US President Donald Trump has said he is considering imposing a 10% tariff on imports of Chinese-made goods as soon as 1 February. Trump said discussions with his administration were "based on the fact that they're sending fentanyl to Mexico and Canada." It followed threats by Trump to levy import taxes of 25% on Mexico and Canada, accusing them of allowing undocumented migrants and drugs to come into the US. In a press conference in Washington on Tuesday, Trump also vowed to hit the European Union with tariffs. "China is an abuser, but the European Union is is very, very bad to us," he said. "They treat us very, very badly. So they're going to be in for tariffs. It's the only way you're going to get back. It's the only way you're going to get fairness." Shortly after he was sworn in on Monday, the new president also instructed federal agencies to conduct a review of existing trade deals and identify unfair practices by US trading partners. Meanwhile, a top Chinese official spoke out against protectionism at the World Economic Forum in Davos. China's Vice Premier, Ding Xuexiang, called for "win-win" solutions to trade disputes without mentioning the US. On the campaign trail Trump had promised to place tariffs as high as 60% on Chinese goods. The Canadian Prime Minister Justin Trudeau has promised to fight back. "If the [US] president does choose to proceed with tariffs, Canada will respond - and everything is on the table," Trudeau said. Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars. Canada, China and Mexico are the top US trading partners. Tariffs are an important part of Trump's economic plans. The president believes they can boost growth, protect jobs and raise tax revenue. But many economists say such measures could lead to higher prices for Americans and harm companies hit by foreign retaliation. — BBC
