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Quebec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) (‘QIMC’ or the ‘Company’) is pleased to report significant initial results from the first 300 metres of its planned 650-metre diamond drill hole DDH-26-01 at its West Advocate Eatonville Project, Nova Scotia. Drilling remains ongoing.

The Company has intersected a previously unmapped hydrogen-bearing tectonic fault corridor measuring approximately 40 metres in apparent width between 142 metres and 191 metres depth.

These results provide strong subsurface data supporting the presence of a structurally controlled natural hydrogen system and materially confirming QIMC’s structural natural hydrogen model.

What This Means for Investors

QIMC’s results represent direct subsurface indication via drill bit of a pressurized structural conduit consistent with an active natural hydrogen migration system at West Advocate. With four additional drill holes planned and in situ quantitative measurements to follow, the Company has a defined, systematic, data-driven, and well-capitalized pathway for the next phases of its Nova Scotia natural hydrogen program.

John Karagiannidis, President of QIMC, notes:

‘Reporting on the first 300 metres of a planned 650-metre hole, we have intersected a 40-metre-wide hydrogen-bearing fault corridor with readings in the ambient air around the borehole collar approximately 2,000 times atmospheric background levels. These results strongly support our structural hydrogen model and indicate we are operating within an active structurally controlled gas migration system.

The geochemical, geological, and geophysical similarities between the Eatonville Road and Bennett Hill areas suggest a broader structurally controlled hydrogen corridor across the Advocate region. Drilling remains ongoing as we continue evaluating the system at depth.’

TECHNICAL CONTEXT: MEASUREMENT METHODOLOGY

The winter exploration program at West Advocate has two important components.

The first, currently underway, uses conventional diamond drilling to document local geology and validate our exploration model, which was developed to explain the strong hydrogen, radon, and thoron anomalies observed in the soils of the area.

The drilling program is being executed by Maritime Diamond Drilling Ltd., an experienced Nova Scotia drilling contractor. Core logging and geological documentation are being conducted by Tower Resources Inc. of Nova Scotia, providing independent technical support for lithological, structural, and alteration characterization

Four hydrogen detectors were deployed to measure hydrogen concentrations at the edge of the wellhead and inside the drill compartment. These measurements are direct indicators of hydrogen emerging from the drill head, though the concentrations recorded are highly diluted by ambient atmospheric air, meaning the true subsurface concentrations may be significantly higher than what was measured.

The second component includes in situ sampling using pressurized water samplers rated to pressures equivalent to 1,200 metres of burial depth. These data will allow us to quantitatively establish the relationships between hydrogen concentrations and the structural features identified during drilling, providing a much more rigorous and precise characterization of the system.

Major Subsurface Results

Within the first 300 metres of drilling, QIMC encountered:

  • A ~40-metre-wide hydrogen-bearing fault corridor
  • Elevated hydrogen (H₂) readings in the vicinity of the borehole collar exceeding 1,000 ppm (instrument detection range up to 1,000 ppm; readings reached the upper calibrated measurement range of the monitoring equipment) during intersection of the fault zone
  • Very low oxygen (O₂) and no methane (CH₄) detected
  • Strong pressurized formation water inflow into the borehole and visible gas bubbling
  • Hydrogen detected within the structural interval associated with the fault corridor

For context, normal atmospheric hydrogen concentrations average approximately 0.5 ppm (500 parts per billion). The readings recorded near the borehole collar following pressurized formation water inflow are therefore approximately 2,000 times greater than typical atmospheric background levels. Because these readings were taken in ambient air significantly diluted by the atmosphere, they are considered a conservative indicator of subsurface hydrogen concentrations.

Formation water inflow and gas bubbling subsided only after drilling an additional six metres past 191 metres, indicating intersection of an active, pressurized structural conduit rather than a stagnant or isolated gas pocket.

Drilling also intersected faulted black graphite between 206 metres and 212.3 metres. Graphitic shear zones are commonly associated with deep crustal deformation, which may promote the rise of hydrogen from deep sources.

Geological Significance: Structural Model Validation

Results from DDH-26-01 provide direct subsurface support for QIMC’s natural hydrogen exploration model.

Key observations include:

  • Wide tectonic deformation corridors acting as hydrogen migration pathways
  • An open and structurally controlled system
  • Hydrogen structurally associated with deformation corridors rather than indicative of a conventional hydrocarbon system
  • A structural corridor interpreted to extend across the property toward the Bennett Hill target area

The interpreted multi-kilometre structural continuity toward Bennett Hill supports the emergence of a broader district-scale structural hydrogen corridor, though additional drilling will be required to evaluate continuity and scale.

Importantly, this structural corridor was not previously mapped at this level of detail in publicly available geological surveys, highlighting QIMC’s data-driven H₂ exploration model.

Discovery Highlights (First 300m of 650m Hole 1)

  • Newly identified ~40 m wide hydrogen-bearing fault zone
  • Hydrogen readings exceeding 1,000 ppm near the borehole collar
  • Pressurized formation water inflow with visible gas bubbling
  • Hydrogen detected in specific structural intervals
  • Very low oxygen (O₂) and no methane (CH₄) detected
  • Cataclasites and intensely deformed sedimentary rocks observed
  • Graphite-rich shear zone (206 m – 212.3 m)
  • Structure interpreted as part of a multi-kilometre structural corridor

Prof. Marc Richer-LaFlèche of INRS (Institut national de la recherche scientifique, one of Canada’s leading scientific research universities with internationally recognized expertise in Earth sciences and geochemistry) commented:

‘The DDH-26-01 borehole was primarily designed to document the geology of a sector of the Cobequid Highlands (West Advocate) characterized by strong hydrogen, radon, and thoron anomalies measured in soils. In this area, the underlying basement geology is largely masked by Quaternary till cover, which complicated interpretation of data acquired during the summer and fall 2025 programs.

Prior to drilling, the conceptual model suggested the presence of hypothetical fault structures acting as migration pathways for H₂ toward the subsurface. These structures were interpreted to occur within a transition zone marking the shift from a southern sedimentary domain to older northern basement rocks — a transition also supported by gravity and magnetic data.

Core observations from DDH-26-01 provide direct structural evidence consistent with this model. The drilling identified fault zones and deformation corridors not previously mapped or identified in geological surveys. The discovery of deformation corridors reaching up to approximately 40 metres in apparent thickness indicates that secondary structures associated with the Cobequid Fault Zone are more extensive and structurally complex than previously interpreted.

