This is seen as part of Donald Trump's broader strategy to contain Beijing's growth, regain its position and affirm America's role as the number one superpower.

Moves to contain China

Since officially taking office for his second term on January 20, President Donald Trump has wasted no time restarting the "trade war" he launched during his first term.

On February 27, Mr. Trump announced that he would impose an additional 10% tax on imported goods from China after imposing 10% in early February, raising the total tax on this country to 20%, effective from March 4.

Previously, Mr. Trump threatened to impose a 25% tax on goods from the European Union (EU), Mexico and Canada, accusing them of "taking advantage" of the US in unfair trade relations.

In late January 2025, Mr. Trump also caused a shock when he threatened to impose a 100% tax on BRICS countries (Brazil, Russia, India, China, South Africa and new members such as Iran and Egypt) if they dared to abandon the USD or develop an alternative currency.

Mr. Trump also bluntly declared: "Say goodbye to the United States" if these countries dare to challenge the greenback, affirming his determination to protect the role of the USD as the global reserve currency.

Another highlight of Trump’s strategy is his effort to control geostrategic areas and resources. He has repeatedly mentioned his intention to “take back the Panama Canal” from Panama, which signed a memorandum of understanding with China in 2017 called “Cooperation on the Silk Road Economic Belt (SREB) and the 21st Century Maritime Silk Road (MSR).”

The deal would allow Beijing to increase its influence in the Panama Canal, a vital shipping route connecting the Atlantic and Pacific Oceans, through which more than 60% of all goods passing through are bound for the United States. Mr. Trump viewed this as a direct threat to US trade and national security interests, and warned of “strong action” if Panama did not change its policies.

In early February, Panama sent a diplomatic note withdrawing from China's Belt and Road Initiative.

Also in his first weeks in office, Trump pushed ahead with plans to buy Greenland from Denmark, a land rich in mineral resources and strategically located in the Arctic. He also wants to reach a cooperation agreement on minerals with Ukraine and possibly even with Russia to reduce dependence on China for rare earths - essential materials for high technology and defense. The moves could be a way to break Beijing's monopoly on resources while strengthening America's position in the global supply chain.

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Chinese President Xi Jinping and US President Donald Trump. Photo: CNBC

A sharp but risky containment strategy

Over the past two decades, China has risen dramatically from a developing economy to an economic and military superpower, directly challenging the hegemonic position of the United States. With its GDP growing rapidly since the beginning of the 21st century, China now accounts for about 19.5% of global GDP, second only to the United States, and is forecast to reach 22.1% by 2030.

The Belt and Road Initiative has helped Beijing expand its geopolitical influence from Asia to Africa and Europe. In particular, China controls about 80% of the global supply of rare earths, making the US and its Western allies dependent.

The interdependence between Russia and China has also increased as the West imposed sanctions on Moscow following the Ukraine conflict since early 2022. China has become Russia's economic "lifeline", buying oil and gas and supplying technological goods, while Russia supports China with its rich resources. This relationship complicates the geopolitical chessboard, forcing the US to find ways to deal with both powers simultaneously.

Meanwhile, the EU, America’s traditional transatlantic ally, is in decline. The bloc faces an energy crisis after abandoning Russian gas supplies, internal divisions over economic and defense policy, and pressure from anti-American populist parties. The EU’s trade dependence on China, with bilateral trade expected to reach $760 billion by 2024, makes the bloc even more reluctant to back a tougher U.S. stance against Beijing.

In his more than one month in office, Mr. Trump has launched a series of unexpected policies that, although seemingly unpredictable, seem consistent, based on the principle of "America First." As a businessman before becoming president, Trump applied his commercial thinking to international politics: using tariffs as leverage to force other countries to make concessions.

Previously, Mr. Trump threatened to impose a tax of up to 60% on China. The threat of imposing a 100% tax on BRICS is considered a bold move to protect the USD - the foundation of US financial power.

It is clear that if BRICS succeeds in creating an alternative currency, US influence in the global market will be severely affected. Mr. Trump understands this and is willing to go all-in to prevent such a scenario. Similarly, putting pressure on Panama, the EU, Mexico and Canada shows that he is not afraid to confront both allies and opponents to protect US interests.

Seeking cooperation with Russia and Ukraine on resources is a testament to Trump’s pragmatism. Despite Russia being a geopolitical rival, he is willing to negotiate to reduce dependence on China.

On the flip side, Trump’s strategy also carries significant risks. Trump’s strategy may achieve some short-term successes: slowing China’s growth, forcing allies back into America’s orbit, and protecting the dollar.

But in the medium to long term, higher tariffs could disrupt global supply chains, send prices soaring in the US and hurt US consumers. Moreover, raising tensions with the EU and its neighbors like Mexico and Canada could weaken the transatlantic alliance, creating opportunities for China to expand its influence.

The upcoming US-Russia-China grand chessboard may be unpredictable. In any case, Trump's strategy has put America back at the center of the global stage. With his pragmatic and decisive style, he is forcing the world to re-evaluate America's power, making it impossible for countries to underestimate this "giant". The upcoming power play, after tariffs, will be a fierce battle over technology, which will best demonstrate Trump's ambition to bring America back to a position of respect as he once promised.

US-Ukraine mineral deal: Trump's high-stakes move, EU concerned US and Ukraine reach mineral framework deal - a step forward in bilateral relations and could reshape the regional geopolitical landscape. This is a success for Trump and Zelensky, but Europe is concerned that Ukraine will become dependent on the US.