U.S. President Donald Trump issued fresh tariff threats on Tuesday, targeting the European Union (EU) and China. Trump announced that his administration is considering a 10% punitive duty on Chinese imports, citing concerns over fentanyl trafficking via Mexico and Canada, while also vowing to impose tariffs on the EU. Speaking to reporters at the White House, Trump reiterated his campaign promises of tougher trade measures, signaling a February 1 deadline for broader duties, including 25% tariffs on goods from Canada, Mexico, China, and the EU.

"The European Union is very, very bad to us," Trump stated, emphasizing the trade surpluses other countries maintain with the U.S. He argued that tariffs are the only way to achieve fairness in trade. His remarks come amid renewed concerns from financial markets and trade groups over escalating trade tensions.

Trump had previously threatened a 10% duty on Chinese imports due to the fentanyl trade but has aligned this with the February 1 deadline. According to media reports, the administration is also pressuring Canada and Mexico to curb illegal migration and the flow of illicit drugs, including fentanyl precursor chemicals, across U.S. borders.

China responded to Trump’s statements with a measured tone, expressing a willingness to maintain communication to "properly handle differences and expand mutually beneficial cooperation." At a press briefing, Mao Ning, spokesperson for China’s Foreign Ministry, reiterated, "There is no winner in a trade war or tariff war. China will always firmly safeguard its national interests."

White House trade adviser Peter Navarro highlighted the administration’s rationale, explaining on CNBC, "The reason why he's considering 25, 25, and 10 (percent) on Canada, Mexico, and China is because 300 Americans die every day from fentanyl overdoses."

Meanwhile, Trump unveiled a sweeping immigration crackdown on Monday, including a broad asylum ban. He also signed a trade memorandum directing federal agencies to review issues such as persistent trade deficits, unfair trade practices, and currency manipulation by April 1. The memo includes recommendations for a "global supplemental tariff" and adjustments to the $800 de minimis duty-free exemption blamed for facilitating the entry of fentanyl precursors.

Mexico and Canada struck conciliatory tones in response to Trump’s February 1 deadline. Mexican President Claudia Sheinbaum emphasized Mexico’s sovereignty while rejecting renegotiation of the U.S.-Mexico-Canada Agreement (USMCA) before 2026. U.S. corn farmers, concerned about potential retaliatory tariffs, expressed hope that trade disruptions with Mexico and Canada could be avoided. "We understand that he is a negotiating type of person," said Kenny Hartman Jr., president of the National Corn Growers Association, underscoring the sector's dependence on stable trade relationships.

Trump’s tariff threats and broader trade policies reflect his administration’s push to address fentanyl trafficking, unfair trade practices, and U.S. trade deficits, setting the stage for potentially contentious negotiations.