GTA Monthly Roundup: March 2025

The Global Trade Alert team documented 408 new trade and industrial policy interventions during the last four weeks. These five trends emerge:

• Trade tensions continue to rise. The Trump Administration implemented 25% tariffs on non-USMCA-qualifying Canadian and Mexican goods plus automobile imports. In addition, the entering into force of previously adopted U.S. tariffs triggered widespread retaliation in March: the EU reestablished duties on 343 US products and prepared additional EUR 26 billion countermeasures, China banned US genetic sequencers, and Canada imposed 25% surtaxes on US imports while implementing provincial-level measures against US products. Separately, China-Canada tensions escalated with China imposing additional tariffs of up to 100% on 72 Canadian agricultural products in response to Canadian duties on Chinese vehicles and metals. To counteract this action, Canada approved financial support for its affected farmers.

• Various trade actions were adopted concerning the defence sector. The EU Commission seeks to mobilise EUR 800 billion to support its local defence industry. In this context, it launched SAFE, providing EUR 150 billion in loans for joint defense procurement with a 65% local content requirement. France increased its Defense Innovation Fund by EUR 25 million, while South Korea updated its dual-use export control list. Japan implemented export licensing requirements for ceramic coating technologies and expanded controls on wave-absorbing materials to prevent weapons proliferation.  

• Several countries adopted measures affecting critical materials. India implemented licensing requirements for platinum imports, while Indonesia shifted from an outright export ban on certain metals to a system requiring exporters to meet domestic supply thresholds, reach smelter development milestones, and pay increased export taxes. South Africa strengthened its resource oversight by mandating export permits specifically for certain copper products, while Russia also imposed a temporary ban on exports of aluminium powders and flakes. Japan contributed to this global trend by approving EUR 100 million to support a French-Japanese rare earths recycling facility.

• Across the world, we saw a push in investments in strategic industries. China's State Council strengthened financial support for strategic sectors. At the provincial level, China’s Guangdong Province also offered funding for AI and robotics development. Similarly, Australia allocated AUD 750 million to metal manufacturers for technological advancement, while South Korea established a KRW 50 trillion fund for strategic sectors like semiconductors and batteries.  

• Multiple jurisdictions adopted measures to strengthen food security. Brazil eliminated import tariffs on ten food products, including beef, coffee beans, and corn, while Saudi Arabia financed livestock farming projects and approved SAR 1.1 billion in loans for agricultural imports. Turkiye introduced a 250,000-tonne corn import quota with reduced tariffs while increasing export surcharges on eggs to maintain domestic supply.

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 continued its tariff adjustments and implemented new restrictions on technology and investments while providing targeted domestic support. The GTA team documented 48 new interventions during the last four weeks.

The Bureau of Industry and Security expanded its export control actions by adding 12 entities from China and Taiwan to the Entity List for activities deemed contrary to U.S. national security interests. In a separate action, the Department also added 70 entities from multiple jurisdictions to the Entity List, further restricting exports of U.S. technology to organisations associated with activities of concern.

For vehicles, the Federal Governmentt adopted a 25% tariff on automobile imports, including sedans, SUVs, crossovers, minivans, and pickup trucks. This measure was implemented through a presidential proclamation citing national security risks associated with foreign-manufactured automobiles. In a related action, the Administration also announced a 25% tariff on imports of automobile parts, including engines and electric vehicle batteries, based on the same national security justification.

The Trump Administration also issued an executive order authorising a 25% tariff on goods imported from any country that imports oil from Venezuela. The measure aims to strengthen existing sanctions against the Venezuelan oil sector and targets third countries that continue to purchase Venezuelan petroleum products despite U.S. sanctions.

The U.S. Administration also issued adjustments to previously implemented tariffs, exempting all goods that qualify for preference under the U.S.-Mexico-Canada Agreement (USMCA) from additional tariffs imposed on Canada. The decision maintains that goods not satisfying USMCA rules of origin will still be subject to 25% additional duties, while energy products and potash imported from Canada but falling outside USMCA preference will face 10% additional duties. A parallel order for Mexican imports was also issued, exempting USMCA-qualifying goods from the 25% additional tariffs while maintaining the duties on non-qualifying products.

