Trade blocs and middle-power hedging

The Canada-US rupture remains at peak activity after Canada’s 20% retaliation on selected US imports and US tariffs of up to 50% on some goods. The EU’s proposal for Canada to become its first associate member adds institutional weight to Mark Carney’s diversification strategy, while Davos speeches and middle-power cooperation remain important framing signals. The proposal is still aspirational and Europe cannot quickly replace US market access.