Trump says US will impose additional 10% tariff on China

Donald Trump said he planned to hit goods from China with another 10% rise in tariffs, the latest salvo in the US president’s steadily escalating trade fights.

Imports from China already face tariffs of at least 10%, after a Trump order that went into effect earlier this month.

Trump also said he intended to move forward with a threatened 25% tax on imports from Canada and Mexico, which are set to come into effect on 4 March.

The US president previously announced the 25% duty on the country’s neighbours, but he suspended the measure at the last moment after the countries agreed to increase border security funding and talk further on how to combat drug trafficking.

China, Mexico and Canada are America’s top three trade partners, together accounting for more than 40% of imports into the US last year.

Officials from Mexico and Canada are in Washington this week as they try to head off the measures. Trump’s threats have caused widespread alarm, as the North American economy is closely connected after decades operating under a free trade agreement.

Leaders of Mexico and Canada have previously said they would impose retaliatory tariffs on the United States if the White House went ahead with the proposal.

On social media, Trump wrote that he did not think enough action had been taken to address the flow of fentanyl to the US – and that Canada, Mexico and China were to blame.

“Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” he wrote, adding that “a large percentage” of the drugs were made in China.

During the campaign, Trump had threatened to hit imports from China with tariffs as high as 60%.

Tariffs are a tax collected by the government and paid for by the business bringing the goods into the country.

Economists have warned they could lead to higher prices in the US on everything from iPhones to avocados.

Recent surveys of consumer sentiment suggest concerns about the measures have hit consumer confidence and contributed to worries about living costs.

Trump’s trade moves have also added to jitters on financial markets, despite significant uncertainty about whether Trump is prepared to carry out his threats.

The three major stock indexes in the US were little changed on Thursday.

The impact of tariffs, if they go into effect, is expected to be felt more heavily on the Canadian and Mexican economies.

But analysts have warned that the threat of tariffs, even if they never go into effect, is still likely to have a chilling effect on investment, including in the US.

China responded to the first round of tariffs from the US with its own tariffs on US products, including coal and agricultural machinery.

Trump has dismissed fears about damage to the American economy.

“We are the pot of gold. We are the one that everybody wants,” he told reporters on Wednesday.