New tariffs on China went into effect Tuesday as part of President Trump’s effort to use trade measures to halt the flow of fentanyl into the US.
The 10% additional tariff on imported Chinese goods came into force at 12:01 a.m., hours after the leaders of Mexico and Canada were able to negotiate a 30-day pause on the implementation of massive, 25% duties on goods bound for the US.
Trump, 78, declared last week that the fentanyl crisis in America constituted a “national emergency” and that he would use his authorities under the International Emergency Economic Powers Act (IEEPA) to impose additional tariffs on China.
The goal is to get Chinese officials to crackdown on the flow of precursor chemicals from China to criminal cartels that use fentanyl to manufacture deadly drugs for the US market.
“Access to the American market is a privilege,” read a White House statement on the tariff announcement, arguing that import taxes are a “powerful, proven source of leverage for protecting the national interest.”
“President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.”
Several Republican congressional lawmakers have accused the Chinese Communist Party of deliberately exporting fentanyl to undermine the US.
Fentanyl – produced largely in China and smuggled over US land borders and through the international shipping and mail systems – has killed at least 281,000 Americans over the last four years, according to the most recent data from the Centers for Disease Control and Prevention.
In addition to fentanyl, Trump has objected to the $279.4 billion US trade deficit with China and described tariffs as a way of forcing manufacturers to produce more goods domestically.
China is America’s top source of imports — comprising about 16.5% in 2022, according to the Office of the US Trade Representative.
Beijing argues that it has been tough enough on fentanyl and that Trump’s tariffs violate World Trade Organization rules.
“China is one of the world’s toughest countries on counternarcotics both in terms of policy and its implementation. Fentanyl is an issue for the U.S. [sic],” read a statement from China’s foreign ministry issued Sunday.
“The U.S. [sic] needs to view and solve its own fentanyl issue in an objective and rational way instead of threatening other countries with arbitrary tariff hikes,” the statement continued, demanding that the Trump administration “promote the steady, sound and sustainable development of China-U.S. [sic] relationship.”
The White House insists that the new tariffs are not aimed at getting into a trade war with China.
“President Trump was absolutely 100% clear that this is not a trade war,” White House National Economic Council Kevin Hassett said Monday. “This is a drug war.”
Trump has warned that even more import taxes could be imposed on China in the near future.
“If we can’t make a deal with China, then the tariffs will be very, very substantial,” the president said Monday.
Last week, Trump signaled that tariffs on Chinese steel, aluminum, copper, pharmaceuticals and computer chips were also in the works.
The commander in chief held off imposing tariffs on Mexico and Canada Monday after both nations agreed to get tougher on the border.
Mexican President Claudia Sheinbaum agreed Monday to send 10,000 members of her country’s national guard to the border to address drug trafficking in exchange for a 30-day pause on the implementation of a 25% tariff on imports.
Meanwhile, Canadian Prime Minister Justin Trudeau announced Monday that he agreed to implement a “$1.3 billion border plan” that includes deploying new helicopters, technology and personnel to the US-Canada boundary in exchange for a 30-day reprieve on the 25% tariffs.
Trudeau also committed to appointing a “Fentanyl Czar” and launching a “Canada-US Joint Strike Force to combat organized crime, fentanyl and money laundering.”
