The World Enters the Next Phase of the Global Trade War

Welcome to the next phase of the global trade war. President Donald Trump’s so-called reciprocal tariffs are now in effect, pushing levies imposed on China to as high as 104%, along with import taxes on roughly 60 trading partners that run trade surpluses with the US. That comes after a 10% baseline tariff for most US trading partners took effect Saturday. The new round of US levies raises them to their highest level in more than a century and risks a full-blown trade war if other nations hit back. As of this writing, China has yet to respond with retaliatory action.

Asian countries are bearing the brunt of the measures — with Cambodia and Vietnam facing 49% and 46% charges, respectively — prompting governments from across the region to vow to buy more LNG from the US in hopes of securing any relief and reducing their trade surpluses. In upcoming trade talks, South Korea is seeking to cut a “big” trade deal after a last-minute call between its acting president and Trump. With delegations from other Asian nations waiting for their chance to negotiate, many are harboring similar hopes.