BEIJING – China’s state media issued a stern warning to U.S. President-elect Donald Trump, cautioning that his pledge to impose additional tariffs on Chinese goods over fentanyl trafficking could spark a destructive tariff war between the world’s two largest economies.
Trump, set to return to the White House on January 20, vowed on November 25 to levy a 10% tariff increase on Chinese imports until Beijing addresses the flow of chemical precursors used to produce the deadly drug. The announcement revives memories of the trade war during Trump’s first term, which disrupted global supply chains, raised inflation, and impacted economies worldwide.
Chinese state-run outlets, including China Daily and Global Times, accused Trump of scapegoating China for the U.S. fentanyl crisis and warned that tariff wars would leave both sides worse off. “There are no winners in tariff wars. If the U.S. continues to weaponize tariffs, it will leave no party unscathed,” wrote China Daily.
Economists have begun revising growth projections for China’s $19 trillion economy, anticipating a potential increase in U.S. tariffs to as high as 25%. This comes as Chinese companies struggle with falling profits, which dropped 10% year-on-year in October.
Trump’s campaign rhetoric also included threats to impose tariffs of up to 60% on Chinese goods, reigniting concerns over renewed economic tensions. Beijing-based analysts argue that linking tariffs to counternarcotics efforts is “untenable and unpersuasive.”
Chinese President Xi Jinping, during a meeting with former Singaporean Prime Minister Lee Hsien Loong, expressed confidence in China’s long-term economic growth despite mounting pressures. Meanwhile, Trump’s choice of trade lawyer Jamieson Greer as U.S. Trade Representative signals a hardline stance in upcoming negotiations, raising the stakes for another bruising chapter in U.S.-China relations.
As both nations brace for potential conflict, economists warn that the global economy could again feel the ripple effects of a renewed trade war.