ST Explains Turning the world upside down: Trump's first month in office

Since he assumed the US presidency for the second time on Jan 20, Mr Donald Trump has made a flurry of moves that have upended the established international order. Assistant foreign editor Arvind Jayaram examines some of these decisions and their impact.

- Arvind Jayaram

1 ECONOMY

The move: Imposed an additional 10 per cent tariff on all Chinese goods.

The impact: This was just the first salvo fired by the Trump 2.0 administration in the US-China trade war. Beijing hit back with calibrated measures - tariffs of 15 per cent on American coal and liquefied natural gas, and 10 per cent tax hikes on crude oil, farm machinery, pickup trucks and other goods - but left room for negotiation. Economists say that the tariffs will translate into higher costs for consumers in both countries. It will also motivate more American companies to look to reduce their China exposure by relocating to other countries.

The move: Imposed a 25 per cent tariff on US imports of steel and aluminum.

The impact: While some affected countries like Canada - one of the US' top steel suppliers - have vowed to hit back with commensurate trade barriers, the response from others has been muted. Australia hopes to convince Mr Trump to grant it an exemption. Steel and aluminum producers in South-east Asian nations like Singapore, Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Vietnam could see their customers in the US choose to buy American-made products instead.

The move: Announced reciprocal tariffs on any trade measures taken by countries against US imports.

The impact: Mr Trump's tit-for-tat approach to global trade will fuel inflation in the US, even as it inflicts pain on the economies that refuse to succumb to his demand that they lower tariffs.

But his plans to also view countries' taxes imposed on US goods, such as goods and services tax or value-added tax, as "similar to that of a tariff" is a red flag for many countries.

The move: Announced, then postponed, 25 per cent tariffs on all imports from Canada and Mexico, besides 10 per cent energy tariffs on Canada.