美对加征关税并禁进口乳制品酒精，拟限制政府采购

Just talk us through what this latest escalation entails and the market and political reaction. So yes, what we're seeing is us moving to to ban imports of certain things, primarily dairy and alcohol, which is unsurprising in a way, because Donald Trump was annoyed about some Canadian provinces barring US alcohol. You've also got an extension of the section 33 tariffs to other items now, including things like golf carts, bed mattresses and so on, and the tariffs are due to take effect in a week.

The import bans in three weeks, according to administration official. Interesting. At the same time that they are actually now excluding some other items from those tariffs, including things like salt and bed sheets. So obviously some tinkering going on in the architecture here. But you do have Donald Trump also threatening other things, suggesting he's not done in terms of this tit for tat. So saying that he might move to bar Canadian companies from doing business from selling to U.S. government contractors.

He's making noises again about the Canadian air company Bombardier. And that's interesting. That's where you're seeing the politics really coming in. You did see the shares of that company falling yesterday, but it's a big employer in the U.S. thousands of supplies, companies that supply to it in the U.S.. And you're seeing Republican politicians in places like Kansas saying they're reaching out to the white House to try and understand what the intentions might be there.

They want to know they are concerned, obviously, about the impact potentially on manufacturing and jobs in their states. And that's obviously with one eye on the coming midterm elections. So states that do a lot of business with Canada, Michigan, Ohio, obviously Kansas, when it comes to to the to the airline business, worried potentially about the impact. So in all of this rhetoric, you probably have a lot of voices saying these economies are still very interconnected.

You can see that very much in play already. What is the way we can get back to the table? How can we get a deal and when might that happen? Is it going to be before or after the midterms at this point? Yeah. Carney saying they're not escalating, but really it's only Canada and China who are standing up to Trump when it comes to his tariffs. So as we've got these ties between the U.S. and Canada for freight, but also that being the case for the EU and the US, we understand that Brussels and Otto are working towards a plan to boost their own trade and security ties.

It seems to all hark back to that speech by Mark Carney at Davos. What else could it look like in reality? Well, we should get some of those details. And about a wait, because the European Commission president, Ursula von der Leyen, is going to tell us in a speech what that looks like with Mark Carney in the audience, but the idea is to knit them ever closer together, as one diplomat official put it, as close as they can be legally, with that Canada joining the EU.

So it would cover a range of things from trade, supply chains, critical minerals, defense, security, space exploration, scientific research. The key is what are the parameters of all of that, and how in practice does it work? And tangibly, what does it mean beyond those words of just wanting to work much more closely together? But it really is an extension of what Mark Carney was talking about at Davos. What he said was essentially the death in his mind of the international rules based order, the need for middle powers, other countries to group together much more, to form alliances and work together.

And we've seen that in practice already in recent months. You've seen EU officials out in Asia trying to shore up different kinds of trade deals with partners here, with India obviously being a notable one. That is in Canada doing the same. So certainly the mantra of this is diversify your relationships. And, you know, Canada and the EU have a lot in common. So the interesting to see again, what are the parameters of that arrangement legally, how does it work.

And practically what does it mean.