Chip Supply Chain

Rebellions already has an investment connection to Saudi Arabia. Park said Aramco invested in the company about two years ago, while Rebellions is in ongoing discussions with HUMAIN about strengthening supply chains for AI infrastructure technologies.

He said HUMAIN has become one of the most important organizations operating in AI in Saudi Arabia and globally, and that cooperation with the company could have a positive impact on the region's AI sector.

These moves come as Saudi Arabia continues to expand its digital infrastructure, including data centers. This provides companies specializing in chips and computing with a potential regional market that goes beyond simply selling components to participating in the construction of the AI ecosystem itself.

Competition Is Shifting From Chip Speed to Operating Cost

Rebellions does not believe that competition in the AI chip market will be decided solely by a chip's ability to process more tokens per second. Instead, it will increasingly come down to the long-term cost of running AI.

Park said the company is focused on developing technologies that deliver "higher AI performance at a lower economic cost," explaining that an important metric for customers is not simply the number of tokens that can be processed per second, but also "cost per token."

The company's model focuses heavily on inference rather than distributing its efforts equally between inference and model training.

Park explained that inference is gradually becoming commoditized, meaning companies and users will increasingly care about obtaining good results at a reasonable cost, regardless of the specific technology used behind the scenes.

Energy Becomes Part of the AI Equation

This factor is becoming particularly important as energy consumption associated with data centers rises. The cost of electricity and chip efficiency have become part of the economic calculation involved in expanding AI use.

This is where the calculations of Riyadh and Seoul meet from two different angles. South Korea is investing in chips, electricity grids, and the industrial infrastructure needed to maintain its position in the value chain. Saudi Arabia, meanwhile, is building the energy supply, infrastructure, and data centers needed to absorb the next wave of computing.

The AI race between countries, therefore, is no longer only about models and software. It is about who makes the chips, who owns the data centers, who can provide the energy, and who can deliver all of it at the lowest possible cost.