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"This effectively hijacks trade power in as many nodes as the target has merchants, where their merchants can be placed for the maximum benefit of the proposer. Technically, no trade power is transferred, so the values for each nation in each trade node remain the same, and if both share the same home node, then the target will still collect with their trade power, effectively wasting the value of the diplomatic agreement."
So it sounds like yes, Steer Trade on fellow Italians was pointless compared to using Transfer Trade Power instead. If I'm reading that right, it should still work on Spain though.
Btw can you link me the wiki page?
https://eu4.paradoxwikis.com/Diplomacy#Steer_trade_power
Evidently the relationship forced via peace deal is the same as the one done voluntarily through diplomacy for both Steer Trade and Transfer Trade Power, as the page describing those peace terms just links there instead:
https://eu4.paradoxwikis.com/Warfare#Peace_terms
This is news to me 🤔