GTA Monthly Roundup: February 2025

The Global Trade Alert team documented 370 new trade and industrial policy interventions announced in the last four weeks. These five trends emerge:

• The Trump Administration heightened trade tensions through the use and threat of import tariffs. On 4 March, the White House activated previously announced 25% additional tariffs on Mexican and Canadian imports. These had been temporarily suspended since early February 2025. It also escalated supplementary duties on Chinese imports from 10% to 20%. Additional actions included amendments to Section 232 tariffs on steel and aluminum, leading to the reimposition of tariffs and the elimination of previously negotiated exemptions with allies, including the EU, UK, Canada, Mexico. The administration also launched Section 232 investigations into timber and copper imports, threatened retaliatory tariffs against digital services taxes, and announced the Fair and Reciprocal Plan to impose "reciprocal tariffs" on trading partners.

• Countermeasures from the US trading partners arrived swiftly. China implemented a multifold response, starting with 10% and 15% additional duties on 740 US products. Beijing also placed ten US defense companies on its Unreliable Entity List and 15 US companies on its Export Control List. Canada activated its previously enacted and suspended 25% surtax on over 800 products, applicable to US goods regardless of importation point.

• Investment policies start to show diverging objectives. The US America First Investment Policy expands foreign investment restrictions from "adversaries or threat actors" in strategic sectors, while China's 2025 Action Plan for Stabilising Foreign Investment seeks to attract investment by relaxing restrictions in manufacturing and services.

• Several G7 countries — without the US — expanded sanctions against Russia on the third anniversary of its invasion of Ukraine. They implemented asset freezes, transaction prohibitions, extended import/export bans, and maritime sanctions against Russia's "shadow fleet" vessels.

• Multiple jurisdictions restricted the Chinese AI application Deepseek over security concerns. The US introduced a bipartisan legislation prohibiting it on government devices. Australia, Canada, Chinese Taipei, and South Korea have already implemented similar measures. 

The GTA Monthly Roundup provides a rapid overview of changes in import barriers, export curbs, subsidies, and related industrial policy measures. It is organised by geography beginning with the United States, China and the European Union. The final section briefly summarises developments in further regions covered by the GTA. Links to official sources are included in the references.

The United States focused on the use and threat of import tariffs, emphasising national security concerns related to critical minerals, technology sector protection, and investment controls. The GTA team documented 50 new interventions announced during the last four weeks.

The Trump Administration directed the Secretary of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 into copper imports, with potential export restrictions to follow. The order mandates an assessment of national security risks posed by imports of copper, including raw, refined, and scrap copper, as well as copper alloys and derivative products.

On 4 March 2025, the White House triggered the previously announced 25% additional tariffs on Mexican and Canadian imports, which had been temporarily suspended since early February 2025. It also increased the additional duty on Chinese imports from 10% to 20%. These measures were justified under declared national emergencies related to immigration concerns and the fentanyl crisis.

The White House directed agencies to counter foreign taxes and regulations that allegedly harm US technology companies. The memorandum targets digital services taxes and similar measures imposed by other countries — singling out France, Austria, Italy, Spain, Turkey, and the UK — and authorises retaliatory tariffs and other counter-measures.

The US Fair and Reciprocal Plan to address trade imbalances calls for “reciprocal tariffs” on partners with higher tariff rates on US goods. The plan also includes tariffs to counter non-tariff barriers, regulations and subsidies. Agencies are directed to review these issues and report findings within 180 days to justify policy actions.

Trump reimposed the 25% steel tariffs on previously exempt countries including the EU, the UK, Brazil, Australia, Canada, Mexico, Ukraine, Argentina, South Korea, and Japan. It terminated the bilaterally agreed quota systems with Brazil, Argentina and Korea, as well as the tariff-rate quota arrangements with the UK, Japan, and the EU. Additionally, it expanded the scope to include additional derivative steel articles that were not previously subject to these duties.

For aluminium, it increased import tariffs from 10% to 25% for all countries except Russia. Similar to steel, the government also terminated the bilateral arrangements with Argentina, Australia, the UK, the EU, Mexico, and Canada. This implied the termination of the previous quota arrangement with Argentina and of the tariff-rate quota arrangements with the EU and the UK. For Russia, the government maintained its 200% tariff on aluminium products. Moreover, it extended this rate to products containing Russian aluminium inputs.

The investigations under Section 232 of the Trade Expansion Act of 1962 into timber and copper imports also contemplate potential import quotas or tariffs.

The timber- and copper-focused Section 232 investigations contemplate the provision of “incentives to increase domestic production” through “strategic investments” and others.

