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Trump Suggests Additional 10% Tariff on China, Beijing Open for Talks

Trump said that massive amounts of drugs specifically Fentanyl are being sent from China to the US, mostly through Mexico

US President-elect Donald Trump, set to take office on January 20, 2025, has threatened to hike tariffs in China, Mexico and Canada on the very first day of taking charge. This, Trump says, is in an effort to force these countries to crack down on illegal immigration and drug smuggling into the US.

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About China, Trump said that massive amounts of drugs specifically Fentanyl are being sent to the US, mostly through Mexico. He said that Chinese officials have assured of imposing maximum penalty including that of death, but they haven’t followed through. “Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America.”

In a post on Truth Social, he said, “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders.” 

He added that the tariff will remain in effect until “Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country”.

If Trump decides to actually put in place such measures, it will lead to a major escalation in tensions with US’s three biggest trading partners, causing disruptions to the global supply chain. 

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China's Response

China has expressed its willingness to engage in "constructive dialogue" with the US, highlighting the importance of cooperation to ensure global economic stability. Chinese Foreign Ministry spokesperson, Wang Wenbin, said during a press briefing, "China believes that both countries should seek common ground and manage differences through communication and negotiations."

"The idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality," a spokesperson for the Chinese embassy in Washington told BBC. The official told the media organisation that trade co-operation between the two countries is mutually beneficial and that no one will win a trade war or a tariff war.

He has also mentioned earlier that he will stop favouring trade with China and end the country’s most-favoured-nation trading status with the US. Despite bitter trade disputes between both the countries, the US still accounts for about 15 per cent of China's exports.

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During his election campaign, Trump threatened Mexico and China with tariffs of up to 100 per cent which will be much higher than the ones he imposed in his first term. Last year, more than 80 per cent of Mexico's exports went to the US, while the country accounted for around 75 per cent of Canada's exports.

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