China, Canada and Mexico hit back at Trump’s plan to impose higher tariffs amid warnings over impact on American consumers

• Two-thirds of Americans think tariffs will lead to higher prices, poll says
• Trump’s talk of tariffs raises fears of hit to economies worldwide

Donald Trump has used the fentanyl crisis gripping the US to support his ambition to impose trade tariffs on China. It gives the incoming US president an opportunity to both appear to be addressing the narcotics emergency, while also reinforcing one of his key aims in terms of US trade.

China is the dominant source of chemical precursors used by Mexican cartels to produce fentanyl, while Chinese money launderers have also become key players in the international drug trade, US authorities say.

Trump has said that, as soon as he gets into office, he will impose a 25% tariff on “ALL products coming into the United States” from Mexico and Canada.

He says the tariffs will remain in place until both countries clamp down on migrants and drugs crossing the border into the US.

Trump also says he will impose a further 10% tariff “above any additional tariffs” on all products coming into the US from China.

It was not entirely clear what this would mean for China as Trump has previously pledged to end China’s most-favoured-nation trading status and slap tariffs on Chinese imports in excess of 60% - much higher than those imposed during his first term.

The reasons for the China tariff, Trump said, was their failure to curb the supply of drugs into the US. China is a major producer of the chemicals used to manufacture fentanyl.