Trump plans to hit China with 20% tariffs, threatens 25% tariffs on Canada & Mexico after suspension

U.S. President Donald Trump said on Feb. 27 that the U.S. plans to impose an additional 10 per cent tariff on imports from China, marking the latest update in a trade war that began in early February.

Trump added he plans to move forward with 25 per cent tariffs on products from Canada and Mexico, after a brief suspension.

On Feb. 1, Trump imposed 25 per cent tariffs on Canada and Mexico, and a 10 per cent tariff on China, in a bid to stop the flow of fentanyl and migrants into the U.S.

While Trump postponed his tariffs on Canada and Mexico for 30 days, his tariff on China remains in effect. China, in turn, has imposed retaliatory tariffs on the import of U.S. goods.

If the plans go through, a 20 per cent tariff on products from China would go into effect on Mar. 4.

China likely to respond with retaliatory tariffs

The announcement came a day after the U.S. president appeared to hint that he would continue delaying Canada and Mexico tariffs and said they were scheduled for Apr. 2, according to the Wall Street Journal.

Previously, tariffs on Canada and Mexico were postponed after both countries agreed to do more to address U.S. concerns about drug trafficking and the border.

Canadian Prime Minister Justin Trudeau also noted in a news conference on Feb. 27 that less than one per cent of the fentanyl smuggled into the U.S. comes from Canada.

He added that if there are unjustified tariffs brought in on Canada on Mar. 4, the country will have an immediate and strong response.

China likely to retaliate

The Wall Street Journal suggests that China is likely to respond with retaliatory tariffs when new U.S. tariffs are imposed.

After his election in November 2024, Trump promised to issue 25 per cent tariffs on Canada and Mexico, justifying this by claiming that neither was doing enough to help the U.S. combat the smuggling of illegal drugs such as fentanyl into the U.S.

In addition, he said that Mexico was not doing enough to help the U.S. stop immigrants from illegally crossing its southern border.

He reiterated similar sentiments on Feb. 27, saying that drugs are still pouring into the U.S. "from Mexico and Canada at very high and unacceptable levels" and the drugs, "much of them in the form of Fentanyl, are made in, and supplied by, China".

Singapore not anticipated to be on the hit-list for direct tariffs: Vivian Balakrishnan

During parliament on Feb. 4, 2025, Minister for Foreign Affairs Vivian Balakrishnan did not anticipate Singapore being on the hit-list, given our favourable trade conditions with the U.S.:

"Going forward, I will take some risk and say that I do not anticipate us being on the hit-list for direct tariffs, because, as I said earlier in my answer, the U.S. has a surplus, as far as the trade balance with us is concerned."

All the same, Vivian expressed concerns that "friction" in the world trade system, resulting from tariffs and a possible trade war, could have knock-on effects on Singapore:

"...the fact that we are a small, open economy, and that trade constitutes more than three times our GDP, means if there is any friction, if there is any degradation of economic integration, global supply chains and world trade, we will be impacted indirectly."

"I do need to prepare Singaporeans that it will be a turbulent ride in the months or years to come," he added.

Top image via Donald Trump/Facebook and Kevin Frayer/Getty Images