Trump’s tariff tactics carry higher economic risks than during his first term
When Donald Trump started the biggest trade war since the 1930s in his first term, his impulsive combination of threats and import taxes on U.S. trading partners created chaos, generated drama — and drew criticism from mainstream economists who favor free trade.
But it didn’t do much damage to the U.S. economy. Or much good. Inflation stayed under control. The economy kept growing as it had before. And America’s massive trade deficits, the main target of Trump’s ire, proved resistant to his rhetoric and his tariffs: Already big, they got bigger.
The trade war sequel that Trump has planned for his second term – if it unfolds the way he’s described it – would likely be a different matter altogether. Trump appears to have grander ambitions and is operating in a far more treacherous economic environment this time.
His plans to plaster tariffs of 25% on goods from Mexico and Canada and 10% on China – and to follow those up by targeting the European Union – would threaten growth, and push up prices in the United States, undermining his campaign pledge to eliminate the inflation that plagued President Joe Biden.
Trump and Xi set for crucial trade talks amid escalating tariff dispute
US President Donald Trump and Chinese President Xi Jinping are set to hold direct discussions following tariff announcements on each other amidst an intensifying trade dispute, according to US officials on Tuesday. The timing of discussions between the leaders of the world’s largest economies remained uncertain, though some suggested it could occur as early as Tuesday. “Let’s see what happens with the call today,” Trump trade advisor Peter Navarro, a veteran of the US president’s first term, told news outlet Politico.
Trump to speak with Xi as China announces retaliatory tariffs
United States President Donald Trump is set to speak with Chinese President Xi Jinping, Al Jazeera reported on Tuesday, citing Trump’s top trade adviser, Peter Navarro.
White House press secretary Karoline Leavitt did not provide a specific timeline for the Trump-Xi call but said it would happen “soon”, as reported by Al Jazeera.
Meanwhile, China has announced retaliatory tariffs on US goods in response to Washington’s latest trade measures. Beijing will impose a 15 per cent tariff on imports of coal and liquefied natural gas (LNG) from the US, following the American government’s decision to impose 10 per cent tariffs on Chinese goods, Al Jazeera reported.
China’s Ministry of Finance also said on Tuesday that a 10 per cent tariff would be applied to US imports, including crude oil, agricultural machinery, large-displacement vehicles and pick-up trucks, as reported by Al Jazeera.
Amid Trump trade tensions, WTO remains crippled arbiter
While US President Donald Trump unleashes trade wars and tariffs, the system for settling such disputes within the World Trade Organization has been paralysed for years — by the United States.
Having returned to the White House, Trump has imposed a 10 percent tariff hike on Chinese goods, with Beijing immediately retaliating with tariffs on US imports of energy, cars and machinery parts.
China said Tuesday that it would file a complaint with the WTO over the “malicious” US levies — but that move is likely to hit a dead end, unless Beijing and Washington resolve the spat of their own accord.
China retaliates against Trump with tariffs of their own
China countered President Donald Trump’s across-the-board tariffs on Chinese products with tariffs on select U.S. imports. It will also launch an antitrust investigation into Google and other trade measures.
The U.S., Canada and Mexico have all agreed to pause planned tariffs for at least a month as negotiations over border security continue.
Mexico begins deployment of 10,000 troops on US border: President
Mexico began Tuesday the 10,000-strong border troop deployment it had promised US President Donald Trump in exchange for delaying a 25-percent tariff on exported goods, President Claudia Sheinbaum said.
“The deployment has already started,” she told reporters a day after announcing a last-minute deal with Trump to tighten measures against illegal migration and cross-border smuggling of the drug fentanyl.
What Does Trump Really Want From Canada and Mexico?
President Donald Trump has long been clear that he would use tariffs as an economic sledgehammer against nations that refuse to bend to his demands.
He has been far less clear about what, exactly, those demands are — a strategy that allows him to declare victory when he sees fit.
Trump has said he wants Canada and Mexico to stop the flow of migrants at the border and curtail shipments of fentanyl. But at least publicly, he has offered only vague benchmarks to gauge their cooperation. Asked on Monday whether there was anything Prime Minister Justin Trudeau of Canada could offer to avoid tariffs, Trump said, “I don’t know.”
