Washington, D.C. – February 4, 2025 – The ongoing trade tensions between the United States and China escalated today as Beijing imposed counter-tariffs in response to President Donald Trump’s latest round of levies on Chinese goods. Meanwhile, Mexico and Canada have reached a temporary agreement with the U.S., suspending planned tariffs for 30 days.

China Hits Back at U.S. Tariffs

In response to Trump’s 10% tariff on Chinese imports, which took effect last week, China has introduced retaliatory levies ranging from 10% to 15% on key American exports. Affected goods include coal, liquefied natural gas, crude oil, agricultural machinery, and automobiles. Additionally, China has launched an antitrust investigation into Google and implemented new export restrictions on critical minerals. These measures will take effect on February 10.

Mexico and Canada Strike Border Security Deal

Amid threats of a 25% tariff on imports from Mexico and Canada, both countries reached a last-minute agreement with the U.S. to avoid immediate economic consequences. Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau agreed to send additional security forces to their borders to tackle drug trafficking and unauthorized migration. In exchange, the U.S. has paused the tariffs for 30 days while further negotiations continue.

Trump Moves to Shut Down USAID

In a separate development, the Trump administration has taken steps to dismantle the U.S. Agency for International Development (USAID), locking workers out of its Washington, D.C., headquarters. The move has drawn criticism from lawmakers, who are questioning the legality of the decision.

Legal Scrutiny Over Federal Spending and Musk’s Role

A federal judge in Washington, D.C., has extended an order blocking Trump’s proposal to freeze trillions of dollars in federal spending. Meanwhile, Democratic lawmakers have raised concerns about billionaire Elon Musk’s involvement in major government decisions, including policy changes at the Treasury Department and USAID.

As these economic and political battles unfold, the global market continues to brace for further developments in U.S. trade policy.