US Raises Global Tariffs, Sparking Trade Confusion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Source: CNBC
- Tariff Increase Impact: President Trump's announcement to raise global tariffs to 15% results in a 2.1 percentage point increase in the UK's average tariff rate and a 0.8 point rise for the EU, while Brazil and China see reductions of 13.6 and 7.1 points respectively, highlighting the uneven impact on different nations' trade.
- Legal Ruling Consequences: The U.S. Supreme Court's 6-3 decision overturns tariffs imposed under the International Emergency Economic Powers Act, providing relief to countries like China and Brazil, but increasing burdens on nations that negotiated early trade deals with the U.S.
- Asian Nations' Response: China and India adopt a wait-and-see approach to the new tariff policies, with India postponing a planned visit to the U.S. for an interim trade deal aimed at reducing tariffs to 18%, reflecting uncertainty in future trade relations.
- Trade Agreement Confusion: Trump's tariff policies create confusion in trade agreements, as the White House maintains a 10% tariff in its fact sheet, yet the actual implementation remains unclear, leaving countries facing legal and policy uncertainties in negotiations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CAAS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CAAS
About CAAS
China Automotive Systems Inc is a holding company principally engaged in the manufacture and sale of automotive systems and components. The Company’s main products include rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps and steering hoses. The Company's major customers include FAW Group, Dongfeng Auto Group Co., Ltd, BYD Auto Co., Ltd, as well as Stellar Group and Ford Motor Company in North America. The Company primarily operates its businesses in the domestic and overseas markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
China's Manufacturing Activity Slows Down
- Manufacturing PMI Decline: The official manufacturing Purchasing Managers' Index (PMI) fell to 49 in February, missing economists' expectations of 49.1, indicating a second consecutive month of contraction due to the impact of the extended Lunar New Year holiday on production and cargo shipments.
- Composite PMI Drop: The composite PMI decreased from 49.8 in January to 49.5, suggesting a slowdown in both manufacturing and services, with the non-manufacturing PMI also edging down by 0.1 percentage points to 49.5, reflecting signs of overall economic deceleration.
- Significant Holiday Impact: Chief NBS statistician Huo Lihui attributed the decline to the prolonged holiday, which lasted from February 15 to 23, the longest on record, causing significant disruptions in factory operations and production activities during this period.
- Private Survey Rebound: In contrast to the official data, S&P Global's RatingDog China General Manufacturing PMI surged to 52.1 in February, indicating a sharp rebound in international demand, particularly with new export orders rising at the fastest pace since September 2020, highlighting the recovery potential among some manufacturers.
See More
China's Two Sessions to Announce Economic Growth Targets
- GDP Growth Expectations: The Chinese government is expected to set a GDP growth target of 4.5% to 5% for 2026, with a target below 5% marking a historic low, which would provide policymakers with more room to prioritize structural reforms and improve data quality.
- Inflation Target Setting: The consumer inflation target is set at 2%, matching last year's figure, reflecting an implicit acknowledgment of weak domestic demand and indicating the government's cautious approach to economic recovery.
- Budget Deficit Plans: The budget deficit target for 2026 is set at 4%, the same as last year, marking a rare expansion of government spending relative to GDP, showcasing the government's fiscal policy flexibility in addressing economic challenges.
- Policy Review Focus: During the Two Sessions, policy announcements will be closely scrutinized, particularly regarding consumer stimulus measures and support for the struggling property market, reflecting the government's strategies in response to both domestic and international economic conditions.
See More
China and Russia Condemn US-Israeli Strikes on Iran
- Joint Condemnation: China and Russia have strongly condemned the US and Israeli strikes on Iran, yet they have stopped short of pledging military or civilian support, highlighting the limitations of their strategic partnership with Tehran.
- Call for Diplomatic Dialogue: Both nations reiterated their call for an immediate ceasefire and a return to diplomatic dialogue to resolve conflicts, reflecting their concern for regional stability but lacking concrete actions.
- Economic Interests Consideration: China's restrained support for Iran indicates a prioritization of its relationship with the US, suggesting strategic priorities in international affairs that may influence upcoming high-level talks between the two nations.
- Russia's Strategic Observation: With its military stretched due to the war in Ukraine, Russia may adopt a wait-and-see approach regarding Iran, fearing the loss of influence in the Middle East, particularly as Iran serves as a vital military and economic partner.
See More
China and Russia's Limited Response to Iran Crisis
- Condemnation of US-Israel Strikes: Chinese Foreign Minister Wang Yi and Russian Deputy Foreign Minister Sergey Ryabkov condemned the US and Israeli attacks on Iran, labeling them as violations of international law, yet refrained from committing military support, highlighting the strategic limitations of their partnership regarding Iran.
