Trump gave Beijing a one-day break before saying he could hit China with tariffs starting in February
Chip Somodevilla/Getty Images, Buda Mendes/Getty Images
- US President Donald Trump said he could impose 10% tariffs on Chinese goods from February 1.
- China's stock markets fell after Trump's comments, breaking several straight days of gains.
- Trump had said he could slap tariffs of 25% on Canada and Mexico from February 1.
On his first day in office, President Donald Trump signed a raft of executive orders and threatened Canada and Mexico with 25% tariffs that could come as soon as next month.
China got a pass on day one, but the break didn't last long.
On Tuesday, his second day in office, Trump said he could impose tariffs on China next month.
"We're talking about a tariff of 10% on China, based on the fact that they're sending fentanyl to Mexico and Canada," Trump said at a press conference.
"Probably February 1 is the date we're looking at," Trump said.
Trump previously threatened 60% tariffs on Chinese goods while on the campaign trail.
China is calling for better dialogue and cooperation for mutual benefit.
"Keeping business ties sound and stable serves the fundamental interests of both countries and both peoples, it is also conducive to global economic growth," China's Foreign Ministry spokesperson, Guo Jiakun, said at a scheduled press conference on Tuesday.
China's stock markets fell on Wednesday following Trump's comments, breaking several straight days of gains.
The CSI300 Index closed 0.9% lower. Hong Kong's Hang Seng Index closed 1.6% lower.
Trump's consistent threats of tariffs reflect his "American First" trade agenda, which he outlined in a presidential memo on Monday.
In the memo, Trump asked the US Trade Representative to assess China's compliance with a trade deal the two countries signed in early 2020 and recommend actions — including tariffs — as needed.
China did not meet the import requirements in the trade deal, economists from Nomura wrote in note on Tuesday.
"The concern here is that this gives the Trump administration another reason to impose additional stiff tariffs or trade demands on China to force compliance with the original trade deal," the economists wrote.
On Tuesday, Trump also took aim at the European Union.
"We have a $350 billion deficit with the European Union. They treat us very very badly, so they're going to be in for tariffs," Trump said.