China Signals Engagement Amid U.S. Tariff Disputes

President Donald Trump is considering exempting the auto industry from the 25% tariffs imposed on Canada and Mexico, as suggested by Commerce Secretary Howard Lutnick. This potential exclusion may apply to automakers like Ford, General Motors, and Stellantis, who claim compliance with the United States-Mexico-Canada Agreement (USMCA) content provisions. Meanwhile, tensions between the U.S. and China have intensified, with a Chinese spokesperson accusing the U.S. of using the fentanyl crisis as a pretext for imposing tariffs, asserting that such actions jeopardize bilateral cooperation on counternarcotics. The spokesperson emphasized that any pressure tactics from the U.S. would be ineffective and called for mutual respect in resolving disputes. Additionally, China's National People's Congress reiterated its position against unilateral tariffs, stating that the U.S. has violated World Trade Organization rules and urging dialogue to address mutual concerns. The evolving trade dynamics are raising concerns about potential economic disruptions and retaliatory measures.