Diplomacy
Trump’s proposed fees on Chinese ships threaten US maritime industry
Industry executives stated on Monday at a US Trade Representative (USTR) hearing that President Donald Trump’s plan to revitalize the US shipbuilding industry is likely to backfire, as it relies on proposed fees for China-linked vessels that would harm domestic ship operators, ports, exporters, and employment.
The discussion centers on the stacking of fees on Chinese-built ships, which could exceed $3 million per visit to US ports. The Trump administration claims these fees will deter China’s increasing commercial and military dominance in open seas and encourage domestic shipbuilding. US steelworkers’ unions, US steel manufacturers, and Democratic lawmakers support this effort, saying it will revitalize the domestic industry.
However, this idea has created a shockwave in the local maritime industry, as it threatens the survival of the same shipping companies and customers that would increase the demand for orders from the US shipyards Trump wants to rebuild.
“The effort to strengthen American shipbuilding would not serve the national interest if it inadvertently destroyed American-owned carriers,” said Edward Gonzalez, CEO of Seaboard Marine, the largest US international ocean cargo carrier, based in Florida, on Monday.
Like many US operators, Seaboard relies on Chinese-made ships. According to maritime data provider Alphaliner, its fleet of 24 ships includes 16 Chinese-built vessels.
US ship operators said that fees on China-linked ships would push more US cargo to foreign-capitalized ocean transport companies, which have the resources to better handle the change.
According to the USTR, China’s share of the shipbuilding market rose from under 5% in 1999 to over 50% in 2023.
Speakers said that US shipyards produce fewer than 10 ships a year, while China produces 1,000.
Meanwhile, industry executives noted that shipbuilders in Japan and Korea would struggle to meet demand in the years it would take for US shipyards to build capacity.
Kathy Metcalf, CEO of the Chamber of Shipping of America, said that replacing existing Chinese-built ships is not like flipping a light switch. “Punishing China and the US maritime transport system is not an acceptable outcome,” she said.
US ship operators support key American industries such as manufacturing, mining, and agriculture by transporting goods on inland waterways, along the Great Lakes, and up and down the country’s coasts.
Agricultural exporters are struggling to book ships after May due to uncertainty in the USTR plan, while coal industry representatives also state that the fees make it difficult to offer their goods to the global market.
“I urge you to ensure that your efforts to increase domestic shipbuilding do not come at the expense of farmers’ access to the market,” said Mike Koehne, a board member of the American Soybean Association, who grows soybeans and corn in Indiana.
Nate Herman, senior vice president of policy for the American Apparel & Footwear Association, which is dependent on imports, said port fees would lead to job losses for American workers, higher costs for American exports and imports, and scarcity and rising prices for American consumers.
He cited a new study by various trade groups showing that high costs from port fees would cause US exports to fall by almost 12% and GDP to fall by 0.25%.
“Hardworking American families cannot afford more price increases and product shortages, and American manufacturers and farmers cannot afford to lose more export markets,” Herman said.
Representative Rosa DeLauro and 62 other Democrats in Congress supported the proposed fees and other “swift and decisive” actions in a letter sent to US Trade Representative Jamieson Greer on Monday, saying that China’s dominance in the sector poses “unacceptable costs and risks” in terms of job losses and critical manufacturing capacity.
They requested the USTR to provide a facility that would allow firms to avoid fees by routing their cargo through Mexico or Canada.
The USTR, which will hear more comments at a hearing on Wednesday before finalizing the proposal under the Unfair Trade Practices Act, did not immediately respond to requests for comment.
In the current proposal, to completely avoid fees, ship operators must be based outside of China, have less than 25% of the ships in their fleet built in China, and not plan to order or take delivery from Chinese shipyards in the next two years.
A draft executive order seen by Reuters earlier this month would further narrow this limit by imposing port fees on all fleets with Chinese-built ships.
Shipowners could try to minimize the blow by using larger ships and limiting calls to major US ports, but this could put those ports in a difficult situation and lead to supply chain-related stress.
