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Countries plan and deploy countermeasures to offset adverse effects of Trump's tariffs

Xue Tianhang

Editor's note: The article is written by Xue Tianhang, an associate researcher of the Research Center for Regional Coordinated Development of Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

On January 21, US President Donald Trump told the media while signing an executive order at the White House that he plans to impose tariffs of 25 percent on all imports from Mexico and Canada starting February 1. This announcement came as no surprise, as he had repeatedly pledged during his campaign to impose punitive tariffs on Mexico if elected.

Trump's political proposition of additional tariffs reflects his deeply entrenched "America First" ideology, which is detrimental not only to global trade but also to the progress of the United States. US trade partners, including Mexico, Canada, and European countries, has strongly condemned such tariff threats and vowed to retaliate. Mexican President Claudia Sheinbaum has warned that if the US does implement tariffs against Mexico, Mexico would respond with retaliatory measures, which would hinder bilateral trade and harm both economies. Canadian Foreign Minister Mélanie Joly has stated that if the US imposes a 25 percent tariff on all Canadian goods, the added costs would ultimately carry over to American consumers, stressing that Canada was ready to retaliate and impose tariffs on American orange juice, toilets, and some steel products. Both Canada and Mexico have since followed through and announced retaliatory tariffs. These tariffs could severely damage North America's automotive industry and job market, which would be a blow to economic growth in all the three countries.

As the US has repeatedly resorted to tariff measures in recent years, countries worldwide have grown increasingly discontent. Many countries have formulated long-term strategies to reduce their dependence on the US market and safeguard their trade and economic security. For example, the European Union, a traditional US trade partner, has been accelerating internal market integration while also speeding up negotiations for free trade agreements with other economies to explore new markets and diversify trade risks. In December 2024, European Commission President Ursula von der Leyen announced that the EU had finalized a long-anticipated trade agreement with Mercosur, a regional integration process of South America with Argentina, Brazil, Paraguay and Uruguay as founding members, the negotiations of which started over two decades ago. Covering a free trade zone of more than 700 million people, the agreement, once in effect, could save the EU an estimated 4 billion euros in tariffs in its first year alone.

US President Donald Trump speaks to the press after signing an executive in the Oval Office of the White House in Washington, DC, January 31, 2025.  /CFP
US President Donald Trump speaks to the press after signing an executive in the Oval Office of the White House in Washington, DC, January 31, 2025. /CFP

US President Donald Trump speaks to the press after signing an executive in the Oval Office of the White House in Washington, DC, January 31, 2025. /CFP

Against the backdrop of this new international environment, China has continued to deepen reform and opening-up, which has yielded notable results. In terms of foreign trade, China has steadily advanced the Belt and Road Initiative. While expanding the global reach of its own products, the country has also shared development opportunities with other nations worldwide and promoted global trade growth. Since December 2024, China has implemented a zero-tariff policy on all goods originating from the world's least-developed countries that have diplomatic relations with China, to support their economic growth. As for the internal economic transition, China has been optimizing its industrial structure, steadily expanding domestic demand, and fostering new quality productive forces. As a result, new drivers of economic growth continue to sprout. During the 2025 Spring Festival Gala, audiences were stunned by robots dressed in red floral jackets spinning red handkerchiefs. These robots not only delighted audiences in this festive atmosphere but also showcased China's technological advancements.

In the future, China will continue working alongside peace-loving nations to resolve disputes through multilateral mechanisms, propel the world toward multipolarity in a fair and orderly manner, and foster inclusive and equitable economic globalization, thereby laying a solid foundation for global peace and development.

(Cover via CFP)

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