Janice R. Andrews
In a significant escalation of trade tensions, U.S. President Donald Trump announced on Thursday that an additional 10% tariff will be imposed on Chinese imports starting March 4. The move comes alongside planned tariffs on Canada and Mexico, citing concerns over drug smuggling and insufficient progress in addressing the fentanyl crisis.
Trump, who had previously paused sweeping 25% tariffs on Canadian and Mexican imports, confirmed the levies would proceed as scheduled next week. In a social media post, he stated that until the fentanyl issue is resolved or significantly curbed, the tariffs will remain in effect. “China will likewise be charged an additional 10% Tariff on that date,” he added.
This decision follows an earlier 10% tariff hike on Chinese imports, which prompted Beijing to retaliate. A U.S. official confirmed to AFP that the new levy is in response to “insufficient progress” in combating fentanyl, a potent synthetic opioid linked to thousands of deaths in the U.S. annually. The official emphasized that Washington is taking action against all three countries to address the drug crisis comprehensively.
Chinese Commerce Minister Wang Wentao expressed strong opposition to the tariffs, calling them unjustified and vowing to protect China’s legitimate rights and interests. In a letter to U.S. Trade Representative Jamieson Greer, Wang urged dialogue to resolve trade disputes, highlighting the potential for further economic strain between the two nations.
Meanwhile, Mexican President Claudia Sheinbaum expressed hope for negotiations to avoid the tariffs, with a high-level delegation currently in Washington seeking an agreement. Canadian Prime Minister Justin Trudeau also reiterated efforts to avert the levies but warned of an “immediate” response if imposed. Trudeau emphasized that less than 1% of fentanyl and undocumented migrants entering the U.S. originate from Canada, questioning the rationale behind the tariffs.
The business community has voiced concerns over the long-term impact of these measures. The head of a Canadian business council warned that Trump’s threats have fundamentally altered trade relations between the neighboring countries, potentially disrupting supply chains and economic cooperation.
In addition to the fentanyl-related tariffs, Trump announced that reciprocal tariffs, set to take effect on April 2, will remain in force. These tariffs will be tailored to each trading partner based on ongoing government studies. Commerce Secretary Howard Lutnick emphasized the principle of reciprocity, stating, “How you treat us is how you get treated.”
China has consistently pushed back against U.S. claims, arguing that Washington must address its domestic drug crisis rather than imposing tariffs on other nations. A Congressional Research Service report noted that while fentanyl precursors may originate from China, the drugs are often manufactured in Mexico before reaching the U.S.
As tensions rise, the global trade landscape faces increased uncertainty. With retaliatory measures likely from affected countries, the economic fallout could extend beyond borders, impacting industries and consumers worldwide. The coming weeks will be critical in determining whether diplomatic efforts can de-escalate the situation or if further trade wars are on the horizon.
