10% Tariff on China, $500 Billion AI Company Announcement: US President Donald Trump

10% Tariff on China, $500 Billion AI Company Announcement: US President Donald Trump

US President Donald Trump has announced that he is considering imposing a 10% tariff on Chinese imports starting from February 1. Previously, he had threatened to impose a 25% tariff on Mexico and Canada for allegedly allowing illegal immigration and drug trafficking into the United States.

Regarding China, Trump stated that his administration is engaging in discussions based on accurate information, revealing that China, Mexico, and Canada are sending fentanyl (a potent painkiller) into the US.

At a press conference in Washington, Trump also expressed his commitment to applying tariffs on the European Union. "China is an abuser. But the European Union is very bad for us," he said. "They treat us very poorly. That’s why we have to go toward tariffs. This is the only way to take back what’s ours. It’s the only way to get fairness."

Right after his inauguration on Monday, Trump directed relevant agencies to review trade agreements with US partners and identify any unfair terms. Meanwhile, at the World Economic Forum in Davos, Switzerland, a senior Chinese official criticized "protectionism." Chinese Vice Premier Ding Xiexing, without mentioning the United States by name, called for a "win-win" solution to resolve trade disputes.

During his election campaign, Trump had promised to impose tariffs of up to 60% on Chinese goods. However, Canadian Prime Minister Justin Trudeau has vowed to fight the tariffs.

"If the US President moves toward imposing tariffs, Canada will also respond — and everything is on the table for discussion," he said. Ottawa is now preparing to impose counter-tariffs worth several billion dollars.

Canada, China, and Mexico are the three top trade partners of the United States.

Tariffs are a key part of Trump’s economic plan. The president believes that through tariffs, they can increase growth, protect jobs, and boost revenue. However, many economists believe that this could lead to higher costs for Americans, and companies may suffer from retaliatory actions taken by other countries.