New Turbulence in the Global Trade Pattern
On February 27, Donald Trump announced a significant tariff policy on the Truth Social. The 25% tariffs imposed on imports from Mexico and Canada will take effect on March 4. On the same day, additional 10% tariffs will be levied on Chinese goods exported to the United States again, citing fentanyl as the reason.
This means that the cumulative tariff rate imposed by the United States on Chinese goods will rise to 20%. According to various estimates, after the previous round of China-US trade frictions, the average tariff rate imposed by the United States on Chinese goods had already risen to around 20%.
Previously, on February 1, Trump signed an executive order based on the International Emergency Economic Powers Act (IEEPA), announcing that 10% tariffs would be imposed on all goods imported from China, citing issues such as fentanyl. At that time, Trump also announced that the United States would impose 25% tariffs on goods imported from Mexico and Canada, with an additional 10% tariff on energy resources from Canada, although this was subsequently postponed for one month. Subsequently, Trump also announced 25% tariffs on all steel and aluminum imported into the United States, as well as additional tariffs on automobiles, semiconductors, pharmaceuticals, and timber.
In response to the 10% tariffs previously imposed by the Trump administration, China took countermeasures, imposing up to 15% tariffs on imports from the United States such as coal and liquefied natural gas (LNG). If the United States imposes additional tariffs, Sino-US trade frictions will further intensify.
China, Mexico, and Canada are the top three trading partners of the United States, accounting for over 40% of total US imports in 2024. However, during the new U.S. presidential campaign, Trump stated that he would impose tariffs of up to 60% on Chinese products. Some economists have warned that US tariffs could lead to higher prices for imported goods in the United States, driving up inflation.