Donald Trump has doubled down on threats for sweeping tariffs, this time on goods from China and the European Union, as a busy few days back in the White House rumbles on.
Having alluded to 25% tariffs against Mexico and Canada after Monday’s inauguration, Trump said Tuesday that a 10% levy on Chinese imports could be set at the same time on February 1.
Discussions around Chinese tariffs were “based on the fact that they're sending fentanyl to Mexico and Canada,” he accused.
Trump also raised the prospect of hitting the European Union with tariffs in a press conference, telling reporters the bloc “treat us very, very badly”.
“So they're going to be in for tariffs,” he said, “it's the only way you're going to get back. It's the only way you're going to get fairness”.
Renewed threats come after Trump’s campaign pledges for overarching tariffs, where he had signalled taxes of up to 60% on Chinese goods.
Though stopping short of immediately introducing the measures upon his return as president, Trump told federal agencies on Monday to review existing US trade deals.
Canada has since vowed to respond, while Chinese foreign ministry spokeswoman Mao Ning on Tuesday pledged the country would “safeguard its national interests” in turn.
“We have always believed that trade wars and tariff wars have no winners,” she said.
Chinese stocks receded overnight on the threats, while European markets were largely in the green on Wednesday.
“The US has a US$350 billion deficit with the EU, which is igniting the ire of President Trump,” XTB analyst Kathleen Brooks pointed out
“[It may] be hopeful that they could see a ‘tariff light’ approach from the US. Thus, the decline in stocks could be limited, as investors assess that Trump’s bark is worse than his bite.”