On 19 March, the U.S. Department of Agriculture (USDA) announced USD 280 million in financial assistance to eligible Rio Grande Valley farmers affected by water shortages. The funding will be provided through cooperative agreements administered by the Texas Department of Agriculture (TDA) to producers who incurred water delivery losses in 2023 and 2024.

The U.S. Department of the Treasury imposed sanctions on eleven entities and individuals in China, Russia, and Kyrgyzstan for facilitating support to Russia's military-industrial base. In a complementary action, additional sanction measures were applied to entities allegedly supporting Iranian weapons proliferation, reflecting continued efforts to enforce security-related trade restrictions.

Earlier, the Department of the Treasury imposed sanctions on 15 ship management entities across multiple jurisdictions for allegedly transporting Iranian oil to China. The affected entities, based in Bangladesh, Marshall Islands, Seychelles, Hong Kong, Liberia, India, Sri Lanka, and Suriname, were added to the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals and Blocked Persons List. Additionally, the Department of State sanctioned three additional ship management companies from Indonesia and Singapore for similar activities related to Iranian oil transport.

Building on measures adopted in February, the U.S. Commerce Department prohibited the use of the Chinese DeepSeek Artificial Intelligence application by its employees on government-issued devices. The directive instructed employees "not to download or interact with DeepSeek applications, desktop programs, or websites on government-furnished equipment," reflecting ongoing concerns about Chinese technology applications.

China responded to international trade tensions and continued to develop its industrial strategy, focusing on new technologies. The GTA team documented 30 new interventions.

The Chinese government increased its 2025 export quota for refined fuel products such as gasoline, diesel and aviation fuel by 12.8 million tonnes. Likewise, the government also increased the export quota on low-sulfur marine fuel by 5.2 million tonnes. These announcements were announced earlier when compared to previous years. 

On 8 March 2025, the State Council Tariff Commission imposed additional tariffs on 72 eight-digit tariff lines from Canada as a countermeasure to Canada's duties on Chinese electric vehicles, steel, and aluminum products. The retaliatory measures, entering into force on 20 March 2025, include a 25% additional tariff on 64 tariff lines covering aquatic products and pork, and a substantial 100% additional tariff on eight tariff lines including rapeseed oil, oil cake, and peas.

Previously, the Chinese Ministry of Commerce banned the import of genetic sequencers produced by US company Illumina, implementing concrete measures after adding the company to the Unreliable Entity List in February. This import ban was part of a broader set of actions which included additional tariffs on US goods and the addition of more US companies to China's Export Control List and Unreliable Entity List.

The Chinese State Council adopted a guideline on strengthening financial support for strategic economic sectors. The guideline includes enhanced state support for tech companies, particularly focusing on major national scientific and technological initiatives and tech-focused small and medium-sized enterprises, while coordinating financial support for green development and low-carbon transition. The same guidelines also include broader support measures such as green channels for corporate financing, increased finance facilitation for cross-border companies, and re-lending facilities that provide banks with cheaper funding for targeted support to companies.

The Chinese government also adopted guidelines for increased state aid to traditional Chinese medicine (TCM). Among other measures, the guidelines call to increase economic support to several areas, including cultivation of famous and high-quality Chinese medicine varieties, creation of well-known Chinese medicine brands, enhancement of scientific and technological innovation capabilities, and strengthening of innovation and development of traditional Chinese medicine.

At the provincial level, the Government of Guangdong Province announced support measures for the artificial intelligence and robotics industry, including state aid of up to CNY 50 million (USD 6.9 million) for companies creating national-level manufacturing innovation centers. The provincial initiative also offers up to CNY 10 million for provincial-level innovation centers, targeting the development of key core technologies in AI and robotics. Complementing this measure, Guangdong Province also introduced state aid of up to CNY 8 million (USD 1.1 million) per eligible project to support manufacturing enterprises implementing AI transformation projects, aiming to empower new industrialisation through artificial intelligence applications across various sectors.

