Final Thoughts
September 17, 2026
The trade that couldn't slow down
Written by Stephanie Ritenbaugh
Trade news keeps rolling in.
Weeks after trade talks between the US and Canada broke down, the relationship between the longtime allies is no closer to being patched up.
The US Congress sent a bill to President Trump’s desk directing him to impose sanctions on Russia in an effort to end the war in Ukraine.
And next week is a high-stakes meeting between the US and China that’s expected to involve discussions about trade, technology and business deals.
Canada goes across the pond
As the relationship between the US and Canada has soured during the second Trump administration, Canada has been taking more of its business elsewhere. Now, it is also eyeing the European Union – which is a rather unique situation.
In her State of the Union address Wednesday, European Commission President Ursula von der Leyen welcomed Canadian Prime Minister Mark Carney and said the 27-country bloc would create an associate membership for the country.
“This is not a partnership against anyone else but for our common strength,” von der Leyen said during her speech. “In short, we want to bring the relationship with Canada to the highest level possible and, dear Mark, we must urgently reimagine our partnerships. So, I would like to work with you on opening the door for Canada to being the first associate member of the European Union.”
She also announced a trade program that would expand the existing EU-Canada deal called an “Alliance for the Future.”
As the CBC reports, this is being met with questions, such as how such a membership would work in practice, as well as scepticism from some current EU members who feel Canada is getting a membership without giving up some of the sovereignty other members have done.
In response, Trump threatened more tariffs on Europe if the partnership was consummated.
Bill sanctions Russia
New legislation targeting Russian officials, oligarchs and financial institutions passed in the US House of Representatives, 262-159. The bill is aimed at pressuring the Russian economy to end the war in Ukraine. But lawmakers were divided over giving more tariff authority to the president.
The legislation directs Trump to impose tariffs of up to 500% on Russian goods. It also allows duties of up to 100% on goods from countries that knowingly purchase oil or gas from Russia. The countries potentially affected include India and China.
Meeting at the White House
Speaking of China, the world’s top two economies will meet Sept. 24, when Trump hosts Chinese President Xi Jinping at the White House.
Trade has been a major sticking point since Trump’s first term, when the two countries imposed tariffs and countertariffs affecting energy, technology, equipment and agricultural products.
It was also in 2018 that the US imposed a 10% global tariff on aluminum imports under Section 232, a levy that has continued in various forms through the Biden administration into Trump’s second term. At the time, China responded with a 25% tariff on scrap imported from the US.
One topic expected to come up is artificial intelligence and data center buildout. Trump recently said the US must take a light approach to regulation as it competes with China on AI, the Wall Street Journal reported. The federal government has also accused China of stealing from US AI models as it works to advance its own technologies.
The stakes are high. We will see where things stand next week.
