Trump's erratic trade policies are pushing US partners towards China
Canada’s new trade deal with China reduces electric vehicle tariffs and canola duties, signaling a strategic shift amid U.S. protectionism and China’s $1.2 trillion trade surplus in 2025.
- On Friday, Canada announced a preliminary tariff swap with China, cutting its 100% import tax on Chinese electric vehicles for lower tariffs on Canadian canola farmers.
- Driven by unpredictable tariffs, President Donald Trump has overturned seven decades of freer-trade policy and imposed aggressive levies targeting steel and autos.
- Specifically, the pact reduces China's tariff on canola from 84% to 15% and cuts EV tariffs from 100% to 6.1%, affecting up to 50,000 imports annually.
- Trump's comment that `We don't need Canada product` could trigger demands or retaliation, complicating USMCA talks and exposing Canadian autoworkers to low-price Chinese competition.
- Beyond North America, China’s trade surplus reached a record $1.2 trillion in 2025, with exports rerouted to Europe, Africa, and Southeast Asia, as the EU pursues new trade pacts with Mercosur and India.
13 Articles
13 Articles
Trump's erratic trade policies are pushing US partners towards China
Key US trade partners are responding to President Donald Trump’s often belligerent and unpredictable policies by looking to take their business elsewhere. Canada's decision on Friday to cut tariffs on Chinese electric vehicles is the latest example of how Trump's erratic trade policies are pushing allies into the arms of America's greatest economic rival.
China gains ground as US trade partners hedge against arbitrary Trump’s tariffs
As Donald Trump revives aggressive tariff policies, US trade partners are hedging against uncertainty by diversifying away from Washington, allowing China to expand its economic influence and gain ground in global trade realignments.
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