- China's Priority on US Relations: Analysts suggest that while China condemns the US actions, it prioritizes maintaining relations with the US, with expectations for a high-level meeting between President Trump and President Xi to proceed, potentially seeking concessions on issues like trade and Taiwan in exchange for a softer stance on Iran.
- Russia's Strategic Concerns: Despite condemning the attacks, Russia's capacity to influence the Middle East is waning due to its ongoing war in Ukraine, making Iran's stability crucial for Moscow to avoid losing another regional ally, following Syria's regime change.
- Impact on Oil Prices: Fears of a major global supply disruption due to the Iran conflict led to an over 8% rise in oil prices, prompting OPEC+ countries to announce an increase in production by 206,000 barrels per day, which benefits Russia but also indicates market sensitivity to geopolitical tensions.
See More
Trump's China Trip Faces Growing Uncertainty Amid Iran Strikes
- Iranian Leader Killed: The joint U.S.-Israel airstrike resulting in the death of Iran's Supreme Leader Khamenei complicates President Trump's upcoming trip to China, particularly against the backdrop of fragile U.S.-China relations, as analysts suggest.
- China's Response: China's Foreign Ministry condemned Khamenei's killing as a grave violation of Iran's sovereignty and security, urging an immediate ceasefire, which indicates Beijing's dissatisfaction with U.S. actions and concern for regional stability.
- Market Expectation Shift: According to Polymarket, expectations for Trump's visit to China by March 31 plummeted from 83.9% on February 21 to 42%, while the likelihood of a visit by April 30 remains high at 81%, reflecting increasing uncertainty in the market regarding Trump's travel plans.
- Business Environment Challenges: Prior to the Iran incident, many American CEOs were already hesitant to accompany Trump to China, and the current situation exacerbates challenges for business leaders in navigating plans for deals, potentially impacting future economic cooperation.
See More
US-Israel Military Strikes on Iran Escalate
- Escalation of Conflict: The U.S.-Israel military strikes against Iran have entered their third day, resulting in the assassination of Iran's Supreme Leader Khamenei, which triggered retaliatory missile and drone attacks from Iran, leading to over 200 civilian deaths and increasing uncertainty in the global economy.
- Market Reaction: Concerns over potential oil supply disruptions have driven U.S. crude prices up more than 8% to $72.57 per barrel, while Brent crude rose about 9% to $79.41, with precious metals like gold and silver climbing around 2% as investors seek safe-haven assets amid rising geopolitical tensions.
- Legal Controversy of U.S. Military Action: The U.S. Congress has not authorized military action against Iran, and a senior advisor at the International Crisis Group noted that President Trump's attack lacks legal justification, raising the risk for U.S. forces in the region due to its unprecedented scale.
- Global Reactions: China and Russia have strongly condemned the U.S. and Israeli military actions, calling for an immediate ceasefire, while U.S. allies expressed support for the strikes, emphasizing their right to defend their citizens and sovereignty, highlighting the international community's divided stance on the situation.
See More
China's Manufacturing Activity Slows Down
- Manufacturing PMI Decline: The official manufacturing Purchasing Managers' Index (PMI) fell to 49 in February, missing economists' expectations of 49.1, indicating a second consecutive month of contraction due to the impact of the extended Lunar New Year holiday on production and cargo shipments.
- Composite PMI Drop: The composite PMI decreased from 49.8 in January to 49.5, suggesting a slowdown in both manufacturing and services, with the non-manufacturing PMI also edging down by 0.1 percentage points to 49.5, reflecting signs of overall economic deceleration.
- Significant Holiday Impact: Chief NBS statistician Huo Lihui attributed the decline to the prolonged holiday, which lasted from February 15 to 23, the longest on record, causing significant disruptions in factory operations and production activities during this period.
- Private Survey Rebound: In contrast to the official data, S&P Global's RatingDog China General Manufacturing PMI surged to 52.1 in February, indicating a sharp rebound in international demand, particularly with new export orders rising at the fastest pace since September 2020, highlighting the recovery potential among some manufacturers.
See More
China's Two Sessions to Announce Economic Growth Targets
- GDP Growth Expectations: The Chinese government is expected to set a GDP growth target of 4.5% to 5% for 2026, with a target below 5% marking a historic low, which would provide policymakers with more room to prioritize structural reforms and improve data quality.
- Inflation Target Setting: The consumer inflation target is set at 2%, matching last year's figure, reflecting an implicit acknowledgment of weak domestic demand and indicating the government's cautious approach to economic recovery.
