Overview
- President Trump said Prime Minister Mark Carney apologized for Ontario’s anti-tariff ad and confirmed negotiations with Canada will not resume, with a threatened extra 10% tariff still not implemented.
- Carney met Xi Jinping on the APEC sidelines, called the encounter a turning point, accepted an invitation to visit China, and directed officials to seek quick fixes on EVs, canola and seafood; Chinese officials have signaled some retaliatory taxes could be lifted if Canada drops its EV tariff.
- The Trump–Xi meeting in Busan produced a limited truce that reduced or delayed some U.S. trade measures, paused rare-earth export controls, suspended port fees, and restarted U.S. soybean sales to China, while neither side mentioned Taiwan.
- Analysts described the Busan outcomes as largely symbolic with scant detail on enforcement or resolution of longer-term disputes such as advanced chip access, intellectual property and structural trade imbalances.
- Trade strains are weighing on Canada’s economy, with Stellantis citing U.S. tariffs in shifting Jeep Compass production to Illinois and fresh data pointing to weak third-quarter growth.