Global trading system faces trust crisis; US tariffs distort patterns, harm developing countries, weaponize economic power with double standards. Developing countries seek fair, reciprocal frameworks. Call for fair, inclusive, sustainable global trade system for common prosperity.

On January 17, Mercosur and the EU signed a free trade agreement after over 25 years of talks, targeting a large global trade zone. It faces EU parliamentary approval challenges, with tariff elimination for most goods, economic benefits, but EU agricultural concerns and safeguard measures exist.

Brussels, Jan 21 (Xinhua) -- Due to Trump's tariffs on 8 European countries over Greenland, the European Parliament postponed US-EU trade agreement approval on 21st. Bernd Lang said it will suspend related proposals until US returns to cooperation. EU leaders will hold an emergency summit in Brussels on 22nd evening to discuss US' "island seizure" threat.

The European Commission proposed the "Digital Network Act" on Jan 21, simplifying/unifying connected network rules, supporting fiber optic/mobile network investment, strengthening the single market, establishing an EU-level spectrum framework, and requiring phasing out traditional copper cables by 2035, with the proposal to be reviewed by the European Parliament and Council.

China's Foreign Ministry responds to EU's Jan 20 new cybersecurity policy proposals, stating Chinese companies operate lawfully in Europe without endangering security. The EU's move is protectionist, violates market principles, harming its own development and open image.

Danish Prime Minister Fredrickson stated Denmark won’t negotiate Greenland’s sovereignty and borders, and is prepared for a trade war. She warned US tariffs (over Greenland acquisition) will reduce jobs, and Denmark will respond if provoked. Opposition supports the government’s stance.

A Kiel Institute for the World Economy report shows US tariffs' extra costs are mainly borne by US importers/consumers (96% burden), foreign exporters only 4%. The tariffs may push up US inflation, with last year's $200b tariff revenue almost entirely paid by Americans.

世界银行发布2026年1月全球经济展望报告，指出全球经济具韧性但增长放缓，2026年增速2.6%、2027年2.7%；2025年增长超预期但支撑因素消退，贸易紧张压制复苏；新兴与发展中经济体复苏分化，低收入国家受冲击大，就业问题突出，报告呼吁多边合作应对风险。

IMF、世界银行等机构发布2026-2027全球经济展望，预测增长约3.2%-3.3%；AI为新增长动力，关税/贸易保护主义施压，呼吁政策协调促可持续发展。

On Jan 17, Trump announced 10% tariffs on 8 European countries (rising to 25% Jun 1) over Greenland. Europeans condemn, coordinate response, support Denmark's sovereignty, plan Arctic exercises. EU may suspend US trade deal, use anti-coercion tools. Denmark/Greenland hold protests.

On January 9, 2026, the US Department of Commerce issued a preliminary anti-subsidy ruling on steel concrete reinforcing bars from Algeria, Egypt, Vietnam, with rates 72.94%, 29.51%, 1.08% respectively. Final rulings are expected on March 25 (Algeria) and May 27, 2026 (Egypt/Vietnam), involving customs codes 7213.10.0000, 7214.20.0000, 7228.30.8010.

The White House announced on the 14th it will impose a 25% import ad valorem tariff on some imported semiconductors, semiconductor manufacturing equipment and derivatives starting from the 15th (Xinhua News Agency).

The UNCTAD's "World Economic Situation and Prospects for 2026" report notes global economy shows resilience amid 2025 US tariff hikes, with 2026 growth at 2.7%. Inflation falls but living costs stay high; trade slows to 2.2% in 2026. SDGs lag; multilateral cooperation is key to addressing risks.

World Bank releases latest Global Economic Outlook, raising 2026 global growth forecast to 2.6% (0.2pp higher than June 2025). It notes resilience amid trade tensions/AI investment, widening living standards gap, weak 2020-2030 growth, US tariff impact on 2026 trade, and calls for policy adjustment, tech/education investment.

The newly revised Foreign Trade Law of China, effective March 1, 2026, implements cross-border service trade negative list management, supports green trade and new foreign trade formats, and aids small and medium-sized foreign trade enterprises to enhance risk resilience.

US President Trump announced on Jan 12 that any country conducting business with Iran will face a 25% tariff on its US dealings, effective immediately.

On the 12th, reports said EU and China made progress in EV tariff dispute. EU released a guidance document on price commitments for Chinese EV exporters (covering minimum prices, sales channels etc.), which may replace current tariffs. It follows WTO non-discrimination principles. Chinese chamber praised it as a "soft landing" boosting market confidence.

In 2025, international trade policies fluctuated dramatically as the U.S. launched reciprocal tariffs, triggering global tensions. WTO reports identified policy uncertainty as a core issue. Pre-imported goods brought temporary growth but masked real pressures. Emerging industries had limited trade impacts, leaving global trade facing sustained downward pressure.

The EU and US clashed over digital sovereignty, with US imposing visa restrictions on European advocates by late 2025. EU enforced digital regulations (fines on X, Apple, Meta, Google). Europe faces digital industry weaknesses (cloud, AI, chips). EU plans 2026 strategies (AI super factories, cloud act, regulatory reforms) to enhance competitiveness.

Long-delayed India-US tariff negotiations make Indian exporters uneasy; January is decisive for 2026 H1 US orders. 2025 Aug US punitive tariffs hit Indian labor-intensive industries. Trump’s ambiguous remarks add doubts; exporters seek alternatives (US subsidiaries, UAE/Africa). India’s Washington embassy hired a US lobbying firm.