- Budget Deficit Plans: The budget deficit target for 2026 is set at 4%, the same as last year, marking a rare expansion of government spending relative to GDP, showcasing the government's fiscal policy flexibility in addressing economic challenges.
- Policy Review Focus: During the Two Sessions, policy announcements will be closely scrutinized, particularly regarding consumer stimulus measures and support for the struggling property market, reflecting the government's strategies in response to both domestic and international economic conditions.
See More
China and Russia Condemn US-Israeli Strikes on Iran
- Joint Condemnation: China and Russia have strongly condemned the US and Israeli strikes on Iran, yet they have stopped short of pledging military or civilian support, highlighting the limitations of their strategic partnership with Tehran.
- Call for Diplomatic Dialogue: Both nations reiterated their call for an immediate ceasefire and a return to diplomatic dialogue to resolve conflicts, reflecting their concern for regional stability but lacking concrete actions.
- Economic Interests Consideration: China's restrained support for Iran indicates a prioritization of its relationship with the US, suggesting strategic priorities in international affairs that may influence upcoming high-level talks between the two nations.
- Russia's Strategic Observation: With its military stretched due to the war in Ukraine, Russia may adopt a wait-and-see approach regarding Iran, fearing the loss of influence in the Middle East, particularly as Iran serves as a vital military and economic partner.
See More
China and Russia's Limited Response to Iran Crisis
- Condemnation of US-Israel Strikes: Chinese Foreign Minister Wang Yi and Russian Deputy Foreign Minister Sergey Ryabkov condemned the US and Israeli attacks on Iran, labeling them as violations of international law, yet refrained from committing military support, highlighting the strategic limitations of their partnership regarding Iran.
- China's Priority on US Relations: Analysts suggest that while China condemns the US actions, it prioritizes maintaining relations with the US, with expectations for a high-level meeting between President Trump and President Xi to proceed, potentially seeking concessions on issues like trade and Taiwan in exchange for a softer stance on Iran.
- Russia's Strategic Concerns: Despite condemning the attacks, Russia's capacity to influence the Middle East is waning due to its ongoing war in Ukraine, making Iran's stability crucial for Moscow to avoid losing another regional ally, following Syria's regime change.
- Impact on Oil Prices: Fears of a major global supply disruption due to the Iran conflict led to an over 8% rise in oil prices, prompting OPEC+ countries to announce an increase in production by 206,000 barrels per day, which benefits Russia but also indicates market sensitivity to geopolitical tensions.
See More
Trump's China Trip Faces Growing Uncertainty Amid Iran Strikes
- Iranian Leader Killed: The joint U.S.-Israel airstrike resulting in the death of Iran's Supreme Leader Khamenei complicates President Trump's upcoming trip to China, particularly against the backdrop of fragile U.S.-China relations, as analysts suggest.
- China's Response: China's Foreign Ministry condemned Khamenei's killing as a grave violation of Iran's sovereignty and security, urging an immediate ceasefire, which indicates Beijing's dissatisfaction with U.S. actions and concern for regional stability.
- Market Expectation Shift: According to Polymarket, expectations for Trump's visit to China by March 31 plummeted from 83.9% on February 21 to 42%, while the likelihood of a visit by April 30 remains high at 81%, reflecting increasing uncertainty in the market regarding Trump's travel plans.
- Business Environment Challenges: Prior to the Iran incident, many American CEOs were already hesitant to accompany Trump to China, and the current situation exacerbates challenges for business leaders in navigating plans for deals, potentially impacting future economic cooperation.
See More
US-Israel Military Strikes on Iran Escalate
- Escalation of Conflict: The U.S.-Israel military strikes against Iran have entered their third day, resulting in the assassination of Iran's Supreme Leader Khamenei, which triggered retaliatory missile and drone attacks from Iran, leading to over 200 civilian deaths and increasing uncertainty in the global economy.
- Market Reaction: Concerns over potential oil supply disruptions have driven U.S. crude prices up more than 8% to $72.57 per barrel, while Brent crude rose about 9% to $79.41, with precious metals like gold and silver climbing around 2% as investors seek safe-haven assets amid rising geopolitical tensions.
- Legal Controversy of U.S. Military Action: The U.S. Congress has not authorized military action against Iran, and a senior advisor at the International Crisis Group noted that President Trump's attack lacks legal justification, raising the risk for U.S. forces in the region due to its unprecedented scale.
- Global Reactions: China and Russia have strongly condemned the U.S. and Israeli military actions, calling for an immediate ceasefire, while U.S. allies expressed support for the strikes, emphasizing their right to defend their citizens and sovereignty, highlighting the international community's divided stance on the situation.
See More
