President Donald Trump has taken a significant step by signing an executive action that doubles the additional tariff on all Chinese goods from 10% to 20%. This decision is aimed at pressuring China to address the issue of fentanyl entering the United States. Trump emphasized that the communist country has not done enough to combat the flow of illegal drugs, leading to the escalation of tariffs.
The new 20% tariff is in addition to any existing tariffs on Chinese goods, making it the largest in US-China history. The initial tariffs, which came into effect on February 4, cover approximately $1.4 trillion worth of imported goods, significantly surpassing the $380 billion in tariffs imposed during Trump's first term.
In response to the increased tariffs, China has retaliated by imposing a 15% tax on specific types of coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. While further retaliation from China is expected, Trump expressed his belief that the response would not be excessive.
Prior to his presidency, Trump had promised a 60% tariff on all Chinese goods, indicating that the current tariff level could potentially rise even higher. Additionally, delayed 25% tariffs on Mexico and Canada are set to take effect tomorrow morning, further complicating international trade relations.
