US Imposes Tariffs on China; Beijing Retaliates with Counter-Tariffs
President Donald Trump has enacted new tariffs aimed at curbing the influx of fentanyl precursors from Chinese chemical manufacturers.
The 10 percent tariffs mandated by President Donald Trump on all imports from China came into effect on Tuesday, prompting Beijing to retaliate with counter-tariffs on the same day.
These new tariffs on China are in addition to those that were introduced during Trump’s first term, which vary between 10 percent and 25 percent for different categories of goods.
On Tuesday, China’s Ministry of Commerce announced its counter tariffs on various U.S. products, along with other trade measures, including an investigation into Google.
The communist government stated it would impose a 15 percent tariff on coal and liquefied natural gas, along with a 10 percent tariff on crude oil, agricultural machinery, and large-displacement vehicles.
Tariff Guidance
On Monday, U.S. Customs and Border Protection released guidance detailing the new tariffs, which now apply to packages arriving in the United States from China, including those from Hong Kong.
Previous exemptions for low-value items—valued at less than $800—under the “de minimis” rules are no longer applicable.
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The new tariffs do not apply to items designated for humanitarian donations or certain media products—including films, publications, and various informational materials.
Addressing Fentanyl Issues
Trump signed an executive order on Saturday to impose tariffs on China as a measure against the production and distribution of chemicals that can be converted into fentanyl by criminal networks.
“[T]he Chinese Communist Party (CCP), which exercises ultimate control over the government and enterprises in the [People’s Republic of China], has subsidized and incentivized [Chinese] chemical companies to export fentanyl and other precursor chemicals used to manufacture synthetic opioids sold illegally in the United States,” the order states.
Trump accused the communist regime of offering support and a “safe haven” for criminal organizations known for laundering profits from fentanyl sales.
Packets of fentanyl, primarily in powder form and methamphetamine, seized by U.S. Customs and Border Protection from a truck crossing from Mexico into Arizona, displayed during a news conference at the Port of Nogales, Ariz., on Jan. 31, 2019.U.S. Customs and Border Protection/Reuters
Nearly 550,000 pounds of fentanyl—enough to kill almost 111 billion people, according to the Drug Enforcement Administration—was confiscated by law enforcement at the nation’s borders over the last three years, as stated in the order.
“The influx of these substances into our Nation threatens the very foundation of our society,” Trump expressed in the order. “The [Chinese Communist Party] is central to this challenge, not only by failing to curb the ultimate source of many illicit drugs in the United States but also by actively facilitating and growing the trade that poisons our citizens.”
Following dissatisfaction with China’s efforts to halt the flow of fentanyl during his first term, Trump is taking a more stringent approach now.
“China will be handled,” Trump declared. “Hopefully, China will cease sending us fentanyl; if not, tariffs will increase significantly.”
When the tariffs were first imposed during his initial term, Chinese officials retaliated with their own measures, including levies on pork, beef, and other agricultural products.
Chinese representatives have challenged trade policies during hearings at the World Trade Organization and have reiterated their intention to do so regarding the latest tariffs, stating that the United States should resolve its own issues.
A conversation with Beijing is anticipated in the coming days, as indicated by White House press secretary Karoline Leavitt.
It remains uncertain whether Trump will address the contentious Panama Canal issue during his discussions.
The former president has voiced persistent concerns regarding China’s influence over this crucial waterway.
“China is involved with the Panama Canal, and that won’t be the case for long,” Trump remarked. “That’s the way it has to be.”
The governments of Mexico and Canada acted swiftly in reaction to Trump’s threats of a 25 percent tariff on products sold in the U.S. if illegal immigration and fentanyl trafficking do not cease.
Executive orders signed alongside the one for China mandated these tariffs to commence on Feb. 4, yet negotiations between the United States and its neighbors delayed implementation for 30 days.
The Prime Ministers of Canada and Mexico, Justin Trudeau and Claudia Sheinbaum, respectively, informed Trump they would deploy 10,000 troops each to patrol the border and deter fentanyl smuggling.
Moreover, Canada is allocating $1.3 billion for border security and an additional $200 million for narcotics trafficking prevention.
Trump stated that no agreements have been reached regarding the removal of tariffs, and further negotiations are ongoing.
“Tariffs are incredibly effective, both economically and for achieving other objectives,” Trump remarked.
The Associated Press contributed to this report.