“We have big deficits with Canada like we do with all countries,” Trump said from the Oval Office. “I’d like to see Canada become our 51st state.”
Japan PM to meet Trump on Feb 6-8 US trip: Govt spox
Japan’s Prime Minister Shigeru Ishiba will meet President Donald Trump on a visit to the United States this week, top government spokesman Yoshimasa Hayashi said on Tuesday.
“If circumstances permit, he will visit the United States from February 6-8 and hold (his) first face-to-face Japan-US summit meeting with President Trump in Washington DC,” Hayashi said.
Trudeau says US tariffs on Canada paused 30 days
Donald Trump Tariffs Live: ‘China’s weaker position’
For now, analysts believe the latest measures won’t bite too hard.
“The 10 percent tariff is not a big shock to China’s economy,” Zhang Zhiwei at Pinpoint Asset Management said in a note.
“It’s unlikely to change the market expectation on China’s macro outlook this year, which already factored in higher tariffs from the US,” he added.
And that could allow China to keep its powder dry in the event Trump’s first wave of tariffs are the prelude to a bigger showdown.
The US president has ordered an in-depth review of Chinese trade practices, the results of which are due by April 1.
That could serve as a “catalyst for more tariffs”, said Murphy Cruise, pushing Beijing to shift tactics.
“This strategy of no retaliation may change if the US imposes additional significant tariffs later on,” UBS economists said.
“In such a case, we think China may retaliate on a targeted basis and in a restrained manner, imposing tariffs on selected agricultural products, auto parts, energy,” they said.
Experts added that China could also let the value of its currency devalue, increasing the competitiveness of its exports. (AFP)
Why Trump agreed to halt tariffs on Canada, Mexico for 30 days
The United States late on Monday paused its planned tariffs on Canada and Mexico for 30 days as both countries take measures to address border security and drug trafficking concerns raised by US President Donald Trump. The decision follows negotiations between the leaders of the three countries and agreements on new security measures.
Trump announced the temporary suspension, saying, “I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured. FAIRNESS FOR ALL!”
US halts tariffs on Canada, Mexico for 30 days after Trump speaks to Justin Trudeau, and Claudia Sheinbaum
US President Donald Trump agreed on Monday to pause his planned tariffs on Mexico and Canada for 30 days. The decision comes as both countries took steps to address his concerns about border security and drug trafficking.
The pause follows days of uncertainty that raised fears of a trade war in North America. Such a conflict could have slowed economic growth, increased prices, and strained key trade relationships.
May be forced to take counter measures, no winner in trade war: China’s envoy at UN on US tariffs
China lashed out at the US over tariffs imposed by President Donald Trump, saying Beijing “may be forced to take countermeasures” and stressed that there is “no winner in a trade war”.
“We are firmly opposed to this unwarranted increase and we do believe that this is in violation of the WTO (World Trade Organisation) rules,” China’s Permanent Representative to the UN Ambassador Fu Cong said.
Fu was addressing a press conference here Monday as China assumed the rotating presidency of the 15-nation UN Security Council for the month of February.
In response to a question about the Trump administration imposing 10 per cent tariffs on Chinese goods coming into the US, he said China is filing a complaint at the WTO and Beijing “may be forced to take countermeasures.”
On Saturday, the White House announced that Trump was implementing a 25 per cent additional tariff on imports from Canada and Mexico and a 10 per cent additional tariff on imports from China.
China files complaint with WTO over US tariffs
Beijing announced on Tuesday that it has lodged a complaint with the World Trade Organization (WTO) against the United States over increased tariffs on Chinese goods.
The Chinese commerce ministry stated that the move aims to “defend its legitimate rights and interests,” condemning the US measures as “malicious” and in violation of global trade rules.
The dispute escalates tensions between the two economic giants, as China seeks WTO intervention against what it views as unfair trade practices.
Trudeau blinks, Trump halts tariff on Canada and Mexico but not on China
President Donald Trump on Monday agreed to a 30-day suspension of his tariff threats against Mexico and Canada as the United States’ two largest trading partners took measures to address his concerns regarding border security and drug trafficking.
Donald Trump Tariffs Live: China announces to impose 15% tariff on imports of coal, LNG from US
China said Tuesday it would impose tariffs of 15 percent on imports of coal and liquefied natural gas from the United States, after Washington slapped ten percent levies on Chinese goods.
