U.S. President Donald Trump on Tuesday vowed to hit the European Union with tariffs and said his administration was discussing a 10% punitive duty on Chinese imports because fentanyl is being sent from China to the U.S. via Mexico and Canada.
Trump voiced his latest tariff threats in remarks to reporters at the White House a day after taking office without immediately imposing tariffs as he had promised during his campaign.
Financial markets and trade groups exhaled briefly on Tuesday, but his latest comments underscored Trump's longstanding desire for broader duties and a new Feb. 1 deadline for 25% tariffs against Canada and Mexico, as well as duties on China and the EU.
Trump said the EU and other countries also had troubling trade surpluses with the United States.
"The European Union is very, very bad to us," he said, repeating comments made Monday. "So they're going to be in for tariffs. It's the only way ... you're going to get fairness."
Trump said on Monday that he was considering imposing the duties on Canada and Mexico unless they clamped down on the trafficking of illegal migrants and fentanyl, including precursor chemicals from China, across their U.S. borders.
Trump had previously threatened a 10% duty on Chinese imports because of the trade, but realigned that with the Feb. 1 deadline.
White House trade adviser Peter Navarro told CNBC early on Tuesday that Trump's Canada and Mexico tariff threat was to pressure the two countries to stop illegal migrants and illicit drugs from entering the U.S.
"The reason why he's considering 25, 25 and 10 (percent), or whatever it's going to be, on Canada, Mexico and China, is because 300 Americans die every day" from fentanyl overdoses, Navarro said.
Trump on Monday announced a sweeping immigration crackdown, including a broad ban on asylum.
Trump on Monday signed a broad trade memorandum ordering federal agencies to complete comprehensive reviews of a range of trade issues by April 1.
These include analyses of persistent U.S. trade deficits, unfair trade practices and currency manipulation among partner countries, including China. Trump's memo asked for recommendations on remedies, including a "global supplemental tariff," and changes to the $800 de minimize duty-free exemption for low-value shipments often blamed for illicit imports of fentanyl precursor chemicals.
The reviews ordered create some breathing room to resolve reported disagreements among Trump's cabinet nominees over how to approach his promises of universal tariffs and duties on Chinese goods of up to 60%.
Trump's more measured approach to tariffs fueled a rally in U.S. stocks that pushed the benchmark S&P 500 index to its highest level in a month, though Trump's new salvo on China and the European Union may deflate that momentum.
Trump likely "decided to go a little slower and also to make sure he has as firm a legal foundation as he can get for these kinds of actions," said William Reinsch, a trade expert at the Center for Strategic and International Studies in Washington. "He's figuring out how to best use his leverage to get what he wants."
SOFTER TONES
Mexico and Canada struck conciliatory tones in response to Trump's Feb 1 deadline. Mexican President Claudia Sheinbaum said that she would emphasize Mexico's sovereignty and independence and would respond to U.S. actions "step by step."
But she added that the U.S.-Mexico-Canada free trade agreement was not up for renegotiation until 2026, a comment aimed at pre-empting suggestions that Trump will seek an early revamp of the pact that underpins over $1.8 trillion in annual three-way trade.
Corn farmers are worried about U.S. tariffs and retaliatory duties disrupting trade with Mexico, their top export customer for corn, and with Canada, the top export customer for U.S. corn-derived ethanol.
"We understand that he is a negotiating type of person," Illinois farmer Kenny Hartman Jr, board president of the National Corn Growers Association, said of Trump. "We're just hoping that we can come out of this where we don't lose the exports - we don't lose that corn going to Mexico or that ethanol going to Canada."
© Thomson Reuters 2025.
26 Comments
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deanzaZZR
Don't forget to penalize them for not using the US dollar for trade and instead using the Euro that was created decades ago, Donald.
"The European Union is very, very bad to us," he said, repeating comments made Monday. "So they're going to be in for tariffs"
stormcrow
As former Senator Al Franken recently said (and I’m paraphrasing here), “The country who has tariffs slapped against it ISN’T paying for the tariffs, WE ARE!”
Zaphod
Trump likes tariffs. No surprise, as it is a great negotiation tool. You see the art of the deal in practise.
nishikat
Good thing I'm in cheap Japan. No tariffs here and really cheap to live. Trump people think that China pays for tariffs. That is NOT true. Americans will pay more for tariffs. Remember Trump people living in Japan. Your life here is cheap because Japan has no tariffs.
The_Beagle
Canada is infested with ChiComs and drug-running South Asians. Since it can't fix itself, Trump admin is right to hit them hard (and hopefully teach them a meaningful lesson).
OssanAmerica
The whole idea of Tariffs is to raise the final price of the goods to the consumer. That's how a country can protect it's own industry. It makes what was "cheap and imported" into "expensive and imported" causing the consumer to buy the domestically produced alternative.
Many people claim that Tariffs won't work because the consumer will end up paying for it. Well that's only true if the average American consumer prefers to buy a product Made in China (for example) at the same or higher price than the same product Made in USA. I don't see this happening because 99.99% of the attractiveness of a Made in China product is it's low price. In which case the cost advantage of the imported good is taken away thereby protecting the US makers.
