Trump Plans 10% Tariff On Chinese Goods By February 1

President Donald Trump announced a potential 10% tariff on Chinese imports, which could take effect as soon as February 1, citing concerns over fentanyl trafficking from China to the U.S. via Mexico and Canada. This move contrasts with previous threats of much higher tariffs, such as 60% during his campaign, and comes after a relatively positive phone call with Chinese President Xi Jinping. The proposed tariff could significantly impact consumer electronics, which currently enjoy exemptions, as they represent a large portion of U.S. imports from China. In response, Chinese stocks dropped following Trump's comments, reflecting market concerns about renewed trade tensions. Additionally, Trump indicated that he might also impose tariffs on the European Union, describing it as having unfair trade practices towards the U.S. The Chinese foreign ministry has emphasized the negative consequences of trade wars and expressed commitment to protect its national interests.