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Shocked, But Not Surprised: US Flexes Mafia Muscle to Derail Global Shipping's Green Deal

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Shocked, But Not Surprised: US Flexes Mafia Muscle to Derail Global Shipping's Green Deal
Blog

Blog

Shocked, But Not Surprised: US Flexes Mafia Muscle to Derail Global Shipping's Green Deal

2025-11-06 14:31 Last Updated At:14:31

Last Friday, Trump flat-out torpedoed a much-anticipated zero-emissions deal for the global shipping industry, smashing it apart at the United Nations' International Maritime Organization (IMO). The Financial Times lays it all bare: to kill the net-zero shipping pact, Trump didn’t just lean on the usual diplomatic muscle—Washington went full gangster. Think raised port fees, outright bans on ships passing through America, and direct threats, and even personal intimidation of diplomats and their families, with entry bans waved in their faces like warning flags.

The Financial Times lays it out: over a dozen diplomats, foreign officials, and industry insiders watched the US throw diplomacy in the mud at last month’s London summit. Washington came armed with bullying tactics, determined to smash the net-zero shipping pact by brute force.

US Bullying Blocks IMO’s Green Shipping Deal—Vote Delayed a Year. IMO website image.

US Bullying Blocks IMO’s Green Shipping Deal—Vote Delayed a Year. IMO website image.

US officials didn’t bother with backroom deals—they stalked the halls, cornering diplomats from Africa, the Pacific, and the Caribbean. The message was simple: cross the United States, and your ships might not reach America. Rock the boat, and your family could be locked out. These weren’t idle whispers. The intimidation played out in broad daylight during coffee breaks.

Social Media Taunts, Policy Upends

Trump didn’t bother hiding his true feelings. On social media, he slammed the agreement as a “global green shipping tax scam.” But this wasn’t just venting. In April, most countries had already green-lit the framework. It was set to become real policy—until Trump’s team blew it up, forcing a one-year “pause.” The global momentum froze on the spot.

One diplomat cut to the heart of it: “It’s like the streets of New York.” His country got the warning firsthand—keep backing the deal, and watch your sailors’ visas disappear. US port fees? Those would rise too. Another attendee was even more blunt: IMO bigwigs were left gobsmacked. “It’s like dealing with the mafia,” they said. “You don’t need details. You just know: cross us, and you’ll pay.”

The US State Department kept mum on the intimidation claims. Instead, American officials handed out praise to Greece and Cyprus. Those two broke rank from the rest of the EU—they cast abstention votes in the big one-year adjournment, even after they already gave the framework the green light back in April.

Secretary of State Marco Rubio, ahead of the IMO meeting in London, issued a joint statement with senior Trump officials warning that the administration was "evaluating sanctions on officials sponsoring activist-driven climate policies that would burden American consumers, among other measures under consideration." As Greece and Cyprus sided with the U.S., much of Europe—and the world—reacted with surprise.

Global Rules or American Muscle?

Chatham House’s head of global economy Creon Butler didn’t mince words. The US, he said, has ditched long-standing diplomatic etiquette. Instead, Washington's now muscling countries into backing its stance—especially on climate.

America Threatens: Support This, Your Crews and Ports Pay.

America Threatens: Support This, Your Crews and Ports Pay.

“In the very short term this might work, but in the medium term it increases the chances that non-US countries will conclude they cannot work with the US, making agreements independently among themselves which simply work around the US,” he said. Sooner or later, the rest of the world will ink deals that leave America in the dust.

The pushback reached fever pitch at the IMO. Brazil, among others, called out the methods “that should not ever be used among sovereign nations”. Washington wasn’t just rattling individuals—entire capitals, from Bangladesh to Japan and Indonesia, got notes threatening diplomatic smackdowns.

But let’s step back. The drive for a net-zero shipping pact isn’t about feel-good climate slogans.

As Niu Tanqin from Xinhua puts it: The pact itself is a brass-tacks response to global warming’s mounting cost. Whether you like it or not, global warming is simply an undisputable fact. Everyone is scrambling to stall off the climate catastrophes looming on the horizon.

So, in order to squeeze carbon emission: if your ship emits less than the set limit, you’re rewarded. Above the cut-off, you pay. China, the EU, Japan, India, Brazil—all were in. Even the big shipping companies joined the chorus.

Only a handful of oil states—think Saudi Arabia, Russia, the UAE—pushed back. Pacific island nations, unconvinced the pact was tough enough, simply abstained.

Trump Says Global Warming’s a Scam—US Walks Out.

Trump Says Global Warming’s a Scam—US Walks Out.

Then, everything changed. Once Trump 2.0 manifested, the US flipped from supporter to saboteur. In his mind, climate change is a hoax—or worse, a Chinese plot to corner American interests. Stopping this agreement wasn’t just policy—it was personal. He didn’t mind stooping low—pulling out every trick in the high school bully’s playbook: pressure, threats, and outright intimidation to make sure America got its way.

One official wasn’t shy: “It was completely exceptional. I have never heard of anything like this in the context of an IMO negotiation. These people [being threatened] are just bureaucrats, they are civil servants.”

If international law becomes a mere cheap disguise, you can bet real power will be the one pulling the strings.

Pause Button Pressed—World Left Reeling

Now, the deal waits on ice for another year, while “the world stares, shell-shocked”—witnesses to a new era of American brinkmanship.

