Trump’s Tariff Policies Continue to Reshape Global Trade in 2025
According to the Economic Desk of Webangah News Agency, President Donald Trump’s trade policies, aimed at reviving the declining U.S. manufacturing base, have significantly altered global commerce. The Yale Budget Lab reports that average tariff rates surged from below 3% at the end of 2024 to approximately 17% in 2025.
These measures have drawn world leaders to Washington, often in exchange for promises of billions in U.S. investments, though finalizing a deal with China remains elusive despite multiple negotiation rounds between Trump and Chinese President Xi Jinping. Initial agreements were reached with major trade partners, including the EU, UK, Switzerland, Japan, South Korea, and Vietnam.
The EU faced criticism for accepting a 15% tariff on its exports in exchange for vague commitments to U.S. investments. European exporters have since adapted through exemptions and finding alternative markets. Meanwhile, China’s trade surplus surpassed $1 trillion as it reduced reliance on the U.S., shifted manufacturing to higher-value chains, and leveraged its dominance in rare earth minerals to counter U.S. and European pressure.
A major uncertainty for 2026 is whether Trump’s tariffs will remain in place. A legal challenge to his “reciprocal tariffs” on various nations and fentanyl-related duties on China, Canada, and Mexico reached the U.S. Supreme Court in late 2025, with a decision expected in early 2026. The Trump administration insists it could pursue alternative legal avenues to maintain tariffs if defeated, but these options are more cumbersome and limited in scope.
For Europe, trade relations with China—a long-standing export destination—are crucial. However, European firms struggle to penetrate China’s slowing domestic market. A key question for 2026 is whether the EU will impose tariffs or other measures to address what some officials call trade imbalances with China.
Efforts to finalize a U.S.-China deal remain critical, with a fragile détente from 2025 negotiations set to expire in late 2026. Trump and Xi plan two meetings during the year. Meanwhile, the U.S.-Canada-Mexico free trade agreement faces uncertainty as Trump weighs letting it lapse or reshaping it to his preferences.
