U.S. Trade Representative Greer said the U.S. could have delayed imposing a 50% tariff on Canadian dairy and wine.

Analysts say President Trump is pursuing new sanctions, a maritime blockade and pressure on Iran's trading partners to achieve by economic isolation what bombs and missiles could not — force Iran to accept US terms. Iran’s Islamic Revolutionary Guard Corps (IRGC) effectively controls the Strait of Hormuz and has repeatedly launched large numbers of attack drones into the Persian Gulf; the IRGC is largely impervious to economic pressure and retains substantial retaliation options. Treasury Secretary Bessent will unveil details on Monday of a plan to shift confrontation from regional air strikes to comprehensive economic isolation. If the economic squeeze takes hold, Iran is likely to respond with military strikes targeting Gulf energy infrastructure to push oil prices higher and raise the cost of US action, potentially forcing a US policy reversal.

Iranian Defense Ministry spokesman Reza Talaei-Nik told state television that weapons and defense-equipment output doubled over the past year. He said production rose after a 12-day conflict with the US and Israel ended in June last year, and that some wartime-priority strategic systems increased more than threefold, a claim he said contradicts US and Israeli assertions that Iran's defence production would stagnate.