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“Beijing will also look to reduce levies on US fish and seafood, logs and wood products, cosmetics, and medical devices,” the Trump administration noted further.

In another list were Washington’s reciprocal tariff cuts for small Chinese appliances such as coffee makers and toasters, tableware, blankets, and bed linens.

The lists also included toys, fireworks, artificial flowers, Christmas tree lamps, and other holiday decorations, along with children’s car seats.

China’s commerce ministry, through a press briefing on Monday, said that a two-month extension of a trade truce with the United States through to January 10 would provide room for both sides to evaluate their ongoing arrangement to resolve economic and trade issues while considering how to advance on those fronts.

“The extension also provides a relatively stable and predictable policy environment for cooperation among companies and continued active discussions,” the Xi administration remarked.

“Both sides will hold regular talks on potential investment opportunities and barriers, enhancing policy transparency and predictability, and responding to enterprises’ concerns,” Beijing said.

China’s choice of products for tariff cuts was designed to help Beijing meet what the Trump administration says is a USD 17 billion commitment to buy agricultural goods.

Beijing has already resumed large-scale purchases of US soybeans under a deal struck last year to buy 25 million metric tons annually.

“Both countries will set ⁠up an agriculture working group under a trade council, which will hold its first meeting before the year ends to discuss two-way market access and regulation,” the p said.

As per the White House press release, the presidential summit also yielded an agreement for China to import 10 million metric tons of coal annually from the United States in 2027 and 2028.

That amount roughly equals 2% of ⁠China’s coal imports each year.

“Importing US coal is not only a beneficial supplement to China’s domestic coal market but also brings stable economic income and employment to the US coal industry,” the Chinese ministry said.

On the banking front, China will also examine and approve foreign financial services institutions, including those with US capital, to conduct business and open branches in the world’s second-largest economy.

“There will also be continued communication on increasing flights between China and the United States,” the commerce ministry concluded.

The jump has raised fresh concerns among trading partners about the widening imbalance between China’s manufacturing capacity and demand in its domestic economy.

The latest data underscore how rapidly China’s position in global containerised trade has expanded.

Maersk Strategic Insights data showed China accounted for 37.2% of global container exports in 2025, up from 36.3% in 2024 and 31.6% in 2019. The latest 40 per cent reading therefore marks a significant acceleration in the country’s export share.

The increase comes despite a more fragmented global trading environment. US tariffs and efforts by companies to diversify supply chains have reduced China’s direct share of some markets, particularly North America.

Yet Chinese manufacturers have continued to expand shipments to Europe, emerging markets and countries across the Global South.

Asia-Europe trade illustrates the trend. Container exports from Asia to Europe reached 10.77 million twenty-foot equivalent units (TEUs) in the first half of 2026, up 12.6% year on year, according to data compiled by the Japan Maritime Centre from Container Trade Statistics. China accounted for 8.53 million TEUs of those shipments, an increase of 14.6%.

China’s export strength is also reflected in its ports. Shanghai handled 28.7 million TEUs in the first half of 2026, retaining its position as the world’s busiest container port, while Ningbo-Zhoushan handled 22.9 million TEUs, overtaking Singapore for second place, according to Alphaliner data reported by the South China Morning Post. Six Chinese ports were among the world’s 10 busiest during the period.

That strength has provided an important outlet for China’s manufacturing sector. Manufacturing output rose 5.3% during the first eight months of 2026, while retail sales increased only 0.4% year on year in August, according to figures cited by the EU Chamber.

The divergence has reinforced concerns that production is growing substantially faster than domestic demand.

China’s global trade surplus reached USD 805.51 billion between January and August, putting the country on course to exceed last year’s record of USD 1.2 trillion, according to the Financial Times.

The composition of trade has also shifted. While China’s direct surplus with the US has fallen, exports are increasingly being routed through third countries, complicating efforts by Washington and other governments to reduce dependence on Chinese manufacturing.

Europe faces a particularly pronounced imbalance. In 2019, China exported about 2.5 containers to Europe for every container shipped in the opposite direction.

“During the first eight months of 2026, the ratio had widened to six containers moving from China to Europe for every one moving from Europe to China,” Eskelund said.

The imbalance is likely to remain a major issue for policymakers. The EU is considering additional tariffs and other measures to protect domestic industries from import competition.

European businesses have also pressed Beijing for greater market access and reforms in areas including medical devices, financial services and shipping.

