Trump Threatens New Tariffs on EU and China as Trade Tensions Grow
U.S. President Donald Trump reiterates tariff threats directed at the European Union and China, pointing to trade imbalances and fentanyl issues.
On Tuesday, U.S. President Donald Trump announced new tariff threats against the European Union and China, reflecting his administration's focus on trade imbalances and illegal trafficking.
During a speech at the White House, Trump mentioned that tariffs on the EU and a possible 10% tax on Chinese imports were being considered, with a deadline of February 1, 2025. These actions are part of his larger strategy to impose tariffs on countries deemed to have unfair trade practices, including Mexico and Canada, specifically addressing issues like fentanyl trafficking and illegal immigration.
Trump’s statements followed a day after he held off on imposing tariffs, as he had promised during his campaign.
His recent remarks have increased market volatility, as U.S. trade groups and financial markets had hoped for a more lenient approach.
White House trade adviser Peter Navarro stressed that the proposed tariffs are intended to pressure Mexico and Canada to reduce illegal drug and migrant flows, which Trump associates with national security concerns.
In response, China reiterated its commitment to dialogue and cooperation with the U.S., while cautioning against the adverse consequences of a trade war.
The Chinese government voiced its concerns over the potential tariffs, highlighting that no one benefits from a trade conflict.
At a recent press briefing, China’s foreign ministry spokesperson Mao Ning stated that Beijing would strongly protect its national interests.
Meanwhile, Trump’s administration is pushing for a thorough review of U.S. trade practices, including an evaluation of ongoing trade deficits and unfair practices, particularly with China.
A recent trade memorandum signed by Trump instructs federal agencies to examine issues like currency manipulation and suggests implementing a global supplemental tariff.
The president’s memo also suggests revisions to the de minimis exemption for low-value shipments, often used to import fentanyl precursor chemicals.
While trade experts believe Trump’s approach might be more cautious to ensure legal certainty, the new tariff threats could further disrupt international trade relations.
In response, leaders from Mexico and Canada have expressed a determination to defend their sovereignty, with Mexican President Claudia Sheinbaum affirming that any renegotiation of the U.S.-Mexico-Canada free trade agreement will not occur before 2026.
U.S. industries, particularly farmers, have expressed concerns regarding the impact of additional tariffs on exports, notably corn and ethanol shipments to Mexico and Canada.
The National Corn Growers Association has advised caution, emphasizing the importance of maintaining trade with these vital markets.
During a speech at the White House, Trump mentioned that tariffs on the EU and a possible 10% tax on Chinese imports were being considered, with a deadline of February 1, 2025. These actions are part of his larger strategy to impose tariffs on countries deemed to have unfair trade practices, including Mexico and Canada, specifically addressing issues like fentanyl trafficking and illegal immigration.
Trump’s statements followed a day after he held off on imposing tariffs, as he had promised during his campaign.
His recent remarks have increased market volatility, as U.S. trade groups and financial markets had hoped for a more lenient approach.
White House trade adviser Peter Navarro stressed that the proposed tariffs are intended to pressure Mexico and Canada to reduce illegal drug and migrant flows, which Trump associates with national security concerns.
In response, China reiterated its commitment to dialogue and cooperation with the U.S., while cautioning against the adverse consequences of a trade war.
The Chinese government voiced its concerns over the potential tariffs, highlighting that no one benefits from a trade conflict.
At a recent press briefing, China’s foreign ministry spokesperson Mao Ning stated that Beijing would strongly protect its national interests.
Meanwhile, Trump’s administration is pushing for a thorough review of U.S. trade practices, including an evaluation of ongoing trade deficits and unfair practices, particularly with China.
A recent trade memorandum signed by Trump instructs federal agencies to examine issues like currency manipulation and suggests implementing a global supplemental tariff.
The president’s memo also suggests revisions to the de minimis exemption for low-value shipments, often used to import fentanyl precursor chemicals.
While trade experts believe Trump’s approach might be more cautious to ensure legal certainty, the new tariff threats could further disrupt international trade relations.
In response, leaders from Mexico and Canada have expressed a determination to defend their sovereignty, with Mexican President Claudia Sheinbaum affirming that any renegotiation of the U.S.-Mexico-Canada free trade agreement will not occur before 2026.
U.S. industries, particularly farmers, have expressed concerns regarding the impact of additional tariffs on exports, notably corn and ethanol shipments to Mexico and Canada.
The National Corn Growers Association has advised caution, emphasizing the importance of maintaining trade with these vital markets.
