Treasury Secretary Scott Bessent joins CNBC ‘Squawk Box’ this morning to discuss his 12-hour meeting with Chinese Vice Premier He Lifeng.  Within the interview Bessent details the ‘U.S.-China AI Dialogue’, the calls for a slowdown in AI development and whether regulation is needed.

Secretary Bessent notes President Trump is not going to deliver liability immunity to AI frontier labs and existing legal frameworks within the U.S. will remain as protective pathways as development moves from AI labs into engineering outcomes.

This is the core of the issue. The investors that poured money into the AI labs, now support immunity from legal liability that doesn’t exist in any other sector other than Big Pharma. AI wants the same protection as Big Pharma, and President Trump is not going to allow the shift in responsibility from AI developers to government. WATCH:

Also below is the full debriefing from Secretary Bessent and USTR Jamieson Greer that followed the Sunday meeting between the U.S. and Chinese counterparts.

As CTH has noted, the pace of these critical economic developments is going to speed up over the next several days and weeks.  It becomes increasingly important to stay tuned-in to the granular issues as they unfold in order to fully appreciate the landscape that surrounds us.   It can be challenging to absorb information as the pace increases, yet it is critical to remain aware so that each building block in the nationalist policy making remains in context.

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I suspect we will see similar realignment continues as the globalists like Canada and the EU try to oppose President Trump and U.S. best interests.

Belarus stands in ideological opposition to the globalists in Europe and President Alexander Lukashenko is an ally of Russian Federation President Vladimir Putin.  This announcement is a smack back against the leverage Canada claims to carry.  Again, creating more distance between the USA and the Snow Mexicans.

[SOURCE]

Watch the interview with U.S. Trade Representative Jamieson Greer to understand exactly where this is going.  The United States is systematically decoupling from Canada.  When we cut the economic lifeline represented by the USMCA, Canada will be adrift.

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The missing aspect in all USMCA/CUSMA trade discussions is the simple fact that President Trump and U.S. Trade Ambassador Jamieson Greer would prefer bilateral trade agreements.  The reason is simple and is highlighted in all the problems with the three-party USMCA.

Two countries can negotiate based on their individual interests; multiple country assemblies get complicated.  Canadian Prime Minister Mark Carney and his “middle power” strategy of multiple interests assembling to create larger influence simply doesn’t work in trade discussion.  That’s the bottom line.

Reuters is reporting the obvious.  Mexico and the United States are racing to reach a bilateral trade deal before the U.S. midterm elections in less than eight weeks, according to six sources in both countries familiar with the talks, an effort made more urgent by the collapse of Canadian negotiations with Washington. Both USTR Jamieson Greer and President Trump have previously said the deal with Mexico would likely come first.

Mexico has played this very well.  Mexican President Claudia Sheinbaum has not participated in any antagonisms toward the U.S. position; they are simply negotiating for their best outcome.  The Mexican government officials don’t try to hide their U.S. dependency under the misguided premise of patriotism.  They understand the nature of the relationship.

If President Sheinbaum wants to keep a strong economy, she needs the USA.  Both leaders want a trade agreement; it’s business beyond politics.  Canada on the other hand is playing pure politics and trying to carve out a deal for themselves the rest of the world doesn’t have.  Canada wants to be excluded from the baseline tariffs applied to everyone, that’s not going to happen.

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President Trump and U.S. Trade Representative Jamieson Greer waited to see if Canada was going to follow through with their retaliatory tariffs against U.S. imports.

The Canadian government carried out their tariffs, so today the White House introduced 50% ‘stacking tariffs’, on top of pre-existing tariff rates, and additional import bans against several Canadian products.

It should be quickly noted that several North American corporations are already making moves to avoid the issues by shifting production lines and adding additional investment into U.S. manufacturing.  As expected, getting locked out of a 32 trillion economy is not an option for survivability.

The easiest way to review the issues is not to read media reports, but rather to read the actual outcomes as announced by the White House and USTR.  CTH has noticed several Canadian outlets are already making false claims.

