Xi Signals Defiance as US Threatens Sanctions for Iran Support

Summary

Terry Haines discusses US-Canada trade negotiations and metals issues, China's defiant response to US Iran sanctions, and the risk of Washington overusing economic leverage. He also comments on US political turnout in key races. The discussion is policy-focused and carries limited direct trade recommendations.

• Terry Haines expects underlying US-Canada trade and metals issues to eventually be resolved, but not quickly.
• China says it will take all necessary measures to safeguard its interests after US sanctions on Chinese entities tied to Iran.
• Haines warns the main risk is the US going too far with economic leverage and unintentionally unleashing China.
• Washington is wagering that China will prefer being seen as a trusted Gulf partner over supporting Iran.
• Haines says economic pressure on Iran is the best chance to bring the regime to the table.
• He expects strong moderate turnout in key US races, with disproportionate Republican turnout in races that matter.