Based on the integration of geochemical, geophysical, and drilling data, these deformation corridors are interpreted to represent the principal structural controls influencing the elevated hydrogen concentrations measured in soils. These fault zones are associated with cataclasites, intensely deformed sedimentary rocks, and locally developed graphite-rich zones.’

Ongoing Drill Program

  • Hole 1 (DDH-26-01): Drilling continues to planned 650m depth; borehole geophysics and multi-parameter logging underway to characterize lithology, structural features, fracture distribution, and hydrogeological conditions.
  • Hole 2 (DDH-26-02): Drilled from the same site as Hole 1 with an orientation of N297° and a 55° plunge to the northwest, designed to drill in the direction of identified magnetic and gravity highs.
  • Hole 3 (DDH-26-03): Eatonville Road area along the Reid Line, planned to 700m depth.
  • Holes 4 (DDH-26-04) & 5 (DDH-26-05): Bennett Hill targets, testing the broader regional structural hydrogen corridor interpreted from geochemical and geophysical similarities with the Eatonville area.

The Natural Hydrogen Opportunity

Natural hydrogen (H₂), sometimes called ‘white hydrogen’ or ‘gold hydrogen,’ is attracting growing attention from governments, energy majors, AI data centers, and investors as a potential source of off-grid, naturally occurring clean hydrogen. Unlike manufactured green or blue hydrogen, natural hydrogen exists in the subsurface and may be extractable at a fraction of the production cost. QIMC is a publicly listed company with an advanced, active, scientifically rigorous drill program specifically targeting structurally hosted natural hydrogen systems in North America.

About Québec Innovative Materials Corp. (QIMC)

Québec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) is a mining exploration and development company dedicated to unlocking the potential of North America’s abundant natural resources. With properties in Ontario, Quebec, Nova Scotia, and Minnesota (USA), QIMC specializes in the exploration of white (natural) hydrogen and high-grade silica assets.

QIMC is committed to sustainable development, environmental stewardship, and innovation, with the objective of supporting clean energy solutions for the AI-driven and carbon-neutral economy.

For More Information, Please Contact:

Regulatory Disclaimer

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release and has neither approved nor disapproved its contents. Technical Note: Hydrogen readings reported are based on real-time field measurements from the first 300 metres of Hole 1 using calibrated monitoring equipment at the borehole collar with an upper measurement range of approximately 1,000 ppm. True structural width and regional continuity remain subject to further drilling and structural interpretation. Drilling remains ongoing to the planned 650 metre depth.

Forward-Looking Statements

This press release contains ‘forward-looking statements’ and ‘forward-looking information’ within the meaning of applicable Canadian securities legislation. These statements are based on expectations, estimates, and projections as of the date of this press release and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied.

Forward-looking statements are generally identified by words such as ‘expects,’ ‘anticipates,’ ‘believes,’ ‘intends,’ ‘estimates,’ ‘projects,’ ‘potential,’ and similar expressions, or by statements that events or conditions ‘will,’ ‘may,’ ‘could,’ or ‘should’ occur.

Although the Company believes that the forward-looking information contained herein is reasonable as of the date of this press release, such information is subject to change and no assurance can be given that future results will be achieved. The Company undertakes no obligation to update forward-looking statements except as required by applicable law.

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Questcorp Mining Inc. (CSE: QQQ,OTC:QQCMF) (OTCQB: QQCMF) (FSE: D910) (the ‘Company’ or ‘Questcorp’) is pleased to announce that it has closed the first tranche of its upsized non-brokered private placement of 11,100,000 units (each, a ‘Unit’) at a price of $0.20 per Unit for gross proceeds of $2,220,000.00 (the ‘Offering’). Each Unit consists of one common share of the Company (each, a ‘Share’) and one-half-of-one common share purchase warrant (each whole common share purchase warrant, a ‘Warrant’). Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.30 until February 24, 2029, provided that holders will not be permitted to exercise Warrants until 60 days following closing of the first tranche of the Offering.

The Company expects to utilize the proceeds of the Offering for exploration work at the Company’s La Union Gold and Silver Project and North Island Copper Project, and for general working capital purposes.

The Units issued under the Offering were offered for sale pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions, as amended by CSA Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (collectively, the ‘Listed Issuer Financing Exemption‘), in all provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States. The Units issued under the Listed Issuer Financing Exemption will be immediately ‘free-trading’ under applicable Canadian securities laws.

In connection with closing of the first tranche of the Offering, the Company paid $16,300, issued 580,000 Units at a deemed issued price of $0.20 per Unit and issued 661,500 common share purchase warrants (each, a ‘Finders’ Warrant‘) to certain arms-length parties (each, a ‘Finder‘) who assisted in introducing subscribers to the Offering. Each Finders’ Warrant entitles the holder to acquire one common share of the Company at a price of $0.30 until February 24, 2029, provided that holders will not be permitted to exercise Finders’ Warrants until 60 days following closing of the first tranche of the Offering. All securities issued to Finders are subject to restrictions on resale until June 25, 2026 in accordance with applicable securities laws and the policies of the Canadian Securities Exchange.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

About Questcorp Mining Inc.

Questcorp Mining Inc. is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The Company holds an option to acquire an undivided 100% interest in and to mineral claims totaling 1,168.09 hectares comprising the North Island Copper Property, on Vancouver Island, British Columbia, subject to a royalty obligation. The Company also holds an option to acquire an undivided 100% interest in and to mineral claims totaling 2,520.2 hectares comprising the La Union Project located in Sonora, Mexico, subject to a royalty obligation.

ON BEHALF OF THE BOARD OF DIRECTORS,

Saf Dhillon
President & CEO

Questcorp Mining Corp.
saf@questcorpmining.ca
Tel. (604-484-3031)
Suite 550, 800 West Pender Street
Vancouver, British Columbia
V6C 2V6

https://questcorpmining.ca

This news release includes certain ‘forward-looking statements’ under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the intended use of proceeds from the Offering; and closing of subsequent tranches of the Offering. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/285268

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Rzolv Technologies Inc. (TSXV: RZL,OTC:RZOLF) (FSE: S711) (OTCQB: RZOLF) (‘RZOLV’ or the ‘Company’) is pleased to announce that it has entered into a one-year investor relations agreement, effective February 24, 2026, with San Diego Torrey Hills Capital (‘SDTHC’), a U.S.-based investor relations and corporate communications firm.