“A 15 percent tariff will be imposed on coal and liquefied natural gas (LNG),” Beijing’s commerce ministry said, adding the tariffs come into force next Monday.
Donald Trump Tariffs Live: China to impose 10% tariff on imports of crude oil, other goods from US
China said Tuesday it would slap 10 percent tariffs on imports from the US of crude oil, agricultural machinery, large-displacement vehicles and pickup trucks.
The move comes after Washington announced 10 percent levies on Chinese imports, which Beijing’s commerce ministry said “seriously violates World Trade Organization rules”.
Donald Trump Tariffs Live: Trump ‘very pleased’ with Canada talks, confirms 30-day tariff halt
US President Donald Trump confirmed Monday he would delay the start of tariffs on Canada for 30 days, saying he was “very pleased” it had agreed to tighten border measures against the flow of the drug fentanyl.
“Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl,” Trump said on his Truth Social network after a similar announcement by Prime Minister Justin Trudeau.
Donald Trump Tariffs Live: Impact of potential US tariffs on European firms
With the European Union possibly next to be hit by US import tariffs, here are the sectors that are most exposed.
From Tuesday, the United States will impose 25 percent import tariffs on goods from Canada, with Trump postponing a similar hike for Mexico for one month.
Both countries have enjoyed free access to the US market under a trade deal that Donald Trump negotiated in his first term as president.
An additional levy of 10 percent will be imposed on goods from China.
On Sunday, Trump suggested that the European Union could be the next target for tariffs.
Donald Trump Tariffs Live: Trump agrees to pause tariffs on Mexico for a month
US President Donald Trump and Mexican President Claudia Sheinbaum said Monday that their planned tariffs were on hold for a month to give time for further negotiations. The statement was confirmed by the White House.
Trump’s tariffs against Canada and China are still slated to go into effect on Tuesday.
Donald Trump Tariffs Live: US stocks join global selloff on Trump tariffs
Wall Street stocks slid on Monday, mirroring global market losses after US President Donald Trump announced tariffs on Canada, Mexico, and China.
Although Trump later revised his stance, postponing tariffs on Mexico for 30 days following talks with his Mexican counterpart, the market reaction remained negative. The Dow Jones Industrial Average dipped 0.3% to 44,421.91, while the S&P 500 dropped 0.8% to 5,994.57. The Nasdaq Composite, hit hardest, fell 1.2% to 19,391.96.
“Tariffs are seen as a cost that will likely push prices higher and growth lower,” said Jack Ablin of Cresset Capital, noting that Trump’s broader tariff threats have fueled market uncertainty. “The market is adapting not just to more tariffs, but more headline risk.”
Monday’s trading highlighted the uneven impact of tariffs across sectors, with some industries more vulnerable than others to the escalating trade tensions.
Donald Trump Tariffs Live: Stocks from automakers to retailers feel pressure from tariff threats
Companies in a wide range of industries saw their stocks come under pressure Monday on Wall Street because of tariff threats from President Donald Trump.
Automakers, technology companies and retailers all fell as the US, Mexico, Canada and China wrangled over tariffs. Trump said over the weekend that 25% tariffs on imports from Canada and Mexico would go into effect Tuesday, though he has given the nations a 30-day reprieve. China still faces 10% tariffs.
Donald Trump Tariffs Live: How China could respond to Trump’s new tariffs
China has a range of options to hit back against fresh US tariffs, from retaliatory levies on American goods like car parts and soybeans to restrictions on raw materials crucial for US manufacturing, analysts say.
Over the weekend, US President Donald Trump announced a 10% tariff on Chinese products, further intensifying a trade standoff that began eight years ago during his first term. In response, Beijing warned that a trade war would have “no winners” and vowed countermeasures, though specifics remain unclear.
Trump’s announcement followed reports that Canada and Mexico had secured a deal to delay 25% tariffs on their exports. He also stated that talks with China would likely take place “in the next 24 hours” in an effort to strike an agreement.
With China’s economy grappling with sluggish consumption and slow growth, analysts expect Beijing to hold back immediate retaliation—at least until another wave of tariffs poses a more significant threat.