CCDI Plenum opens; Rare earths exports to Japan get rarer; EU-China EV progress; Canadian PM’s visit to China

President Trump announced Monday afternoon that “Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive...."

It is not clear if that means an additional 25% tariff will be applied on top of the existing tariffs on goods from the PRC; if it does then that may blow up the US-China Busan deal.

Summary of today’s Essential Eight:

1. CCDI Plenum opens - Xi Jinping spoke at the opening of the Fifth Plenary Session of the 20th Central Commission for Discipline Inspection (CCDI) of the CPC. Li Xi delivered a report to the meeting but it is not yet public. From the communique to come at the end of the meeting we will learn which if any sectors will be especially targeted in 2026. The 2025 meeting called for “focusing on finance, state-owned enterprises, energy, firefighting, tobacco, medicine, higher education, sports, development zones, …