Under the terms of the agreement, the Company will pay SDTHC a monthly cash fee of US$4,000 and grant 100,000 incentive stock options (the ‘Options’) exercisable at $0.50 for a period of three years from the date of grant. The Options will vest as follows: (i) 25% on the three-month anniversary of the grant date; (ii) 25% on the six-month anniversary; (iii) 25% on the nine-month anniversary; and (iv) 25% on the twelve-month anniversary. The Options will be granted in accordance with the Company’s equity incentive plan and are subject to the approval of the TSX Venture Exchange (the ‘TSXV’).

The engagement of SDTHC is intended to support RZOLV’s expanding U.S. capital markets presence following its recent OTCQB listing. SDTHC will assist the Company in strengthening investor awareness, coordinating non-deal roadshows, facilitating institutional outreach, and enhancing communications across North American markets. SDTHC is at arm’s length to the Company and, to the Company’s knowledge, does not hold any securities of RZOLV as of the date of this release.

San Diego Torrey Hills Capital was formed in 1998 and is headquartered in Rancho Santa Fe, California. The firm provides investor relations, corporate communications, market visibility strategies, and U.S. capital markets advisory services to emerging growth companies listed in Canada and the United States.

OTC Markets Virtual Conference

Also, as part of its recent listing on the OTCQB, Rzolv Technologies Inc. announces that it will participate in the OTC Markets Virtual Investor Conference Series on March 5, 2026, at 1:00 p.m. EST. For the webcast link: Click Here. The presentation will provide a corporate overview and will not include any material information not previously disclosed by the Company. Interested investors will be able to access the webcast and replay through OTC Markets’ conference portal following the event, and management will also be available for scheduled one-on-one meetings. A copy of the Company’s investor presentation will be made available on the Company’s website and/or through OTC Markets in connection with the event.

CEO Commentary

Duane Nelson, President & Chief Executive Officer of Rzolv Technologies, commented: ‘As we continue to advance RZOLV™ through commercialization and broaden our capital markets footprint, expanding our U.S. investor engagement is a strategic priority. San Diego Torrey Hills Capital brings decades of experience supporting cross-border issuers and emerging growth companies in the U.S. markets.

‘Our recent OTCQB listing positions RZOLV to access a significantly larger pool of institutional and retail investors, and this engagement is designed to ensure our story is communicated clearly, consistently, and professionally as we scale. We believe that enhanced visibility in the U.S. market will support liquidity, shareholder diversification, and long-term value creation as we progress our non-cyanide gold extraction platform toward broader industry adoption.’

About San Diego Torrey Hills Capital

San Diego Torrey Hills Capital specializes in the development and marketing of emerging growth companies that trade in the United States (NYSE, NYSE American, and OTC Markets) and in Canada (TSX, TSXV, and CSE). The firm assists clients in articulating key investment attributes, strategic direction, and financial objectives in order to enhance market awareness and shareholder engagement.

RZOLV to Attend and Exhibit at PDAC 2026

Rzolv Technologies Inc. is pleased to announce that it will be exhibiting at the Prospectors & Developers Association of Canada (PDAC) 2026 Convention, held at the Metro Toronto Convention Centre in Toronto, Ontario, from March 1-4, 2026. Shareholders, mining professionals, and prospective partners are invited to visit Booth #2748 to meet with management and learn more about RZOLV’s proprietary non-cyanide gold recovery platform (RZOLV™) and its potential to support lower-impact gold processing across cyanide-restricted or technically challenging applications.

Company representatives will be available throughout the conference to discuss recent corporate developments, technical progress, and partnership opportunities. Attendees interested in scheduling a meeting are encouraged to contact the Company in advance through its investor relations channels.

About Rzolv Technologies Inc.

Rzolv Technologies Inc. is a clean-technology company developing innovative, non-cyanide hydrometallurgical solutions designed to address structural inefficiencies, regulatory complexity, and permitting challenges in modern gold extraction and mine-site remediation.

The Company’s flagship technology, RZOLV™, is a proprietary water-based reagent system intended to recover gold from ores, concentrates, tailings, and secondary materials in applications where conventional cyanide chemistry is technically ineffective, increasingly restricted, or subject to heightened permitting complexity.

While cyanide has been the dominant gold lixiviant for more than a century and remains widely used across the industry, evolving regulatory frameworks, extended permitting timelines, stricter environmental standards, and growing ESG scrutiny have created operational and approval challenges in certain jurisdictions and deposit types. In some regions, cyanide use faces partial or full prohibitions, while in others it requires enhanced containment, detoxification, transport, and monitoring protocols that can materially impact project economics and development schedules.

RZOLV™ is designed as a lower-toxicity alternative with the potential to deliver comparable recovery performance and economic outcomes. The technology aims to expand the addressable gold market by enabling extraction in environments where cyanide use presents technical, environmental, or permitting constraints.

For more information, please visit www.rzolv.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For Further Information

Duane Nelson
President & Chief Executive Officer
Rzolv Technologies Inc.
Email: duane@rzolv.com
Phone: (604) 512-8118

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally identified by words such as ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘intends,’ ‘estimates,’ ‘projects,’ ‘potential,’ or similar expressions, or statements that events or conditions ‘will,’ ‘may,’ ‘could,’ or ‘should’ occur.

Forward-looking statements in this news release include, but are not limited to, statements regarding the anticipated benefits of the engagement of San Diego Torrey Hills Capital, expansion of the Company’s investor base, improved liquidity, enhanced market visibility, and advancement of the Company’s technology and commercialization strategy.

These statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or developments to differ materially from those expressed or implied. Such risks include, among others, general market conditions, regulatory matters, operational execution risks, capital markets conditions, and the Company’s ability to advance its technology and business objectives as anticipated.

Readers are cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is provided as of the date of this news release, and the Company undertakes no obligation to update or revise such information except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/285161

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Note: As of January 31, 2025, data for four of the 24 components of the Business Conditions Monthly indicators have not yet been published. While the remaining suspended economic data are expected to be released prior to the next Business Conditions Monthly report, the resulting estimates should be regarded as preliminary. Interpretations will remain tentative until several months of subsequent releases and revisions have accumulated, allowing for a more stable and reliable assessment of both data quality and overarching trends.