Beijing rejects claims that its industrial strategy amounts to excessive capacity.

Chinese officials and state media argue that the country’s competitive position reflects manufacturing efficiency and comparative advantages in sectors such as electric vehicles, batteries, solar products and steel.

From that perspective, strong exports are an expression of competitiveness rather than evidence of a structural imbalance.

The shift is nevertheless reshaping global shipping patterns. Chinese exporters are increasingly serving markets beyond the US and Europe, including Africa, Latin America, the Middle East and Southeast Asia.

This diversification is helping companies navigate tariffs and geopolitical tensions while maintaining high factory utilisation.

That shift is pressuring competing manufacturing centres worldwide.

The development also comes as the shipping industry prepares for a substantial increase in vessel capacity.

The global container fleet expanded by 7.2% in 2025, while about 2.2 million TEUs of new capacity were delivered, according to Maersk.

A further wave of new ships is expected to enter service, raising questions over whether capacity growth will eventually outpace cargo demand.

China’s 40% share therefore represents more than a shipping statistic.

It is a measure of how central the country remains to global manufacturing and trade, even as supply chains diversify and governments seek to reduce strategic dependence.

For exporters, shipping companies and policymakers, the challenge will be managing the commercial opportunities created by China’s scale while addressing the trade imbalances that scale is producing.

While such measures may deliver benefits to individual countries or industries, their widespread use can trigger retaliation and reduce the efficiency of global trade.

The WTO described the situation as a form of “prisoner’s dilemma”, in which governments may find it rational to protect their own economies, even when coordinated action would produce better results for everyone.

The problem is particularly acute when major economies impose tariffs on one another. Higher trade barriers can increase costs for businesses, disrupt supply chains and reduce the incentive to invest across borders.

The report said the rise of state intervention, together with changing economic power and geopolitical tensions, had made the existing trade rules increasingly difficult to apply.

Developing economies at risk
Poorer countries are likely to bear a disproportionate share of the economic damage if trade fragmentation continues.

Developing economies often depend heavily on access to international markets, foreign investment and predictable trading conditions. A more fragmented system could limit their export opportunities, raise import costs and make it harder to attract investment.

The WTO warned that the impact on the poorest economies could be several times greater than The WTO cautioned that the poorest economies could experience an impact several times greater than that of richer nations. by richer nations.

For countries in Asia and Africa, where export-led growth remains an important development strategy, the consequences could include weaker industrial activity, slower job creation and reduced income growth.

The report’s warning comes as developing countries face pressure to navigate competing trade and investment arrangements while managing higher costs and uncertain demand.

Dispute settlement and digital trade
The WTO’s dispute settlement system is another area requiring reform.

The organisation’s Appellate Body has been unable to function since 2019, leaving members without a fully operational system for resolving trade disputes. The failure to restore the mechanism has weakened confidence in the rules-based system and encouraged countries to pursue alternative approaches.

The WTO also needs to update its rules to reflect changes in the global economy.

Digital trade, artificial intelligence (AI), cross-border data flows and new technologies have created economic activity that was not adequately covered by many of the existing agreements.

Subsidies and industrial policy have also become more important as governments seek to support domestic production in sectors such as semiconductors, electric vehicles and clean energy.

The WTO said its rules must evolve to address these changes while preserving the benefits of a predictable international trading system.

A USD 3 trillion opportunity
The report’s estimate of a 3% increase in global GDP under stronger multilateral cooperation highlights the economic value of reform.

The potential gain of roughly USD 3 trillion by 2050 would come from greater trade integration, reduced barriers and improved economic efficiency.

The WTO said stronger cooperation could also increase global exports by nearly 18%, creating opportunities for businesses and workers across a wide range of sectors.

However, achieving those gains will require political agreement among members, including major economies whose trade policies increasingly reflect strategic and national security priorities.

The road ahead
The WTO has urged members to strengthen the multilateral system rather than allowing it to weaken further.

The organisation’s message is that reform is necessary not only to prevent damaging economic fragmentation but also to ensure that trade continues to support growth and development.

The challenge is whether governments can agree on changes to the institution’s rules, decision-making procedures and dispute settlement system at a time when geopolitical tensions are encouraging more unilateral action.

For the global economy, the stakes are substantial. The WTO’s projections indicate that the choice between cooperation and fragmentation could shape economic output, trade flows and development prospects for decades.

