U.S. President Donald Trump said he is considering imposing a 10% tariff on imports of products made in China starting February 1.
Trump stated that his administration’s plan was “based on the fact that they (the Chinese) are sending fentanyl to Mexico and Canada.”
He called China an “abuser.” China responded by saying that trade wars “have no winners.”
Despite the aggressive talk, the 10% tariff would be much lower than the 60% tariff Trump mentioned during his election campaign.
Trump also threatened to impose a 25% import tax on Mexico and Canada, accusing them of allowing undocumented immigrants and drugs to enter the U.S.
At a press conference in Washington on Tuesday (21), Trump also promised to hit the European Union with tariffs.
He said the EU “treats us very, very badly.”
“So they will have tariffs. It’s the only way for you to get back at them. It’s the only way for you to get justice.”
The spokesperson for China’s Ministry of Foreign Affairs, Mao Ning, responded to Trump’s threats by promising to “safeguard its national interests.”
“We have always believed that trade wars and tariff wars have no winners,” she added.
Shortly after taking office on Monday (20), the new president also instructed federal agencies to conduct a review of existing trade agreements and identify unfair practices by U.S. trading partners.
Canadian Prime Minister Justin Trudeau promised to retaliate.
“If the president [of the U.S.] decides to go ahead with the tariffs, Canada will respond – and everything is on the table,” Trudeau said.
Ottawa is preparing to impose tariffs in response to the threat, reportedly worth billions of dollars.
Canada, China, and Mexico are the U.S.’s top trading partners.
Tariffs are an important part of Trump’s economic plans. The president believes they can boost growth, protect jobs, and increase tax revenue.
But many economists say such measures could lead to higher prices for Americans and hurt businesses affected by foreign retaliation.
In other words, it is very unlikely that with measures like this, Trump will be able to control inflation, one of his campaign promises, and one of the main reasons voters turned against the Democrats.
Source: BBC