Europe forges new ties as President Trump destabilizes foreign relations

The adage “good fences make good neighbors” seems to sum up U.S. President Donald Trump’s threat Saturday to impose 100% tariffs on Canada if it strikes a trade deal with China.

Prime Minister Mark Carney said Sunday that Canada has “no intention” of pursuing a free trade agreement with China.

Trump’s warning came after he withdrew Canada Carney’s participation on Thursday from the Peace Commission, a council originally created to oversee Gaza reconstruction.

But such estrangement between Washington and its northern neighbor was probably not what poet Robert Frost meant when he wrote this line, which was often taken out of context.

Frost goes on to write, “Before I built a wall, I wanted to know what I was walling off, what I was walling off/And who I was angry at.” This context feels relevant as the U.S. government’s relations with Canada and the European Union grow increasingly tense.

In contrast, India’s relationship with the European Union appears to be stronger. Sources cited by Reuters said New Delhi plans to cut tariffs on cars imported from within the region from a maximum of 110% to 40%, with the tariffs expected to fall to 10% over time.

Meanwhile, relations between political parties in the United States are once again unstable. (Though one wonders when that hasn’t been the case.) Democratic senators have warned that they won’t vote in favor of any provision for the Department of Homeland Security in the government’s funding package, following outrage over the killing of American citizen Alex Preti by federal immigration agents.

The standoff raises the risk of a government shutdown and could impact U.S. Treasury yields, the dollar and flight to safe havens.

Those nerves were already on display in early Monday trading. gold Prices breached the $5,000 level during Asian hours, but the US futures market and Asian markets fell due to a combination of global risks.

Investors are currently facing a busy week. apple, Meta and microsoft Earnings are expected and the Federal Reserve concludes its interest rate-setting meeting on Wednesday. How those results play out will determine the mood of the market in the short term.

Carney: Canada has ‘no intention’ of reaching agreement with China. Canada’s prime minister said Ottawa respects its obligations under the Canada-U.S.-Mexico trade agreement. President Trump on Saturday threatened to impose 100% tariffs on Canada if it “reaches a deal with China.”

Relations between Europe and the US are at their “lowest moment” in NATO history. Former European Commission President José Manuel Barroso told CNBC on Monday that the transatlantic relationship is at a “disconnection stage”, driven by interests rather than shared “democratic values”.

India plans to reduce tariffs on EU cars. Cars from the European Union with an import value of more than 15,000 euros ($17,800) will be subject to tariffs of up to 110% to 40%, Reuters reported, citing two sources. Tariffs are expected to be reduced to 10% over time.

U.S. stocks were mixed on Friday. intel Approximately 17% decline, bNvidia and advanced micro device They rose more than 1.5% and 2%, respectively. Asia-Pacific markets were mostly lower on Monday. Japan’s Nikkei stock average fell more than 1.7% as Japan’s prime minister warned against speculation in the market against the yen.

(PRO) New AI stock trends in China. Concerns about the AI ​​chip bubble are driving local investors away from infrastructure businesses and away from investing in AI applications. Stocks to watch within that sector include:

‘History’s clock is ticking’: expert warns of possible global market correction

The stock market entered 2026 on stable footing after a strong year. The MSCI All Country World Index, which measures the performance of more than 2,500 large- and mid-cap stocks from developed and emerging markets, is up more than 2% since the beginning of the year. According to LSEG data, it rose by 20.6% in 2025, but on January 15th it set a new record.

However, some investors note that the lack of a major pullback over the past nine months has made the market increasingly vulnerable to sudden shifts in sentiment.

— Li Yingshan