The warning comes at a time when tariffs, industrial policy, and geopolitical rivalry are already reshaping global trade.

Without reform, the institution risks losing its ability to provide a common framework for international commerce.

The WTO’s central argument is clear: preserving an open and predictable trading system is not simply a matter of trade policy. It is a requirement for protecting global economic growth through 2050.

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While the trade truce between Beijing and Washington, which reached late 2025, has held despite periodic frictions, the two sides are now exploring reciprocal tariff cuts on USD 30 billion worth of goods as they prepare for another summit later this month.

While China’s exports of rare earths in August rose month-on-month in volume, the ratio remained well below the year-to-date monthly average. Crude oil imports, meanwhile, dropped 23.4% year-on-year in volume.

China’s domestic struggles include a cooling GDP growth to 4.3% in the April-to-June period, and August’s economic data shows that both industrial output and retail sales slowed at the start of Q3.

In another challenge for Beijing, fixed-asset investments have declined in the first seven months, and the property market, which was previously a growth driver, is still experiencing its post-COVID downturn phase.

The Jinping government, for its part, has stepped up fiscal support for the economy, including deploying an 800 billion yuan (USD 119.21 billion) financing tool to revive infrastructure investment.

“The latest trade data do not materially strengthen the case for an imminent interest rate cut,” said Hao Zhou, a Hong Kong-based analyst at Guotai Haitong Securities.

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“While further policy support cannot be ruled out, the combination of resilient external demand, steady industrial momentum, and increasingly targeted fiscal measures implies that the timing and necessity of additional monetary easing will require further observation,” the analyst concluded.

Auto Sector: Not Immune From Weak Home Demand

China’s automobile giants are facing the same trend as the broader economy: strong exports and a sluggish domestic market, with BYD and others witnessing sales falling for the 11th month in a row.

As per the China Passenger Car Association (CPCA) data, vehicle exports jumped 77.5% from a year earlier to 894,000 units in August, easing from an increase of 88.2% a month earlier.

However, sales at home fell 23.7% to 1.55 million vehicles, worsening from July’s decline of 21.1%.

Electric vehicle and plug-in hybrid sales, accounting for 64.7% of total domestic sales in the world’s largest automobile market, shrank 10.1% year on year in August, widening from a 3.9% drop the month before.

Meanwhile, export growth in the segment accelerated to 154.7% from 147.8% in July.

Realising that their fortunes back home won’t rebound soon, Chinese automakers have intensified their overseas expansion efforts, with BYD and Geely Auto hitting fresh export records last month.

Despite tight trade restrictions, Chinese carmakers have continued to gain on the overseas front, expanding their presence in Europe and winning customers in emerging economies with competitively priced yet feature-loaded vehicles.

According to the CPCA’s own estimates, China will export 12 million vehicles by 2026. The ratio is expected to rise to between 18 million and 20 million units by 2030.

Washington’s North American neighbour staged a walkout from negotiations a couple of weeks back on an agreement to avoid additional US tariffs, accusing the Trump administration of making “unacceptable” last-minute demands.Since then, the Republican has not only imposed 50% tariffs on USD 20-28 billion worth of Canadian goods and threatened to take similar action against the neighbouring nation’s auto sector, but he has also declared that Lake Ontario will be renamed Lake America.

Trump, ranting further, ended up ⁠describing Canada’s political leadership as “the worst” he has to deal with, apart from making repeated assertions that Ottawa is ripping off the US.

He also posted an AI-generated meme showing Canadian geese with Trump’s distinctive hairstyle marching under an American flag.

Carney, a central banker-turned-politician, on the other hand, has maintained a calm-yet-determined composure, stating that there was still a chance to strike a mutually beneficial trade deal that respected Canadian sovereignty.

“And when the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about ‌having ⁠those discussions, we can have those discussions,” Carney said, adding that recent US actions were “not constructive.”

The Trump administration, however, has disputed part of the Canadian narrative regarding the reasons for the talks’ collapse, asserting that a favourable deal was available.

However, Carney stated that Ottawa never considered the proposed terms adequate, particularly regarding the highly integrated auto sector.

“The attitude of the United ⁠States… has been one that the core Canadian industries either would be subsidiaries, effectively, of the United States industries, or (Washington) would put in ⁠place terms where those industries would be gradually wound down in Canada and wiped out. Of course, we’re not going to accept those terms,” he said.