According to ship and port operators, ship operators could also shift cargo bound for the US to ports in Canada and Mexico and rely on trucks and trains to complete the journey, but this measure could also clog border crossings and cause more infrastructure wear and tear.
Diplomacy
North Korean hackers blamed for record $6.3bn Binance theft
The world’s largest cryptocurrency exchange, Binance, has suffered an industry-record cyberattack amounting to $6.3 billion.
According to The Guardian, experts say the likely perpetrator is the Democratic People’s Republic of Korea (DPRK).
Binance moved urgently to freeze the affected assets, and approximately $3 billion has been identified so far.
The company has not provided any update regarding the remaining $3.3 billion.
Binance co-founder Yi He said the company would cover “all cyberattack losses.”
Analysts attributed the assault to state-sponsored hackers from the DPRK. According to The Guardian, the DPRK has a history of cryptocurrency theft and, according to the FBI, was behind the theft of approximately $1.5 billion in virtual assets from a Tokyo-based cryptocurrency exchange last year.
That incident had set the record as the largest cryptocurrency theft recorded up to that point.
Crypto analytics firm TRM attributed the attack “with high confidence” to TraderTraitor, North Korea’s elite hacking unit.
Another analytics entity, Chainalysis, also linked the heist to TraderTraitor.
Binance has not explicitly confirmed that funds were stolen. However, TRM and Chainalysis claimed that more than $6 billion had been taken. The company stated that its teams were “working around the clock” to resolve the issue.
According to Binance’s statement, initial investigation findings revealed that the security breach may have begun with a hacked laptop belonging to one of Binance’s engineers, enabling an attacker to gain access to one of the company’s systems and execute unauthorised withdrawals.
Binance, which allows users to buy, sell, and trade digital assets, has 335 million registered users worldwide, and the total value of assets under its custody was approximately $162.8 billion, according to the exchange’s 2025 annual report.
“The bottom line is that your funds are safe and we are covering all losses,” said Richard Teng, one of Binance’s co-chief executives.
In a statement, the company said:
“As a precautionary measure, all deposits and withdrawals have been temporarily suspended while our security teams, with close support from law enforcement and industry partners, conduct checks, secure wallet infrastructure, and track affected assets.”
Markets reacted immediately early in the Asian trading session on Friday, with bitcoin, by far the most popular crypto asset, dropping by more than 3% to a six-week low of $76,368.
Shares of crypto exchange Coinbase Global lost 4.8%, while shares of bitcoin buyer Strategy fell by about 6% in extended trading on US markets.
Binance was founded in 2017 by Changpeng Zhao. Zhao pleaded guilty in the US in 2023 over failures to prevent money laundering on the platform. Donald Trump pardoned him in 2025.
In a post shared on X on Thursday, Zhao said, “User funds are safe!” but added that the incident “looks like a hack on Binance.”
Stating that he no longer manages Binance, Zhao said, “As a shareholder, I expect all user funds to be fully covered.”
According to Chainalysis and other industry experts, if confirmed, this could become the world’s largest cryptocurrency theft.
“This is the biggest hack in history,” said Aravind Srinivasan, head of the systematic OTC business at major crypto market maker GSR.
Analysts noted that beyond the potential loss of assets, the security breach could have broader repercussions across the cryptocurrency market.
Indeed, the cryptocurrency market had already been under pressure recently due to interest rate increases in the US and weakening demand from exchange-traded fund buyers.
Binance operates a secure asset fund for users; as stated on the company’s website, this fund is an emergency reserve held entirely in bitcoin, intended to protect user assets in the event of security breaches.
Stablecoin issuer Tether announced that it had frozen approximately $1.57 billion in assets linked to the incident, while Circle froze more than $800 million.
World Liberty Financial, a crypto firm linked to Trump and his family, said in a statement on Thursday that it was collaborating with cryptocurrency custody provider BitGo to freeze funds stolen in what it described as the Binance attack.
