Top trade adviser: Trump's tariff strategy targets fentanyl crisis

US President Donald Trump's top trade adviser Peter Navarro has elaborated on the administration's tariff strategy, emphasising a key objective: addressing the fentanyl crisis in the US by pressuring Mexico, Canada, and China to take stronger actions.

Navarro explained that China is the primary source of fentanyl, a highly addictive and deadly drug trafficked by cartels through Mexico and Canada into the US, Caliber.Az reports per foreign media.

This trafficking results in numerous fatalities. "The fundamental problem is a Super Bowl size group of Americans die each year from fentanyl that originates in communist China and works its way via the drug cartels in Mexico, through both Mexico and Canada, into the veins and stomachs of Americans to then die because of that," Navarro said.

He added that national and border security concerns are also driving the administration’s decision to implement tariffs on these countries. At the start of his second term, President Trump made waves by threatening significant tariffs on his neighbours. A 25 per cent tariff was set to target Mexico and Canada, with a 10 per cent tariff on China.

The tariffs were initially scheduled to take effect on February 4, accompanied by a reciprocal tariff clause. However, hours before the tariffs were to go into effect, Mexico and Canada made key concessions. Both countries agreed to new border initiatives aimed at combating the fentanyl trade, prompting Trump to delay the tariffs for a month. With the month-long delay now over, the tariffs are set to resume, with the tariff on Chinese imports being doubled. Mexico has agreed to send 10,000 soldiers to the border, and Canada has introduced measures, including designating cartels as terrorist organisations. Despite some left-wing media claims that Trump had lost in negotiations, Navarro pushed back against the notion that Mexico and Canada "caved." 

He framed the US request as reasonable: "All we are asking our good allies to do is stop killing Americans. If you frame it that way, this is the most reasonable thing in the world," Navarro said. Trump's tariffs on Mexico, Canada, and China are just the beginning. The president has suggested that European countries could also face a 25 per cent tariff, alongside additional tariffs on automobiles, computer chips, and pharmaceuticals. Trump’s administration is also considering the possibility of imposing tariffs on copper imports.

Navarro noted that Trump is aiming for a major overhaul of the global trade system, drawing inspiration from the pre-income tax era when tariffs were a primary source of government revenue. “This is right out of the Alexander Hamilton playbook,” Navarro said. 

He added that Trump’s vision is to create a global trade environment where the US is no longer “plundered” and can enjoy greater prosperity and security. Navarro emphasized that tariffs are a crucial tool for achieving this vision. He also noted that Trump has indicated tariffs could be removed if US industries begin producing more domestically. Navarro further said that Trump’s reciprocal tariff plan will ultimately save Americans billions of dollars, challenging the conventional economic view that tariffs lead to higher consumer prices. 

He explained that under the reciprocal tariff system, other nations will be forced to lower their tariffs on US goods and ease non-tariff barriers, which would allow US manufacturing to compete more effectively with foreign companies and, ultimately, result in higher profits for American businesses.

By Naila Huseynova