Trump threatens China: New tariffs announced from February 1st

Trump threatens China: New tariffs announced from February 1st

President Donald Trump warned on Tuesday that more tariffs may be imposed on imports from China next week. At a press conference in the Oval Office, which reminded of similar statements on Monday, Trump announced that it would think about a flat -rate customs of 10 % in all Chinese goods that could come into force on February 1st. On Monday, Trump had already threatened 25 % tariffs on imports from Mexico and Canada, but said nothing concrete about China and found that his successor, Joe Biden, retained the comprehensive tariffs that Trump introduced during his first term.

Trump's motives for the customs increase

It is unclear what this sudden change in Trump's customs policy triggered, although during his election campaign he prospect of a custom of up to 60 % of all goods imported from China. Trump explained on Tuesday that too much fentanyl will come to the United States via Mexico and Canada, and that the threat of tariffs could get China to act against the deadly drug problem.

Talks with China's President XI

"I recently had a conversation with President Xi from China. I said that we don't want this crap in our country. We have to stop it," said Trump. "We talk about 10 % of 10 % in China because they send fentanyl to Mexico and Canada." Trump repeated a frequent sentence on Tuesday, according to which he had a deal with XI in his first term in which China agreed to introduce the death penalty for drug dealers that were caught when drugs in the USA inert. However, he claimed that Biden did not respond to this proposal and did not expressly demand the execution of convicted drug dealers as a condition to avoid tariffs.

Trump's executive measure

On Monday, Trump announced an executive measure that proves the Minister for Trade and Finance and the United States' trade officers to examine the causes of the trade deficits of America with foreign nations. The aim is to establish an “external Revenue service” to raise tariffs, identify unfair trade practices and to check existing trade agreements for possible improvements. This also includes a review of the trade agreement between the USA, Mexico and Canada (USMCA), which Trump signed in his first term.

market analysis and investor reaction

However, the measure did not provide a specific increase in tariffs. As a candidate, Trump had suggested far -reaching and uniform tariffs: up to 20 % on imports from all countries with a 25 % customs on goods from Mexico and Canada and a 60 % inch on goods from China. He had also promised to use tariffs as a negotiating instrument towards other countries, including Denmark to put pressure on the European nation, to hand over control over Greenland to the United States.

The view of a delayed implementation made the investors smile on Tuesday and let the Dow rise by more than 500 points. Wall Street is generally skeptical about tariffs, since American importers pay the tariffs to the port and pass them on to companies and consumers. This could be inflationary, which is worrying because the United States is still suffering from the effects of inflation in recent years.

internal discussions in the Trumps team

Various groups from Trump's business team are working to determine the best strategy for introducing tariffs. Market -related officials such as Scott Bessent, Trump's candidate for the Ministry of Finance, and Kevin Hassett, his coin for the National Economic Council, advocate a gentler approach. Tool experts like Peter Navarro, a trade advisor of the White House, and Howard Lutnick, Trump's candidate for the Ministry of Commerce, argue that a more comprehensive approach is necessary to send the messages requested by Trump.

Trump has already contacted allies on the Capitol Hill to secure support for the tariffs. Even if the specific policy has not yet been determined, Trump could influence the decisions with his spontaneous announcements.

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