A White House FACT SHEET IS HERE.  The USTR ANNOUNCEMENT IS HERE.

It is worth reviewing both sets of outlines as well as accompanying links to determine the exact types of Canadian products being targeted by stacking tariffs and import bans.

WHITE HOUSE – Today, to address Canada’s increased discrimination against U.S. commerce, President Trump signed five Proclamations pursuant to Section 338 of the Tariff Act of 1930 to ban certain products from Canada and modify the scope of the tariffs on certain Canadian products previously announced on July 20, 2026. President Trump is taking decisive and appropriate action to respond to Canada’s additional retaliation and continued discriminatory treatment of crucial American exports.

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Amid the global opposition to a new American geopolitical framework there is some seriously sketchy stuff taking place.  My next article will outline something in the background that may put these comments by Jamieson Greer into an entirely new context.

In this interview with Fox News, U.S. Trade Representative Jamieson Greer outlines more specifics of what took place between the U.S. and Canada trade discussions.  Suffice to say, Mark Carney is up to some really sketchy stuff on behalf of his globalist allies, including the EU-NATO coalition.

Pay close attention to what Greer says in this interview and remember, there are trillions at stake. The source for this video is X.  WATCH:

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CTH continues to get considerable questioning about how the U.S-Canada fracture will take place, what it means for the Canadian dollar (CAD) and when the issues can be expected to apex.  It appears that part of the reasoned disconnect people are struggling with is directly related to the messaging from the Canadian government in combination with the financial media.

In short, despite the increased trade friction, a decoupling of the U.S. economy from the Canadian economy just seems unfathomable to most observers. The main question we receive is ‘when will things happen‘?  Meaning when will financial markets react?  The most obvious answer to that question is, when the USA announces the termination of the USMCA (CUSMA) trilateral.

If you hold the opinion that all of these trade friction points will be resolved within the margins of the USMCA, then it is correct to predict that no significant material impact will be felt north of the border.  If, however, you hold the opinion that the USMCA will be terminated because the core of the issues between the two countries are irreconcilable, then the material impact will come as soon as that announcement is made.

Alberta Premier Danielle Smith, the only Canadian government official to attend President Trump’s inauguration, appears on Fox Business. Like all other Canadian officials, she cannot contemplate the elimination of CUSMA/NAFTA.  Such an outcome is simply beyond her comprehension. WATCH:

In previous interviews and broadcasts, Mrs Smith claimed if Canada was to introduce an export tax the USA would respond accordingly.  This is not accurate.  The U.S. has no mechanism to place a tax on exports.

Additionally, inside Canada the structure is provincial.  That means each province taxes each other province for goods and services.  In the USA we have state sales taxes, but those taxes are applied across all goods sold to/inside an individual state.  Ex. Florida does not tax Texas.  Florida has one sales tax for all goods regardless of their origin.

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{Bumped – By Request More Analysis Added}

It is very obvious from the construct and details of this announcement that U.S. Trade Representative Jamieson Greer has completed a comprehensive review of the retaliatory action by Canada that followed the U.S. Section 232 tariffs on Steel and Aluminum. {FACT SHEET HERE}

Last year two countries retaliated against the U.S. for the 232 (steel and aluminum) tariffs, China and Canada. The USTR office has now quantified the tariff and non-tariff barriers triggered by Canada in 2025 and provided President Trump with a financial quantification of the trade impact.

The three Canadian retaliatory sectors highlighted include: (1) Alcoholic Beverages, (2) Motor Vehicles, (3) Dairy Products. These are the three segments quantified by USTR Greer that form the baseline for the U.S. to retaliate with countervailing duties.

Effective 30 days from now, August 16, 2026, President Trump has established a 50% tariff rate against a wide variety of Canadian imports. Essentially three major Annexes: {LIST 1 – LIST 2 – LIST 3} under the authority of Section 338.

