Chinese state media has warned US President-elect Donald Trump that his promise to impose additional tariffs on Chinese goods over the flow of fentanyl into the country could drag the world’s two largest economies into a mutually destructive tariff war.
Trump, who takes office on Jan. 20, said Monday that he would impose “an additional 10% tariff, on top of any additional tariffs” on imports from China until Beijing cracks down on trafficking in the chemical precursors used to make the deadly drug.
The two superpowers are defining their positions in view of the former president’s return to the White House. Trump’s first term prompted a trade war that disrupted global supply chains and damaged every economy as inflation and borrowing costs skyrocketed.
Editorials from Chinese Communist Party mouthpieces China Daily and Global Times on Tuesday warned Trump not to make China a “scapegoat” for the U.S. fentanyl crisis or “take for granted China’s goodwill regarding cooperation anti-drug”.
“The excuse the president-elect has given to justify his threat of additional tariffs on imports from China is absurd,” the China Daily said.
“There are no winners in tariff wars. If the United States continues to politicize economic and trade issues by using tariffs as weapons, no party will emerge unscathed.”
Economists have begun to revise downward their growth forecasts for China’s economy in 2025 and 2026 in anticipation of new tariffs promised by Trump on the campaign trail, and are warning Americans to prepare for a rise in the cost of living.
“For now, the only thing we know for sure is that the risks in this area are high,” said Louis Kuijs, chief Asia economist at S&P Global Ratings, which on Sunday lowered its China growth forecast for 2025 and 2026 at 4.1%. and 3.8%, respectively.
Trump is threatening Beijing with tariffs far higher than the 7.5% to 25% range imposed on Chinese goods during his first term.
Chinese President Xi Jinping told former Singapore Prime Minister Lee Hsien Loong that China’s economy will continue to grow and develop in the long term during a meeting in Beijing on Tuesday following Trump’s comments, Xinhua news agency reported .
In a Reuters poll last week, economists expected additional U.S. tariffs to range between 15% and 60%. Many argue that Beijing will have to inject more stimulus to boost economic growth and offset pressure on exports.
Trump previously said he would introduce tariffs of more than 60% on Chinese products.
Source: Terra
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