Trump Cuts China Tariffs to 15% in Landmark Trade Deal, Signals Shift from Aggressive Economic Confrontation
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Trump Cuts China Tariffs to 15% in Landmark Trade Deal, Signals Shift from Aggressive Economic Confrontation
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In a major development today, Bloomberg Global reports the U.S. has cut tariffs on Taiwan and China through a new trade agreement, capping total tariffs at 15% with no stacking of most-favored-nation duties. This move applies to products where MFN rates previously drove costs higher, signaling a potential thaw in Trump's aggressive tariff strategy amid his 2026 China policy framework.
Discovery Alert details Trump's 2026 economic nationalism push, emphasizing strategic tariffs on critical minerals with strict deadlines to counter China's dominance. While U.S. effective tariff rates on China peaked at roughly 45% by mid-2025 according to St. Louis Fed analysis, this new cap suggests recalibration to protect American industries without fully escalating the trade war.
Canada's Global Affairs announcement today adds global context, revealing a preliminary agreement with China slashing combined tariffs on Canadian canola seeds from 84% to about 15% by March 1, 2026. This unlocks $4 billion in annual exports, plus relief for canola meal, lobsters, peas, and crabs worth $2.6 billion. Canada will also quota 49,000 Chinese electric vehicles yearly at a 6.1% MFN rate, reserving half for affordable models under $35,000 CAD by 2030, while extending steel and aluminum import remissions.
These shifts highlight Trump's influence rippling worldwide, balancing protectionism with pragmatic deals to secure supply chains. As U.S.-China frictions evolve, expect more headlines on mineral restrictions and EV battles.
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