The tariffs are violating basic principles of the WTO and undermining international and bilateral cooperation.
On February 1, the United States government announced a new 10 percent tariff on Chinese imports, citing efforts to combat the spread of the opioid fentanyl. The following day, a spokesperson for China’s Foreign Ministry expressed strong opposition to the move, stating that China firmly deplored the decision and would take necessary countermeasures to safeguard its legitimate rights and interests.
However, this tariff is not only ineffective in addressing fentanyl production and distribution but also detrimental to bilateral trade relations.
The United States is one of the largest consumers of fentanyl-based drugs, and their widespread abuse has exacerbated addiction and caused numerous deaths in recent years. The crisis stems from long-standing opioid consumption patterns, the profit-driven nature of the US pharmaceutical industry, a lack of public awareness, and weaknesses in social governance.
China has some of the world’s strictest anti-narcotics laws. In the spirit of cooperation, China has previously supported the US’s efforts to combat the fentanyl crisis. At the US’s request, China classified fentanyl-related substances as controlled in 2019. Additionally, the two countries have collaborated on counternarcotics efforts, including intelligence sharing, case cooperation, and regulatory measures.
Despite this, the US continues to politicize the issue, blaming China for its domestic crisis. However, scapegoating other nations will not resolve the problem, nor will imposing tariffs.
Unilateral US sanctions not only risk undermining cooperation with China but could also drive fentanyl precursor transactions into black markets or third-party countries, complicating law enforcement efforts. Furthermore, these measures violate fundamental World Trade Organization (WTO) principles, to which both China and the US are committed.
Under the 1947 General Agreement on Tariffs and Trade (GATT), a precursor to the WTO, trade must be conducted in a non-discriminatory manner. The US’s unilateral sanctions specifically target certain countries and enterprises, creating an unfair competitive environment among WTO members and threatening multilateral trade norms.
Additionally, these measures breach the WTO’s principle of national treatment, outlined in Article III of GATT. This principle mandates that imported products should not face unfavorable treatment based on their country of origin once they enter a WTO member’s market. By restricting the import of legal drugs and precursor chemicals from China, the US is engaging in discriminatory trade practices.
The US may attempt to justify its tariffs on the grounds of public health or national security, which are exceptions under GATT. However, invoking Article XX (“General Exceptions”) or Article XXI (“Security Exceptions”) would require the US to prove that tariffs are both necessary and the least trade-distorting solution to the fentanyl crisis. Given the complexity of the issue and the role of domestic demand, applying these exceptions would be challenging.
The US’s frequent use of unilateral sanctions not only undermines WTO rules but also disrupts international trade and multilateral cooperation. Overuse of such exceptions risks damaging the credibility of global trade regulations and could trigger retaliatory actions from other WTO members, further fragmenting the global trading system.
In the long term, these sanctions could harm the US economy. Increased tariffs will drive up the cost of imports, placing a greater financial burden on American consumers and reducing the global competitiveness of US companies.
Rather than imposing arbitrary tariffs, the US should take a rational and objective approach to its fentanyl crisis. Addressing domestic drug demand and strengthening law enforcement cooperation with China would be more effective solutions.
Trade wars yield no winners, and applying pressure on China will not lead to productive engagement. China will resolutely defend its rights and interests.
Maintaining stable trade relations between China and the US is in the best interests of both nations and contributes to global economic growth. China urges the US to engage in equal-footed consultations, sustain hard-won progress in counternarcotics cooperation, and promote the steady and sustainable development of bilateral trade.