China attacked U.S. President-elect Donald Trump’s pledge to slap additional tariffs on Chinese goods over fentanyl flows, saying his incoming administration was pushing the blame for America’s opioid crisis onto China.
Trump, who takes office on Jan. 20, said on Monday he would impose a 10% tariff on Chinese goods so that Beijing does more to stop the trafficking of Chinese-made chemicals used in the highly addictive narcotic. He also threatened tariffs in excess of 60% on Chinese goods while on the campaign trail.
“China’s position against unilateral tariff increases is consistent,” He Yadong, a spokesperson for China’s commerce ministry, told a regular news briefing on Thursday. “Imposing arbitrary tariffs on trading partners will not solve America’s own problems.” He added that the U.S. should abide by World Trade Organisation rules and work with China to promote stable economic and trade relations.
According to Reuters, Trump’s comments fired the starting gun for what analysts expect to be a bruising four-year trade war, potentially much worse than his first term which saw tariffs of 7%-25% levied and global supply chains uprooted.
Indeed, Howard Lutnick, Trump’s pick to run the Commerce Department and oversee the Office of the U.S. Trade Representative, said in a podcast interview in October that “China is attacking America” with fentanyl and suggested Trump might levy tariffs as high as 200% on China.
Wall Street’s main indexes closed lower on Wednesday after the latest inflation data sparked concerns that the Federal Reserve may move slowly. Editorials in China’s state media this week have warned new duties could drag the world’s top two economies into a mutually destructive tariff war.