Yi from Binance said $27 million in stablecoins and roughly $2 million worth of World Liberty tokens had been frozen.
This development adds to a successive series of cryptocurrency thefts. According to researchers at TRM Labs, attackers stole $2.9 billion worth of cryptocurrency across roughly 150 attacks last year.
In September, cryptocurrency exchange Bitget announced that about $350 million worth of cryptocurrency had been stolen from its platform, highlighting the industry’s vulnerability to hackers.
Diplomacy
Canada pursues closer EU partnership as summit opens
Canadians are weighing the economic opportunities, regulatory hurdles, and questions of identity that closer cooperation with the EU would bring.
Canadian Prime Minister Mark Carney is hosting European Commission President Ursula von der Leyen and European Council President António Costa for a two-day summit focused on bolstering trade, security, technology, and people-to-people ties.
The leaders are expected to advance an ambitious new partnership that includes proposals referred to as an “Alliance of the Future” between Canada and the EU, promoted as an “ever closer union”.
So, what do Canadians think about this new agreement?
According to a February 2026 poll by survey firm Abacus Data, reported by Rapporteur, 74% of Canadians support closer cooperation with the EU on foreign policy, defence, and economic priorities. Only 10% oppose it, while 15% remain undecided.
This broad support masks diverging political attitudes. According to the poll, 60% of Liberal voters rank the EU among Canada’s top two partners, compared to 36% who include the US on that list.
Among Conservatives, the figures are reversed: 65% prioritise the US, while the proportion favouring the EU stands at 36%.
According to the Abacus Data survey, 48% of Canadians support EU membership, while 28% oppose it.
In remarks to Rapporteur, the polling firm said:
“The US still occupies a central place in the Canadian mindset, but this situation continues to change. Today it is still seen as the most important partner, but it is no longer in an uncontested position.”
Catherine Fortin LeFaivre, Vice President of Strategic Policy and Global Partnerships at the Canadian Chamber of Commerce, is eager to turn towards Europe during the Donald Trump era, yet harbours concerns about EU bureaucratic obstacles:
“Canada’s relationship with the US will always be vital, but the last two years have made the need for diversification impossible to ignore. Europe is a natural place to deepen economic ties. But what we do not want is to open the door to an added layer of regulation.”
Ontario farmer Hannah Hutchings shares this concern.
“The US is still an indispensable business partner,” Hutchings said, arguing that closer ties with the EU could help Canadian agricultural goods reach European consumers, provided they deliver economic benefits to farmers without generating further competition and regulation.
Although the EU-Canada Comprehensive Economic and Trade Agreement (CETA), applied provisionally since 2017, has reduced trade barriers, it has not opened every market to Canadian exporters.
Michael Harvey, Executive Director of the Canadian Agri-Food Trade Alliance, said: “Closer relations offer an opportunity to work on trade possibilities with the EU and give us greater leverage in negotiations. For certain agricultural products, non-tariff barriers still block market access because the EU wants to impose its own criteria on the entire world.”
Harvey pointed to EU restrictions on growth hormones and crop protection products:
“In this period of rapprochement, we must work through these issues. Closer ties are received largely positively by the public, but the details will make the difference. This must be a win-win situation for both sides.”
Noting that she also sees opportunities for collaboration in agricultural innovation and sustainability, Hutchings drew attention to shared challenges such as rising costs, labour shortages, climate change, and attracting younger generations into farming.
For Canadian businesses, Europe’s appeal also lies in its predictability.
“Forecasting the cost of doing business with the US has become difficult. Europe is more reliable and makes it possible to conduct business planning, understand market entry costs, and anticipate trading conditions,” Fortin LeFaivre said.
The Canadian Chamber of Commerce has developed a tool named “Trade Explorer”, which helps businesses identify new export opportunities, particularly in Europe.
Jonathan Audet, co-founder and CEO of Quebec-based ski manufacturer Ferreol, entered the French market in late 2025 and generated 5% of his sales there.
