US President Donald Trump on Tuesday, the 21st of January, promised the European Union (EU) to impose tariffs and said his administration was discussing a 10% punitive duty on Chinese imports as fentanyl is shipped from China to the US via Mexico and Canada, reports Reuters and BBC.
Trump made his latest tariff threat in comments to reporters at the White House the day after taking office, without immediately imposing tariffs as he had promised during his campaign.
Some relief was felt in financial markets and trade groups, but Trump’s comments underlined his efforts to impose higher tariffs, including 25% on Canada, Mexico, China and the EU with a new deadline of the 1st of February.
Trump pointed out that the EU and other countries also have a worrying trade surplus with the US.
“The European Union is very, very bad for us,” he said, echoing comments he made on Monday. “That’s why tariffs will be imposed on them. That is the only way… to get justice.”
Trump said on Monday that he was considering imposing tariffs on Canada and Mexico if they did not reduce the trafficking of illegal migrants and fentanyl, including precursor chemicals from China, across US borders.
White House trade adviser Peter Navarro told CNBC earlier on Tuesday that Trump’s threat to impose tariffs on Canada and Mexico is aimed at putting pressure on both countries to stop the flow of illegal migrants and illegal drugs into the US.
“The reason he is considering 25, 25 and ten (percent) or whatever it is, on Canada, Mexico and China, is because every day 300 Americans die” from fentanyl overdoses, Navarro said.
Trump on Monday signed a sweeping trade memorandum instructing federal agencies to complete comprehensive reviews on a range of trade issues by the 1st of April deadline.
Meanwhile, Chinese Vice Premier Ding Xuexiang spoke out against protectionism at the World Economic Forum in Davos, calling for win-win solutions to trade disputes without mentioning the US.
During the election campaign, Trump had promised to impose tariffs of up to 60% on Chinese goods.
Canadian Prime Minister Justin Trudeau has vowed to fight back.
“If the [US] President chooses to continue to impose tariffs, Canada will respond…,” said Trudeau. Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars.
Canada, China and Mexico are the main trading partners of the US.
Tariffs are an important part of Trump’s economic plans. The President believes that they can boost growth, protect jobs and increase tax revenues.
However, many economists argue that such measures could lead to higher prices for Americans and harm companies that will be affected by foreign retaliation.
Trump stirs tariff pot with new threats against EU and promises to impose tariffs on China from February
