US Cancels Trade Talks With Canada

President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals and rare earths agreement in Washington, outlining a project pipeline valued at up to $8.5 billion. The pact aims to strengthen non-Chinese supply chains for critical minerals essential to defense, semiconductors, and EV manufacturing.

🤝 United Effort: According to the White House, both nations will invest over $3 billion in joint projects within six months, while the U.S. Export-Import Bank will issue $2.2 billion in financing, unlocking up to $5 billion in total investment.

📈 Future Plans: Australia will contribute $1 billion, with projects involving firms such as Alcoa, and a Pentagon-backed gallium refinery planned in Western Australia. The agreement includes three joint project groups, one involving Japan, as part of broader U.S. efforts to diversify critical mineral sources.

🧊 Hot and Cold: Australian mining stocks surged then cooled after the announcement of the critical minerals deal. Lynas Rare Earths fell 7.6% after an early rally, while Pilbara Minerals rose 2.6%. Smaller firms like VHM (+20%), Latrobe Magnesium (+15.4%), and Northern Minerals (+1.9%) gained sharply.

🐉 Dragon’s Reaction: China urged the U.S. and Australia to “play a proactive role” in maintaining stable global mineral supply chains

U.S. President Donald Trump announced on Thursday that he is terminating all trade negotiations with Canada, citing what he called “egregious behavior” over a television ad protesting U.S. tariffs. In a post on his social media site, Trump said the ad — which used archival footage of Ronald Reagan criticizing tariffs — was “fraudulent” and intended to influence pending U.S. court decisions.

The Ronald Reagan Presidential Foundation later confirmed that Ontario’s government used and edited Reagan’s 1987 speech without permission, calling the ad misleading and saying it was reviewing legal options.

Current Tariff Rate: Trump’s administration has levied a 35% tariff on Canadian imports, with additional duties on autos and steel, hitting Ontario hardest. Some goods remain exempt under the U.S.-Mexico-Canada trade pact.

📦 Double Efforts: Canadian Prime Minister Mark Carney recently pledged to double exports to non-U.S. markets amid tensions over Trump’s tariffs, which have strained cross-border trade.

⏱️ Timing: The move comes just weeks before a scheduled review of the U.S.-Mexico-Canada Agreement (USMCA), which Trump now appears unwilling to proceed with.

The U.S. and India are close to finalizing a trade agreement that could see Washington slash tariffs on Indian exports to 15–16% from the current 50%, according to news reports.

In exchange, New Delhi may gradually cut its imports of Russian oil, a key sticking point in bilateral negotiations. U.S. President Donald Trump confirmed a call with Prime Minister Narendra Modi, saying India had assured him it would scale back its purchases of Russian crude, though Indian officials have not publicly confirmed such a commitment.

The potential deal follows months of trade tensions, including Trump’s 25% tariff on Indian goods in August over continued Russian oil purchases. India currently imports about 1.6 million barrels of Russian crude daily, up sharply from 50,000 barrels in 2020, making it the world’s second-largest buyer after China.

Atlantic Container Line (ACL) has been hit with unexpected costs after U.S. Customs reclassified its con-ro vessels as vehicle carriers under new Section 301 port fees targeting Chinese-built ships. The company paid a $1.4 million fee for a single vessel call on the day the tariffs took effect, October 14.

Although ACL’s ships carry mostly containers and fall below the 4,000 TEU exemption threshold, their 28,900 square meters of Ro-Ro decks triggered the higher classification. With five vessels making regular transatlantic calls, CEO Andrew Abbott estimated annual fees could total $34 million.

Abbott warned the charges could force ACL to reconsider its U.S. operations, noting that customers — already burdened by tariffs — are “in shock” over the additional costs. The fees, imposed under President Trump’s Section 301 trade measures, aim to penalize Chinese-built vessels calling at U.S. ports.

U.S. trucking volumes slipped in September after a strong August, with the American Trucking Associations’ For-Hire Truck Tonnage Index down 0.9% to 114.2. Despite the monthly decline, tonnage rose 0.8% year over year and remains 2.1% above January lows, said ATA Chief Economist Bob Costello, who called the market “choppy but stabilizing.”

The slowdown coincided with weak freight activity across ports and rail, as container volumes at Los Angeles and Long Beach fell 7.5% and 3.9%, respectively. Economists cited tariff-related import surges and consumer caution as key headwinds, compounded by a federal government shutdown that delayed key economic data.

Meanwhile, DAT Freight & Analytics reported modest rate increases across all truck types, with dry van spot rates rising to $2.05 per mile and reefer rates to $2.44.

China’s rare earth magnet exports to the U.S. fell 28.7% month-on-month in September to 420.5 tonnes, nearly 30% lower than last year, marking the second consecutive monthly decline after a brief rebound in June.