Amid the bickering between Canada and the United States, Mexican Economy Minister Marcelo Ebrard met US Commerce Secretary Howard Lutnick ‌on Wednesday (August 2) as the Claudia Sheinbaum administration pushed for progress on US tariffs on cars and steel, a key source of friction in the countries’ trade relationship.

Sheinbaum said in her ⁠daily morning press conference that Ebrard was in the United States seeking agreements on the tariffs, while Mexico’s economy ministry added that he and Lutnick also discussed bilateral trade and regional technological innovation.

The meeting took place on the sidelines of a G20 innovation gathering in Chapel ‌Hill, ⁠North Carolina, which Lutnick was hosting as part of the US-led ministerial.

Mexico and the United States have continued their negotiations tied to the ⁠review of the US-Mexico-Canada (USMCA) trade agreement, amid the uncertainty over the trilateral pact’s future due to the ongoing clash between North America’s two largest economies.

Mexico, for its part, has argued that US tariffs on steel and aluminium are unjustified, apart from objecting to measures affecting automobiles, saying they run against the spirit of ⁠North America’s tightly integrated manufacturing supply chains.

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However, Treasury Secretary Scott Bessent, while addressing the media on Monday, stated that the Republican wants Canada to come to the table and negotiate in good faith.

At a press conference in Quebec, Canadian Prime Minister Mark Carney, one of the few world leaders to confront Washington’s strong-arming tactics and trade leverage, stated that a “mutually beneficial deal” with the United States was possible, provided Americans respect Canada’s sovereignty.

“When the Americans go to the negotiating table first with the right attitude towards our industry and a true partnership, of course we’ll come to the negotiating table,” Carney said.

Auto stocks, as expected, negatively reacted to the developments, with shares of Ford, Stellantis, General Motors, Toyota, Honda and others going into the red.

As per the analysts, Trump’s strong-arming tactics against Canada threaten one of the most lucrative bilateral trade partnerships. While Ottawa has consistently been one of the top two US trading partners, in 2025, the exchange of goods totalled USD 872.3 billion, ‌down 4.6%.

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Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, said, “A threatened US tariff on Canadian auto parts will be paid by the U.S. auto assembly. Without those specific parts, auto assembly throughout the U.S. would halt.”

Canada’s retaliatory tariffs on American goods will start on September 8, in a sweet return to 50% levies ordered by Trump on USD 20 billion in Canadian products.

“You’re at war when you get ⁠attacked. We got attacked,” Carney said on Saturday (August 22) when asked whether Canada was engaged in a trade war.

An opinion poll by the Angus Reid Institute found that three in four Canadians approved of Carney’s decision to walk away from trade negotiations with the United States.

As per the White House, many automakers have announced or are considering plans to scale back Canadian auto production, with the trade standoff leading to a 22% reduction ⁠in Canadian imports of American vehicles.

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His talks with the Mexican government officials were described by both sides as “constructive,” pointing to progress on steel and aluminum and efforts to replace Asian imports with more North American production.

Regarding the “tariff-for-tariff” and “dollar-for-dollar” approaches taken by the United States and Canada after the failed talks, Ottawa will impose retaliatory tariffs on imports of US steel, electronics, and other products in response to Trump’s 50% pressure tactic. The new tariffs will take effect on September 8.

Trump’s new tariffs hit Canadian sectors, including wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment, covering some USD 20 billion of Ottawa’s exports to the world’s largest economy. These duties do not exempt Canadian products under the USMCA, which has shielded most Canadian exports to the US in the past 18 months.

“Canada will match Washington’s new tariffs dollar for dollar to protect Canadian workers, farmers, families, and businesses. You’re at war when you get attacked. We got attacked,” ⁠Carney told a press conference on Saturday (August 22).

Carney, the economist-turned-PM of Canada, has emerged as one of the few global leaders to retaliate against US tariffs and has pledged to forge new trade and military alliances, despite Canada’s dependence on the United States for nearly 70% of its exports.

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Taking a jab at Ottawa for missing “the opportunity to partner with the United States,” Greer said that no new talks were planned with Canada.

“We’re moving forward with measures that respond to Canadian retaliation. They’ve always had the best deal, and they still would have an even better deal, but they didn’t want that,” he told Fox News.

