President Donald Trump announced that his administration is considering a 10 per cent tariff on Chinese imports, citing concerns over the flow of fentanyl from China to Mexico and Canada.
Speaking to reporters at the White House on Tuesday evening, Trump stated that the new duty could take effect as early as February 1. “We’re talking about a tariff of 10 per cent on China based on the fact that they are sending fentanyl to Mexico and Canada,” the president remarked.
Trump had initially threatened to impose a 10 per cent tariff on Chinese imports due to trade concerns but later adjusted the timeline to align with the February 1 deadline. White House trade adviser Peter Navarro told CNBC on Tuesday that Trump’s proposed tariffs on Canada and Mexico were intended to pressure the two countries to curb the flow of illegal migrants and illicit drugs into the US.
“The reason he’s considering tariffs of 25 per cent, 25 per cent, and 10 per cent, or whatever the final rates may be, on Canada, Mexico, and China is because 300 Americans die every day from fentanyl overdoses,” Navarro stated.
Mexico and Canada may face 25% levies
In addition to the proposed tariffs on China, Trump revealed that his team is also considering imposing a tariff of approximately 25 per cent on Mexico and Canada. He emphasised the influx of people across the border as a key reason for the potential levies. “We’re thinking in terms of 25 per cent (levies) on Mexico and Canada, because they’re allowing a vast number of people” over the border, he said on Monday.
According to Trump, the proposed tariffs on China could come into effect by February 1, with similar timelines being considered for Mexico and Canada. His remarks suggest that his administration is moving swiftly to address what he perceives as trade and security concerns.
While campaigning for the 2024 presidential election, Trump had previously threatened to impose tariffs of up to 60 per cent on Chinese goods. His latest statements indicate a shift to a lower but still significant tariff rate of 10%, focusing on the fentanyl crisis as a primary justification.
Tariffs on the European Union Also Under Consideration
Trump further indicated that the European Union could also face tariffs, citing ongoing trade imbalances with the United States. “I’ve already imposed large tariffs on China during my first term, and the European Union and others have troubling trade imbalances with us,” he stated.
During his first term, Trump implemented significant tariffs on Chinese goods as part of his broader trade policy, aiming to address what he called unfair trade practices. The new tariff discussions reflect a continuation of his hardline stance on trade, with a renewed focus on security concerns linked to drug trafficking.
Trump’s recent statements signal a potentially aggressive trade policy direction, with China, Mexico, and Canada in the crosshairs of new tariff measures. As the proposed deadlines approach, further details and reactions from international stakeholders are expected to shape the final decisions.
(With agency inputs)