This week, global trade tensions escalated as the United States, China, Canada, and Mexico engaged in a new wave of tariff measures. On March 3, President Trump increased tariffs on Chinese goods from 10% to 20%, citing insufficient action on the fentanyl crisis. Meanwhile, existing 25% tariffs on Canada and Mexico—along with a 10% rate on Canadian energy products—remain in place. In response, China announced additional tariffs of 10% to 15% on U.S. goods, impacting $362 billion in trade, alongside non-tariff measures such as halting imports from select American companies.

Canada also retaliated, imposing 25% tariffs on 300 billion worth of U.S. goods starting this week, with an additional $250 billion in tariffs after 21 days. Ontario’s government is considering reducing energy imports from the U.S. as part of its response. Meanwhile, Mexico has yet to announce immediate countermeasures, taking a more cautious approach. These developments mark another volatile chapter in global trade relations, with significant economic implications across North America and beyond.

Despite escalating trade tensions, China has set an economic growth target of around 5% for 2025, maintaining last year’s goal despite ongoing challenges such as weak domestic demand and a prolonged property downturn. Premier Li Qiang announced the target on Wednesday, highlighting that China met its 2024 growth objective with a GDP expansion of 5%. To support this year’s economic agenda, the government has raised its fiscal deficit target to 4.0% of GDP, up from 3.0% last year, signaling a commitment to stimulus measures.

In response to persistent disinflation, China has lowered its consumer inflation target to 2.0% for 2025, down from the previous year’s 3.0% goal, after consumer prices rose by just 0.2% in 2024. The government also aims to maintain labor market stability by creating 12 million jobs and capping the urban unemployment rate at 5.5%. To boost investment, local governments will issue 4.4 trillion yuan ($605.6 billion) in special-purpose bonds, primarily for infrastructure projects. Additionally, Beijing plans to issue 1.3 trillion yuan in ultralong treasury bonds and 500 billion yuan in special treasury bonds to strengthen major banks’ capital reserves. These measures reflect China’s strategic approach to sustaining economic momentum amid global uncertainties.

On march 7. The U.S. added a seasonally adjusted 151,000 jobs in February, slightly below the gain of 170,000 jobs economists polled by The Wall Street Journal expected to see. That was better than the 125,000 jobs added in January.

The unemployment rate, which is based on a separate survey from the jobs figures, rose to 4.1% from 4%.