The latest salvo in the US president’s progressively escalating trade disputes was the announcement that he intended to impose a new 10% tariff on goods from China.
Following the implementation of a Trump tariff order earlier this month, imports from China are already subject to a minimum of 10% tariffs at the border.
On Thursday, Trump also declared his intention to proceed with the 25 percent tariffs on imports from Canada and Mexico, which are scheduled to take effect on March 4.
His remarks were made during a meeting in Washington between representatives from Mexico and Canada, which was intended to prevent the implementation of that plan.
Trump had previously declared that 25% tariffs would be imposed on Mexico and Canada on February 4th unless the two countries enhance their border security.
After the two nations reached an agreement to increase border financing and engage in further discussions regarding drug trafficking, he abruptly suspended the measures for a month.
Trump expressed his belief that the influx of fentanyl to the United States had not been adequately addressed on social media on Thursday.
US and China Discuss Fentanyl Concerns Amid New Tariff Threats
He wrote, “Drugs are still being imported into our country at an extremely high and unacceptable rate from Mexico and Canada.” He also noted that “a significant portion” of the drugs were manufactured in China.
In response, Mexican President Claudia Sheinbaum stated during a press conference at the country’s National Palace, “As we are aware, [Trump] has his own manner of communicating.”
The representative stated: “I hope we can reach an agreement and on 4 March we can announce something else.”
Justin Trudeau, the Prime Minister of Canada, also stated that his country was making a concerted effort to reach a deal. He cautioned that tariffs imposed by the United States would result in an “immediate and extremely strong response.”
The North American economy is intricately linked, as it has been operating under a free trade agreement for decades, and Trump’s threats against Mexico and Canada have elicited widespread alarm.
The two countries’ leaders have previously stated that they would impose retaliatory tariffs on the United States if the White House proceeded with its plans.
Businesses that import products into the country must pay tariffs and taxes that the government collects.
The United States’ top three trade partners are China, Mexico, and Canada, collectively accounting for over 40% of its imports last year.
Economists have cautioned that tariffs on products from the three countries, including everything from avocados to iPhones, could increase prices in the United States.
Despite his support for border taxes on Chinese products of up to 60% during his presidential campaign, Trump had not previously declared his intention to impose an additional 10% levy on goods from China, which he stated would also take effect on Tuesday.
Liu Pengyu, the spokesperson for the Chinese Embassy, stated that his country was already collaborating with the United States to address the concerns regarding fentanyl and had made “visual progress” in areas such as information exchange, case cooperation, and online advertisement cleansing.
“The fundamental solutions are to reduce domestic drug demand and strengthen law enforcement cooperation,” he stated. He also cautioned that Trump’s tariff actions were “certain to affect and undermine future counternarcotics cooperation between the two sides.”
“The unilateral tariffs imposed by the US will not solve its own problems, nor will it benefit the two sides or the world.”
According to Christine McDaniel, a senior research fellow at the Mercatus Centre at George Washington University and a trade expert, Trump’s statements, which advocated for the cessation of drug trafficking or its “severe restriction,” appeared to establish a foundation for negotiations between Mexico and Canada.
Trump Dismisses Economic Concerns as US Prepares to Implement New Tariffs
Miguel Angel Trevino Morales and his brother Oscar, who were allegedly the leaders of the violent Zetas cartel and had been sought by the United States for an extended period, were extradited on Thursday as tariff negotiations intensified.
Mexican media reported that they were part of a larger group of drug traffickers who were sent from Mexico to the United States. This represents a significant development in the security relations between the United States and Mexico.
According to Ms. McDaniel, the lack of clarity in Trump’s demands for China increases the probability of these measures being implemented.
His warnings against Canada and Mexico overshadowed Trump’s initial tariffs on China. However, the potential for additional responsibilities prompts enquiries regarding how businesses will react.
Ms. McDaniel anticipated that the impact would be more pronounced in China.
“It’s not costless for the US, but so far it seems more costly for China,” according to her.
If tariffs are implemented, they are anticipated to have a more significant effect on the economies of Canada and Mexico, which depend on the United States as a significant export market.
However, analysts have cautioned that the prospect of the tariffs, regardless of whether they are implemented, is still likely to have a deterrent impact on investment, including in the United States.
China has responded to the initial round of tariffs imposed by the United States by imposing tariffs on US products, such as coal and agricultural machinery.
Trump has disregarded concerns regarding the American economy.
Salman Ahmad is known for his significant contributions to esteemed publications like the Times of India and the Express Tribune. Salman has carved a niche as a freelance journalist, combining thorough research with engaging reporting.
