Beijing, Feb 2: China strongly opposed the new tariffs imposed by U.S. President Donald Trump on Sunday, warning of retaliatory actions to protect its own rights and interests. The Chinese Ministry of Commerce stated it would take legal action against the U.S. through the World Trade Organization (WTO) for what it called the U.S.'s "wrongful practices."
The Ministry expressed its strong dissatisfaction with the additional tariffs, which were announced by Trump on Saturday. Starting Tuesday, the U.S. would apply a 10% tariff on all imports from China, in addition to existing duties. Trump also revealed a 25% tariff would be imposed on goods from Canada and Mexico. According to the White House, these tariffs aim to hold Mexico, Canada, and China accountable for halting illegal immigration and stopping the flow of harmful substances like fentanyl into the U.S.
The White House statement accused Chinese officials of failing to stop the flow of precursor chemicals to criminal cartels and to address money laundering by transnational criminal organizations. In response, China’s Ministry of Foreign Affairs stated that additional tariffs would not be productive and would harm future cooperation on drug control. The Chinese government condemned the tariffs, arguing that they violated WTO rules and would damage the economic and trade relations between the two nations. The Ministry emphasized that there are no winners in a trade war, and warned the new measures would likely impact future collaboration on addressing drug issues.
Trump's tariffs were imposed under the International Emergency Economic Powers Act (IEEPA).
Meanwhile, Mexican President Claudia Sheinbaum Pardo announced that Mexico would retaliate with its own tariffs, rejecting Trump’s accusations that the Mexican government is linked to criminal organizations. She proposed creating a bilateral working group to address shared concerns on public health and security. In a social media post, Sheinbaum strongly refuted the claims, stating that if any alliance with criminal organizations existed, it was within U.S. arms sales to these groups, citing a report from the U.S. Department of Justice earlier in the year.
In response, Canadian Prime Minister Justin Trudeau announced that Canada would impose 25% tariffs on USD 155 billion worth of American goods. The first set of tariffs would take effect on Tuesday, with a second round targeting an additional USD 125 billion worth of U.S. products in 21 days, allowing Canadian companies to explore alternative supply chains.