US President Donald Trump said his administration is discussing an additional 10% tariff on Chinese imports starting 1 February, because fentanyl is shipped to the US from China via Mexico and Canada.

Regarding the market's concern about whether the US will impose substantial extra tariffs on China, China Galaxy Securities released a research report on 10 January believing that the more possible tariff measures at present include invoking the International Emergency Economic Powers Act (IEEPA) to directly hike tariffs through the declaration of a national state of emergency by the US President; the first round of the “301 Investigation”; and the cancellation of China's “Permanent normal trade relations (PNTR)”.

Related NewsCore Inflation Rate MoM for Feb in United States is 0.2%, lower than the previous value of 0.4%. The forecast was 0.3%.
Overall, taking into account Trump's demand for “inflation control”, the relatively rational and moderate attitude of US prospective Treasury Secretary Scott Bessent in imposing extra tariffs on China, as well as the objectives behind the tariffs such as balancing trade deficits and facilitating the repatriation of manufacturing industry, the broker estimated that the likelihood of the US imposing substantial extra tariffs on China is not too high, but it is difficult to avoid targeted tariff hikes in batches.