Is a global trade war imminent? Trump's new tariffs have triggered strong backlash from many countries, and the global economy may face a new round of shocks

Here is the English translation of the text, with the specified terms preserved: The US President Donald Trump officially signed an executive order on Saturday to impose tariffs on imports from Canada, Mexico and China. Under the new policy, goods from Canada and Mexico will be subject to a 25% tariff, while Chinese imports will face a 10% tariff. Energy resources will be subject to a lower 10% tariff to mitigate the impact on US domestic fuel and home heating oil prices. Trump explained the tariff policy in a post on social media platform X, claiming these measures are to address the "threats of illegal immigration and deadly drugs (like fentanyl) to American citizens." He also warned that if the affected countries retaliate, the US may further expand the tariff scope or raise the rates. The annual trade volume between the US and Canada, Mexico and China is around $1.6 trillion, and these new tariffs will undoubtedly have a profound impact on the global economy. In Europe, the EU is closely monitoring this policy, concerned that it may become the next target of the trade war.

Canada Strikes Back Quickly, Imposing $155 Billion in Retaliatory Tariffs

Canadian Prime Minister Justin Trudeau quickly responded by announcing a 25% retaliatory tariff on $155 billion worth of US goods. $30 billion worth of US products will be affected immediately, while an additional $125 billion will be subject to tariffs in 21 days to allow businesses to find alternative supply chains.

Mexico Takes a Firm Stance, but Hasn't Revealed Retaliatory Details

The Mexican government has also expressed strong dissatisfaction with Trump's new tariff policy. President Claudia Sheinbaum stated that she has instructed the Economy Minister to implement "Plan B" countermeasures, including "tariff and non-tariff measures" to protect Mexico's interests.

China Files a WTO Complaint, Seeking Legal Battle and Planning Countermeasures

Facing the US new tariffs, China has chosen to take legal action. The Chinese Ministry of Commerce issued a statement on Sunday, saying it will file a lawsuit with the World Trade Organization (WTO) and "take necessary countermeasures" to defend its own interests.

Experts believe that China has not immediately escalated retaliation, but instead chosen the legal route, which may indicate that Beijing still hopes to avoid a full-scale trade war with Washington. In addition, the Trump administration's initial threat to impose tariffs of more than 60% on Chinese goods has only resulted in a 10% tariff, which may have given the Chinese government some buffer.

China has also refuted Trump's claim that the fentanyl crisis is China's fault, calling it an "internal problem of the United States" and urging the US to adopt an "objective and rational attitude" instead of "threatening other countries with tariffs".

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The EU is closely monitoring the situation and warns the US against escalating the tariff war

Although Trump's current tariff policy mainly targets Canada, Mexico, and China, the EU has expressed deep concern. The EU Commission spokesperson said on Sunday that if the US expands tariffs to the EU, it will "respond decisively".

"Our trade and investment relationship is one of the largest in the world, involving trillions of dollars in economic activity," the EU spokesperson said. "Tariffs will only increase business costs, harm workers and consumers, and drive up inflation, which is not good for anyone."

Trump has recently criticized the EU's trade policy as "extremely unfair" and has hinted several times that he may impose tariffs on EU products. The market is generally concerned that the US-EU trade relationship may become the next point of tension.

The global economy may face a new round of shocks

Market analysts believe that this trade war may have just begun. Paul Ashworth, Chief North American Economist at Capital Economics, pointed out that this round of US tariffs may be just the "first strike of a global trade war", and warned that the EU may also become a target in the coming months.

"Since exports to the US account for about 20% of Canada and Mexico's GDP, these tariffs could push the two countries into economic recession this year," Ashworth said. "The rise in inflation caused by US tariff policy is likely to be faster and more severe than expected."

As retaliatory measures by various countries are gradually unfolding, the uncertainty in the global economy is further increasing, and it remains to be seen whether this trade war will escalate further.