The Shaanxi Provincial Department of Finance announced a loan interest subsidy scheme for provincial key construction projects on 19 March 2025. Under the scheme, the provincial government will provide interest payment subsidies of up to CNY 20 million (USD 2.8 million) to companies engaged in key construction projects, aiming to reduce financing costs and accelerate infrastructure development.

The Chongqing Municipal Government issued several measures to support private economic development in the municipality. These comprehensive measures include multiple support schemes: state aid to support private enterprises to compete in future industries and strategic emerging industries; support for the digital transformation of manufacturing enterprises through smart factories and digital applications; funding for private enterprises leading major research and development projects in core technologies; and state aid for private pharmaceutical industrial enterprises to develop high-quality traditional Chinese medicine brands and products.

The Chinese National Development and Reform Commission (NDRC) announced plans to establish a new "national venture capital guidance fund" targeting cutting-edge areas, including AI, quantum technology, hydrogen energy, and energy storage. The initiative expects to attract local government and private investment of up to CNY 1 trillion (USD 138.15 billion), focusing on start-ups, early-stage enterprises, and small to medium-sized businesses in their growth phases.

The European Union ramped up industrial support measures targeting strategic sectors while responding to US trade actions. The GTA team documented 59 new interventions announced during this period.

Following the United States' imposition of 25% tariffs on steel and aluminum, the European Commission announced immediate countermeasures by reestablishing its 2018 and 2020 additional duties on US imports, affecting 343 products across 149 six-digit CN codes. These retaliatory tariffs, ranging from 4.4% to 50% depending on the product, were set to take effect on 1 April 2025 but were later postponed to mid-April. Simultaneously, the Commission began preparations for a broader second wave of countermeasures targeting 1’708 industrial and agricultural products from the US, classified under 821 six-digit CN codes, with implementation expected by mid-April 2025 after a two-week consultation process. According to President von der Leyen, these proportionate measures match the economic scope of US tariffs, with EU countermeasures worth EUR 26 billion responding to US tariffs worth USD 28 billion.

The Commission unveiled the Security Action for Europe (SAFE), which provides up to EUR 150 billion in loans for joint defense procurement with localisation requirements. Specifically, the measure includes a 65% local content rule for components and EU-based design control for complex systems. This initiative builds upon the ReArm Europe Plan unveiled earlier this month, which aims to mobilise up to EUR 800 billion for the defense sector.

The Commission also strengthened its industrial strategy by publishing an Action Plan for the steel and metals industry, outlining multiple support measures. Among the actions announced are efforts to mobilise EUR 150 million through the Research Fund for Coal and Steel, a potential EUR 600 million Horizon Europe call, and the creation of a new Industrial Decarbonisation Bank. Earlier, the Commission had published its Industrial Action Plan for the European automotive sector, which includes a EUR 1.8 billion "Battery Booster" package, EUR 1 billion for automated vehicles development, and EUR 570 million for alternative fuels infrastructure between 2025-2027. This plan further demonstrates the EU's focus on localising strategic supply chains through provisions for "European content requirements on battery cells and components" in upcoming legislation and incentive measures to boost demand specifically for European zero-emission vehicles.

At the member state level, the European Commission approved Germany's EUR 5 billion Climate Protection Contract program for energy-intensive industries, which will provide operating aid covering up to 80% of the price difference between conventional production and more expensive carbon-neutral technologies. The program targets industries including steel, cement, glass, chemicals, and non-ferrous metals, with funds available through 2035 to support the decarbonisation of industrial processes. In a similar move, the Commission approved a EUR 400 million state aid scheme from Austria for renewable hydrogen production and a EUR 699 million Spanish aid package for large-scale energy storage facilities. The Spanish program, co-financed by the European Regional Development Fund, will support the construction of 1’800 MWh of new electricity storage capacity through competitive bidding with aid intensity up to 85%. The French defence sector also saw that the budget for the Defense Innovation Fund was raised from EUR 275 to EUR 300 million. In Italy, local companies can now obtain grants to import from Central and South America. 

