The United States will impose an additional 10% tariff on Chinese imports starting March 4, President Donald Trump announced Thursday.
The move is part of his broader strategy to pressure Beijing on trade and drug enforcement issues. Trump cited continued fentanyl flows into the US as a key reason for the new tariffs, calling the levels "very high and unacceptable."
According to Bloomberg, this latest duty comes on top of a 10% tariff implemented earlier this month, doubling the total levy on Chinese imports.
Trump also confirmed that a 25% tariff on goods from Canada and Mexico remains on schedule for the same date.
The administration argues that these measures are necessary to curb the influx of fentanyl, an opioid linked to tens of thousands of US deaths each year.
China's response has been measured but strategic, imposing targeted tariffs on American products while signaling the possibility of stronger retaliation.
Chinese President Xi Jinping has urged his officials to remain composed, and state media outlets such as Xinhua and People's Daily have notably refrained from reporting on Trump's announcement.
🆕 Global Macro Views 👓 from @MarcelloEstevao & @EconChart: U.S.-China relations have escalated in response to newly imposed tariffs. The Trump administration has announced a 10% tariff on all Chinese imports, covering nearly $500 billion in goods
— IIF (@IIF) February 27, 2025
Read: https://t.co/lvYdIUAR9E pic.twitter.com/m08vj6Xcrq
China's Economy Can Withstand US Tariffs, but Trade Resistance Looms
Despite rising tensions, communication between the two nations continues. Chinese Vice Premier He Lifeng recently spoke with US Treasury Secretary Scott Bessent, marking the second high-level contact between the two governments since Trump returned to office.
Additionally, China's Defense Ministry confirmed ongoing discussions with the US military.
Bloomberg economist Maeva Cousin believes that the impact of these tariffs on China's economy should be manageable.
She noted that only a small portion of China's total economic output—just over 2%—is tied to exports to the US However, Cousin also pointed out that China may face resistance from other trade partners if it attempts to redirect its exports.
Other countries have already taken steps against Chinese goods. In the past week, both South Korea and Vietnam imposed tariffs on Chinese steel products to counter surging supply.
The economic battle between Washington and Beijing has escalated, but both sides appear eager to avoid a complete collapse in relations, Reuters said.
Trump recently highlighted his personal ties with Xi, stating that a new trade deal with China remains possible. Although he suggested earlier this month that he would speak with Xi "very soon," no such conversation has taken place yet.
As March 4 approaches, analysts are watching closely for any potential shifts in policy from either country.
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