China’s Finance Ministry announced the imposition of 15% tariffs on coal and liquefied natural gas imports from the US, as well as 10% duties on crude oil, agricultural equipment, and certain cars.

These tariffs are set to take effect on February 10.

This move comes in response to the enforcement of a 10% US tariff on Chinese exports, which took effect on Tuesday.

President Trump had signed an executive order imposing the tariff, accusing China of failing to address the flow of illicit drugs into the US.

The Chinese Finance Ministry criticised the US for its unilateral tariff actions, accusing the US of violating World Trade Organization (WTO) rules.

“The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization,” China’s statement said.

“It is not only unhelpful in solving its own problems but also undermines the normal economic and trade cooperation between China and the US.”

Unlike Mexico and Canada, which managed to negotiate a 30-day reprieve from 25% US tariffs after reaching separate agreements with President Donald Trump, China’s response has been immediate and retaliatory.

China probes Google

In addition to the new tariffs, China also announced an investigation into Google for alleged antitrust violations, as per a statement from the State Administration for Market Regulation.

China’s State Administration for Market Regulation said it will look into Google over alleged anti-monopoly practices.

According to an official statement, the probe will examine potential violations of China’s anti-monopoly law.

Trump pauses tariffs on Canada and Mexico

Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum expressed relief after reaching an agreement to bolster border enforcement in response to President Trump’s demand to address immigration and drug smuggling issues.

This agreement resulted in the postponement of 25% tariffs scheduled to take effect on Tuesday for 30 days.

Canada committed to deploying new technology and personnel along its border with the US and launching joint initiatives to combat organized crime, fentanyl smuggling, and money laundering.

Meanwhile, Mexico agreed to station 10,000 National Guard members at its northern border to curb illegal migration and drug trafficking.

Trump expressed satisfaction with the outcome, stating on social media, “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome.”

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The USD/ZAR exchange rate rose for four consecutive days as investors reacted to the ongoing tensions between the United States and South Africa. It rallied to a high of 19.05 on Monday, up by 11.5% from its lowest level in October last year. So, is the ongoing South African rand sell-off justified? 

Donald Trump and South Africa tensions

The USD/ZAR exchange rate rebounded this month after Donald Trump fired a warning shot on South Africa. In a statement, he said that the US would end any donations to the company after Cyril Ramaphosa signed a land law.

The new land law creates a framework for the government to seize land and pay a market rate for it. This is a big difference from what some politicians in the country were calling for: taking the land without any payment.

The land eligible for takeover will mostly be underutilized, a move that the government hopes will help to boost food production in the country. 

Trump argues that taking a person’s land is not right. South Africa’s government, on the other hand, notes that most of the land is still owned by white minority owners in the country.

Therefore, the South African rand has dropped sharply as investors react on the implication of a conflict with the US. This pause will affect over $400 million that South Africa receives from the United States each year. Most of these funds flow through the USAID, which implements several health-related projects there.

The biggest fear is that Trump may decide to end South Africa’s participation in the AGOA Act, which ensures that goods from the country are not taxed. This would be a big deal since South Africa exported goods worth over $8.32 billion to the US in 2023. 

A key reason why Trump may decide to do that is pressure from Republicans, many who have a strong preference towards Israel. South Africa brought a major lawsuit against Israel for its activities against Gaza.

Implications on the South African rand

The USD/ZAR pair has risen recently as the South African rand has eased a bit against the US dollar.

This recovery was mostly driven by the strong US dollar index (DXY), which jumped to over $110 earlier this year. 

A key reason is that the Federal Reserve has maintained a hawkish tone by leaving interest rates unchanged between 4.25% and 4.50%. 

It has cited the strength of the American economy and the fact that inflation has remained elevated for some time. Therefore, analysts believe that the bank will maintain a hawkish tone in the next few months.

The South Africa Reserve Bank (SARB), on the other hand, has embarked on an easing plan. It delivered the third consecutive rate cut last week, bringing the official lending rate to 7.50%. These cuts have narrowed the spread between the US and South Africa. As such, the appeal for borrowing in USD to invest in ZAR has eased.

USD/ZAR technical analysis

The weekly chart shows that the USD to ZAR exchange rate has bounced back in the past few days. This rebound has seen it flip the 50-day and 100-day moving averages, a bullish thing.

The pair has moved above the ascending trendline that connects the lowest swings since June 2021 last year. Also, most oscillators have continued rising this year.

Therefore, the pair will likely continue rising as bulls target the key resistance level at 19.92, its highest swing in May 2023. A move above that level will point to more gains, possibly to the psychological point at 20.

