On Friday, China announced it would implement “all necessary countermeasures” in response to U.S. President Donald Trump’s decision to impose an additional 10 percent tariff on Chinese imports. Beijing warned this action could “seriously impact dialogue” between the two nations.
Trump’s tariffs are set to take effect on Tuesday, alongside a 25 percent levy on Canadian and Mexican imports, escalating the trade dispute between the U.S. and China, the world’s two largest economies. This new tariff comes on top of an existing 10 percent levy Trump imposed earlier this month.
The U.S. President had initially introduced a 25 percent tariff on Canadian and Mexican imports over concerns about illegal immigration and fentanyl trafficking. The tariffs, which had been temporarily paused, will now be reinstated.
Trump announced on social media that the tariffs would proceed as scheduled unless the U.S. sees a significant reduction in fentanyl trafficking. “China will likewise be charged an additional 10 percent tariff on that date,” he added, referring to March 4.
In response, a Chinese commerce ministry spokesperson rejected Trump’s allegations, claiming that the U.S. was “shifting the blame” for the fentanyl crisis. The spokesperson emphasized that China enforces one of the strictest anti-narcotics policies globally but accused the U.S. of disregarding these efforts. China warned that if the U.S. continued its course, Beijing would take all necessary actions to defend its rights and interests.
China further stated that the tariff increase would harm American businesses and consumers, destabilize global supply chains, and fail to resolve U.S. internal issues. Shortly after the announcement, China’s foreign ministry warned that the tariffs would hinder future discussions between the two countries on narcotics control, accusing Washington of using “blackmail.”
Chinese leadership plans to meet next week to devise strategies to protect its economy from these threats.
Meanwhile, Mexican President Claudia Sheinbaum expressed hopes for a conversation with Trump to avoid the tariffs, and Canadian Prime Minister Justin Trudeau stated that his government is working urgently to prevent them. Trudeau has repeatedly pointed out that less than 1 percent of fentanyl or undocumented migrants entering the U.S. come from Canada.
The looming tariff increase is shaking global markets, particularly in Asia, where stocks are down, with Tokyo’s market briefly shedding 3 percent.
Reciprocal Tariffs
In addition to the fentanyl-related tariffs, Trump reiterated that reciprocal tariffs would go into effect on April 2. These tariffs will vary depending on each U.S. trading partner, with specific details to follow after further investigations.
China’s Commerce Minister, Wang Wentao, emphasized that both sides should resolve their trade disputes through dialogue rather than through more tariffs. Beijing also criticized the U.S. stance on fentanyl, noting that the drug is mostly produced in Mexico with chemical precursors from China, rather than directly supplied from China.
In early February, China warned that additional tariffs could disrupt international narcotics cooperation.
