Trump says he is contemplating a ten% tariff on China starting as quickly as Feb. 1

President Donald Trump mentioned that his group was discussing a ten% tariff on China and that the responsibility may take impact as early as Feb. 1.

“We’re speaking a few tariff of 10% on China based mostly on the truth that they’re sending fentanyl to Mexico and Canada,” the president mentioned, chatting with reporters on the White Home on Tuesday night.

“In all probability Feb. 1 is the date we’re taking a look at,” he added.

Fentanyl, an artificial opioid, is an addictive drug that is led to tens of hundreds of overdose deaths annually within the U.S. Decreasing illicit provides of the drug, precursors of that are largely produced in China and Mexico, has change into an space wherein Washington and Beijing have agreed to cooperate.

Trump mentioned Friday that he spoke with Chinese language President Xi Jinping over the telephone about fentanyl and commerce. The Chinese language aspect’s readout mentioned Xi referred to as for cooperation and solid the 2 international locations’ financial ties as mutually useful.

There are “no winners” in a commerce battle, China’s Vice Premier Ding Xuexiang, informed the World Financial Discussion board in Davos, Switzerland, on Tuesday, in accordance with an official translation. He referred to as for worldwide efforts to help “financial globalization” and “distribute it higher.”

The offshore Chinese language yuan initially strengthened, earlier than weakening to commerce at 7.2796 in opposition to the buck.

Main Chinese language state-run and monetary media didn’t point out the proposed China tariffs, whereas highlighting different Trump headlines equivalent to his warning of duties on the European Union.

The U.S. is China’s largest buying and selling associate on a single-country foundation. China’s imports from the U.S. fell 0.1% in greenback phrases final yr, whereas exports grew 4.9%, in accordance with official information accessed by Wind Data.

The information confirmed China’s commerce surplus with the U.S. in 2024 was $361 billion, larger than the $316.9 billion reported for 2020, the final full yr of Trump’s first time period. Again then, the White Home had raised tariffs on Chinese language items in an try to extend the nation’s imports of U.S. items, and handle longstanding considerations of U.S. companies in China. Beijing had reciprocated with duties of its personal.

“If the US imposed an extra 10 p.c tariff on China and China responded in form, US GDP could be $55 billion much less over the 4 years of the second Trump administration, and $128 billion much less in China,” the U.S.-based Peterson Institute for Worldwide Economics mentioned in a Jan. 17 report.

He made comparable feedback a day earlier, noting that levies on Mexico and Canada may happen as early as February.

“We’re pondering by way of 25% (levies) on Mexico and Canada, as a result of they’re permitting an enormous variety of individuals” over the border, he mentioned on Monday.

Whereas campaigning in 2024, Trump had threatened imposing tariffs upward of 60% on Chinese language items. As just lately as November, he referred to as for “an extra 10% Tariff” on China, in accordance with a publish on his social media platform Fact Social.

Correction: An earlier model of this story misstated which international locations could be topic to a 25% levy. These nations are Mexico and Canada. China’s commerce surplus with the U.S. in 2024 was $361 billion, larger than the $316.9 billion reported for 2020. An earlier model misstated the figures.