Will Trump end the China truce over Iran?
US President Donald Trump said he would impose a 25% tariff on countries that do business with Iran, escalating pressure on the Islamic Republic as protests rage across the country. The White House is still considering talks with Tehran, although Trump is leaning toward authorizing military strikes, the Wall Street Journal reported. The move comes as an Iranian official said that 2,000 people have been killed since the protests began two weeks ago – far higher than other estimates. Meanwhile, the secondary tariffs could threaten a temporary trade truce between the world’s two largest economies, since China is a major trading partner of Iran. If imposed, the extra duty would raise tariffs on most Chinese imports from 45% to 70%. How will China respond?
Cuba faces crippling uncertainty without Venezuelan oil
Trump on Monday threatened to cut Venezuelan oil exports to Cuba. For years, the communist-run island has gotten cheap Venezuelan crude in exchange for sending doctors and spies to Caracas. But Cuba hasn’t received a shipment since mid-December, as Washington’s naval blockade choked out Venezuela’s exports even before the US abducted Nicolás Maduro earlier this month. Venezuela is Cuba’s largest source of oil, accounting for a third of the island’s imports. A crippling economic crisis brought on by mismanagement, corruption, and longstanding US sanctions has already caused 10% of Cuba’s people to flee in recent years. Things may be about to get drastically worse.
Carney heads to China to sell canola and crude
Canada’s Prime Minister Mark Carney is traveling to China today for talks on trade and security, marking the first visit by a Canadian leader to Beijing in nearly a decade. The trip comes as relations with Canada tries to mend relations with China and to diversify trade beyond its historically dominant partner, the United States. Carney is expected to pursue a more pragmatic and conciliatory approach toward Beijing than his predecessor, Justin Trudeau, whose relationship with China was at times fraught. Carney is expected to push for greater exports of crude and canola oil, and signal that Canada is open for business. China remains Canada’s second-largest trading partner after the US, and reducing Canada’s reliance on Washington has become a priority as ties come under strain.
