President Donald Trump issued a warning on Tuesday that additional tariffs could be implemented as early as next week, this time targeting China. Trump threatened to impose a series of increased taxes on imports from China, America’s second-largest trading partner. During an Oval Office press conference, Trump mentioned the possibility of a 10% across-the-board tariff on all Chinese goods starting from February 1. While he had previously threatened tariffs on Mexico and Canada, he redirected the focus to China, citing extensive tariffs left by former President Joe Biden during his first term.
The sudden shift in Trump’s tariff policy remains unclear, but he mentioned concerns about the influx of fentanyl from China through Mexico and Canada as a reason for the potential tariffs. Trump expressed a desire to address the issue and prevent the drug from entering the United States. He referred to a previous discussion with President Xi of China, where he emphasized the need to stop the flow of illicit drugs.
In his first term, Trump claimed to have an agreement with President Xi regarding imposing severe penalties on drug dealers involved in trafficking drugs to the United States. However, he criticized Biden for not pursuing this proposal. While Trump did not explicitly link avoiding tariffs with executing convicted drug dealers, he emphasized the importance of cracking down on drug trafficking.
Trump’s executive action on Monday instructed key government agencies to investigate trade deficits, establish measures to collect tariffs, address unfair trade practices, and review existing agreements. The action did not specifically mention an increase in tariffs, contrasting Trump’s previous proposals during his campaign. The delay in tariff implementation pleased investors, leading to a significant rise in the Dow.
Wall Street generally opposes tariffs as they can result in increased costs for American importers, eventually affecting businesses and consumers. Trump’s economic team is exploring various approaches to the tariff rollout, with differing opinions among officials. Market-oriented individuals within the administration are evaluating the best strategies for implementing tariffs.
In the ongoing discussions surrounding trade policies, there is a clear divide between those advocating for a softer approach and those championing tariffs. The battle lines are drawn between the likes of the Economic Council, pushing for a more measured response, and figures such as Peter Navarro and Howard Lutnick, who argue for a full-force implementation to convey President Trump’s desired message.
Amidst this tug-of-war, President Trump has been actively reaching out to allies in Congress to garner support for his stance on tariffs. The specifics of the policy remain up in the air, but the President’s impromptu declarations may be hinting at where his thumb is weighing in on the scale.
CNN’s own Kayla Tausche has delved into these developments, shedding light on the intricacies of the ongoing debate. For more insights and updates on this issue and others, stay tuned to CNN’s latest news and newsletters. To stay informed, create an account at CNN.com and be part of the conversation shaping the future of trade policies.
