Already frenetic U.S.-Canada trade negotiations were moving at even greater speed today, again whipsawing markets.

• Why it matters: Today's volley of threats was an escalation — both of the trade war with a top U.S. trading partner and of Trump's increasingly serious rhetoric about trying to make Canada part of the U.S.

Catch up quick: Ontario officials yesterday, citing U.S. tariffs, announced a 25% surcharge on electricity coming into the U.S.

• In response, President Trump this morning in a Truth Social post said he would double tariffs on Canadian steel and aluminum imports tomorrow, bringing them to 50%.
• He also warned Canada to drop other existing tariffs, including on U.S. dairy, or he would respond with retaliatory U.S. tariffs that would "permanently shut down the automobile manufacturing business in Canada."
• And Trump insisted that the only solution that "makes sense" to end the countries' imbalances was for Canada to become the U.S.'s fifty 51st state.

Market impact: U.S. stocks, which had been attempting an early rally after Monday's washout, promptly turned south.

Hours later, Ontario Premier Doug Ford — citing a "productive" conversation with U.S. Commerce Secretary Howard Lutnick — suspended the planned 25% electricity surcharge ahead of renewed trade talks slated for tomorrow.

• The White House later confirmed that Trump was backing off his own tariff threat from this morning.

Stocks rebounded but couldn't hold momentum, falling in the last hour of trading. For many, the pace has been dizzying.

• "Now obviously there's a headline every 15 minutes — that is a bit scary," Frank Funds portfolio manager Brian Frank told Bloomberg.

What we're watching: The S&P 500 is now down 9.3% from its level on Feb. 19, sitting on the verge of a correction.

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President Trump's new FTC chair Andrew Ferguson told a group of big business CEOs today that he wouldn't let proposed deals "die on the vine," but warned them not to expect automatic approval for big mergers.

What he's saying: "If we think conduct or merger is going to hurt Americans economically, I'm taking you to court," Ferguson told a gathering of Yale's CEO Caucus in Washington this morning, according to a recording of his remarks obtained by Axios.

• "But if we don't, we'll get the hell out of the way," he said in the closed-door meeting, which included JPMorgan Chase's Jamie Dimon, Goldman Sachs' David Solomon and Dell's Michael Dell.

The big picture: Bankers, dealmakers and CEOs are looking for clarity from Ferguson on how he will deviate, if at all, from the strict scrutiny that former FTC chair Lina Khan pursued under President Biden.

• Ferguson: "I want to be really clear about something. This isn't the Bush administration."

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🏀 Dick's Sporting Goods posted its best-ever holiday season, but the company's 2025 profit projection was lower than expected. The retailer said tariffs could hurt consumer spending. (CNBC)

✈️ Delta, Southwest and American, three of the largest U.S. airlines, have cut their revenue or earnings forecasts since Monday's market close, with all citing weakening consumer demand. (Axios)

• Meanwhile, Southwest is dialing back its free checked bag policy. (Axios)

🚙 Nissan CEO Makoto Uchida is leaving the company in a sudden change, with chief planning officer Ivan Espinosa taking over. The Japanese automaker, which is reeling from declining sales and profit, is seeking a new path forward after backing out of talks to combine with rival Honda. (AP)

"I'm going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American."

A few hours later, there were five Teslas on the White House grounds and a livestreamed event on X, shot by the White House deputy chief of staff.

• Trump, who briefly got into the front seat of a red sedan with Musk, told reporters he would write a check for the vehicle, AP reported.
• "It's a great product," he said, adding, "we have to celebrate" Musk.

Context: Musk's political alliance with Trump — and his leadership of the budget-slashing Department of Government Efficiency — has seemingly scared off some prospective buyers.