(Reuters)
BEIJING, Nov 27 (Reuters) – China’s state media warned U.S. President-elect Donald Trump his pledge to slap additional tariffs on Chinese goods over fentanyl flows could drag the world’s top two economies into a mutually destructive tariff war.
Trump, who takes office on Jan. 20, said on Monday he would impose “an additional 10% tariff, above any additional tariffs” on imports from China until Beijing clamped down on trafficking of the chemical precursors used to make the deadly drug.
The two superpowers are setting out their positions ahead of the former president’s return to the White House. Trump’s first term resulted in a trade war that uprooted global supply chains and hurt every economy as inflation and borrowing costs shot up.
Editorials in Chinese communist party mouthpieces China Daily and the Global Times late on Tuesday warned the next occupant of 1600 Pennsylvania Avenue to not make China a “scapegoat” for the U.S.’ fentanyl crisis or “take China’s goodwill for granted regarding anti-drug cooperation.”
“The excuse the president-elect has given to justify his threat of additional tariffs on imports from China is farfetched,” China Daily said.
“There are no winners in tariff wars. If the U.S. continues to politicise economic and trade issues by weaponising tariffs, it will leave no party unscathed.”
Economists have begun downgrading their growth targets for China’s $19 trillion economy for 2025 and 2026 in anticipation of further tariffs promised by Trump during the election campaign, and are warning Americans to brace for an increase in the cost of living.