Italy's public export finance agency SIMEST launched a comprehensive EUR 200 million scheme to provide financial assistance to Italian companies in Central and South America. The initiative offers subsidised loans and grants to support Italian firms' internationalisation efforts.

The GTA documented 271 new interventions announced by jurisdictions outside the US, China, and the European Union in the last four weeks. Relevant developments include:

Argentina focused on agricultural support through financing, with three credit lines announced for participants in the Expoagro 2025 exhibition. The Investment and Foreign Trade Bank (BICE) offered loans for agricultural machinery acquisition with an individual budget of up to ARS 3.5 billion. Building on this initiative, BICE later announced additional credit lines for investment projects with budgets up to ARS 6.5 billion for large companies and ARS 3.5 billion for SMEs, supporting construction of plants, silos, and acquisition of equipment like solar panels. The Argentine National Bank complemented these efforts with its own credit lines for agricultural machinery with individual budgets up to ARS 1.2 billion.

Australia approved two important state aid schemes via the Australian Renewable Energy Agency (ARENA). As part of the Future Made in Australia Innovation Fund, the government approved an AUD 750 million funding allocation for metal manufacturers to support the development of new technologies that enable the metallurgical sector. Additionally, the Australian government granted AUD 814 million to Copenhagen Infrastructure Partners for the 1'500 MW Murchison Green Hydrogen Project.

Brazil implemented both trade liberalisation measures and industrial support policies. The Foreign Trade Chamber (Gecex) eliminated import tariffs on ten food products, including frozen boneless beef, coffee beans, corn, pasta, cookies, sunflower oil, and cane sugars, while also increasing the in-quota volume for olive oil imports. 

Canada implemented multiple countermeasures in response to the US and China tariffs. In response to the US, the government announced a 25% surtax on various US imports while approving measures to support businesses, including trade finance, financial assistance for companies to expand abroad and loans. In response to China, the Canadian government also modified its AgriStability program to support local agricultural producers exposed to tariffs recently imposed by the Asian country. Canada also updated its foreign investment screening regime to address economic security concerns and sensitive technologies, with additional scrutiny on certain sectors. In the maritime sector, Canada awarded a CAD 3.25 billion contract to Chantier Davie under the National Shipbuilding Strategy with requirements for domestic business activity equal to the contract value. On sanctions, Canada imposed targeted measures against four Iranian entities involved in the procurement of drone components, as well as against entities from Sudan and the United Arab Emirates in response to the conflict in Sudan. At the provincial level, Ontario introduced a 25% surcharge on electricity exports to the United States. Similarly, multiple provinces and territories, including Newfoundland and Labrador, Saskatchewan, Alberta, Nunavut, and Northwest Territories, coordinated to remove US alcohol products from government-controlled liquor corporation shelves. These jurisdictions also took broader procurement actions, with Newfoundland and Labrador stopping procurement from US companies where possible, Saskatchewan prioritising Canadian suppliers, and Alberta directing government agencies to avoid US products. 

India implemented multiple policy changes affecting both imports and exports. The Directorate General of Foreign Trade imposed a licensing requirement on platinum imports. In the agricultural sector, the Ministry of Finance simultaneously imposed a 5% customs duty and a 5% Agriculture Infrastructure and Development Cess on lentil imports, ending duty-free access that had been in place since 2021. Meanwhile, the government lifted its prohibition on broken rice exports in place since September 2022. 

Indonesia adopted several measures affecting the exportation of copper, iron, lead and zinc. First, the government replaced an export ban on these metals with a temporary requirement to meet a certain threshold of local supply. Additionally, exporters are required to reach the commissioning stage of the smelter development to obtain an export permit. On top of this, the Executive increased the export tax on these metals, which entered into force on 5 March.

