U.S. President Donald Trump said he was considering imposing a 10% tariff on Chinese imports as early as February 1.
“My discussions with the administration were based on the fact that they were sending fentanyl to Mexico and Canada,” Trump said.
Following Trump’s threat A 25% import tax is charged. Mexico and Canada have accused it of allowing undocumented immigrants and drugs to enter the United States.
President Trump also pledged to impose tariffs on the European Union (EU) at a press conference held in Washington on Tuesday.
“China is an abuser, but the European Union is very bad for us,” he said.
“They’re treating us very, very badly. That’s why they’re going to impose tariffs. That’s the only way you can come back. That’s the only way you can get fairness.”
Shortly after taking office Monday, the new president directed federal agencies to review existing trade deals and identify unfair practices by U.S. trading partners.
Meanwhile, a senior Chinese official spoke out against protectionism at the World Economic Forum in Davos.
Chinese Vice Premier Ding Xuexiang called for a “win-win” solution to the trade dispute, without mentioning the United States.
During his presidential campaign, Trump promised to impose tariffs of up to 60% on Chinese goods.
Canadian Prime Minister Justin Trudeau promised a counterattack.
“If the (U.S.) president decides to impose tariffs, Canada will respond and everything will be discussed,” Trudeau said.
Ottawa is reportedly preparing billions of dollars worth of reverse tariffs in response to the threat.
Canada, China, and Mexico are major trading partners of the United States.
Tariffs are a critical part of Trump’s economic plan. The President believes this can spur growth, protect jobs, and increase tax revenues.
But many economists say such a move could lead to higher prices for Americans and hurt businesses hit by foreign retaliation.
