China denounces Trump tariff: 'Fentanyl is America's problem'

China's government on Sunday (Feb 2) denounced the Trump administration's imposition of a long-threatened 10 per cent tariff on Chinese imports while leaving the door open for talks with the US that could avoid a deepening conflict.

Beijing will challenge President Donald Trump's tariff at the World Trade Organization and take unspecified “countermeasures” in response to the levy, which takes effect on Tuesday, the finance and commerce ministries said.

The response stopped short of the immediate escalation that had marked China's trade showdown with Trump in his first term as president and repeated the more measured language Beijing has used in recent weeks.

Trump on Saturday ordered 25 per cent tariffs on Canadian and Mexican imports and 10 per cent on goods from China, saying Beijing needed to stanch the flow of fentanyl, a deadly opioid, into the United States.

China's commerce ministry said in a statement that Trump's move "seriously violates" international trade rules, urging the US to "engage in frank dialogue and strengthen cooperation".

Filing a lawsuit with the WTO would be a largely symbolic move that Beijing has also taken against tariffs on Chinese-made electric vehicles by the European Union.

For weeks, Chinese Foreign Ministry spokesperson Mao Ning has said Beijing believes there is no winner in a trade war.

China's sharpest pushback on Sunday was over fentanyl, an area where the administration of Trump's predecessor, Joe Biden, had also been urging Beijing to crack down on shipments of the China-made precursor chemicals needed to manufacture the drug.

"Fentanyl is America's problem," China's foreign ministry said. "The Chinese side has carried out extensive anti-narcotics cooperation with the United States and achieved remarkable results."

Canada and Mexico have also announced plans to hit back.

Canada's Prime Minister Justin Trudeau said on Saturday the country will retaliate against Trump's new tariffs by imposing 25 per cent tariffs on US goods from drinks to appliances.

As relations between the long-time allies who share the world's longest land border reach a new low, Trudeau told a news conference he was slapping tariffs on C$155 billion (US$107 billion) of US goods.

Those on C$30 billion will take effect on Tuesday, the same day as Trump's tariffs, and duties on the remaining C$125 billion in 21 days, he said.

Trudeau warned the coming weeks would be difficult for Canadians and that Trump's tariffs would also hurt Americans.

Addressing Americans, he said: "They will raise costs for you, including food at the grocery store, gas at the pump. They will impede your access to an affordable supply of vital goods."

The Canadian leader said tariffs would include American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump's home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances.

Canada is considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships, Trudeau said.

Trudeau encouraged Canadians to buy Canadian products and vacation at home rather than in the US.

"We didn't ask for this but we will not back down," Trudeau said.

MEXICAN RETALIATORY TARIFFS

Mexican President Claudia Sheinbaum on Saturday also ordered retaliatory tariffs.

In a lengthy post on X, Sheinbaum said her government sought dialogue rather than confrontation with its northern neighbour, but that Mexico had been forced to respond in kind.

"I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non-tariff measures in defence of Mexico's interests," Sheinbaum posted, without going into detail on what US goods her government will target.

The United States is by far Mexico's most important foreign market, while Mexico in 2023 overtook China to become the top destination for US exports.

Mexico has been preparing possible retaliatory tariffs against imports from the US, ranging from 5 per cent to 20 per cent, on pork, cheese, fresh produce, as well as manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt, they said.

US exports to Mexico accounted for more than US$322 billion in 2023, Census Bureau data showed, while the US imported more than US$475 billion worth of Mexican products.

In her post, Sheinbaum also rejected as "slander" the allegation by the White House that drug cartels have an alliance with the Mexican government, a point used by the administration of Trump to explain why it had imposed the tariffs.

Trump said the tariffs against Mexico were due to the country's failure to stop fentanyl getting into the United States as well as what he describes as uncontrolled migration.

Sheinbaum also touted her government's record since she took office in October - seizing 20 million doses of deadly synthetic opioid fentanyl, in addition to detaining over 10,0000 individuals tied to drug trafficking.