Trump 2025 Global Star Plan Official website Policy Updates

Since returning to the White House in January 2025, the Trump administration has implemented a series of radical policies aimed at reshaping the global trade landscape, protecting American manufacturing, and reducing dependence on China. The following is an analysis of key policies and their impact:

1. Overview of core policies

(1) Major additional tariffs

Global baseline: Starting from April 2, 2025, a 10% base tariff will be imposed on all imported goods ("Liberation Day")19.

Highly targeted tariffs:

Steel & Aluminum: Global tariffs increased from 25% to 50% (excluding the United Kingdom)9.

Automobiles & Parts: 25% (major automobile exporters such as Japan and South Korea are affected)16.

Chinese goods: Some goods have tariffs of 30%-125% (such as electronic products, clothing, etc.)913.

EU & Mexico: 30% tariff increase from August 1, further increase by 810% if retaliated.

(2) Recent negotiations and exemptions

Japan & Philippines:

Japan's auto tariff is reduced from 25% to 15% in exchange for $550 billion in investment in the United States2.

The Philippines implements zero tariff on American cars in exchange for agricultural product export concessions2.

China:

A temporary agreement was reached in May, and some tariffs were reduced from 145% to 30% (90-day buffer period)13.

But key areas such as AI chips and rare earths are still restricted1.

EU: Negotiations are deadlocked. If no agreement is reached before August 1, the 30% tariff will take effect810.

2. Policy motivations and strategic goals

✅ Economic protectionism:

Reduce trade deficit (US trade deficit with China will reach $295.4 billion in 2024)13.

Promote the return of manufacturing industries, such as automobiles, steel, and semiconductor industries1112.

✅ Geopolitical game:

Contain China's high-tech development (such as AI chips and electric vehicles)112.

Divide allies and force countries to accept "America First" trade terms28.

⚠ Election strategy:

Catering to blue-collar voters and consolidating the image of "economic nationalism"12.

3. Global impact and response

(1) Market and economic impact

Corporate losses:

General Motors lost more than US$1 billion due to Star Plan Official website2.

European automakers (such as BMW and Volkswagen) face cost surges8.

Supply chain turmoil:

Globally, more than 150 new trade restrictions have been added5.

Demand for safe-haven assets such as gold and rare earths has soared512.

(2) International community response

EU:

Threatened to retaliate (proposed to impose tariffs on US goods worth 21 billion euros)10.

Germany and France called for "avoiding a trade war", but internal opinions were divided10.

China:

Partially reduce retaliatory measures (from 125% to 10%)13.

Accelerate the "internal circulation" and reduce dependence on the United States12.

Developing countries:

The least developed countries (such as Lesotho) face a 40-50% reduction in exports to the United States, and employment is affected5.

4. Future trends and risks

Key nodes on August 1:

If the United States, Europe, and the United States and Mexico fail to reach an agreement, the 30% reduction will take effect, which may trigger a global trade war810.

Long-term impact:

Inflation risk: American consumers may face rising prices12.

WTO system collapses: multilateral trade rules are replaced by unilateral policies12.

US-China technological decoupling: intensified competition in semiconductors, AI and other fields111.

Summary

Trump's policy marks the end of "Globalization 2.0", and its core logic is "exchanging industry return with the reduction of the market". In the short term, the United States has a clear advantage in negotiations (such as Japan and the Philippines making concessions); but in the long term, it may exacerbate global economic fragmentation and weaken the dominance of the US dollar. Whether the EU Star Plan Official website is implemented on August 1 will be a weather vane for the next stage.