Economic D-Day Looms as US Targets Iran, Trade War with Canada Escalates
European leaders gathered in Kyiv for the 'Coalition of the Willing' summit to discuss their ongoing support for Ukraine against Russia. The meeting comes as Ukraine faces a severe energy crisis due to ongoing Russian airstrikes, and top on the agenda is Kyiv's urgent request for more air defenses.
The US has been considering allowing Ukraine to produce Patriot missiles domestically, but US arms manufacturers have pushed back against this proposal. Meanwhile, Europe has become the main supplier of military aid to Ukraine, with €90 billion allocated through 2027 and an additional $9 billion package announced by Norway on Sunday.
Elsewhere, trade tensions between the US and Canada continue to escalate, with Canadian PM Mark Carney describing the situation as 'war'. A trade deal had seemed close, but talks collapsed over last-minute US demands to restrict Canadian entertainment content. The US has responded by slapping 50% tariffs on 5% of Canada's exports.
US Treasury Secretary Scott Bessent announced plans for a series of new measures aimed at inflicting economic pain on Iran, including secondary sanctions on countries that continue to do business with Tehran. With Iran's economy already battered and its currency hitting a record low, the US is betting that economic warfare will be enough to force Iran back to negotiations.