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The US has signed agreements with both Mexico and Canada to delay the implementation of its planned tariffs on its two neighbouring countries by at least 30 days.

While optimism is warranted now that a global trade war seems to have been averted for a few weeks at least – investors should remain cautious as the United States could still proceed with raising tariffs against Mexico and Canada in March.

Provided that it does, chances are that both countries will respond with retaliatory tariffs on American goods, which could hurt the following two US exporters the most, according to Goldman Sachs.

Ovintiv Inc (NYSE: OVV)

Ovintiv – a petroleum company based out of Denver, Colorado could take a material hit if Canada announces retaliatory tariffs on US goods.

Why? Because this Russell 1000 company relies rather heavily on the Canadian market. In fact, it currently generates more than 10% of its revenue from the Great White North.

If Canada raises tariffs on American imports, Ovintiv will likely find it incrementally more difficult to remain competitive and, therefore, could end up losing market share in the region.

The added pressure on revenue may be a huge letdown for Ovintiv investors considering the company is already struggling with growth.

Ovintiv saw a worse-than-expected 12.3% year-on-year decline in its total revenue to $2.3 billion in its latest reported quarter.

However, OVV saw a sequential increase in its free cash flow despite lower commodity prices in its fiscal Q3.

Ovintiv stock also pays a healthy dividend yield of 2.86% at writing, which makes it more attractive to own, at least for income investors.

BorgWarner Inc (NYSE: BWA)

BorgWarner is another name that could feel the pressure if, not Canada, but Mexico announced retaliatory tariffs on American goods in March.

That’s because the automotive and e-mobility supplier generates at least 10% of its revenue from Mexico. Higher tariffs could disrupt the company’s supply chain and weigh on its share price moving forward.

Much like Ovintiv, if Mexico raises duty on all imports from the United States, BorgWarner’s products will no longer be able to remain as competitive in that country as they have been so far.

Ultimately, a trade war could mean contracting market share and revenue for BorgWarner, whose top line has already been a disappointment for investors.

In late October, BWA reported $3.45 billion worth of net sales – significantly below the $3.53 billion that experts had forecast.

On the plus side, however, BorgWarner stock currently pays a dividend yield of 1.41% which makes it attractive for investors wanting to set up an additional source of passive income.

Wall Street analysts also currently have a consensus “overweight” rating on the Michigan-based automotive and e-mobility supplier.

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Donald Trump’s presidency has always followed two key principles: projecting toughness and keeping opponents off balance.

That dynamic was on full display Monday as Trump abruptly shelved his plans for sweeping tariffs on Canada and Mexico, just as he did with Colombia the previous week.

The 25% import tariffs on America’s northern and southern neighbors were set to take effect at midnight, but Trump put them on hold, claiming to have secured crucial concessions on border security and drug enforcement.

Both Canada and Mexico announced measures to strengthen their borders, with Mexican President Claudia Sheinbaum agreeing to send 10,000 troops to curb migration and Canadian Prime Minister Justin Trudeau unveiling a new fentanyl czar and $1.3 billion in border security spending.

Trump framed the deferral as a victory, writing on Truth Social:

As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that.

A scrutiny of Monday’s developments throws up two insights.

Firstly, Trump has shown his tariffs threats were not hollow campaign rhetoric and reinforced their role as a tool by which to negotiate non-trade terms too.

However, it also suggests the president may have backed away from a trade war that risked severe economic damage.

Trump tariff not rhetoric but market reaction delivers a reality check

While he has delayed the imposition of tariffs by a month for Canada and Mexico, buying concessions that he was looking for, experts say the move has nonetheless driven home his seriousness about using tariffs as a tool.

“Leaders need to understand that Trump is serious,” said Heritage Foundation research fellow EJ Antoni in a NBC report.

If they dismiss his actions as mere bluster or campaign promises, nothing will change. They must recognize his intent.

However, a paradox exists.

On Friday last week, a day before signing an order to slap tariffs, Trump had vowed that there was nothing Canada or Mexico could do to stop the economic penalties.

“No, no. Not right now, no,” Trump said when asked if there was any opportunity at this stage for the three top US trading partners to win a delay.

But his reversal followed a sharp market selloff on Monday morning, as investors weighed the potential consequences of a full-blown North American trade war.

Analysts warned that the price of new cars could jump by $3,000 due to supply chain disruptions. Grocery prices, a major concern for voters, were expected to surge.

These concerns came to be especially significant given that Trump campaigned on reducing costs and curbing inflation.

