Tariff Weekly: Week March 10

Tariff Weekly: Key Developments in Global Trade (March 9 - March 13, 2025)

Canada Caught in Dual Tariff Disputes

Canada finds itself embroiled in two major trade conflicts as China and the United States imposed or threatened new tariffs in response to Ottawa's trade measures.

China's Retaliation: China announced tariffs effective March 20 on over $2.6 billion of Canadian agricultural products, including a 100% tariff on rapeseed oil, oil cakes, and peas, and a 25% duty on aquatic products and pork. This move follows Canada’s October tariffs on Chinese EVs, steel, and aluminum.

U.S. Threats: President Trump threatened a 250% tariff on Canadian dairy and new tariffs on lumber. Although a proposed increase in steel and aluminum tariffs from 25% to 50% was paused, 25% duties on these materials still took effect on March 12.

In response, Canada announced a new round of retaliatory tariffs targeting C$29.8 billion worth of American goods. Ottawa also filed a WTO complaint challenging the U.S. tariffs.

Escalation in U.S.-China Trade War

Following Trump's decision to raise tariffs on Chinese goods from 10% to 20%, Beijing responded with tariffs of 10-15% on U.S. agricultural exports, including soybeans, cotton, chicken, and corn. China also blocked imports of U.S. timber and restricted several U.S. companies from doing business in China.

Walmart faced scrutiny from Chinese authorities after reportedly pressuring Chinese suppliers to reduce prices in response to Trump's tariffs.

EU Retaliation Against U.S. Tariffs

The European Union imposed retaliatory tariffs targeting $28.3 billion worth of U.S. goods, focusing on politically sensitive sectors in Republican-led states, such as soybeans from Louisiana. The EU's tariffs will include agricultural products, steel, and consumer goods like motorcycles and textiles.

Brussels simultaneously initiated WTO consultations on the U.S. steel and aluminum tariffs, calling them "safeguard measures."

Trump's Expanding Tariff Measures

Trump announced plans for a 200% tariff on European wines, champagne, and other alcoholic products unless the EU repeals its tariffs on U.S. whiskey.

India has signaled readiness to cut tariffs in response to Trump’s pressure, aiming to avoid being drawn into the escalating trade war.

Bilateral and Multilateral Trade Diplomacy

Japan and Britain reaffirmed their commitment to strengthening free trade and addressing economic coercion. Both nations are pushing for WTO reform and support for clean energy initiatives in developing countries.

Nigeria and China have launched new talks to reduce trade barriers and foster investment cooperation.

Outlook

With a two-week window before new tariffs take effect between Canada and China, diplomatic efforts may yet soften the impact. Meanwhile, Trump's aggressive tariff strategy continues to reshape trade patterns, putting significant pressure on global markets and diplomatic relations. Countries such as the UK and Japan are exploring alternative economic partnerships to mitigate potential losses from U.S. trade policies.