The two most recent inflation data releases offer a mixed but gradually improving signal, with broad disinflationary trends emerging alongside persistent pockets of price strength. January’s Consumer Price Index (CPI) report from the US Bureau of Labor Statistics came in notably cooler than a typical start to the year, when firms often reset prices. Headline inflation rose a mere 0.17 percent month-over-month and the year-over-year rate eased to 2.4 percent, supported by softer energy and food prices, flat core goods, and modest slowing in rents. At the same time, discretionary services such as airfares, recreation, and transportation remained firm, and the share of categories posting faster price increases broadened, underscoring that progress toward lower inflation remains uneven. The Fed’s preferred core Personal Consumption Expenditure (PCE) gauge told a somewhat firmer late-year story, rising 0.36 percent in December and 3.0 percent year-over-year, driven largely by recreation services, financial services, and tariff-sensitive goods, while consumers continued rotating spending away from goods toward services even as income growth lagged and the saving rate slipped to a three-year low. Together the CPI and PCE data suggest inflation is gradually stabilizing but still shaped by sector-specific pressures and evolving consumer behavior, leaving the outlook balanced between continued disinflation and lingering strains on household budgets.

US labor market conditions reflect a delicate transition from prolonged cooling toward a tentative, uneven recovery, with recent benchmark revisions reshaping the underlying narrative. Annual revisions to the January jobs report reduced the level of end-2025 payrolls by roughly one million jobs and showed that hiring momentum had been far weaker than previously understood, with average monthly job growth revised down to just 15,000 last year and several months of outright contraction. Despite this backward-looking downgrade, January’s headline payroll gain of 130,000 and a drop in the unemployment rate to 4.28 percent, alongside rising labor force participation and a modest increase in weekly earnings, suggest the labor market may be stabilizing after nearly two years of stall-speed hiring that began in mid-2024 and intensified during 2025. Job creation remains highly concentrated, however, in government-proximate fields, with health care and social assistance accounting for the majority of gains, while federal employment and financial activities continue to contract and manufacturing only recently returned to modest growth. Forward-looking indicators reinforce the picture of a labor market that is no longer tightening but not collapsing either: ADP data showed private payrolls rising just 22,000 in January, reflecting stagnant hiring at both large firms and small businesses even as layoffs remain relatively contained, and wage growth for job changers slowed to about 6.4 percent, signaling cooling bargaining power. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) report points to weakening labor demand, with job openings falling to 6.54 million and the openings-to-unemployed ratio dropping to 0.87: the lowest since early 2021, while quits and layoffs hold at subdued levels, indicating low churn rather than widespread job losses. Taken together, revisions, payroll gains, and vacancy data suggest the labor market has shifted from tight to balanced, with employment growth hovering near breakeven and inflation pressures from wages easing, leaving a recovery path that appears real but still sensitive to broader economic and policy conditions.

Activity across the goods-producing side of the economy presents a mixed but strategically driven expansion, with traditional consumer-oriented manufacturing still lagging while investment-heavy sectors show clearer momentum. The ISM manufacturing new-orders index surged into expansionary territory in January — its strongest reading in nearly four years — signaling a pickup in factory demand, supported by depleted inventories and increased capital spending in areas such as aircraft, electronics, primary metals, and energy products. Domestic durable goods production has risen about 1.5 percent since last spring, led by gains of roughly 6.8 percent in aircraft and 5.4 percent in electronics, while output tied more closely to consumer demand (vehicles, furniture, and textiles) remains subdued or declining. Inventory dynamics are playing a key role: retail inventories relative to sales remain about 12 percent below pre-pandemic norms, wholesale and manufacturer stocks have been drawn down, and imports of real consumer goods have fallen roughly 14 percent compared with 2024 averages, implying future production must rise or supply gaps widen. At the same time, forward-looking surveys show growth losing some momentum — the S&P Global manufacturing PMI eased to 51.2 in February, output slipped, and employment fell close to neutral — suggesting that while strategic capital investment and factory construction in semiconductors, chemicals, and transportation equipment point to stronger capacity ahead, the near-term manufacturing rebound remains uneven and concentrated in policy-favored or high-value sectors rather than broad-based consumer goods.

The services economy continues to expand but is showing signs of cooling demand, softer hiring, and renewed cost pressures that could complicate the inflation outlook. The ISM Services PMI held steady at 53.8 in January, indicating ongoing growth, yet underlying components weakened: new orders slowed to 53.1, export demand faded, and the employment subindex slipped toward neutral at 50.3, all pointing to a slower pace of hiring even as production accelerated temporarily. Survey respondents increasingly view inventories as excessive and expect activity to soften in coming months, a view reinforced by S&P Global’s flash services PMI easing to 52.3 in February (its lowest level since April 2025) alongside declines in new orders and employment. Despite cooling demand, price pressures remain a concern, with input costs rising more broadly in January and prices charged jumping to 58.3 in February, the highest since mid-2025, highlighting ongoing cost pass-through in discretionary areas such as travel, recreation, and transportation. The broader composite PMI has also drifted lower to 52.3, signaling slower overall growth and subdued hiring momentum across the economy. The service sector appears to be transitioning from strong post-pandemic expansion toward a slower, more cost-sensitive phase, where demand growth is moderating, employment gains are flattening, and price dynamics, rather than output, are becoming the central issue for policymakers.

Recent readings on consumer and business sentiment suggest stabilization rather than a full rebound, with confidence improving modestly even as uncertainty and labor-market concerns linger beneath the surface. The Conference Board’s consumer confidence index rose to 91.2 in February, supported by a notable improvement in forward-looking expectations around income, employment, and business conditions, while the University of Michigan’s sentiment gauge climbed to a six-month high of 57.3 as short-term inflation fears eased and year-ahead inflation expectations fell to 3.5 percent. American households appear more willing to plan big-ticket purchases and maintain spending on services, yet the picture remains cautious: assessments of current conditions weakened slightly, job security concerns remain elevated, and the perceived probability of losing one’s job is still near post-pandemic highs. Small business sentiment tells a similar story of guarded resilience: the National Federation of Independent Business optimism index slipped marginally to 99.3 as rising uncertainty and softer hiring plans weighed on confidence, even as expected real sales improved, credit conditions eased, and capital spending stayed firm, with 60 percent of owners reporting recent outlays. Hiring intentions have cooled and fewer firms report difficulty finding workers, reflecting a labor market that is no longer overheated, while price-setting behavior shows mixed signals, with fewer businesses raising prices currently but more planning increases ahead. Combined, the sentiment data across households and firms point to an economy that is steady but cautious: inflation fears are easing and spending expectations remain intact, yet persistent uncertainty about growth and employment continues to limit enthusiasm and keep confidence fragile rather than robust.