If fully implemented, his proposed tariffs could reduce American households’ purchasing power by $1,000 to $1,200 per year, according to the Budget Lab at Yale University.

These economic realities seemed to force Trump’s hand, despite his earlier hardline stance.

Did Canada and Mexico actually concede much?

Also, while Trump touted the deals as a triumph, the actual concessions from Canada and Mexico were relatively modest.

Mexico has previously deployed troops to the border, including in April 2021 when President Joe Biden made a similar request—without needing tariff threats.

Canada’s $1.3 billion border security plan had already been proposed back in December, making it less of a major concession than Trump suggested.

By backing down, Trump reinforced perceptions that his trade threats are more of a negotiating tactic than a firm policy stance.

This could weaken his leverage in future negotiations.

China’s response to tariffs and scope of a similar deal

While Mexico and Canada have been temporarily reprieved, Trump is yet to speak to China’s president Xi Jinping even as the the country has already unveiled a slew of retaliatory tariffs against the US on Tuesday.

China unveiled tariffs of between 10 and 15% on US liquefied natural gas, coal, crude oil, and farm equipment, saying they would take effect on February 10.

Beijing also said it would impose tariffs on some car exports from the US and announced additional export controls on rare metals.

Hours before Beijing unveiled its measures, Trump had described his imposition of a 10% extra tariff on China as an “opening salvo” in his renewed trade offensive against the world’s second-largest economy.

Trump is expected to speak to China’s President Xi Jinping in the coming days, prompting hopes that the leaders will be able to hammer out a deal to avert a full-blown trade war.

Economists remain doubtful.

“The likelihood of [an] agreement to avoid tariffs appears limited,” said Robin Xing, chief China economist at Morgan Stanley in a report by FT.

“Paths to de-escalation . . . remain narrow and would require significant compromises from both sides,” he said.

What happens next?

Trump’s unpredictable approach to trade has again highlighted the volatile nature of US foreign policy under his leadership.

While he argues that tough talk secures better deals, the constant threats and last-minute reversals have raised doubts about America’s reliability as a trade partner.

Charu Chanana, chief investment strategist for Saxo Markets, summed up the uncertainty ahead:

“Even if negotiations are reached, uncertainty will remain high, and we will be discussing tariffs for the coming weeks and months,” she said in a Bloomberg report.

For businesses and markets, that uncertainty could be just as damaging as the tariffs themselves.

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Bitcoin has already recovered to $99,000 after a steep decline to around $91,000 following Trump’s announcement of raised tariffs on China, Mexico, and Canada.

Trump tariffs concerned global investors as they risked starting a trade war, which could mean significant economic uncertainty. That’s what triggered a sharp sell-off in the crypto market.

But the fact that crypto assets have already recovered significantly and look poised for further gains ahead suggests that bulls are still in control.

As capital continues to flow into the crypto market, the established names as well as up-and-coming meme coins like Dogizen could meaningfully benefit in 2025.

What makes Dogizen a good pick for 2025?

Dogizen may be an attractive pick for investors in search of quick gains.

Meme coins are widely recognized for their potential for explosive rallies in their early stages, a phase in which Dogizen currently finds itself.

Its native meme coin has already raised nearly $4.0 million within weeks, signaling strong demand.

And as the broader crypto market regains momentum in the coming days, it could benefit Dogizen.

Click here if you’d like to learn more about investing in Dogizen now.

How high could Dogizen fly after the presale?

Within the meme coin market, Dogizen looks a particularly exciting pick because it’s ending its ongoing presale on February 7.

The deadline may keep investors excited about Dogizen, as the end of the presale will likely be followed by a listing on a crypto exchange, making the meme coin more accessible to global investors.

Going live on an exchange often drives demand that helps push the price of a meme coin up. That makes scooping up Dogizen at the current price of $0.000085 an attractive investment proposition.

If you’d like to explore ways to invest in Dogizen today, click here to visit its website now.

Binance CEO remains bullish on crypto market

Investors should also know that Binance chief executive Richard Teng recently shared his two cents on the tariffs news driven sell-off in the crypto market.

He remains convinced that “this too shall pass” and the crypto assets will resume their bull run shortly.

The industry veteran’s positive remarks also bode well for those interested in buying Dogizen meme coin today.

Finally, investing in Dogizen could prove to be lucrative in the long run as it seems much more than just hype.

The project has set out to unlock the next generation of Telegram gaming. It has already rolled out a game that has helped it build a super strong community of more than 1 million users.

All in all, it looks like Dogizen has macro as well as micro catalysts to please its investors in 2025. You can learn more about this crypto project on this link.

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