Tensions between the U.S. and China have flared once again as Beijing vows to take “all necessary countermeasures” in response to U.S. President Donald Trump’s latest tariff hike. Trump announced plans to impose an additional 10% tariff on Chinese imports, a move China warns will severely disrupt diplomatic talks.
The latest tariffs, set to take effect on Tuesday, will coincide with existing 25% levies on Canadian and Mexican imports, further escalating the already tense trade war between the world’s two largest economies. This new tariff comes on top of a previous 10% duty imposed earlier in the month.
Fentanyl Crisis and Trade Battles
Trump has linked these tariff hikes to China’s alleged role in the U.S. fentanyl crisis, insisting that the additional duties will proceed unless the flow of fentanyl into the country is curbed. In response, China’s commerce ministry dismissed the allegations, accusing the U.S. of “shifting the blame.”
“China has one of the world’s strictest anti-narcotics policies,” a ministry spokesperson stated. “The U.S. is ignoring these facts and instead choosing economic blackmail.”
China’s foreign ministry further warned that the increased tariffs would “seriously impact dialogue” on counter-narcotics cooperation and trade relations, emphasizing that “pressure and coercion are not the right approach.”
Global Economic Repercussions
The trade war’s ripple effects are already being felt, with Asian markets dipping sharply. Tokyo’s stock exchange briefly lost 3% following Trump’s announcement. Meanwhile, global leaders are scrambling to respond.
- Mexico: President Claudia Sheinbaum has indicated her intent to engage with Trump to prevent Mexico from being hit by the new levies. A high-level Mexican delegation is currently in Washington seeking a resolution.
- Canada: Prime Minister Justin Trudeau stressed that Canadian officials are working to avert the tariffs but promised an “immediate” response should they take effect. He reiterated that Canada is not a major transit point for fentanyl into the U.S.
Reciprocal Tariffs on the Horizon
In addition to the fentanyl-linked tariffs, Trump reaffirmed that new reciprocal tariffs will take effect on April 2, targeting each U.S. trading partner individually. Details of these measures will be finalized after trade investigations conclude.
China’s Commerce Minister Wang Wentao has urged Washington to engage in dialogue rather than resort to economic penalties, but Beijing remains firm that it will take decisive action if U.S. tariffs proceed.
As both nations brace for the fallout, the ongoing trade war continues to send shockwaves through global markets, with businesses and consumers caught in the crossfire.