International Trade

Semafor reported on October 11 that China and the European Union have reached an agreement on minimum-price and quota arrangements for Chinese hybrid-vehicle exports to the bloc. The deal is the most significant compromise between Brussels and Beijing in the automotive sector since 2019 and is expected to ease trade tensions that intensified after the EU imposed countervailing duties on Chinese electric and hybrid vehicles. The framework is also expected to reopen market access for German automakers in China.

The Financial Times reported on September 16 that the European Union formally rejected Canadian Prime Minister Mark Carney’s proposed unique alliance framework, citing a lack of concrete commitments on tariffs, market access, and defense cooperation. The diplomatic setback underscores that Ottawa’s room for strategic maneuver in the face of sustained Trump administration tariffs is structurally constrained, with significant implications for Canada’s economic restructuring, North American supply chain realignment, and the future trajectory of EU external policy.

President Trump has signed executive orders banning imports of selected Canadian alcohol, dairy goods and motorbikes starting September 29, in response to Canada’s retaliatory tariffs on US goods.

Canada new round of retaliatory tariffs on US goods took effect on September 8, covering dairy products, perfumes, golf clubs, and dozens of other categories. The Canadian side openly acknowledges that the trade dispute will be a protracted one, with the US-Canada bilateral trade landscape facing deep reshaping.

China has formally requested France to repeal an environmental tax law targeting fast fashion platforms Shein and Temu, which recently took effect imposing extra fees on ultra-fast fashion goods.

Canadian Prime Minister Mark Carney declares Canada is ‘at war’ with the United States in trade matters, accusing the Trump administration of ‘attacking’ Canada’s economic sovereignty through tariffs. The statement marks a dramatic deterioration in North American trade relations.

Core Summary Trade negotiations between the United States and Canada officially collapsed on August 22, with Washington announcing new tariffs on Canadian goods. The Canadian government swiftly responded, pledging to impose matching “dollar-for-dollar” counter-tariffs on American products. This trade confrontation marks a new phase of tension in North American trade relations, with potential far-reaching impacts on global supply chains and both economies. Event Details According to The New York Times, the core disagreements center on digital services taxes and dairy market access. The U.S. Trade Representative’s Office accused Canada of “unfair trade practices,” claiming Canada’s digital services tax discriminates against American tech companies. ...

Canadian Prime Minister Carney and US President Trump announced on August 20 that both sides have made ‘significant progress’ on trade disputes, finalizing details to avoid implementing 50% punitive tariffs before the weekend deadline. Bloomberg reports the US will halve Canadian steel and aluminum tariffs. This progress temporarily eases increasingly tense trade relations, but analysts remain skeptical about the agreement’s substance and sustainability.

President Trump announced a 15% tariff on imported polysilicon and other critical chip materials, aiming to protect US semiconductor industry from Chinese competition, a move that could further accelerate US-China tech decoupling.

Multiple US states have filed a lawsuit to block the Trump administration’s tariffs imposed on dozens of trading partners over forced labor concerns. The legal challenge marks an escalation of domestic opposition to presidential trade powers.