US President Donald Trump has announced plans to impose a 10 percent tariff on Chinese imports starting 1 February, citing China’s alleged role in the country’s fentanyl crisis, several US media outlets have reported. Trump claims that Chinese-manufactured fentanyl precursors are being sent to Mexico and Canada, from where they enter the US.
Speaking at the White House, Trump also mentioned a possible 25 percent tariff on imports from Mexico and Canada, accusing both of enabling the flow of fentanyl and illegal immigration to the US. Fentanyl, a highly addictive synthetic opioid, caused almost 90,000 fatal overdoses in the US in the year ending August 2024, according to official figures.
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At a news briefing in Beijing on Wednesday, China’s Foreign Ministry spokeswoman Mao Ning reiterated that “there is no winner in a tariff or trade war” and emphasised China’s readiness to work with the US to resolve differences. Mao also added that China would “firmly defend its own interests.”
Yu Harbin of China’s National Narcotics Control Commission last year argued that the “root cause” of the crisis stemmed from domestic demand. “Controlling demand will naturally curb supply,” he said.
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The Peterson Institute for International Economics forecasts that an additional 10 percent tariff could cut US$55 billion from the US GDP over Trump’s second term, although China’s GDP could drop US$128 billion in the same period. The US-based think tank also reports that inflation would increase 20 basis points in the US and 30 basis points in China after an initial dip caused by a temporary tightening of Chinese monetary policy.
Trump’s tariff talk is not new. Before his re-election, Trump threatened to slap tariffs of up to 60 percent on China from day one of his tenure – a move that has not come to pass. These announcements prompted Beijing to boost exports last October to mitigate the damage caused by a potential trade war.
