From CNBC: 2025-03-12 08:01:53

China is willing to address White House concerns about fentanyl trade but warns against more U.S. tariffs. Trump has increased tariffs on Chinese goods by 20% over fentanyl, leading to thousands of overdose deaths in the U.S. Efforts to restrict fentanyl trade continue amid escalating trade tensions.

The U.S. and China had discussed cooperation on fentanyl under the Biden administration. Trump also used tariffs to pressure China on other issues, such as forcing ByteDance to sell TikTok. Trade tensions have persisted since the “Phase One” deal, with U.S. tariffs on Chinese goods now at 33%.

Beijing has responded to U.S. tariffs with targeted duties on energy and agriculture products. China’s Ministry of Commerce has limited business with several U.S. companies in aerospace and defense. Allianz estimates the tariffs could impact China’s GDP growth but still expects the economy to grow in the coming years.

The Ministry of Foreign Affairs official said China’s actions are to protect its interests. Allianz believes there is room for negotiations despite the impact of tariffs on China’s economy. The ongoing trade tensions between the two countries have implications for global trade and economic growth.

Read more: China says it’s willing to cooperate with the U.S. on fentanyl