Donald Trump slaps China with new 10% Tariff

President Donald Trump has announced plans to impose a fresh 10% tariff on Chinese imports, marking the latest escalation in his ongoing trade battles. This new levy would come on top of existing tariffs of at least 10%, which took effect earlier this month under a previous order from the White House.

In addition to targeting China, Trump reaffirmed his intention to proceed with long-threatened 25% tariffs on imports from Canada and Mexico, set to be implemented on March 4. His remarks coincided with trade negotiations in Washington, where officials from both neighbouring nations were seeking to prevent the measures from taking effect.

The US president had initially scheduled the 25% tariffs on Mexico and Canada for February 4, citing concerns over border security. However, he postponed the decision for one month after both countries agreed to increase funding for border enforcement and engage in further discussions on combatting drug trafficking.

Despite this temporary reprieve, Trump expressed dissatisfaction on Thursday, arguing that not enough had been done to stem the flow of illicit drugs into the United States. In a social media post, he claimed that “drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” adding that a “large percentage” of these substances were manufactured in China.

Mexican President Claudia Sheinbaum responded to Trump’s statements during a press conference at the National Palace in Mexico City, saying, “As we know, [Trump] has his way of communicating.” She remained hopeful that ongoing negotiations could yield a breakthrough before the March 4 deadline, stating, “I hope we can reach an agreement and announce something else.”

Canadian Prime Minister Justin Trudeau also acknowledged the escalating tensions, affirming that his government was actively working to secure a deal. However, he warned that if the US proceeded with tariffs, Canada would respond with “an immediate and extremely strong response.”

Trump’s renewed tariff threats have raised alarm across North America, where decades of free trade agreements have closely linked the region’s economies. Leaders in both Mexico and Canada have previously pledged retaliatory measures if Washington follows through with its plans, further heightening fears of a potential trade conflict.

Tariffs function as a tax on imported goods, ultimately paid by the businesses bringing them into the country. With China, Mexico, and Canada ranking as the United States’ top three trading partners—accounting for more than 40% of total imports—economists warn that broad tariff hikes could drive up prices for American consumers on a range of products, from iPhones to avocados.

Trump’s latest 10% tariff on Chinese goods, scheduled to take effect Tuesday, was not previously announced. However, his presidential campaign had featured proposals for much steeper border taxes on Chinese imports, with rates as high as 60%.

In response to the president’s remarks, Liu Pengyu, a spokesperson for the Chinese Embassy, defended China’s efforts to curb the fentanyl crisis, stating that Beijing had already made “visible progress” in key areas such as information sharing, law enforcement cooperation, and online monitoring of illicit drug advertisements.

“Reducing domestic drug demand and strengthening law enforcement cooperation are the fundamental solutions,” he said in a statement, which warned that Trump’s tariff moves were “bound 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.”