US President Donald Trump has indicated his intention to levy a 10% tariff on Chinese imports starting February 1st. Trump mentioned that talks within his administration were centered on China's alleged distribution of fentanyl to Mexico and Canada, labeling China as an "abuser". In response, China stated that trade wars yield "no winners".
Despite the tough rhetoric, the proposed 10% tariff is significantly lower than the 60% figure Trump campaigned on. During a press conference in Washington, Trump also threatened tariffs against the European Union, criticizing their treatment of the US.
China's foreign ministry spokeswoman, Mao Ning, assured that China would defend its national interests in light of Trump's comments, advocating against trade and tariff conflicts. Meanwhile, following his inauguration, Trump directed federal agencies to review existing trade agreements for unfair practices by US trade partners.
At the World Economic Forum in Davos, a senior Chinese official condemned protectionist policies. Canadian Prime Minister Justin Trudeau pledged a retaliatory response if tariffs are imposed by the US, mentioning that Canada is readying counter-tariffs worth billions of dollars.
Reportedly, Ottawa, China, and Mexico are major US trading partners. Trump views tariffs as vital to his economic agenda, aiming to foster growth, protect jobs, and increase tax revenue. However, some economists caution that such tariffs may raise prices for American consumers and negatively impact companies facing foreign countermeasures.