In response to newly elected U.S. President Donald Trump’s announcement that he plans to impose a 10% tariff on all Chinese imports starting January 20, the Chinese Embassy in Washington issued a statement on Monday saying, “Neither the United States nor China will win a trade war.”
Trump’s remarks, made on his social media platform Truth Social, warned that the tariffs would remain in place until China takes significant steps to stop the flow of illegal drugs—particularly fentanyl—into the United States. The president accused China of failing to adequately address the illegal drug trade that passes through Mexico into the U.S.
China’s Response: No Winners in Trade Wars
The Chinese spokesperson, Liu Pengju, reaffirmed China’s stance, stating that the China-U.S. economic and trade cooperation benefits both sides, and that a trade war would lead to no victories. “No one will win in a trade or tariff war,” Liu said.
Trump’s Strong Stance on Tariffs
Trump emphasized that the new tariffs would remain in effect until China halts the flow of fentanyl precursors and other illicit drugs into the United States. “Until this is stopped, we will charge China an additional 10% tariff on top of all other tariffs on their numerous products coming into the United States,” Trump declared.
Earlier, Trump had promised to revoke China’s Most Favored Nation trade status and implement tariffs greater than 60%, far exceeding the tariffs imposed during his first term in office.
China’s Countermeasures Against Drug Trafficking
The Chinese government has pointed out that it has taken steps to combat the illegal drug trade, following a 2023 agreement between President Joe Biden and President Xi Jinping of China. Liu stressed that China had already informed the U.S. about the progress of their anti-drug operations, pointing out that the idea that China deliberately allowed fentanyl precursors to reach the U.S. was completely unfounded.
In June, China’s top prosecutor called on law enforcement officials to focus on curbing the drug trade. Subsequently, in August, following a joint investigation into the drug trade, China announced stricter controls on three key chemicals used in fentanyl production.
Markets React to Tariff Threats
Asian markets reacted cautiously to Trump’s announcement, with concerns over the potential escalation of the U.S.-China trade dispute.
Trump’s announcement also included Mexico and Canada as targets for increased tariffs. He stated that on January 20, one of his first executive orders would be to impose a 25% tariff on all products from Mexico and Canada, referencing their “ridiculous open borders.”