The America First Investment Policy was announced to achieve national and economic security objectives. It outlines the intention to expand foreign investment restrictions from “foreign adversaries or threat actors” in strategic sectors. While the memorandum primarily focuses on China, it also lists Hong Kong, Macau, Cuba, Iran, North Korea, Russia, and Venezuela as potential targets. The policy also introduces future restrictions on US outbound investments to China, particularly in technology sectors, including semiconductors, AI, and quantum. 

Before, two Congressmen introduced a bipartisan bill prohibiting the use of DeepSeek on US government devices, citing national security concerns. At the time of writing, the legislation is under review by the House Committee on Oversight and Government Reform.

China put forward counter-measures against the tariffs announced by the US and focused on export promotion and foreign investment incentives. The GTA team documented 20 new interventions.

The Chinese government swiftly launched a retaliatory response to the increased duties from the US announced on 3 March 2025 (see above). The Ministry of Commerce placed ten US defense companies on China's Unreliable Entity List, prohibiting them from engaging in China-related export activities. Other 15 US companies were also added to China's Export Control List, banning exports of dual-use items to these entities unless permission is granted. 

The Ministry of Commerce announced new export control measures on critical minerals, including tungsten, tellurium, bismuth, molybdenum, and indium. The measure quotes national security and interests concerns and was adopted days after the US implemented a 10% additional tariff on Chinese imports in early February 2025. 

Effective 10 March 2025, the State Council will implement additional duties on hundreds of US products. It will apply a 15% tariff on 29 tariff lines (including chicken, wheat, corn, and cotton) and a 10% tariff on 711 tariff lines (covering agricultural goods like soybeans, pork, and dairy products). In addition, the State Council announced retaliatory tariffs against US imports, valid from 10 February 2025. This first countermeasure affected 80 tariff lines, including coal, LNG, crude oil, agricultural machinery, and certain vehicles. It introduced a 15% tariff on energy products and a 10% tariff on various industrial goods. 

China also implemented import restrictions through its Unreliable Entity List. The inclusion of ten US defence companies resulted in import bans.

China published an Action Plan for the High-Quality Development of the New Energy Storage Manufacturing Industry, which includes export incentives for manufacturers. The plan aims to strengthen China's position in the global new energy storage market and energy transition. 

At the subnational level, Sichuan adopted New Eight Measures for stabilising foreign trade. Among the measures is a budget increase of a "special credit line for foreign trade and economic cooperation" from CNY 50 billion to CNY 80 billion.

The PRC State Council adopted the 2025 Action Plan for Stabilising Foreign Investment to promote opening-up and stabilise foreign investment flows. The plan calls for the relaxation of restrictions in several manufacturing and service sectors as well as the introduction of financial incentives for foreign investment.

Beyond import and export restrictions, the 10 US defence companies added to the Unreliable Entity List were subject to a ban on new investments in China.

The EU focused on industrial support and sanctions against Russia. The GTA team documented 48 new interventions announced.

The sanctions package against Russia also extended the list of products subject to an export ban. In addition, it added 53 entities to the list of firms that cannot receive exceptions from the export ban on dual-use goods and technology. Simultaneously, the EU expanded the list of goods and services subject to export restrictions to the non-government-controlled regions of Ukraine, including Donetsk, Kherson, Luhansk, and Zaporizhzhia.

The EU’s 16th sanctions package against Russia included an import ban for aluminium products from Russia from 1 January 2027 onward. Prior to the ban, the EU will implement transitional measures, including a temporary import quota from February 2025 to February 2026, followed by reduced import volumes until December 2026.

The EU removed Kenya from the list of beneficiaries of its Generalised Scheme of Preferences from January 2027. This change follows the entry into force of the EU-Kenya Economic Partnership Agreement in July 2024.

The Commission launched the Clean Industrial Deal to mobilise over EUR 100 billion in the short term for "EU-made clean manufacturing." The Deal calls for the future inclusion of "EU content requirements" in public procurement. The measure follows the EU's Competitiveness Compass unveiled in January 2025.

Brussels launched the InvestAI initiative to leverage up to EUR 200 billion in public-private investments. The initiative focuses on developing AI models for medicine, industry, and science.

Member states also put forward support measures for strategic sectors. Austria granted EUR 227 million to ams Osram for setting up an advanced wafers manufacturing facility. Germany granted EUR 920 million for Infineon Technologies AG's semiconductor factory construction. Finland launched a EUR 2.3 billion support scheme for industrial decarbonisation. The European Investment Bank provided a EUR 1.5 billion loan for offshore wind farms in Poland and a EUR 110 million loan for broadband network development in Austria.

