Trump said he would impose a 10% tariff on Chinese imports on February 1

President Trump said on Tuesday that he planned to impose a 10 percent tariff on Chinese imports to the United States on February 1, a decision that is sure to escalate trade tensions between the economies. largest in the world.

Speaking at the White House, Mr Trump said the tariffs would be in response to China’s role in America’s fentanyl crisis. Mr Trump said China was sending fentanyl to Canada and Mexico, where it would be brought to the US.

The threat of tariffs comes after Mr Trump said on Monday he planned to impose a 25 per cent tariff on imports from Canada and Mexico as punishment for allowing fentanyl and illegal immigrants -legal to cross into the United States.

“We’re talking about a 10 percent tariff on China based on the fact that they’re sending fentanyl to Mexico and Canada,” Mr. Trump said.

Those tariffs would be on top of tariffs Mr. Trump imposed on more than $300 billion of Chinese imports during his first term. Those tariffs were maintained by former President Joseph R. Biden Jr., who imposed additional tariffs on Chinese electric vehicles, solar cells, semiconductors and advanced batteries.

Mr Trump’s pledge to hit China, Canada and Mexico with tariffs is expected to result in retaliatory action against US industry. Economists have warned that a global trade war could cause inflation to rebound and hamper US economic growth.

Mr. Trump on Monday directed various agencies to study various trade issues with an eye toward future tariffs, but he did not immediately impose new tariffs, as he had previously threatened. .

He ordered US officials to review the flow of immigrants and drugs from Canada, China and Mexico to the US, and the three countries’ compliance with existing trade agreements. with the United States.

He negotiated new trade agreements with Canada and Mexico. Trump during his first term: the United States-Mexico-Canada-Agreement, or USMCA He also agreed to a limited trade agreement with China that should reward American farmers.

He has since said he wants to rewrite both contracts during his second term.

Mr. Trump and Xi Jinping, the president of China, spoke last week and discussed trade, fentanyl and areas where the world’s two largest economies can work together.

After Mr Trump’s tariff moves against China in his first term, he signed a broad economic deal in 2020.

Relations between the countries have soured during the pandemic, which Mr Trump has blamed on China, and Beijing has failed to live up to many of its commitments under the deal, including product purchases. American agriculture.

Scott Bessent, Mr Trump’s pick for treasury secretary, said during his confirmation hearing last week that he planned to pressure his Chinese friends to start buying US agricultural products as his administration had promised. .

The Treasury nominee also said he would pressure his Chinese counterparts to buy more products to offset what the country should have bought in four years.