Recent consumption data point to a resilient but uneven consumer environment, where underlying demand remains intact despite softer headline readings and short-term volatility. December retail sales were flat month over month, likely reflecting a pull-forward of holiday spending into November promotions rather than a collapse in demand, with year-over-year growth easing to 2.4 percent but discretionary services — such as food service and drinking places – still expanding at a solid 4.7 percent pace, signaling continued willingness to spend on experiences. Monthly gains were limited to five of thirteen retail categories, led by building materials and sporting goods, while traditional holiday segments like apparel and electronics declined, suggesting the effect of discount-driven demand shifts rather than broad retrenchment. 

The core control group of retail sales slipped 0.1 percent, and overall real consumption growth appears to have moderated to roughly 2.8 percent in the fourth quarter, a slower but still positive pace supported by wealth effects and expectations for larger tax refunds early in 2026. Meanwhile, the auto sector illustrates the tension between steady demand and mounting affordability pressures: January light-vehicle sales dropped to a 14.85 million annualized rate following strong year-end incentives, with car sales down 3.6 percent year over year even as light-truck purchases held up modestly. Elevated auto-loan delinquencies and extended financing terms of up to seven years highlight the strain high rates are placing on household budgets, yet total vehicle sales in 2025 reached their strongest level since 2019, underscoring that consumption remains active but increasingly sensitive to pricing, financing conditions, and seasonal factors such as unusually cold weather.

Industrial production data point to a solid start for the goods-producing side of the economy in 2026, with January output rising 0.7 percent — the strongest monthly gain in nearly a year — driven largely by manufacturing and a weather-related surge in utility production. Factory output increased 0.6 percent, supported by gains in machinery, computers and electronics, motor vehicles, and construction-related materials such as concrete, suggesting capital expenditures and onshoring-related investment are becoming key drivers of growth. Durable goods production climbed 0.8 percent, and business equipment output rose 0.9 percent, reinforcing signs that firms are advancing capex plans as trade policy uncertainty eases and tax incentives encourage domestic investment. Capacity utilization moved higher into the mid-76 percent range, while stronger orders for core capital goods late in 2025 signal continued momentum ahead. Although some of the upside reflects downward revisions to prior months, the breadth of gains across strategic industries and business equipment indicates manufacturing may be entering a modest recovery phase after a prolonged period of softness.

The monetary policy backdrop reflects a Federal Reserve that is increasingly cautious about easing, even as growth moderates and labor-market risks linger. Minutes from the January FOMC meeting show broad agreement to hold rates steady, with only a small minority favoring cuts and a growing share of policymakers emphasizing both credibility and the possibility of keeping policy restrictive for longer — or even tightening again, if disinflation stalls. This more balanced, “two-sided” policy framing comes as economic growth slowed to a 1.4 percent annualized pace in the fourth quarter, partly due to a prolonged government shutdown that reduced federal services and weighed on consumption and trade. While business investment — particularly in information processing equipment tied to artificial-intelligence spending — remains a bright spot, softer consumer momentum and persistent core PCE inflation near three percent leave the Fed navigating a delicate trade-off between supporting a fragile expansion and ensuring inflation expectations remain anchored.

Fiscal and trade policy, meanwhile, are introducing significant uncertainty that interacts directly with monetary conditions. The Supreme Court’s invalidation of key tariffs imposed under the International Emergency Economic Powers Act on February 20 has complicated the administration’s fiscal arithmetic by threatening hundreds of billions in expected revenue and raising the prospect of large refunds, potentially widening already substantial budget deficits tied to recent tax legislation. At the same time, the administration’s attempt to replace those tariffs with new global levies has unsettled trading partners and could strain existing agreements with the EU, India, China, and key Asian allies, increasing the risk of renewed trade frictions even as most countries are likely to maintain negotiated frameworks for now. Together, those developments suggest a policy mix in which tighter fiscal constraints, evolving trade rules, and a more cautious Federal Reserve are interacting in ways that could dampen near-term growth volatility while keeping inflation, investment decisions, and global supply chains highly sensitive to political and legal developments.

The US economy continues to push forward, though increasingly under the influence of policy stimulus, financial conditions, and structural shifts rather than broad-based organic momentum. Consumer spending and services activity remain relatively firm (supported by tax relief, easing credit conditions, and gradually-moderating inflation) even as goods production, hiring, and capital investment advance more unevenly. Price pressures are cooling but remain sectorally uneven, leaving elevated living costs and tariff pass-through weighing on real purchasing power and business margins. Labor markets appear balanced yet fragile following sizable downward revisions to prior hiring data, while growth is increasingly driven by investment-heavy manufacturing and resilient experience-based consumption rather than widespread wage gains or strong employment expansion. 

At the same time, monetary policy remains cautious amid credibility concerns, fiscal arithmetic has grown more uncertain after tariff-related legal challenges, and evolving trade policies continue to inject volatility into supply chains and corporate planning. Overlaying that backdrop is the accelerating influence of artificial intelligence: rising expectations of productivity gains and capital deepening coexist with anxieties that automation may expand opportunities for highly skilled workers while compressing prospects for marginal or routine labor, complicating wage dynamics and longer-term consumption trends. Market behavior, including strong rallies in gold and silver (both of which have fallen from their highs, but remain highly elevated) reflects the broader unease, signaling skepticism not about imminent recession, but about the durability and tradeoffs embedded in the current policy mix. Taken together, the economy appears to be navigating a late-cycle phase marked by slower but still positive growth, easing inflation, and technological transition, leaving the near-term outlook cautiously constructive but highly sensitive to policy decisions and structural changes in productivity.

Iran lashed out after President Donald Trump put the regime on notice in his State of the Union address, delivering a forceful warning about Tehran’s ambitions while world leaders largely stayed silent in the immediate aftermath of the speech.

Speaking amid the largest deployment of U.S. aircraft and warships to the Middle East since the 2003 Iraq War buildup, Trump said he wanted to resolve tensions with Iran through diplomacy while accusing Tehran of expanding its missile capabilities.

