Trump's tariff threats renew tensions, challenging China

Trump's Tariff Threats Raise Concerns,Restrictions on domestic foreign exchange speculation China Pledges to Protect Trade Cooperation

On the evening of November 25, U.S. President-elect Donald Trump announced on social media that he would sign an executive order on his first day in office to impose a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese goods, citing immigration issues and the influx of fentanyl into the U.S. Trump emphasized that these measures are intended to punish Mexico and Canada's "open border policies" and curb the flow of drugs and illegal immigration.

In response to this, a spokesperson for China's Ministry of Foreign Affairs strongly emphasized on the 26th that China is one of the countries with the strictest anti-drug policies globally. The spokesperson noted that China had announced comprehensive regulation of fentanyl-related substances as early as 2019 and has engaged in extensive anti-drug cooperation with the U.S. China urged the U.S. to cherish the outcomes of bilateral cooperation and not harm Sino-U.S. economic and trade relations through trade wars and tariff wars.

Mexico Strongly Opposes, Accuses Tariffs of Violating Trade Agreement

Mexico and Canada both responded strongly to Trump's tariff threats. The Mexican President and several officials pointed out that these tariffs violated the United States-Mexico-Canada Agreement (USMCA) and stated they would implement retaliatory tariffs in response. Canadian Prime Minister Trudeau spoke with Trump, emphasizing Canada's importance in U.S.-Canada trade and border security.

Data shows that in 2023, over 83% of Mexico's and 75% of Canada's exports went to the U.S., and these tariffs could severely impact the economies of both countries. Meanwhile, voices within the U.S. have pointed out that Trump's tariff plan will exacerbate inflation, ultimately being paid by American consumers.

Global Economic Concerns Rise, EU Calls for Unity

Trump's tariff threats affect not only North American trade relations but have also sparked global concerns. German Economic Minister Habeck warned that Europe and Germany might be Trump's next targets, and the EU must respond with a unified stance to such threats. He also noted that tariff measures will damage all parties involved, including the U.S. itself.

Economists believe that if these tariffs are implemented, the overall tariff level in the U.S. could return to levels seen in the 1930s, exacerbating inflation and prompting a restructuring of global supply chains. The Asian markets were also affected, with Japanese stocks closing lower on the 26th as investors worried Trump might impose tariffs on Japanese goods.

Analysis and Outlook: Multilateral Cooperation Key to Tackling Trade Wars

Zhang Monan, a researcher at the China Center for International Economic Exchanges, pointed out that Trump's tariff threats can be seen as policy signals, and their specific implementation will require comprehensive evaluation after he takes office. She believes that in the face of Trump's unilateral trade policies, China can strengthen cooperation with other affected countries to collectively address the impact of trade wars on the global economy and industrial chains.

Although Trump initiates tariff threats in the name of "America First," the long-term costs of trade wars and their destructive impact on the global economy are evident. In the future, how major economies like the U.S., China, Mexico, and Canada coordinate policies and seek consensus will become crucial variables in determining the global trade landscape.

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