China is warning that "no one will win a trade war" after President-elect Donald Trump vowed to impose sweeping new tariffs on America's major trading partners over the flow of drugs and migrants into the U.S.
"China-US economic and trade cooperation is mutually beneficial in nature," Chinese Embassy spokesperson Liu Pengyu said on social media late Monday night. "No one will win a trade war or a #tariff war."
China-US economic and trade cooperation is mutually beneficial in nature. No one will win a trade war or a #tariff war.
— Liu Pengyu 刘鹏宇 (@SpoxCHNinUS) November 26, 2024
The counternarcotics authorities of #China and the #US have resumed regular communication since the San Francisco Summit. The Chinese side has notified the US… https://t.co/1EPLyApiy9
Liu also disputed Trump's assertion that China had reneged on promises to execute drug dealers for sending fentanyl and other drugs into the U.S. and he denied that China was "knowingly allowing fentanyl precursors to flow into the United States."
The comments came after Trump said he'd held "many talks" with Chinese officials about drug smuggling and was assured "that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through."
As a result, Trump said, "drugs are pouring into our Country, mostly through Mexico, at levels never seen before."
"Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America," he wrote Monday evening on his social media website.
Trump also said that "one of my many first Executive Orders" would be to "charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders."
"This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!" he wrote. "Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
A senior Canadian government official told the Associated Press that Prime Minister Justin Trudeau and Trump spoke about the border and trade after Trump's posts and had a good conversation.
Mexico's Foreign Relations Department and Economy Department didn't immediately respond to Trump's statements, AP said.
American tariffs are paid by U.S. companies in the form of import taxes on goods purchased outside the country and recent studies show that nearly all those costs now get passed along to other companies or consumers, according to the nonpartisan Tax Foundation.
Last week, Morgan Stanley's chief global economist said that Trump's tariff plans could increase inflation and impose a "big negative shock" to the American economy.