‘They’ve already developed missiles that can threaten Europe and our bases overseas,’ he said. ‘And they’re working to build missiles that will soon reach the United States of America.’

‘My preference is to solve this problem through diplomacy,’ Trump added. ‘They want to make a deal. But we haven’t heard those secret words: we will never have a nuclear weapon.’

‘But one thing is certain, I will never allow the world’s number one sponsor of terror… to have a nuclear weapon. Can’t let that happen.’

Trump argued that previous U.S. action, including the ‘Operation Midnight Hammer’ strike in June, had severely degraded Iran’s capabilities but warned the threat had not disappeared.

‘We wiped it out and they want to start all over again and are at this moment again pursuing their sinister ambitions,’ he said.

Tehran sharply rejected Trump’s claims about its missile and nuclear programs. According to The Associated Press, Iranian officials characterized U.S. statements as propaganda while stopping short of closing the door on diplomacy ahead of the Geneva talks.

The Times of India reported that Iranian officials warned that any U.S. military strike, even a ‘limited’ one, would be treated as aggression and met with a decisive response.

The exchange underscored the widening gap between public rhetoric and ongoing diplomatic efforts as Washington and Tehran prepared for another round of nuclear talks in Geneva.

Trump also linked his foreign policy agenda to broader regional security efforts, pointing to recent operations in the Western Hemisphere and the U.S. campaign against drug cartels.

‘We’re also restoring American security and dominance in the Western Hemisphere, acting to secure our national interests and defend our country from violence, drugs, terrorism, and foreign interference,’ he said. ‘Large swaths of territory in our region, including large parts of Mexico… have been controlled by murderous drug cartels. That’s why I designated these cartels as foreign terrorist organizations… We’ve also taken down one of the most sinister cartel kingpins of all. You saw that yesterday,’ he said, referring to the operation that killed Mexican drug lord El Mencho.

European coverage portrayed the speech as assertive and confrontational, with analysts watching closely for implications for NATO coordination, Ukraine policy and trade relations. Reporting emphasized Trump’s linkage between diplomacy and military readiness, as well as the administration’s broader posture toward alliances and deterrence.

‘NATO countries… have just agreed, at my very strong request, to pay 5% of GDP for military defense rather than the 2%,’ Trump said during the address, presenting the move as evidence of shifting burden-sharing within the alliance.

Across global media, one theme emerged clearly: the address appeared primarily geared toward domestic political messaging while still carrying international signaling effects.

Trump repeatedly tied American military power to deterrence, telling lawmakers the United States would ‘never hesitate to confront threats to America wherever we must,’ while emphasizing a broader strategy of ‘peace through strength,’ according to Reuters coverage of the speech.

Foreign policy analysts cited in international reporting described the address as reinforcing a transactional approach to global security, with diplomacy presented as conditional and backed by force.

For Tehran, the message was unmistakable. Trump framed the nuclear issue as non-negotiable in outcome, as the next round of negotiations is set to start in Geneva on Thursday.

The Associated Press and Reuters contributed to this report.

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President Donald Trump warned in his State of the Union address that Iran has ‘sinister ambitions’ with its nuclear program and that the U.S. has not yet heard from Tehran that it will ‘never have a nuclear weapon.’ 

The remarks come as the U.S. and Iran are gearing up for another round of negotiations on Thursday.  

‘After Midnight Hammer, they were warned to make no future attempts to rebuild their weapons program and, in particular, nuclear weapons. Yet they continue starting it all over. We wiped it out, and they want to start all over again and are at this moment again pursuing their sinister ambitions,’ Trump said Tuesday, referencing the U.S. strikes on Iranian nuclear facilities last summer. 

‘We are in negotiations with them. They want to make a deal, but we haven’t heard those secret words, ‘We will never have a nuclear weapon,’’ Trump added. ‘My preference is to solve this problem through diplomacy. But one thing is certain, I will never allow the world’s number one sponsor of terror, which they are by far, to have a nuclear weapon. Can’t let that happen.’ 

‘For decades it had been the policy of the United States never to allow Iran to obtain a nuclear weapon. Many decades. Since they seized control of that proud nation 47 years ago, the regime and its murderous proxies have spread nothing but terrorism and death and hate,’ Trump also said during his speech. ‘They’ve killed and maimed thousands of American service members and hundreds of thousands and even millions of people with what’s called roadside bombs. They were the kings of the roadside bomb. And we took out [Iranian Gen. Qassim] Soleimani. I did that during my first term. Had a huge impact. He was the father of the roadside bomb.’ 

‘And just over the last couple of months with the protests, they’ve killed, at least, it looks like 32,000 protesters in their own country. They shot them and hung them. We stopped them from hanging a lot of them, with the threat of serious violence. But this is some terrible people. They’ve already developed missiles that can threaten Europe and our bases overseas, and they’re working to build missiles that will soon reach the United States of America,’ Trump said.

Iranian foreign ministry spokesperson Esmail Baghaei said following Trump’s address that, ‘No one should be fooled by these prominent untruths.’ 

‘Whatever they’re alleging in regards to Iran’s nuclear program, Iran’s ballistic missiles, and the number of casualties during January’s unrest is simply the repetition of ‘big lies,’’ Baghaei claimed on X. 

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Democrats were not happy with President Donald Trump’s State of the Union remarks on implementing voter ID requirements and the SAVE America Act.

A dial test administered by Lee Carter, the president of Maslansky & Partners, showed Democrats taking a serious dive when the president spoke about the issue. During his speech, Trump asked lawmakers to pass the SAVE America Act in order ‘to stop illegal aliens and others who are unpermitted persons from voting in our sacred American elections.’ He decried allegedly ‘rampant’ cheating in American elections.

‘It’s very simple. All voters must show voter ID. All voters must show proof of citizenship in order to vote. And no more crooked mail-in ballots except for illness, disability, military or travel. None,’ Trump said.

‘Why would anybody not want voter ID? One reason, because they want to cheat,’ Trump added, referring to Democrats. ‘They make up all excuses. They say it’s racist. They come up with things. You almost say what imagination they have! They want to cheat, they have cheated, and their policy is so bad that the only way they can get elected is to cheat.’

While Democrats reacted negatively, Republicans had a positive response to Trump’s call for the passage of the SAVE America Act. While Independents did not react as positively as Republicans, their line in the dial test remained above the Democrats.