♦ Section 338 authorizes the President, if he determines it will serve the public interest, to offset any burden or disadvantage placed on the commerce of the United States by an unequal imposition or discrimination by a foreign country by specifying and declaring additional duties not to exceed 50 percent ad valorem (or its equivalent) and not to take effect earlier than 30 days after the President’s proclamation finding that a foreign country imposes an unreasonable charge, exaction, regulation, or limitation that is not equally enforced on the like articles of every foreign country, or discriminates in fact against U.S. commerce in a way that places the commerce of the United States at a disadvantage compared to the commerce of any foreign country.

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Today is not a good day for the Canadian trade team.

It started with Quebec’s new Premier in Washington DC meeting with U.S. Trade Representative Jamieson Greer {citation} in order to talk trade {SEE TIMELINE} saying on Twitter, “Quebec wants a renewal of the [USMCA] to ensure a stable and predictable framework for our economic exchanges.” However, Mrs. Christine Fréchette (pictured left) then bragged about having strategic discussions with the U.S. Chamber of Commerce. {citation}

For those who might not know, the U.S. Chamber of Commerce is a parasitic Wall Street and K-Street lobbying organization that has been locked out of trade influence since President Trump took office in 2017.  It was the U.S. CoC who sold out our manufacturing base, paid-off prior administrations and wrote the actual trade language in almost every trade deal that destroyed U.S. manufacturing.

The U.S. Chamber of Commerce is a lobbying organization who focuses on the bottom-line profits of U.S. multinational corporations, and they don’t care what happens domestically to American jobs, American manufacturing and American wages.  The CoC is the organization who created the rust belt and destroyed our manufacturing base under the guise of promoting a “service driven economy.”

If Canada want’s a successful trade negotiation with the USA, the Chamber of Commerce is the last organization they should be strategizing with.

Then comes Prime Minister Mark Carney who not only steps on a rake, but he also publicly insults President Trump and the entire U.S. trade team by saying every country in the world privately tells him they regret making a trade agreement with President Trump. ¹{Citation at 28:10 of Video}

I’m going to post the entire video of Prime Minister Mark Carney discussing USMCA (Canada calls CUSMA) trade negotiations because the tone deafness of it is off the charts. That includes the Canadian Prime Minister saying that Section 232 national security reviews are a violation of the U.S-Canada trade agreement.  Carney believes any independent U.S. trade position that negates trade with any Canadian sector is a violation of trade rules, yet he is afraid to sue over Sec 232 because he doesn’t want to discover the flaw in his mindset.

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The pundits, economists and financial media are shocked, perplexed, befuddled and flummoxed.  The Bureau of Labor and Statistics has released the January inflation data [SEE HERE] and the results are much better than they expected.

Overall inflation is 2.4% year-over-year, and there are zero indications that tariffs are having any impact on consumer prices [See Apparel].

[DATA LINK]

CORE inflation, which removes food and energy, comes in at 2.5% year-over-year, the lowest number since March 2021. This is like reliving 2018 all over again, when the pundits proclaimed with absolute certainty that Trump’s tariff approach was going to cause inflation; it never happened.

VIA ABC – Inflation cooled in January, dropping price increases to their lowest level in nine months, new data from the Bureau of Labor Statistics showed. The lower-than-expected reading defied fears of a tariff-induced hike in overall costs.

Prices rose 2.4% in January compared to a year earlier, according to the Consumer Price Index.

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President Trump holds a roundtable discussion with Agriculture Secretary Brooke Rollins and various farm state senators as he outlines $12 billion in support and subsidy for American farmers.

With energy prices lowered, the costs for natural gas, fertilizer, diesel and gasoline prices have fallen; however, food costs have remained high.  President Trump announced with Brooke Rollins an initiative to help support American farmers with the intended objective to lower production costs from the field that will hopefully transfer to the fork.

Secretary Rollins and President Trump announce a $12 billion bridge subsidy to assist farmers with proactive planning for the 2026 planting season.  The money is coming from revenue generated by tariffs, and row crop farming will be the first subsidies delivered.  WATCH (media questions begin at 31:40):

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