Trade Wars 2.0: Trump's Tariff Threats Against China Loom Large

U.S. President-elect Donald Trump plans additional tariffs on Chinese goods over drug trafficking concerns, risking another trade war with China. Editorials in Chinese media urge Trump not to scapegoat China over the U.S. fentanyl crisis. Economists warn of economic repercussions as tensions rise.

President-elect Donald Trump's renewed tariff threats against China over fentanyl flows threaten to ignite another damaging trade war between the world's two major economies. Experts caution that such measures could have widespread economic consequences.

Trump's declarations, set to take effect on January 20, would impose an additional 10% duty on Chinese imports until Beijing curtails the trafficking of substances used to produce fentanyl, a deadly drug. Chinese state media, including the China Daily and Global Times, have criticized the move as an unconvincing pretext for tariffs.

As Trump's policies unfolded during his first term, global supply chains suffered significant disruptions as a result of heightened tariffs. Economists are now revising growth forecasts for China's sizable economy and warning of increased living costs in the U.S.

(With inputs from agencies.)