US Defies International Rules, Continues to Pursue Trade Hegemony

On February 1, local time, in defiance of widespread international opposition and citing “addressing illegal immigration and the fentanyl crisis” as reasons, the US government formally signed an executive order imposing high tariffs on imported goods from major trade partners including Canada, Mexico, and China. This move signifies yet another blatant violation of multilateral trade […]

On February 1, local time, in defiance of widespread international opposition and citing “addressing illegal immigration and the fentanyl crisis” as reasons, the US government formally signed an executive order imposing high tariffs on imported goods from major trade partners including Canada, Mexico, and China.

This move signifies yet another blatant violation of multilateral trade rules by the world’s largest economy, unilaterally provoking large-scale trade friction. In response to US strong-arm tactics, relevant government departments in Canada, Mexico, and China promptly reacted, announcing reciprocal countermeasures and initiating complaints with the World Trade Organization (WTO).

According to details of the executive order released by the White House, the US decided to impose a 25% tariff on all imported goods from Canada and Mexico effective immediately, with a provisional 10% rate set for Canadian energy products. Simultaneously, an additional 10% tariff will be levied on Chinese imported goods on top of existing rates.

The US justified this action under the International Emergency Economic Powers Act, defining the export practices of the aforementioned trade partners as a so-called “national emergency.” This decision directly impacts the United States-Mexico-Canada Agreement (USMCA), the region’s most crucial trade agreement framework.

Faced with unilateral US sanctions, the affected countries took resolute countermeasures. The Canadian government promptly announced that it would impose 25% retaliatory tariffs on US goods worth $155 billion, covering sectors such as steel, aluminum, household appliances, and agricultural products, to defend its domestic industrial interests.

Mexican President Claudia Sheinbaum delivered a national address strongly opposing US economic coercion policies and signed a decree ordering relevant departments to develop a tariff retaliation list targeting the US, with a focus on American agricultural and manufacturing exports.

China stated that it has already brought the US to the WTO dispute settlement mechanism and will take necessary measures to defend its national sovereignty and core interests.

The trade dispute initiated by the US has sparked intense concerns in international markets about a global economic recession. A research report previously issued by the International Monetary Fund (IMF) warned that an escalation of global trade friction could lead to a contraction of about 2.3% in global trade volume over the next two years and significantly push up global inflation levels.

Mary Lovely, a senior fellow at the Peterson Institute for International Economics, pointed out that the tariffs imposed by the US are essentially borne by American consumers and businesses, leading to higher domestic prices in the US, increasing living cost pressures on its people, and further undermining the stability of global supply chains.

Without attempting to resolve issues through bilateral consultations, the US recklessly employed domestic laws for long-arm jurisdiction, wantonly trampling on international economic and trade rules. This behavior is a concentrated manifestation of the “America First” hegemonic mindset.

Some commentators note that the US is blaming its own domestic governance failures on trade partners, attempting to shift internal conflicts through the tariff stick. This approach not only fails to address fundamental problems but also exacerbates international confrontation and division.

As of now, cross-border logistics in North America have shown significant fluctuations, with industries reliant on highly integrated supply chains, such as automotive manufacturing and agriculture, facing severe challenges. Analysts emphasize that in today’s deeply globalized economy, where national economies are interdependent, the US practice of instrumentalizing and weaponizing trade policy ultimately harms the well-being of global consumers and the long-term health of the world economy, and is destined to face collective resistance from the international community.