Not the first time, either. Just look at tariffs: if Washington’s unhappy, it writes its own tax bill—no debate required. Venezuela and Nigeria have both fielded threats of military action; Canada and Panama know the taste of territorial intimidation. Lawless? That’s par for the course.

  

But payback, as always, has a funny way of coming due. Today, the US bullies island nations and slaps down climate claims. Tomorrow, who’s next? When “might makes right” replaces rules, every nation that depends on order will lose out. True justice may come late—but it never skips its date. Chip away at the pillars of fairness, and sooner or later, you bury the very house you live in.

The real question: how long can America’s strong-arm show go on before the world walks out?




Deep Throat

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

Canada just threw the rulebook out. While Washington tries to bully automakers into abandoning Canadian factories, Ottawa slashed import tariffs on Chinese-made electric vehicles from a punishing 106.1% down to 6.1% – a move that cracks open the door for Chinese EVs to flood the Canadian market. The numbers tell the story: Chinese EV exports to Canada cratered 92% quarter-over-quarter in Q4 2024 under the old tariff regime. Now Prime Minister Carney is calling the shots from Davos, warning middle powers they need to stick together or risk becoming "menu items" for superpowers playing hardball.

From 106.1% to 6.1%

Here's what actually changed. Since October 2024, Canada's previous government had parroted US policy by slapping a 100% additional tariff on Chinese EVs, pushing the combined rate to 106.1%. Chinese EV exports to Canada collapsed 92% in Q4 2024 compared to the previous quarter.

Canada slashes tariffs from 106.1% to 6.1%. Stock photo

Canada slashes tariffs from 106.1% to 6.1%. Stock photo

The new policy strips that away, restoring the 6.1% base tariff and establishing an annual import quota of 49,000 vehicles. Carney framed this as fostering Sino-Canadian cooperation, projecting that joint ventures between Chinese companies and Canadian partners will materialize within three years – preserving and creating auto sector jobs while strengthening Canada's EV supply chain. The agreement commits to bringing more affordable models to Canadian buyers, with over 50% of imported EVs expected to cost less than CAD 35,000 within five years.

Automakers and market analysts are calling it a "major boon." Sun Xiaohong, an expert from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, noted that Chinese EVs match the Canadian market well on price and performance, and the policy shift will restore positive growth momentum.

The price gap that's driving Ottawa's pivot. Stock photo

The price gap that's driving Ottawa's pivot. Stock photo

Price competitiveness remains the killer advantage. Market comparisons show that equivalent Chinese EV models typically sell for US$10,000 to US$15,000 less than existing options in Canada. Polling data backs this up: most Canadians support tariff cuts to boost their purchasing power.

Payback for Trade Bullying

Bloomberg characterized this as a direct response to the current US administration's strong-arming of automakers to relocate factories from Canada to the United States – while simultaneously opening the door for Chinese carmakers to assemble vehicles in Canada for the first time.

Daniel Breton, head of the Canadian Electric Vehicle Association, put it plainly: the US President has publicly declared he doesn't want any Canada-built cars sold in the US, effectively threatening Canada's entire auto industry. The policy adjustment is "right on time," enabling Canada to find new partners and reduce over-reliance on the US market. Industry forecasts suggest Chinese brands could capture roughly 10% of the Canadian EV market share.

Significantly, the new policy marks the first time Canada opens the door for Chinese firms to assemble cars domestically, though it may attach conditions like joint ventures or mandates for local software.

Sun Xiaohong analyzed that in 2025, the US government rolled out a series of tariff increases targeting autos and parts – measures that applied equally to Canada. This prompted many companies originally producing in Canada to shift capacity to the US mainland, leaving output gaps in Canada. As a result, Ottawa is actively seeking global auto investors, including from China.

Canada's government is developing a new auto industry strategy, scheduled for release in February, focused on attracting foreign investment, nurturing local industry, and reducing dependence on the US.

Sun believes Sino-Canadian auto cooperation could evolve from trade to investment, with strong odds of Chinese firms establishing assembly operations in Canada. As a USMCA member, Canada offers an attractive market and a gateway into North America. The Chinese side will monitor the stability of Canada's investment climate and policy continuity to ensure healthy, long-term collaboration.

"Not at the Table? On the Menu"

At the Davos World Economic Forum, Canadian Prime Minister Carney delivered a headline-grabbing speech, urging middle powers worldwide to band together and push back against coercion by aggressive superpowers.

Prime Minister Carney at Davos. AP photo

Prime Minister Carney at Davos. AP photo

Though he didn't name US President Trump directly, he referenced "American hegemony" and accused "great powers" of weaponizing economic integration. Facing this new reality, Canada must "be both principled and pragmatic" – pivoting inward to build the nation, diversify trade relationships, and reduce dependence on the US and others, because it's now clear that "integration" breeds "subordination".

 

Carney put it bluntly: the long-standing US-led, rules-based international order is finished. Middle powers like Canada need a strategic pivot to avoid becoming casualties of "coercion" from powerful forces. "When the strong can do what they can”, there is a strong tendency for countries to “go along to get along, to accommodate, to avoid trouble, to hope that compliance will buy safety”. “Well, it won’t”, said Carney. “The middle powers must act together, because if we're not at the table, we're on the menu.”

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