U.S. President Trump warned again on Tuesday that his administration was considering imposing tariffs on China and the European Union.
He said his top officials are discussing imposing a 10% tariff on Chinese imports because fentanyl is shipped from China to the United States through Mexico and Canada.
He issued the latest tariff threat while speaking to reporters at the White House a day after taking office, but stopped short of imposing immediate tariffs as he promised during the campaign.
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Financial markets and trade groups breathed a brief sigh of relief on Tuesday, but his latest comments underscored Trump's longstanding desire to expand tariffs, setting a Feb. 1 date for 25% tariffs on Canada and Mexico and tariffs on China and the European Union. new deadline.
Trump said the EU and other countries' trade surpluses with the United States were also troubling.
“The EU is very, very bad for us,” he said, repeating comments he made on Monday. “So they're going to face tariffs. That's the only way… you're going to get fairness.
Trump said on Monday he was considering imposing tariffs on Canada and Mexico unless they crack down on illegal immigration and illegal immigration. Fentanylincluding precursor chemicals from China, crossing the U.S. border.
Trump had previously threatened to impose 10% tariffs on Chinese imports over trade issues, but changed that policy before the February 1 deadline.
“Persistent trade deficit, unfair trade, currency strategy”
White House trade adviser Peter Navarro told CNBC earlier on Tuesday that Trump's tariff threats against Canada and Mexico were aimed at putting pressure on the two countries to stop illegal immigration and illegal drugs from entering the United States.
“The reason he's considering 25, 25 and 10 (percentage) or any other number for Canada, Mexico and China is because 300 Americans die every day” from a fentanyl overdose, Navarro said.
Trump on Monday announced a sweeping crackdown on immigration, including a broad ban on asylum.
He also signed a wide-ranging trade memorandum giving federal agencies until April 1 to complete a comprehensive review of a range of trade issues.
These include analysis of the United States’ ongoing trade deficit, unfair trade practices, and currency manipulation by partner countries, including China.
Trump's memo calls for recommendations on remedies, including “global supplemental tariffs” and changes to $800 tariffs Minimum tax exemption Low-value shipments are often blamed for the illegal import of fentanyl precursor chemicals.
The review creates some breathing room amid reports that Trump's Cabinet nominees are divided over how to deliver on Trump's pledge to impose tariffs of up to 60% on Chinese goods.
Trump's more cautious tariff policy has fueled a rally in U.S. stocks, pushing the benchmark S&P 500 to its highest level in a month, although Trump's new attacks on China and the European Union could undermine that momentum.
William Reinsch, a trade expert at the Center for Strategic and International Studies in Washington, said Trump may “decide to slow down and make sure he has the strongest possible legal basis for such actions.”
“He's figuring out how to best use his influence to get what he wants.”
Mediation in Mexico and Canada
Mexico and Canada have taken a conciliatory approach to Trump's February 1 deadline. Mexican President Claudia Sheinbaum said she would emphasize Mexico's sovereignty and independence and would respond to U.S. actions “step by step.”
But she added that the U.S.-Mexico-Canada Free Trade Agreement would not be renegotiated until 2026, a comment aimed at forestalling suggestions that Trump would seek to revamp the pact sooner rather than later, which underpins an annual economy of more than $1.8 trillion. Tripartite Trade Agreement.
Corn growers worry that U.S. tariffs and retaliatory tariffs could disrupt trade with Mexico, the top export customer for corn, and Canada, the top export customer for U.S. corn ethanol.
“We know he’s a good negotiator,” Kenny Hartman Jr., an Illinois farmer and chairman of the board of the National Corn Growers Association, said of Trump. “We're just hoping that we can come out of this and not lose exports — we don't lose corn going to Mexico or ethanol going to Canada.”
- Reuters Additional editing by Jim Pollard
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