Donald Trump, the US president-elect, says he will slap new tariffs on China from “day one” of his tenure.
Mexico and Canada will be subject to similar imposts, according to multiple media reports, but “we will be charging China an additional 10 percent tariff, above any additional tariffs,” Trump said, reportedly as a retaliation for what he sees as Beijing’s failure to stem the smuggling of Chinese-made fentanyl into the US.
Beijing disputes the allegations. China has scheduled all forms of fentanyl at Washington’s request as well as many precursor chemicals of the drug. It also cooperates with Washington in stopping money laundering by drug gangs.
“China is one of the world’s toughest countries on counternarcotics both in terms of policy and its implementation,” a Chinese foreign ministry spokesperson said yesterday. “Fentanyl is an issue for the US. In the spirit of humanity, China has given support to the US’s response to this issue.”
[See more: Beijing may not respond aggressively to Trump’s tariffs, senior economists say]
Trump’s move threatens to drive up prices for US consumers, since China, Mexico and Canada account for about 40 percent of the $3.2 trillion of goods the US imports annually.
Trump’s talk of a dramatic escalation in tariffs comes on top of stringent restrictions on the export of advanced US-made components to companies in China that are tantamount to a high-tech blockade.
There were reports this week that as many as 200 of China’s chip manufacturers could be hit by tough new trade restrictions to be announced by outgoing US President Joe Biden, as Washington seeks to contain the rise of its chief geopolitical rival.
Beijing says US actions violate the principles of market economy and fair competition, undermine international trade, and disrupt the stability of global supply chains.
