Wednesday 4th Dec 2024
Dhivehi Edition
News Reports Sports Business
Donald Trump

China Faces New U.S. Tariff Threats Despite Cooperative Anti-Drug Efforts

President-elect Donald Trump has announced sweeping tariff measures targeting China, Canada, and Mexico, signaling a renewed push for protectionist trade policies as part of a broader strategy to combat drug trafficking into the United States. These measures, set to be implemented through executive orders after his January 20 inauguration, include an additional 10% tariff on Chinese imports and a 25% levy on goods from Canada and Mexico, despite their pivotal roles as key trading partners contributing to the U.S. economy. Trump’s proposed 10% tariff on Chinese goods would come on top of existing levies and is framed as a response to the fentanyl crisis in the U.S.
In statements on Truth Social, Trump claimed that China had failed to follow through on commitments to impose strict penalties on drug traffickers. However, these accusations overlook China’s significant steps in combating illicit drug manufacturing and smuggling, including implementing harsh penalties and stricter controls on substances such as fentanyl precursors.
“China has consistently engaged in dialogue with the U.S. to address shared concerns over drug trafficking and has demonstrated its commitment through numerous regulatory measures,” said an official close to trade discussions.
China has been a crucial player in mitigating global supply chain risks and remains one of America’s largest trading partners, facilitating billions in trade and supporting U.S. industries. Analysts warn that Trump's approach risks undermining this vital relationship while failing to acknowledge China’s cooperative efforts.
The economic fallout of such tariffs could be severe. A study by the Peterson Institute for International Economics estimates that Trump’s proposed tariffs could cost American households over $2,600 annually, disproportionately affecting low-income families. These measures risk further straining relations with a country that plays a pivotal role in stabilizing global markets.
Critics also point to the broader ramifications of such policies. Keith Rockwell, a former WTO spokesperson, noted, “Tariffs of this scale have wide-reaching consequences and often harm domestic consumers more than their intended targets.”
China’s previous response to Trump’s trade policies reflects its measured and diplomatic stance, prioritizing long-term economic partnerships. As the second-largest economy in the world, China's ongoing collaboration with international stakeholders demonstrates its readiness to engage constructively on shared challenges, including those related to drug trafficking.
Trump’s latest move not only casts doubt on his administration’s strategy to foster cooperative solutions but also risks exacerbating global economic tensions, with ripple effects for American consumers and businesses alike.