On Tuesday, January 21, President Donald Trump stated that he is considering imposing a 10% tariff on Chinese imports as early as February 1. This announcement came during a press conference in the Oval Office where Trump linked discussions about tariffs to the fact that China has been shipping fentanyl to Mexico and Canada.
Trump emphasized that starting from February 1, a 25% import tax will be imposed on goods from Mexico and Canada. He reiterated on Tuesday that too much fentanyl is entering the United States through China via Mexico and Canada, and warned that tariffs could push Beijing to crack down on this deadly drug.
During his meeting with Chinese leader Xi Jinping, Trump raised the issue, stating, “I said, we don’t want this junk coming into our country. We have to stop it.”
“We are discussing imposing a 10% tariff on China because they are shipping fentanyl to Mexico and Canada,” Trump mentioned.
He also recalled an agreement made with Xi during his first term where Beijing agreed to execute drug traffickers smuggling drugs into the United States with the death penalty. However, Trump noted that his administration did not follow up on this proposal.
White House trade adviser Peter Navarro told CNBC on Tuesday that Trump’s imposition of tariffs on Canada and Mexico is to pressure these countries to prevent illegal immigrants and illegal drugs from entering the US. Navarro stated that Trump is considering tariffs of 25% on Canada and Mexico and 10% on China to combat the issue of 300 Americans dying daily from fentanyl overdoses.
Mexico has responded cautiously to the February 1 deadline. President Claudia Sheinbaum emphasized Mexico’s sovereignty and independence, promising a gradual response to the US’s actions.
Canadian Prime Minister Justin Trudeau reiterated that his government is prepared to handle any situation if Trump imposes tariffs on Canada. Trudeau emphasized that Canada’s resources are crucial for driving the prosperity promised by Trump. He mentioned, “Canada provides many necessary inputs for the economic growth and prosperity of the United States.”
When asked about the uncertain timeline for potential tariffs, Trudeau acknowledged Trump as a skilled negotiator who likes to keep his negotiating counterparts on edge.
On Monday, Trump signed a broad trade memorandum requesting federal agencies to conduct a comprehensive review of various trade issues by April 1. This review includes analyzing the ongoing trade deficit, unfair trade practices, and currency manipulation by countries including China. The memo suggests remedies such as implementing “global supplementary tariffs” and modifying the minimum tax exemption for $800 packages, often used for the illegal import of fentanyl precursor chemicals.
Trump’s economic team is deliberating on the best approach for implementing tariffs. Nominee for Treasury Secretary Scott Bessent and National Economic Council Chairman Kevin Hassett advocate for a more moderate approach, while tariff proponents like White House trade adviser Navarro and Commerce Secretary Howard Lutnick believe that a firm stance is necessary to convey Trump’s message effectively.
Trade expert William Reinsch from the Washington-based Center for Strategic and International Studies told Reuters that Trump may opt to proceed cautiously to ensure a solid legal foundation for such actions, while seeking to leverage his advantages to achieve his goals.