By The Epoch Times | Created at 2025-03-03 23:48:43 | Updated at 2025-03-04 04:40:32
6 hours ago
The president also cited allegations of China devaluing its currency as a reason for considering more tariffs.
President Donald Trump signed an executive order on March 3 raising tariffs on Chinese imports to 20 percent, blaming the regime for fentanyl trafficking into the United States.
“I have determined that the PRC [People’s Republic of China] has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions and that the crisis described in [this order] has not abated,” the executive order states.
Trump originally imposed additional 10 percent tariffs on existing Chinese import taxes, many of which were enacted during his first term and carried over into the Biden administration.
The president’s 25 percent tariffs on Mexico and Canada are also set to resume on March 4.
Trump announced the new Chinese tariffs during a press conference unveiling a $100 billion partnership with Taiwan Semiconductor Manufacturing Company (TSMC).
“Vast amounts of fentanyl have poured into our country from Mexico, and as you know, also from China, where it goes to Mexico and goes to Canada,” Trump said.
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“China also had an additional 10 [percent], so it’s 10 plus 10.”
A reporter asked Trump how high he’s willing to go against China with import tariffs now that he’s doubled them to 20 percent.
“I can’t say, it depends on what they do with their currency. It depends on what they do in terms of a retaliation with some kind of an economic retaliation, which I don’t think they’re going to retaliate too much,” he said.
“Look, the United States has been taken advantage of for 40 years. The United States has been a laughing stock for years and years.”
With all his proposed tariffs, Trump said they would reshore manufacturing in the United States, improve the economy, and equalize unfair trade relationships abroad.
He also blamed China for devaluing its own currency to get ahead in trade and suggested that’s another reason for the new tariffs.
“I’ve called ... [Chinese leader] Xi [Jinping], I’ve called the leaders of Japan to say: ‘You can’t continue to reduce and break down your currency. You can’t do it because it’s unfair to us,’” Trump said.
“It’s very hard for us to make tractors [by] Caterpillar here when Japan, China, and other places are killing their currency, meaning driving it down. So all of these things add up, and the way you solve it very easily is with tariffs.
“Look, let them do that, and we make up for it with the tariffs.”
The president’s opponents suggest the tariffs could have unintended inflationary impacts if businesses that rely on Chinese companies for any part of their manufacturing process decide to increase prices on products to offset the tariffs.
Ford, Carrier, Apple, Tesla, Coca-Cola, and Cummins are just six examples of American companies that rely heavily on trade with China, according to an October 2024 report from a Coalition for a Prosperous America.
The potential impacts are not clear, with some estimates varying.
For instance, a 2019 report from the National Bureau of Economic Research calculated that a “20 percent tariff is associated with a 0.9 percent increase in the retail prices of affected household goods.”
Some companies, including AutoZone, have already publicly announced their intentions to raise prices on consumer products to offset the tariffs.
In 2023, the United States imported roughly $427 billion worth of goods from China, according to the U.S. Census Bureau, with products like electronics, cellphones, computers, and other technology items making up the largest import categories.
The Associated Press contributed to this report.