The drop comes amid tightened export licensing and escalating trade tensions between Beijing and Washington. China controls roughly 90% of the global magnet market, making it the dominant force in refining and production. The magnets are essential for EVs, defense systems, renewable energy, and electronics.

Overall, China’s total rare earth magnet exports also fell 6.1% from August, indicating broader disruptions across markets. The fall follows Beijing’s expanded export curbs earlier this month, aimed at tightening control over rare earth technology and supply.

Global shipping association BIMCO has started drafting a new contract clause to help shipowners and charterers manage China’s recently imposed “Special Port Fees” on vessels tied to the United States

The fees — which took effect on October 14 — apply to ships that are U.S.-built, U.S.-flagged, or owned or operated by U.S. entities, marking Beijing’s latest retaliatory move in its escalating trade dispute with Washington.

BIMCO said the new clause will provide legal and commercial clarity to reduce disputes and clarify cost responsibilities in charter agreements. It follows a similar clause introduced in July for the U.S. Trade Representative’s (USTR) port charges on Chinese-linked ships.

“To help reduce contractual uncertainty, we are developing a new clause addressing the Chinese fees,” said David Loosley, BIMCO’s secretary general and CEO. The drafting is being fast-tracked by a subcommittee of legal and commercial experts, given the rising urgency among ship operators.

The Trump administration’s crackdown on the offshore wind sector is rippling through U.S. shipbuilding and port infrastructure, with hundreds of millions in canceled funding, halted vessel orders, and delayed projects, according to a Reuters report.

Federal agencies have withdrawn $679 million in Department of Transportation grants meant to support offshore wind ports, including a $34 million facility in Salem, Massachusetts, expected to create 800 jobs and $75 million in tax revenue. The Humboldt Bay project in California has lost over $426 million and now faces a five-year delay.

Shipbuilders, once buoyed by a surge in wind vessel demand, are also feeling the blow. Orders for new offshore wind service vessels have dried up, with Danish shipping giant Maersk canceling a $475 million ship order for New York’s Empire Wind project.

Container shipping rates from Asia to the United States rose sharply last week, reversing months of decline as importers rushed to move goods ahead of new U.S. tariff measures.

According to the Freightos Baltic Index, rates from Asia to the U.S. West Coast increased 18% to $1,687 per forty-foot container, while shipments to the East Coast climbed 2% to $3,071. Freight prices to North Europe rose 13% to $1,975, and to the Mediterranean by 1% to $2,147, with daily rates now nearing $2,300 per FEU.

Analysts said the rebound reflects a mix of October general rate increases, limited vessel capacity, and growing trade uncertainty ahead of President Trump’s proposed increase in tariffs on Chinese imports, set to take effect on November 1.

Global investors are pouring tens of billions of dollars into Africa’s farms, railways, renewable energy, and data infrastructure, betting that the continent will emerge as a major supply-chain hub amid shifting trade routes.

In the first half of 2025, China alone signed $30.5 billion in construction deals with African nations — nearly five times last year’s pace — funding railways in Nigeria and industrial parks in Egypt. Beijing has also secured farmland in Angola for oilseeds and grains to reduce reliance on U.S. imports like soybeans.

Other investors from Asia, Europe, and the Middle East are following suit, lured by tariff advantages, expanding markets, and Africa’s vast arable land and young labor force.

According to reports, the African Continental Free Trade Area (AfCFTA) could create a $3.4 trillion common market by 2035, positioning Africa as a central node in the realignment of global trade.

Manufacturing in the central United States continued to strengthen in October, extending its rebound to a fourth straight month following more than three years of contraction, according to the Federal Reserve Bank of Kansas City.

The Fed’s Tenth District Manufacturing Survey reported a composite index reading of 6, up from 4 in September, surpassing economists’ expectations of 3. The index measures regional activity based on production, new orders, employment, supplier delivery times, and inventories.

The report showed moderate gains in production and shipments, alongside slight growth in both durable and nondurable goods manufacturing.

Prices for finished products and raw materials rose slightly from the previous month, signaling persistent cost pressures despite easing inflation elsewhere in the economy.

Japan’s exports increased 4.2% year-over-year in September, marking the first gain since April, driven by stronger shipments of semiconductors, electronic components, and mineral fuels, according to data from the Finance Ministry.

Economists had expected a slightly higher 4.4% increase, but the recovery was notable after months of trade weakness.

Exports to the United States fell 13.3%, the sixth straight monthly decline, as U.S. tariffs under President Donald Trump continued to weigh on Japanese manufacturers. Analysts said the rebound was supported by China’s demand-boosting policies and a strong euro, which improved competitiveness in European markets.

Imports rose 3.3%, exceeding the forecast 0.6% gain, leaving Japan with a ¥234.6 billion ($1.5 billion) trade deficit on an unadjusted basis.