Title: Global Trade Tensions Escalate in 2025 as Currency Wars and Tariffs Resurface

Date: April 16, 2025

Source: Reuters / Bloomberg / Financial Times

Summary:
As the world economy faces renewed turbulence in 2025, escalating trade disputes and competitive currency devaluations threaten to destabilize global markets. The U.S.-China rivalry, combined with geopolitical shifts and protectionist policies, has reignited fears of a full-blown "trade war 2.0."

Key Developments:

1. U.S. Imposes New Tariffs on Chinese EVs and Tech

• The Biden administration announced 45% tariffs on Chinese electric vehicles (EVs) and advanced semiconductors, citing "unfair subsidies" and national security concerns.

• China retaliated with restrictions on U.S. agricultural exports and rare earth mineral sales.

2. Currency Wars Intensify

• The Chinese yuan (CNY) fell to a 10-year low against the dollar amid accusations of deliberate devaluation to boost exports.

• The Japanese yen (JPY) and euro (EUR) also weakened as central banks intervened to support competitiveness.

• The U.S. Treasury labeled Vietnam and South Korea as "currency manipulators," prompting threats of sanctions.

3. Supply Chain Fragmentation Accelerates

• Companies continue shifting production to India, Mexico, and Southeast Asia to avoid tariffs, but rising labor costs and logistical bottlenecks hinder efficiency.

• The EU imposed anti-dumping duties on Indian steel, further straining trade relations.

4. Commodity Markets in Turmoil

• Rising trade barriers disrupted energy and food shipments, pushing oil and grain prices higher.

• The BRICS bloc (now expanded to include Saudi Arabia and Iran) promoted trade in local currencies, reducing reliance on the U.S. dollar.