Audet anticipates that his European market share will eventually outstrip Canada:
“The business environment is more favourable than in the US. Forging closer ties with the EU will boost exports and allow us to build commercial partnerships and co-innovation partnerships.”
However, Audet wants administrative procedures simplified, particularly when transporting product samples to trade missions in Europe.
“We are not going to sell them; we are only taking them to display the products, but from a customs perspective, this process is complicated. I have to apply for an ATA Carnet, a kind of passport for goods,” he said, citing delays, fees, and airport customs procedures.
Students see opportunities as well. Alex Simion, a Carleton University student in Ottawa and chair of the student union board of directors, supports easier access to education and employment opportunities in Europe.
“Carleton is a university with a large engineering student body. Students enthusiastically welcome the establishment of closer ties with the EU,” Simion said, calling for simplified visa procedures and improved access to student housing.
Yet uncertainty has not disappeared. “Most of us started high school while the Brexit process was unfolding, so growing up, we saw that something was wrong in the EU,” Simion said.
For him, this debate also raises deeper questions about Canadian identity.
“What does it mean to be Canadian? We are still trying to figure that out,” Simion said, questioning whether EU membership would erode Canada’s distinct identity:
“A closer bond makes it even more important that we find an answer to what being Canadian means before joining the EU.”
Diplomacy
Ukraine economy set to shrink for first time since 2022, bank says
Ukraine’s economy is set to shrink for the first time since 2022, according to a Bloomberg report citing projections from the National Bank of Ukraine.
The central bank forecasts that the country’s gross domestic product will contract by 0.4% by the end of this year.
The National Bank of Ukraine had previously projected that the economy would grow by 1.8%.
The country’s last economic contraction was recorded in 2022, when gross domestic product plunged by more than 30%.
The National Bank of Ukraine attributed the worsening forecast to Russian strikes, which it said led to a “sharp drop in business activity.”
The Russian Defence Ministry has repeatedly stressed that the strikes target only Ukrainian military and energy facilities, as well as infrastructure linked to them.
President Vladimir Putin said that the Russian military’s strikes against Ukrainian infrastructure were effective and timely actions because they helped troops resolve the combat tasks before them.
The National Bank of Ukraine expects the economy to return to a 0.4% growth path next year, driven by rising investment in the defence industry and other projects.
According to Bloomberg, the National Bank of Ukraine raised its policy rate following the deteriorating economic forecasts.
The central bank’s updated assessments point to higher inflation than previously expected.
Government cuts spending and switches to austerity mode
Ukrainian Prime Minister Sergey Koretskiy announced in late September that the country had switched to a maximum austerity regime and postponed all non-urgent spending.
Koretskiy had previously stated that the state of the country’s public finances was nearing a critical level.
Ukraine’s 2026 budget was approved with a deficit of approximately 1.9 trillion hryvnias, or $47.5 billion.
Describing the upcoming 2026 winter as “objectively difficult” for the country, Koretskiy pointed out that the funding gap in Ukraine’s energy sector remained at around 650 million euros ahead of the winter period.
The Ukrainian Finance Ministry estimates that the country will require nearly $146 billion in external financing between 2026 and 2029.
The International Monetary Fund, meanwhile, projects that Ukraine will face a financing gap of up to $54 billion through 2029.
At the beginning of the year, the European Union agreed on a 90 billion euro loan package for Kyiv, allocating 60 billion euros for defence spending and 30 billion euros for budget and economic support.
As of 14 October, Ukraine had received only 19.8 billion euros of the agreed loan, representing just 22% of the total amount.
The Moscow government condemns military support provided to Kyiv.
Russian Security Council Secretary Sergey Shoigu, assessing the EU loan to Ukraine, claimed that this policy was driving European states toward “the ultimate loss of their sovereignty.”
President Vladimir Putin stated that “the entire West” was helping Ukraine.
Putin said Russia reserves the right to use weapons against the military facilities of countries that allow their delivered weapons to be used in attacks on Russian territory.
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