Japan focused on granting financial support for overseas activities and controlling exports. The Japan Bank for International Cooperation (JBIC) provided a GBP 283 million loan to Seagreen Phase 1 OFTO Project Limited to finance the acquisition of transmission assets for offshore wind farms in the UK. The government also approved EUR 100 million to support the investment of Japan France Rare Earths Co Ltda into a rare earths recycling and refining facility in France. The Ministry of Economy, Trade and Industry of Japan (METI) also imposed export licensing requirements on ceramic coating technologies and expanded the products included in the wave-absorbing materials list subject to these controls. 

Malaysia announced a capital injection of MYR 1.1 billion in Sapura Energy Berhad, a Malaysian integrated oil and gas services company. With this, it seeks to address unpaid debts involving 2'000 local oil and gas SME vendors.

Nigeria amended its import regime for the pharmaceutical sector. Concretely, the government granted temporary import tariffs and VAT exemptions to inputs used by the pharmaceutical industry.

Republic of Korea approved different measures targeting strategic sectors. The government announced plans to establish a KRW 50 trillion Advanced Strategic Industry Fund that will provide loans and acquire equity stakes in companies operating in strategic sectors such as semiconductors, displays, secondary batteries, and future mobility. The Export-Import Bank of Korea also announced USD 1.5 billion in state aid to support the construction of a battery plant in the United States by a joint venture. Additionally, the Industrial Bank of Korea introduced a KRW 1 trillion "Value Growth Loan" program to support SMEs with expected growth in corporate value. South Korea also launched a "top-tier" visa program targeting foreign specialists in high-tech industries, offering expedited visa processing and extended residency periods. Earlier, the government amended its dual-use export control regime.

Russia implemented both trade restrictions and regional support measures. The government imposed a temporary ban on exports of aluminium powders and flakes to countries that had introduced sanctions against Russia. In response to ongoing border conflicts, authorities allocated RUB 2.5 billion in state aid to local industrial enterprises in the Kursk region affected by Ukrainian incursions. Regarding countersanctions, the Russian government authorised the sale of Russian assets by 683 Capital Partners, authorised the divestment of Kopy Goldfields AB from its Russian subsidiary AG Mining PJSC and cancelled the placement of Ariston Thermo Rus LLC under the temporary management of Gazprom Household Systems JSC. 

Saudi Arabia directed financial support toward food security through the Agricultural Development Fund. The Saudi government signed a financing agreement with Al Ra'i National Livestock to support an intensive livestock farming project for sheep and goats for breeding and meat production. Earlier, it approved loans worth SAR 1.1 billion for the food sector to support agricultural imports. 

South Africa strengthened its mineral resource controls by mandating export permits for certain copper products, including refined copper, copper alloys, and copper waste and scrap. The measure aims to combat illegal mining and protect domestic resources.

Switzerland provided CHF 37 million in state aid to four iron, steel, and aluminium producers as bridging assistance for strategic industries facing high electricity costs. The support specifically targets energy-intensive companies producing designated metal products that are critical to the economy.

Thailand was very active on the investment front. The Thai government allowed the Chinese company Sunwoda Electronic Co Ltd to build a lithium-ion battery cell manufacturing facility in Thailand. In parallel, it also approved several incentives to hospital businesses, including import tariff exemptions, tax reliefs and labour market liberalisations. 

Turkiye adjusted its agricultural import and export policies. The government introduced an import tariff quota on corn. The measure sets a quota of 250’000 tonnes with a reduced in-quota tariff rate of 15% until the end of September 2025. This month, the government also increased the Support and Price Stability Fund (SPSF) surcharge on the export of eggs to stabilise prices. 

Vietnam amended its FDI regime regarding domestic credit institutions. The government raised foreign ownership limits from 30% to 49% while also limiting ownership rights to Vietnamese citizens holding another nationality. 

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