The News
US President Donald Trump warned he could impose further tariff hikes on China beyond the 10% duty due to come into effect Tuesday, unless Beijing works to stop the flow of illegal fentanyl into the US.
The comments came after Canada and Mexico’s leaders separately agreed with Trump to postpone 25% tariffs on their respective countries’ exports to the US — also due to come into force Tuesday — by a month. Trump said he is preparing to speak with Chinese leader Xi Jinping later this week.
Trump said the 10% tariff order on China was an “initial salvo,” and adding that if Beijing doesn’t prevent illegal opioids from entering the US, then “tariffs are going to go substantially higher.”
Fentanyl was also at the heart of the deals struck between Trump and his Canadian and Mexican counterparts. Canadian Prime Minister Justin Trudeau said that Trump had agreed to postpone tariffs for at least 30 days, and that Canada would commit to reinforcing the border, combatting organized crime, and cracking down on fentanyl smuggling.
Mexico’s President Claudia Sheinbaum said Mexico would immediately reinforce its northern border with 10,000 members of the country’s National Guard to prevent the flow of illegal drugs, while the US would work to prevent the movement of high-powered weapons to Mexico.
Trump confirmed the one-month delay in a subsequent social media post, saying that the US and Mexico would negotiate during the pause to “achieve a ‘deal’ between our two countries.”
Know More
“The frenzy of last-minute maneuvering demonstrated Mr. Trump’s willingness to use tariffs as a source of leverage against America’s most important trading partners,” The New York Times wrote. Economists have warned that if tariffs were to come into effect, the uncertainty they would create could undermine the US economy and potentially hurt American consumers through higher costs.