Some say that the US Importers are the ones who pay the tariffs. While this may be true, those Importers are simply going to stop importing those products if they don't sell anymore having lost the price advantage.
But without doubt a Tariff War will arise making it difficult to measure whether a country is gaining or losing, as trade partners will put tariffs on our exports. In any case, Tariffs are not a singular solution to resolving trade imbalances, and aren't going to make any country "great again".
Underworld
Zaphod
Well the last time Trump was president his tariffs started a trade war with China which resulted in bail outs to farmers to tune of $27 billion!
The Art of the Deal? Yeah, right.
wallace
What is the difference between import duties and tariffs?
Japan has import duties and some products like rice are very high.
Blacklabel
meaning he is doing exactly what he said he would do and what he was elected to do? Wow.
so sensational and biased.
Blacklabel
im curious, why is this person a “former” Senator?
elephant200
The American contemporary culture are :Lust, Drugs and Guns. Even China don't exports fentanyl materials to US or Mexico,someone will do it !
300 Americans die everyday...
This is the bad habits of people of the U.S. The fentanyl is a pain relief to save lives not a drug using to generate illusions like cocaine！
The_Beagle
The pace the new admin is putting on MAGA is awe inspiring!
nishikat
Well I'm glad to stay in Japan where I can get anything I need really cheap. This includes cheap government healthcare in Japan. Japan has no tariffs and Trump people in Japan are happy with that. Why do Japan based Trump people want Trump tariffs in the USA?
Burgerland
The pace the new admin is putting on MAGA is awe inspiring!"
It sure is. This news headline got it just about right-
Donald Trump has ‘done more in twelve hours’ than Joe Biden has in ‘twelve months’
In the last twelve hours United States President Donald Trump has “done more and said more” than Joe Biden has done “in the last twelve months,” Sky News host Chris Kenny.
Peter14
Trump stirs tariff pot…fresh threats
Absolutely correct. Trump will raise the costs of imported goods for every American exactly as he promised to do.
Trumps tax bonanza, through calling it a tariff. All pay so he can then use the extra collected to give tax breaks to the rich. Ordinary Americans are paying for it all and it was in plain sight the whole time. I guess Trump was right, he really is smarter than the average American.
bass4funk
Drugs is a universal issue, as well as lust, has nothing to do with culture.
So that is an excuse now to let China off the hook?
We know what it does and how dangerous it is, but you make it seem as if it is a drug that is easily controllable and it's not.
bass4funk
Relax, no tariffs were implemented, it is more used as a negotiating tool, if these countries don't do anything stupid to us, Trump won't need to use them, but it most definitely is a negotiating starter.
Blacklabel
cause I am (somewhat) Japan based, yes.
but also America(n) First.
wallace
Tariffs will also be on imported raw materials making the final item more expensive to the consumer.
wallace
Japan-based American ex-pats will not be affected by Trump's tariffs.
nishikat
Which means? What if you run out of Froot Loops in Japan? Also, Japan has an import block on guns. Why would a MAGA want to be in Japan?
JJE
Everyone is already paying tariffs and has been for the last few years.
It's called Joe's inflation economy and the policies that caused it... hitting everyone, worldwide square in the hip pocket.
Underworld
Burgerland
Well Biden got a ceasefire in in Gaza and the largest spy swap with Russia since the Cold War. And he didn't have Congress in those last two years, so I don't think I'll give Trump that.
Most of his EO's are not legal and will be struck down by the courts and pardoning criminals who violently stormed the capital is a minus, not a plus.
wallace
During his first term, Trump introduced a tariff on Chinese goods. It stopped importing American soybeans leaving the American farmers without a market. Forcing Trump to give $20 billion in compensation to them. China started importing cheaper soybeans from Brazil.
Peter14
Trump is using them two ways. To get other nations to do things not currently done or else, and to raise the revenue needed to give the rich their promised tax cuts.
The EU is treating us very badly (Trump said), just because they have a surplus in trade? I guess every nation the US has a trade surplus with is a country the US is treating very badly then. That seems to be the very basic measuring stick used by Trump.
Trump is a just moron who seems to know what buttons to press to convince almost half of American's that he is right. Fact checking shows he lies more often than he tells the truth.
Worst American President ever. and now also the second worst American President. Quite a record for Trump to be remembered by.
funkymofo
A wildfire will destroy a forest very quickly. A bull will destroy a china shop quickly- so not remotely a positive. Meaningless until the effects of the changes are seen- such as the increased prescription drug prices 120 million ordinary Americans will be forced to pay after trump screwed them over on his first day by canceling Biden’s Medicare/medicaid executive order.
wallace
The EU is America's largest trading partner. €1.5 trillion in goods and services, or 30% of the US trading market.
deanzaZZR
You are safe @Pete14. I was curious and see that Australia is the #21 trader with the USA based on total trade value just behind mighty Belgium (2023 data). And not only that but the USA runs a surplus with Australia. Lucky you!