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Trump Renews Tariff Threats on EU and China Over Trade and Fentanyl Concerns

U.S. President Donald Trump has reignited threats to impose tariffs on the European Union (EU) and China, citing trade imbalances and the flow of fentanyl into the U.S. through Canada and Mexico as pressing concerns.

Speaking at the White House, Trump suggested a potential 10% punitive tariff on Chinese imports and criticized the EU for what he described as unfair trade practices.

“The European Union is very, very bad to us,” Trump stated. “So they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”

The comments come after Trump’s first day in office passed without the immediate imposition of tariffs promised during his campaign, providing temporary relief to markets. However, his renewed threats have set a new deadline of February 1 for imposing 25% tariffs on Canada and Mexico, with additional duties targeting China and the EU.

Trump justified the proposed tariffs as necessary to address the U.S. trade deficit and combat the influx of fentanyl, a synthetic opioid responsible for thousands of overdose deaths in the U.S. annually.

White House trade adviser Peter Navarro emphasized the urgency of the issue, stating, “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.

The administration also blamed Canada and Mexico for failing to prevent fentanyl precursor chemicals from reaching the U.S.

In a related effort, Trump announced a broad immigration crackdown, including a ban on asylum seekers. Additionally, his administration is reviewing a “global supplemental tariff” and plans to tighten the $800 de minimis duty-free exemption for low-value imports, which is often cited as a loophole for fentanyl smuggling.

Despite the aggressive rhetoric, markets initially responded positively to Trump’s delay in implementing tariffs, with the S&P 500 index hitting a one-month high. However, analysts warn that prolonged trade tensions and escalations could erode investor confidence and slow economic growth.

As the February 1 deadline approaches, the world watches closely to see if Trump’s threats translate into action or if negotiations will defuse the looming trade conflicts.

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