BRICS countries, with a combined GDP approximately 1.5 times that of the United States, can be expected to retaliate against promised U.S. tariffs. These countries — many of which are major traders with China — are likely to make Donald Trump regret his bellicose bullying.

The Trump administration’s blame-driven approach to U.S.-China relations fueled mutual losses and entrenched scapegoating of China for U.S. domestic issues. Ultimately, subnational diplomacy and pragmatic collaboration are essential for rebuilding constructive ties.

The country is capable of mitigating any ill effects should Trump return to the aggressive form of his first term. China may feel some pressure, but it has built a multilayered economic defense involving domestic demand, fiscal policies, high-tech innovation and international cooperation.

As one of the United States’ closest allies in the West, Canada’s foreign policy tends to generally align with that of the U.S. With anti-China tensions building in both countries, Canada’s latest moves could end up hurting its relationship with China without a more nuanced approach.

The multilateral trading system faces an existential challenge as the United States and European Union seek to continue — or even expand — trade protectionism. If Donald Trump returns to the White House, there are good reasons to believe that he will try again to hijack the World Trade Organization. Meanwhile, protectionism by Europe only makes things worse.

By imposing provisional duties on Chinese EV imports, the EU seeks to protect its automotive industry while navigating complex internal and external pressures, with the potential for significant economic and geopolitical fallout if a full-scale trade war ensues.

After an eight-month investigation, the European Union has announced that it will impose tariffs as high as 38.1% on electric vehicles (EVs) from China to offset the unfair advantages created by Chinese government subsidies. In retaliation, China immediately launched an anti-dumping probe into pork imports from the EU. The two sides are now negotiating a solution to the trade dispute in Beijing.

On June 12, the European Union announced new provisional levies on Chinese electric vehicles (EVs), with the tariff level to be based on estimates of how much state support an EV exporter receives. The new tariffs follow from a months-long investigation into China’s use of financial subsidies, and they will be imposed on top of the 10% tariff that the EU already has in place. They are “provisional” because they might be revised downward if Chinese producers can offer evidence that the support they receive is less than estimated. Separately, if the EU can reach an agreement with China to reduce the volume of Chinese EV exports to Europe, the new tariffs may not be implemented.

Washington’s new strategy may alter its trade dynamics with China, but China cannot be taken out of the picture. Most of America’s trading partners continue to be fed by Chinese supply chains, even as they boost their output of manufactured goods to the United States.

The Biden administration’s new tariffs on Chinese goods are primarily symbolic and political, with negligible economic impact, but they aim to protect and foster the U.S. clean energy supply chain, particularly in the EV sector. However, the tariffs are politically motivated and could undermine industrial policy goals by focusing on geopolitical competition rather than applying uniformly to all countries.