US President Donald Trump is considering a 10% tariff on Chinese imports, with plans to impose it as soon as February 1. He stated that discussions with his administration are “based on the fact that they’re sending fentanyl to Mexico and Canada.”
Previous Tariff Threats
This follows earlier threats by Trump to impose a 25% tariff on imports from Mexico and Canada. He accused both countries of allowing undocumented migrants and drugs into the US.
European Union to Face Tariffs
In addition, Trump vowed to impose tariffs on the European Union. He said, “China is an abuser, but the European Union is very, very bad to us. They treat us very, very badly. So they’re going to be in for tariffs. It’s the only way you’re going to get back. It’s the only way you’re going to get fairness.”
Shortly after his inauguration on Monday, Trump instructed federal agencies to review trade deals and identify unfair practices by US trading partners.
China’s Response at Davos
Meanwhile, at the World Economic Forum in Davos, China’s Vice Premier Ding Xuexiang opposed protectionism. He called for “win-win” solutions to trade disputes, without directly addressing the US.
During his campaign, Trump had promised to place tariffs as high as 60% on Chinese goods.
Canada’s Retaliation Plans
Canadian Prime Minister Justin Trudeau warned that Canada would retaliate if Trump moves forward with the tariffs. “If the [US] president does choose to proceed with tariffs, Canada will respond – and everything is on the table,” he said. Ottawa is reportedly preparing counter-tariffs worth billions.
Impact on US Trade Relations
Canada, China, and Mexico are among the top US trading partners. Trump believes that tariffs will boost growth, protect jobs, and raise tax revenue. However, many economists argue that tariffs could lead to higher prices for Americans and harm businesses affected by foreign retaliation.