Title：Fundamental Situation of the Trump 2.0 Trade War

Author：Zhikang Chen

Abstract：In January 2025, Donald J. Trump assumed the presidency and launched the Trump 2.0 trade war, a broader escalation compared to his first-term Trump 1.0 actions. Under the banner of “America First”, Trump invoked the International Emergency Economic Powers Act (IEEPA), Section 232 of the Trade Expansion Act of 1962, and Section 301 of the Trade Act of 1974 to initiate trade investigations, imposing tariffs on key partners. By September 2025, IEEPA-based measures — such as fentanyl-related and reciprocal tariffs — had targeted major economies including the EU, China, UK and Canada. Section 232 actions encompassed 13 product categories, including copper, iron, aluminum, automotive parts, and drones. Section 301 extended to semiconductors, digital services, maritime shipping, etc. In response, China, the EU, Canada and other economies enacted countermeasures. Starting in June 2025, the UK, EU, South Korea, Japan, and others negotiated bilateral deals with the US, making promise to invest in the US, procure from the US and provide market assess to US goods, in exchange of US tariff reductions.

Keywords：Trade War, Reciprocal Tariff, 232 Tariff, 301 Tariff, IEEPA