China has issued a warning to Donald Trump over his plans to impose new tariffs, saying that "no one will win a trade war."
The President-elect said on Monday that he will impose an additional 10 percent tariff on Chinese products entering the U.S. when he returns to the White House, warning that "massive amounts of drugs" are still pouring into the U.S. despite numerous talks.
"I have had many talks with China about the massive amounts of drugs, in particular fentanyl, being sent into the United States – but to no avail," he wrote on Truth Social. "Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and 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."
Reacting to Trump's statement, Liu Pengyu, the spokesman for the Chinese Embassy in the U.S., wrote on X, formerly Twitter: "China-US economic and trade cooperation is mutually beneficial in nature. No one will win a trade war or a tariff war.
"The counternarcotics authorities of China and the U.S. have resumed regular communication since the San Francisco Summit. The Chinese side has notified the US side of the progress made in US-related law enforcement operations against narcotics. China has responded to US request for verifying clues on certain cases and taken action."
He added: "All these prove that the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality."
Newsweek has contacted Trump's team and the Chinese embassy for comment.
Trump also announced that he will implement 25 percent tariffs on all goods coming from Mexico and Canada.
"As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing crime and drugs at levels never seen before. Right now a caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently open border," he wrote.
"On January 20th, as one of my many first executive orders, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on ALL products coming into the United States, and its ridiculous open borders."
During the 2024 presidential campaign, Trump ran on a pledge to use tariffs to boost American businesses, with up to 60 percent on Chinese imports.
The tariffs would be implemented as a tax on imports, but some economists worry that the costs will fall on importing companies, who will pass them to consumers, forcing them to pay higher prices.
Michael Ryan, a finance expert and founder of michaelryanmoney.com, told Newsweek previously: "These tariffs would certainly mean higher prices for the American consumer.
"Retailers/importers will pass these increased costs onto shoppers, driving up the price of everyday items like toasters and washing machines."
But Edward M. Feasel, president and professor of economics at the Soka University of America, told Newsweek earlier this month that an "optimal tariff" rate could exist, which is not necessarily zero percent.
"The dislocation of U.S. workers due to increasing trade and globalization has been a reality and has left many Americans disillusioned with U.S. promotion of free trade. The backlash has been real and there have been political consequences," he said.
Newsweek