Trump links China to fentanyl crisis, announces new tariff hike

Washington / Brussels / MadridThe US president has once again shaken up the markets with a new surprise announcement. After clearing up the misunderstanding about tariffs on Mexico and Canada that he caused yesterday during the presidential cabinet meeting, the tycoon has also announced a 10% increase in tariffs for China that will come into effect on March 4. This is an increase that is added to the 10% that already came into effect last month and is also added to the existing tariffs that were applied during the previous administration.

The announcement coincides with the clarification that he has again made regarding the thirty-day truce that he granted on the 25% tariffs for Mexico and Canada. Yesterday afternoon, the White House staff came out to correct the president and clarify that March 4 was still the deadline for Mexico and Canada, and that it would then be decided whether the pause would be extended. For a few hours, the misunderstanding gave hope to Mexicans and Canadians, causing jumps in the value of the Canadian dollar and the Mexican peso against the dollar.

Trump has again linked tariffs on China to the arrival of fentanyl, even though one thing has nothing to do with the other. "Drugs are still coming into our country from Mexico and Canada at unacceptable levels. A large percentage of these drugs, a large part in the form of fentanyl, are made and supplied by China," he explained on the Truth Social network. Therefore, he explained that "until this stops, the proposed tariffs scheduled for March 4 will be effective as planned." "China, however, will have an additional 10% surcharge from that date. The April 2 date for reciprocal tariffs remains fully in effect."

The announcement comes after the president also announced yesterday that he would consider imposing tariffs on copper imports. Tariffs on aluminum imports are already in place.

China's response to the 10% tariffs that went into effect last January was to impose 10% to 15% on some U.S. products. The increased trade pressure on China also coincides with the race for the development of artificial intelligence and the supply of rare earths, which are key to the manufacture of chips and semiconductors. China has one of the world's largest reserves of the key minerals for the production of semiconductors used for the development of advanced technology, including in the military field. Now Trump Ukraine presses for signing an agreement that will allow it to exploit the rare earths of the war-torn country and strengthen its position against the Asian giant in this field. Even so, Beijing remains the main centre for refining rare earths and many countries still have to send their minerals to it for processing.

Europe, "a blessing"

The European Commission has not yet made a move in response to Trump's threats and is keeping its hand outstretched in Washington, but warns that it will not sit idly by if the White House starts a trade war against the EU. In this regard, the European Union's spokesman for Trade, Olof Gill, has warned that "it will react firmly and immediately to any unjustified barrier to fair and free trade." "The European Union remains committed to global, open and predictable trade that benefits all partners," adds Gill.

Brussels has been sending these warnings to the White House for days to try to dissuade it, but this Thursday the Community spokesman for Trade has also responded to Trump's accusation against the EU, which he claims was created by "fotre" USA. "The European Union, since its foundation, has been a blessing for the United States," Gill stressed at the daily press conference of the European Commission.

In this sense, the community executive has again recalled that the Euro-Atlantic commercial relationship is the largest in the world, about 1.5 billion euros per year, and that the European Union has contributed in a decisive way. Thus, Gill has argued that "the creation of the single and integrated market has facilitated trade and reduced costs for exporters to the EU," as is the case of the American power.

Spain promises to respond

From Spain, President Pedro Sánchez assured that there will be a "proportionate" response if the US president follows through on his warnings to impose 25 percent trade tariffs on EU countries "in general terms." "We are prepared and from the EU we will adopt measures proportionate to this challenge. We will do so with specific help to all affected sectors," replied Sánchez during the inauguration of an advanced aeronautics manufacturing center in Zamudio (Vizcaya). The head of the State executive again described the tariffs proposed by Trump as "absolutely unjustified" because they "attack European economic sovereignty."

In his speech, Sánchez affirmed that "it is not true" that the EU part is created to "annoy others." "We look, as is the United States, it is also thanks to Europe," said Sánchez, who has rejected a "trade war" scenario.