The EU implemented several measures targeting Russia's transportation and financial sectors as part of its 16th sanctions package. It prohibited EU operators from engaging in any transactions with five ports and six airports in Russia and extended the flight ban to include air carriers operating domestic flights within Russia. Maritime restrictions were also tightened, with the EU forbidding port access to 74 vessels. The package also included the future suspension of broadcasting activities of eight Russian media outlets and restrictions on intellectual property transfers related to certain software. In terms of financial sanctions, the EU prohibited the supply of banknotes to the non-government-controlled regions of Donetsk, Kherson, Luhansk, and Zaporizhzhia. Several companies based in Russia, Belarus, China, Turkiye and Crimea were also added to the EU’s frozen funds list. 

Moreover, the Commission proposed CBAM exemptions through the first "Omnibus" packages. These exemptions would eliminate obligations for 90% of importers, primarily SMEs.

The GTA documented 252 new interventions announced by jurisdictions outside the US, China, and the European Union in the last four weeks. Significant developments include:

Argentina suspended internal taxes on imports of motor vehicles and reduced them for motorcycles until June 2027. In addition, the government established an import tariff-rate quota for alternative-engine motor vehicles until January 2030.

Australia provided a AUD 2.4 billion bailout for Whyalla Steelworks and launched the Green Iron Fund to support steel and iron producers. The government added around 70 new Russian companies to its frozen funds list. At the start of the month, the federal government prohibited DeepSeek from being used on government devices due to security concerns.

Brazil eliminated import duties for certain chemical compounds and medicaments while temporarily increasing them for certain railway and tramway wagons. Moreover, it established temporary import tariff-rate quotas for 14 products spanning from chemicals, textiles, plastics, and medical supplies. In terms of subsidies, Brazil’s FINEP and BNDES launched a BRL 3 billion call for financing RDI centres. BNDES launched a BRL 1 billion National Fund for Industrial and Technological Development for decarbonisation projects and signed two loans with Embraer SA to finance the export of aircraft to the US, one for BRL 900 million and another one for BRL 2.1 billion. 

Canada promptly retaliated against US tariffs by activating its previously enacted and suspended 25% surtax on over 800 products. The measure applies to goods imported for both commercial and personal purposes, regardless of whether they enter Canada directly from the US or via another country. Ottawa’s new sanctions package against Russia includes dealing bans and asset freezes on several companies based in Russia, Hong Kong, China, and some EU jurisdictions. It further extends the export ban to several products under subheading 8482 and maritime sanctions against 109 of Russia’s “shadow fleet” vessels. The government also unveiled the Canadian Genomics Strategy to advance biotechnology research and commercial applications. Shared Services Canada, the agency responsible for the government’s IT infrastructure, banned the Chinese AI application DeepSeek from all its devices.

Chinese Taipei prohibited all government agencies from using Deepseek AI.

The Democratic Republic of Congo implemented a four-month suspension of cobalt exports to address governance concerns in the critical minerals sector. 

India prohibited exports of de-oiled rice bran until September 2025. Through its 2025-2026 Budget, the government reduced import duties on several goods, including life-saving drugs, while increasing duties on knitted fabrics. To support manufacturing, India introduced customs duty exemptions for capital goods used in lithium-ion battery production and reduced import duties on certain electronic goods, including carrier-grade Ethernet switches. 

Mexico adjusted its Guaranteed Prices Programme, increasing support prices for some crops while reducing them for others. The country also reduced the 2025 budget of its Agriculture, Livestock, Fisheries and Aquaculture Promotion Programme to MXN 2.4 billion.

The Philippines allowed the import of 25'000 metric tonnes of frozen fish. 

Russia introduced a temporary export licensing requirement for raw lead and lead waste and scrap, effective from February to June 2025.

Saudi Arabia's Public Investment Fund acquired a 30% stake in Masdar for Building Materials Company to support the construction and building components supply chain. 

South Africa updated its Prohibited and Restricted Imports and Exports list. Certain metals and alloys now require export permits from the International Trade Administration Commission. 

South Korea launched a Tariff Response Package to support companies facing “tariff damage" and to strengthen exporters' resilience. In addition, it allocated an additional KRW 10 trillion to its Supply Chain Stabilisation Fund, doubling the initial budget established in 2024. In the technology sector, several ministries prohibited the use of DeepSeek on government networks and devices.

Turkiye lifted import licensing requirements for certain saturated polyester resins.

The United Kingdom joined other jurisdictions in sanctioning Russia. It implemented asset freezes and transaction prohibitions against several Russian entities. The sanctions also extended to entities from China, Germany, India, Thailand, Turkey, the UAE, and Kyrgyzstan.  The country also sanctioned 40 vessels carrying Russian oil products to third countries.

Vietnam introduced a package to boost science, technology, innovation, and digital transformation. It includes VND 10 trillion for Vietnam's first semiconductor factory, annual grants of up to 10% of investment costs and a removal of foreign investment restrictions for the pilot low-Earth-orbit satellite telecommunications project implemented by SpaceX. 

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