Canada’s retaliatory tariffs will cover US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with some products that Washington previously targeted in Canada, Carney said from Ottawa’s Parliament building.

“The government will release details on its response in the coming days. We cannot accept what they have offered, and we will not give what they have asked,” remarked the former central banker, while accusing the Trump administration of halting the negotiations with its last-minute demands.

“Recently, the U.S. proposed new terms that were uneconomic, unfair, and undermined the net benefits to Canada, calling into question the reliability of any deal,” he said, adding these demands included curtailing Canada’s ability to forge new trade deals.

Canada, in the coming days, will also announce support measures for industries targeted by the Uncle Sam. The latest tariffs, as per Ottawa’s estimates, could expose some vulnerable industries such as softwood lumber and wine to severe damage, leading to job losses and business closures.

“We will be mobilizing our network ⁠of businesses in all regions and all sectors to brace for impact and make the best of a bad situation,” said Candace Laing, CEO of the Canadian Chamber of Commerce.

Ontario Premier Doug Ford, one of the most vocal opponents of Trump tariffs, supported Carney’s decision to retaliate.

“I’m glad he didn’t sign that deal because it was a terrible deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector, and the manufacturing ⁠sector,” Ford told reporters on Saturday.

One of the main sticking points was the treatment of larger vehicles, with reports suggesting that Canada wanted favorable tariff terms proposed for light-duty vehicles to extend to medium- and heavy-duty trucks. However, the United States opposed it.

Confirming the reports, Carney said the US position would have excluded Canadian-made models, including Ford’s F-350, F-450, and F-550 trucks and General Motors’ Silverado, making Canadian production less competitive.

“There were also US proposals that affected ⁠Canadian culture, language, and sovereignty,” he remarked.

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While the American tariffs may end up harming Canada’s economy significantly, Carney’s tough stance against Trump may boost his popularity among the domestic audience. Polls show most Canadians oppose making any concessions to their North American neighbor.

“Canadians must stand united to defend our country against these unfair attacks on our jobs and businesses,” Pierre Poilievre, the leader of the official opposition Conservative Party, said in a statement.

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Other areas covered in the new bilateral agreement include rules of origin and trade facilitation, trade in services, digital trade, competition, and ‌economic ⁠and technical cooperation.

China has emerged as Switzerland’s third biggest trade partner after Germany and the United States, with bilateral trade amounting to 46 billion Swiss francs (USD 57.6 billion) so far in 2026.

Trade between the two countries has ⁠expanded from 31.7 billion francs in 2015 to 51.2 billion francs in 2025, stated the figures from the Swiss customs office.

The world’s second-largest economy has also become a big market for Swiss chemicals, pharmaceuticals, precision instruments, and watches.

Both sides are eyeing the year-end deadline for the updated deal’s signing. However, it will be subject to the legal review and domestic approval processes in both countries.

The development also coincides with Switzerland’s position in the midst of the US-China rivalry. Last summer, Washington imposed a 39% tariff on Swiss goods, at the time the highest rate among developed nations. A preliminary US-Swiss agreement would cap tariffs at 15%, but that deal is not legally binding yet.

Complicating things further, in July this year, Switzerland found its name among 60 countries that would face new US tariffs for allegedly not doing enough to combat forced labour. A 12.5% tariff has been imposed on Swiss goods.

Analysts view the China deal as a timely diversification for Switzerland, aimed at partially compensating for its volatile economic position that resulted from the trade uncertainties arising from the American shore. Beijing has also agreed to stricter rules on labour rights and environmental issues in a revised sustainability chapter of the deal.

Meanwhile, the Parmelin government has recommended the Swiss Parliament reject an initiative aimed at blocking a new agreement between Switzerland and the European Union (EU) that would mark ‌the biggest overhaul in bilateral economic relations in a generation.

Backed by the billionaire founders of Swiss asset manager and private equity firm Partners Group, the so-called “Kompass-Initiative” aims to protect Swiss independence by broadening the scope of compulsory referendums on state ⁠treaties.

Agreed in December 2024, the EU-Swiss deal is currently being debated in the Swiss parliament. If passed, it is likely to face a referendum in 2027 at the earliest.

The ruling Federal Council, however, sees the Kompass initiative as creating legal uncertainty, apart from disrupting Switzerland’s established democratic system and threatening legal and economic stability.

