US President Donald Trump initiated his second term by indicating that discussions with China regarding the fentanyl crisis had not been productive. Consequently, he imposed a 20% tariff on Chinese imports to pressure Beijing into addressing the issue of synthetic opioid trafficking.
However, following a meeting with Chinese President Xi Jinping in South Korea last week, Trump agreed to reduce the fentanyl-related tariffs on China by 50% in exchange for a new agreement on combating the drug. This agreement will be developed through a newly established bilateral working group, as stated by US Treasury Secretary Scott Bessent.
The arrangement reestablishes a communication channel that China favors but that has been criticized by Republican lawmakers who view it as a tactic by Beijing to prolong negotiations in high-level talks. This development also signifies a change in approach by Trump administration officials, who had previously insisted on maintaining punitive measures until China demonstrated significant efforts to combat fentanyl trafficking.
According to Henrietta Levin, a former director for China on President Joe Biden’s National Security Council and now a senior fellow at the Center for Strategic and International Studies, the administration has compromised by agreeing to launch a working group with China on counternarcotics. However, Levin expressed skepticism based on past instances where China allegedly made similar commitments without substantial results.
Chinese officials have defended their actions on fentanyl regulation, emphasizing that they have implemented measures to control precursor chemicals used in manufacturing the drug. They have accused the US of leveraging the fentanyl issue as a form of coercion.
Regarding the new working group, China’s embassy in Washington emphasized the need for concrete actions from the US to facilitate cooperation and expressed China’s willingness to continue collaborating on counternarcotics efforts.
While the working group between the US and China on counternarcotics dissolved earlier in the Biden era due to tariffs imposed by Trump, it had faced criticism from Republicans. In 2023, then-Senator JD Vance, now Trump’s vice president, and other lawmakers denounced the Biden administration for lifting sanctions on China to engage in fentanyl discussions.
Although Biden officials acknowledged incremental progress under the previous working group, they stressed the necessity for China to intensify its efforts. The White House did not provide a direct response to inquiries about the new working group but announced that China had agreed to halt the shipment of specific chemicals to North America and enhance controls on the export of other chemicals globally.
US Trade Representative Jamieson Greer confirmed that a 10% tariff on Chinese goods related to fentanyl remains in place to ensure China fulfills its commitments. Reimposing tariffs could jeopardize the fragile trade truce established by Trump and Xi, potentially affecting a planned visit by Trump to China in April.
Michael Froman, president of the Council on Foreign Relations and a former US Trade Representative, highlighted the significance of tariffs as leverage, emphasizing the need for China to adhere to the agreement to avoid potential tariff reinstatement.