The group monitored by Carter, which included 29 Democrats, 41 Republicans and 30 Independents, had mixed reactions to a number of moments in Trump’s speech. Carter found that the most polarizing issue of the night was gender policy. One of the president’s special guests was Sage Blair, a young woman whose family filed a 2023 lawsuit alleging that Appomattox County High School staff socially transitioned her and treated her as a boy without her parents’ knowledge.

‘But surely we can all agree no state can be allowed to rip children from their parents’ arms and transition them to a new gender against the parents’ will,’ Trump said. ‘We must ban it, and we must ban it immediately.’

When the president saw that Democratic lawmakers in the chamber did not stand at that remark, he ripped them as ‘crazy.’

Supporters in the focus group reacted mostly positively to the gender policy remarks, saying things like ‘Protect children. Crazy people there’ and ‘If someone wants to change gender, they should do it as an adult. Period.’ Meanwhile, critics in the group slammed the president, with one saying that it was ‘a bold-faced lie’ and that Trump was taking ‘every opportunity to divide the country.’

Despite the disparate reactions on the issues of voting and gender, there were some moments in which people of opposing views overlapped, both in favor and against the president. 

Many supporters and opponents expressed concerns about Trump’s tone during the speech, the dial test showed. Carter noted that some supporters were unhappy with the president’s jokes, remarks about the Supreme Court and mentions of former President Joe Biden. Meanwhile, the president’s critics said the tone was ’embarrassing,’ ‘divisive’ and ‘selfish.’

While there were many moments that caused disagreement among Americans across the political spectrum, there were points of unity in the speech. Republicans and Democrats had positive responses when Trump awarded the Purple Heart to Staff Sgt. Andrew Wolfe and deceased Army Spc. Sarah Beckstrom. Wolfe and Beckstrom were shot by a gunman who ambushed them last year in Washington, D.C. Wolfe was critically injured in the attack, and Beckstrom was killed. Her parents accepted the award in their daughter’s honor.

Another unifying moment came when Trump brought out the U.S. men’s hockey team, which just scored a historic overtime victory against Canada in the Olympics. Carter noted that the president’s critics were pleased with the recognition of the Olympians, with one calling it a ‘nice moment.’

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There’s a new House GOP effort to censure Rep. Al Green, D-Texas, circulating after he was removed from President Donald Trump’s primetime address for the second year in a row.

Green was ejected from Trump’s State of the Union on Tuesday night minutes after it began. The Texas progressive held up a sign that read ‘Black people are not apes’ in all capital letters as Trump entered the House chamber, and remained standing and holding the sign as the president began speaking.

Rep. Mike Rulli, R-Ohio, told Fox News Digital that his office was now looking for other House lawmakers on both sides of the aisle to support a censure resolution against Green.

‘His shenanigans at the State of the Union were uncalled for,’ Rulli said on Wednesday. ‘We can’t really put up with that kind of conduct in Congress. Something had to be done.’

‘I’m looking for as many co-sponsors from our conference as possible. And I’m reaching across the aisle for anyone over there that was embarrassed by their own guy.’

Rulli’s resolution, first obtained by Fox News Digital, said Green’s protest constituted a ‘breach of conduct.’

The text also noted that it ‘was the second time in less than a year that the Representative from Texas had to be removed from the chamber by the Sergeant at Arms due to unpatriotic disruptions that violated numerous House rules related to decorum.’

The House of Representatives voted to censure Green in March 2025 for his last protest, which included waving his cane and shouting over Trump as he attempted to give his speech.

At the time, ten Democrats joined Republicans in passing that resolution.

Green told reporters on Tuesday night after being removed from the House for a second time, ‘I refuse to tolerate this level of hate that the president is in fact putting into policy. We must take a stand against this level invidious discrimination.’

‘I wanted him to know, and I wanted them to see it and hear it. Up close. But judging from the expression on his face, he got the message. He saw it,’ Green said.

Speaker Mike Johnson, R-La., did not commit to holding a vote on a censure resolution when asked about the prospect after Trump’s speech but said he would defer to the will of his lawmakers.

‘Al Green was removed pretty quickly. I don’t know if censure is going to be appropriate. I’ll let our colleagues decide that,’ Johnson said. ‘The point of a censure, is to bring someone to the House floor and bring shame upon them for their actions. I think they showed the American people shame already.’

Fox News Digital reached out to Green’s office for comment but did not immediately hear back.

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President Donald Trump delivered a sweeping State of the Union address Tuesday night, promoting new policy proposals on retirement savings, energy infrastructure and congressional ethics while touting his administration’s record on border security, the economy and global military operations. 

But despite the wide-ranging speech — which included calls for a congressional stock trading ban, a new 401(k)-style retirement option and ongoing nuclear negotiations with Iran — several areas were notably absent or only briefly addressed.

The omissions matter in 2026 as the administration heads into a pivotal year marked by record federal debt levels, cooling job growth, intensifying great-power competition with China and ongoing global instability. 

With Congress narrowly divided and international tensions high, the State of the Union offered a key opportunity for the president to outline how his second-term agenda will address long-term fiscal sustainability, labor market momentum and U.S. strategy abroad — questions that remain central to lawmakers, markets and U.S. allies.

National debt and deficit

Despite emphasizing economic growth and vowing to root out fraud, the president did not lay out a detailed plan to address the nation’s $38.56 trillion debt or the long-term solvency of Social Security and Medicare.

Trump’s ‘big, beautiful Bill,’ 2025 tax and spending legislation, is projected by the Congressional Budget Office to add another $4.2 trillion to the deficit throughout the next decade.

The Supreme Court’s recent ruling striking down his universal tariffs creates a $2 trillion revenue gap that the president didn’t address. He claimed ‘alternative statutes’ would fill it, but there’s potential for courts to strike down those as well. 

The issue also has prompted concern within Trump’s own party. 

Rep. Lloyd Smucker, R-Pa., while praising the president’s address, warned afterward that the national debt poses an ‘existential threat’ that must be addressed to preserve economic stability for the next 250 years.

‘The state of our Union is more indebted than ever,’ said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. ‘The Supreme Court has opened a massive revenue hole of nearly $2 trillion (with the tariff ruling) that the Administration and Congress must fill.’

Trump proposed a new ‘war on fraud’ task force Tuesday night, to be led by Vice President JD Vance, claiming that rooting out corruption —specifically targeting the Somali community in Minnesota — could recoup enough stolen taxpayer funds to ‘balance the budget overnight.’