“Instead of clarity, it creates more uncertainty and problems,” Justice Minister Beat Jans told a ‌press ⁠conference.

The initiative aims to require approval for international treaties not only from a majority of voters but also from a majority of its 26 cantons, thereby increasing the threshold for passing such accords.

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The Kompass initiative also opposes the ⁠so-called “dynamic alignment” of laws under the EU-Swiss deal, in which Bern, subject to its own constitutional safeguards, adapts its legislation to relevant changes ⁠in EU law.

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However, neither American nor Canadian officials have issued detailed statements to follow up on Trump’s proclamation.

During the discussions between Washington and Ottawa, existing American auto tariffs reportedly became a contentious issue.

Had the new tariffs gone ahead, they would have covered about USD 20 billion worth of imports and applied regardless of whether Canadian goods qualify for preferential treatment under the US-Mexico-Canada trade agreement, which has shielded much of Canadian industry from earlier tariffs.

Trump added in his social media post that the Keystone XL pipeline—a project canceled by former President Joe Biden in 2021 after years of indigenous and environmental opposition—”may be awoken from the grave,” but did not provide details.

The latest Canada episode also serves as a glaring testimony of how the Trump administration, since 2025, has made tariffs a central pillar of its foreign and trade policies despite legal setbacks and criticism from analysts and trade and geopolitical experts.

As per the Canadian trade experts and industry officials, had the new tariffs gone through, they could have resulted in job losses and business closures in vulnerable sectors like lumber, wine, and dairy. They also cautioned that the dispute complicates broader USMCA negotiations, where Washington is again attempting to gain an advantage over its traditional American partners.

Canada’s minister responsible for US trade, Dominic LeBlanc, and Chief Trade Negotiator Janice Charette have been in Washington since last week for talks. On Monday (August 17), the Canadian officials met for nearly two hours with Greer and Commerce Secretary Howard Lutnick.

As per the reports, Greer repeatedly cited Canada’s tariffs as the reason behind Washington’s counter moves, while blaming Canada’s dairy management system and provinces’ refusal to stock American liquor, among other U.S. grievances.

The Distilled Spirits Council of the United States, while applauding Trump’s stand to protect the beverage industry, also called for “a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces and returns the spirits sector to a ⁠zero-for-zero tariff framework.”

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Both Washington and Ottawa have also discussed cutting US Section 232 tariffs on Canadian vehicles to 15% from 25%, with further reductions based on the amount of American content in each vehicle.

A major point of contention arose over how to count tariff deductions based on content. Washington pushed for the consideration of all North American content, including Canadian and Mexican parts. Canada advocated for the inclusion of all North American content, encompassing Canadian and Mexican parts, in the calculations.

On August 18, the US Commerce Department released new rules for automakers exporting from Canada and Mexico to certify their current levels of US content for tariff deductions, reducing the complicated exercise to once per year from twice.

However, the notice also said that the automakers must re-certify vehicles’ American content by September 30 for them to claim deductions in the new annual cycle starting ⁠December 1.

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However, getting the 50% tariffs stalled was just one of the key political tasks that the Carney administration has been able to pull off. The Prime Minister now faces the test of selling any concessions to a domestic audience that remains frustrated with, and skeptical of, the Trump administration’s intent with Ottawa, as well as securing buy-in from Canada’s provinces.

Washington’s request to Canada to lift the ban on American alcohol sales, imposed by most provinces in early 2025 in retaliation for Trump’s tariffs, will depend on how local governments handle the issue, as they have control over alcohol sales within their own jurisdictions.

Ontario Premier Doug Ford, known for his tough stance on the US, stated last week that any agreement regarding alcohol was contingent. He said Ontario would restore American alcohol to shelves only if Canada secured a fair deal shielding its steel, automobile, forestry, agriculture, and manufacturing sectors.

Carney may also face resistance over dairy concessions, particularly in Quebec, where Premier Christine Frechette has said the province’s supply management system is non-negotiable. Trump has argued the system, which sets production quotas, pricing, and import limits on dairy, eggs, and poultry, is unfair to American farmers seeking access to Canada.

Public appetite for concessions appears limited. A new poll from Abacus Data found that 74% of Canadians believe the trade dispute has affected their household, while 36% want Ottawa to respond with new counter-tariffs even at the risk of further domestic economic pain. Only 18% supported concessions such as lifting provincial bans on American alcohol in exchange for reduced US tariffs.