Editor's note: Zhou Jianjun is an assistant researcher at the Institute of State System Research and School of Economics, 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.

The United States currently imposes a 50 percent tariff on foreign steel and aluminum, prompting Canada to retaliate with a 25 percent counter-tariff on US-made steel and aluminum products. As the largest supplier of these materials to the US, Canada has been negotiating a trade deal with Washington, but these talks have yet to yield tangible results.

On July 10, US President Trump announced that a 35 percent tariff would be imposed on Canadian imports starting August 1, once again targeting a key ally with punitive trade measures. In response, the Department of Finance Canada revealed on July 16 that, to counter US steel tariffs and address global steel overcapacity, it would expand steel import quota restrictions and impose surcharges on excess imports beginning the same day. Additionally, Canada will levy a 25 percent surcharge on steel products melted and poured in China but imported from non-US countries.

US 'reciprocal tariffs': Allies and adversaries alike suffer

As Henry Kissinger once remarked, "It may be dangerous to be America's enemy, but to be America's friend is fatal." The US has wielded "reciprocal tariffs" in an attempt to reduce its persistently staggering trade deficit and revive domestic manufacturing—a strategy widely perceived as targeting manufacturing powerhouses like China.

Although China faced significant losses from the tariff war, its resolute countermeasures and robust economic resilience allowed it to weather the impact. In the first half of 2025, China's GDP grew by 5.3 percent year-on-year, while exports surged by 7.2 percent, exceeding RMB 13 trillion (over $1.81 trillion)—a record high for the period.

Surprisingly, Canada, America's closest ally and neighbor, has borne the brunt of unprecedented US tariffs. Since Trump's return to the White House, steep 50 percent tariffs have been imposed on steel and aluminum imports—a direct blow to Canada, the largest supplier of these goods to the US. According to Statistics Canada, the country's GDP contracted by 0.1 percent in both April and May, while manufacturing activity plummeted by 1.9 percent in April, marking the sharpest decline since April 2021. Such economic indicators show signs of deterioration, highlighting the deepening strain on US allies.

Growing rifts: How US tariffs are alienating key allies

The US's dominant position in global politics and economics largely stems from the support of its allies. By providing security assurances to partners such as Canada, the EU, Japan, and South Korea, Washington has secured their alignment on major international issues. However, "reciprocal tariffs" have inflicted severe economic damage on these allies—in some cases, surpassing the impact on China. This has fueled discontent and widening rifts among western allies against America, prompting them to push back with countermeasures. Following the US announcement of 30 percent tariffs on imports from Mexico and the EU, effective August 1, 2025, the European Union plans to strengthen coordination with Canada, Japan, and others to jointly counter the Trump administration's latest tariff threats.

Tariff battles: A self-defeating economic conflict with no winners

The ongoing tariff battles have proven to be a self-defeating and outdated strategy, benefiting no nation. Far from advancing Trump's "America First" agenda, "reciprocal tariffs" have backfired, driving up domestic costs and exacerbating social tensions in the US. Other countries are also unable to find a respite through compliance or crisis-shifting tactics. Vietnam's trade agreement with the US, which restricts Chinese trans-shipments in exchange for tariff reductions, and Canada's 25 percent surcharge on third-country imports containing Chinese-processed steel exemplify this futile approach.

These beggar-thy-neighbor measures have neither secured US concessions nor provided tariff relief. Instead, affected nations continue to face punitive US duties, while provoking countermeasures from China—further straining bilateral relations. This reality underscores the fundamental truth of tariff conflicts: they are a zero-sum game where all parties suffer, validating the old adage that "in trade wars, there are no winners."