US president Donald Trump has threatened to hit China with 10 per cent tariffs on all imports as soon as 1 February, despite a “very good” call with Chinese president Xi Jinping.
On the first full day of his second presidency, Mr Trump said the tariffs on China were still on the table in remarks to reporters at the White House. His comments came even after Mr Trump refrained from mentioning China as one of the countries he was looking to target immediately.
“We’re talking about a tariff of 10 per cent on China, based on the fact that they’re sending fentanyl to Mexico and Canada,” Mr Trump said during an event at the White House. “Probably 1 February is the date we’re looking at.”
During his campaign, Mr Trump pledged to impose sweeping tariffs against China and other countries and said he would hit Chinese products with 60 per cent tariffs in what could have been a serious blow to the second-largest economy.
However, Mr Trump’s opening moves have been milder than expected in comparison to the 25 per cent tariffs he said he could impose on Mexico and Canada, also by 1 February.
The Chinese foreign ministry on Wednesday responded by pledging to defend its “national interests”.
“We have always believed that there are no winners in a trade war or a tariff war,” foreign ministry spokesperson Mao Ning said in a daily briefing when asked about Mr Trump’s threat.
She added that Beijing was “firmly committed to safeguarding national interests”.
The beginning of the Trump presidency coincided with a dip in Chinese stocks and currency on Wednesday. The mainland’s CSI 300 index fell 1 per cent, its first decline in five days and Hong Kong’s Hong Kong’s Hang Sen was the worst performer in Asia, falling 1.6 per cent.
Mr Trump also threatened the European Union with tariffs, saying it was “very bad” to the US. He said the EU and other countries also had troubling trade surpluses with the United States.
"China is an abuser, but the European Union is very, very bad to us," he said. "They treat us very, very badly. So they’re going to be in for tariffs. It’s the only way you’re going to get back. It’s the only way you’re going to get fairness."
Despite the tariff threats, Mr Trump told reporters he had a “very good” phone call with Mr Xi on Friday. It was their first call in four years and Mr Trump described it as covering “trade, fentanyl, TikTok, and many other subjects”.
“I just spoke to Chairman Xi Jinping of China,” Mr Trump wrote on his social media platform, Truth Social. “It is my expectation that we will solve many problems together, and starting immediately.”
“President Xi and I will do everything possible to make the World more peaceful and safe!” he wrote.
Chinese foreign ministry said Mr Xi and Mr Trump “attach great importance to mutual interactions,” and “hope for a good start of the China-US relationship” during Mr Trump’s second term in White House.
Monday’s swearing-in was attended by vice president Han Zheng, the most senior Chinese official ever to attend a US president’s inauguration.
Mr Trump on Monday signed a broad trade memorandum ordering federal agencies to complete comprehensive reviews of a range of trade issues by 1 April.
It includes analyses of persistent US trade deficits, unfair trade practices and currency manipulation among partner countries, including China.
