US-China Trade Tensions Escalate Further Amid Fentanyl Tariff Threats

Published on 3.27.25

  The US has announced plans to impose "reciprocal" tariffs on China, matching tax rates charged by other countries, which is expected to be unveiled on April 2. This move comes as a response to what the US perceives as unfair economic practices by China. US Trade Representative Jamieson Greer expressed similar sentiments during introductory talks with Chinese Vice Premier He Lifeng, citing China's "unfair and anticompetitive" economic policies. The two sides engaged in a candid discussion on trade policies and agreed to maintain communication on issues of mutual concern. In response to the US plans, He Lifeng expressed "serious concerns" about the potential impact of these tariffs on China's economy, particularly its role in supply chains for illicit drugs like fentanyl. Chinese Premier Li warned that his country may face unexpected economic shocks and will introduce new policies if necessary to maintain a smooth economy. A recent report from Beijing highlights China's efforts to control the illegal trade in precursor materials for fentanyl, but this effort has not alleviated concerns raised by senior Chinese leaders about the need for increased global cooperation to safeguard the free trade system and counter protectionism.

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