U.S. President Donald Trump revealed plans to impose a 10% tariff on China, citing concerns over fentanyl shipments to Mexico and Canada. Speaking at the White House on Tuesday evening, Trump stated, “We’re considering a 10% tariff on China because of their role in sending fentanyl to Mexico and Canada.” He mentioned that the tariff could be implemented as early as February 1.
Trump also noted that he recently discussed the issues of fentanyl and trade during a phone call with Chinese President Xi Jinping. According to a Chinese government summary of the conversation, Xi emphasized cooperation and described the trade relationship as beneficial for both nations.
However, at the World Economic Forum in Davos, Switzerland, China’s Vice Premier Ding Xuexiang warned against escalating tensions. “There are no winners in a trade war,” Ding said through an official translator. He urged global collaboration to promote economic globalization and ensure fairer distribution of its benefits.
Trade between the U.S. and China remains significant, with the U.S. being China’s largest single-country trading partner. According to official data, China’s imports from the U.S. slightly declined by 0.1% in 2024, while exports to the U.S. increased by 4.9%. China’s trade surplus with the U.S. reached $361 million in 2024, up from $316.9 million in 2020, the final year of Trump’s first term.
During his first administration, Trump introduced tariffs on Chinese goods to boost U.S. exports and address longstanding trade disputes. China responded with its own tariffs, intensifying the trade conflict.
A report by the Peterson Institute for International Economics, released on January 17, estimated the potential economic impact of additional tariffs. If both countries impose a new 10% tariff, the U.S. economy could shrink by $55 billion over the next four years, while China could lose $128 billion.
Trump Plans 25% Tariffs on Canada and Mexico Over Border Issues
President Donald Trump said on Monday he might put a 25% tariff on imports from Canada and Mexico. He explained this is due to problems with border crossings and fentanyl. Trump said the tariffs could start on February 1 and that he talked about it with Canadian Prime Minister Justin Trudeau.
As tensions rise, Trump’s proposed tariff raises questions about the future of U.S.-China trade and its broader global implications.