The debt carries heightened urgency in 2026 as interest payments approach $1 trillion annually and lawmakers face looming deadlines on entitlement trust fund solvency and future budget negotiations.

Job growth

‘The roaring economy is roaring like never before,’ Trump boasted during the speech. ‘More Americans are working today than at any time in the history of our country.’

But the president failed to touch on 2025’s lagging job growth: the labor market added 181,000 jobs in all of 2025, much fewer than the 1.46 million jobs that were added in 2024.

Economists note that while headline job totals can mask fluctuations, the sharp deceleration in hiring relative to 2024 highlights a labor market that has softened even as other economic indicators remain positive.

Senate Minority Leader Chuck Schumer claimed Trump ‘mocked’ affordability issues and failed to note weak job numbers. 

‘Trump didn’t simply ignore the affordability crisis. He mocked it yet again. The average Americans sitting at their table trying to figure out how they’re going to pay that damn bill, was furious that he said, ‘it doesn’t matter.” 

‘He bragged last night about job creation,’ Schumer said. ‘Well, job creation is is at its lowest point in over 20 years outside of a recession, its lowest point in 20 years. And he brags about it.’

China and the Indo-Pacific 

While Trump used his address to declare a ‘Golden Age’ of security, the world’s most significant geopolitical theater — the Indo-Pacific — hardly was mentioned. 

Despite a record-breaking $11 billion arms sale to Taiwan just two months ago and a planned high-stakes visit to Beijing in April, the President did not once mention Taiwan, the South China Sea or a broader regional strategy by name.

While Trump mocked ‘Chinese technology’ in the context of the Venezuelan raid, he offered no public reassurance to allies in Tokyo, Canberra, Australia, or Taipei, Taiwan, which are navigating Beijing’s expanding military reach. 

The omission follows a pattern established in the 2026 National Defense Strategy (NDS) released in January, which for the first time in a decade scrubbed direct references to Taiwan’s security. 

Though the U.S. has long held a policy of strategic ambiguity — refusing to say whether it would come to Taiwan’s defense if China invaded — some analysts have detected a fragile detente between the U.S. and China.

The absence is notable in 2026 as Washington prepares for high-level talks with Beijing and regional allies closely monitor U.S. commitments amid rising cross-Strait tensions and expanding Chinese naval activity.

Cuba and the embargo 

Despite a marked escalation in U.S. policy toward Cuba, Trump made no reference to the island, the longstanding embargo or recent moves to tighten economic pressure.  The omission is noteworthy given how central Havana has become to broader U.S. policy in the Western Hemisphere.

Under Trump’s second term, the administration significantly has reinforced sanctions and pressure on Cuba, moving beyond the decades-old embargo to block crude oil and fuel supplies that left the island largely without vital energy imports after Venezuelan shipments dried up, contributing to widespread blackouts and worsening humanitarian conditions.

In late January, Trump issued an executive order declaring a national emergency on Cuba and authorizing tariffs aimed at halting the supply of oil to the island.

Caribbean leaders also highlighted the regional consequences of U.S. policy on Cuba at a major summit this week, warning that the fuel and economic crisis could have broader security and migration implications across the Caribbean basin.

Russia-Ukraine: referenced but little detail 

Trump did touch on the war in Ukraine in his State of the Union, framing an ambition to ‘end’ the conflict as part of his foreign policy narrative. But he offered no detailed outline of how the administration plans to achieve that goal or how U.S. diplomacy, military aid or leverage with European allies will be marshaled to bring it about — leaving a key foreign policy challenge largely undefined for the nation.

‘We’re working very hard to end the ninth war, the killing and slaughter between Russia and Ukraine, where 25,000 soldiers are dying each and every month — think of that, 25,000 soldiers are dying a month.’

 The speech came on the fourth anniversary of Russia’s invasion of Ukraine. 

The lack of detail stands out in 2026 as the war enters its fifth year and European allies look to Washington for clarity on long-term security guarantees and reconstruction support.

The White House did not immediately respond when reached for comment. 

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China has moved to freeze exports of rare earth magnets and other critical materials to dozens of major Japanese companies, with the measures to take effect immediately.

China’s commerce ministry said Tuesday (February 24) it would suspend shipments of so-called “dual-use” goods—materials with both civilian and military applications—to 20 Japanese companies while placing another 20 groups on a new “watch list,” according to media reports.

Rare earth magnets are essential components in automobiles, electronics and defense systems, and global manufacturers remain heavily reliant on Chinese supply.

The immediate export freeze applies to companies linked to defense-related work at Mitsubishi Heavy Industries, Kawasaki Heavy, IHI, and NEC.

Meanwhile, firms placed on the watch list will face slower shipments and must pledge “that the dual-use items will not be used for any purpose that contributes to enhancing Japan’s military capabilities.”

Items covered include critical minerals such as gallium, germanium, antimony and graphite, as well as rare earths, magnetic materials, and certain advanced manufacturing equipment.

The dispute traces back to remarks in November last year by Prime Minister Sanae Takaichi, who said a hypothetical Chinese invasion of Taiwan could pose an “existential threat” to Japan and suggested Tokyo could respond with armed force.

Beijing claims sovereignty over Taiwan and has warned it could use force if Taipei resists indefinitely.

The pressure also comes as Japan steps up efforts to reduce its dependence on China for rare earths. Earlier this month, Tokyo announced it had successfully retrieved mineral-rich seabed sediment from nearly 6,000 meters below the ocean near the remote island of Minamitorishima.

The material was recovered by the deep-sea drilling vessel Chikyu as part of a government-backed test program assessing the feasibility of mining rare-earth-bearing mud.

“It is a first step toward industrialization of domestically produced rare earth in Japan,” Takaichi said in a statement posted on X. “We will make efforts toward achieving resilient supply chains for rare earths and other critical minerals to avoid overdependence on a particular country.

China has used rare earth exports as leverage before.

In 2010, following a territorial dispute in the East China Sea, Beijing halted rare earth shipments to Japan, sending prices soaring and exposing Tokyo’s heavy reliance on Chinese supply.

The episode became a turning point for Japan’s resource strategy, accelerating efforts to diversify supply and directly supporting the rise of Australia’s Lynas Rare Earths (ASX:LYC,OTCQX:LYSDY), which has since grown into the largest rare earths producer outside China.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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