This week has seen a divergent trend in global trade policies, with tariff cuts and hikes emerging simultaneously.

On June 1, the United States further adjusted tariffs on steel, aluminum and copper products under Section 232. Tax rates for some mechanical equipment and derivative products have been lowered.

In terms of China-US trade, the US unveiled a new Section 301 tariff proposal on June 2. The Office of the United States Trade Representative found that 60 economies failed to effectively enforce bans on goods made with forced labor, and proposed imposing additional import tariffs on these regions. The proposed additional rates stand at 10% and 12.5% for different economies respectively.

Canada has rolled out a major policy change. Under the new rules, approximately 49,000 Chinese electric vehicles will be allowed to enter its market via a quota system over the next year. The tariff for vehicles within the quota will be cut to 6%, a sharp drop from the previous rate of over 100%, delivering a positive signal for China’s electric vehicle exports.