According to a Monday post on his social media platform Truth Social, Donald Trump intends to increase tariffs on all Chinese products entering the U.S. by an additional 10%.

This post was immediately after one in which Trump stated that his first executive order of “many”, on Jan. 20, would impose 25% tariffs on all products coming from Mexico and Canada.

Trump, while running for president, had threatened to impose tariffs of 60 percent on Chinese products.

According to a posting on the social media platform Truth Social, Donald Trump intends to increase tariffs on all Chinese products entering the U.S. by 10%.

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This post was immediately after one in which Trump stated that his first executive order of “many”, on Jan. 20, would impose 25% tariffs on all products coming from Mexico and Canada. This would be a major blow to a regional trade agreement.

Trump will be inaugurated the next U.S. President on January 20. He said that the tariffs were a result of illegal immigration and drug traffic.

Trump stated that he had “many talks” with China regarding the huge amounts of drugs being shipped into the United States, namely Fentanyl. But, to no avail. Trump claimed that Beijing, contrary to its promises, did not execute drug dealers.

Fentanyl is a synthetic opioid that has been linked to overdose deaths in the United States.

Washington and Beijing have agreed on a joint effort to reduce illicit drug supplies, whose precursors are mainly produced in China and Mexico.

Liu Pengyu said that “no one will win in a trade or tariff war,” a spokesperson from the Chinese embassy to the U.S. told X. He called bilateral trade and economic cooperation “mutually advantageous in nature.”

Liu responded to Trump’s claim, that China had done little to stop the flow of fentanyl into the U.S. He stated that the counternarcotics team of both countries has been in regular communication since Chinese President Xi Jinping and U.S. president Joe Biden met in November 2023.

Trump stated that “drugs are flooding into our country, mostly via Mexico, in unprecedented numbers.” “Until they stop, we’ll be charging China 10% more in tariffs on all of the products that come into the United States of America.

Trump, while running for president, had threatened to impose tariffs of 60 percent on Chinese products.

Kinger Lau said on CNBC’s “SquawkBox Asia” that a 10% tariff is lower than the 20-30% the markets had expected. He also expects China to cut rates, increase fiscal stimuli and moderately depreciate the currency to offset the impact of the increased duties.

According to U.S. statistics as of September, Mexico is the U.S.’s largest trading partner, followed by Canada, and China.

China’s customs data shows that the U.S.A. is China’s biggest trading partner by country. Association of Southeast Asian Nations (ASEAN) and European Union are Asia’s two largest trading partners.

Andy Rothman, an investment strategist with Matthews Asia told CNBC’s “Street Signs Asia” on Tuesday that China and the U.S. have a “really important economic and commercial relationship”. He noted that China has historically not responded aggressively to reciprocal actions.

As of Tuesday morning, the U.S. Dollar was trading about 1% higher versus the Mexican Peso and 1.4% stronger against the Canadian Dollar. The dollar rose around 0.2% versus the Hong Kong traded Chinese yuan.