The trade war between US President Donald Trump and Canada, Mexico, and China is escalating over the production and importation of the opiate fentanyl, along with trade surpluses and illegal border crossings by migrants from around the world. Beijing has responded to this by stating: "China has reiterated its threat to take 'necessary countermeasures to defend its legitimate rights and interests' following Trump’s decision to impose 10% tariffs on China for allegedly doing too little to stem the production of precursor chemicals for fentanyl.".

The Foreign Ministry did not specify any particular retaliatory measures in their statement issued on Sunday, but said: "China calls on the United States to correct its wrongdoings, maintain the hard-won positive dynamics in the counternarcotics cooperation, and promote a steady, sound and sustainable development of China-U.S. relationship.". China claims that the US action violates World Trade Organization rules and has pledged to bring a case before the body that governs global commerce.

The Ministry of Public Security echoed these charges on Sunday, and the Commerce Ministry also released a similarly worded statement. Trump accuses China of allowing the production of fentanyl, which is then made into tablets in Mexico and smuggled into and distributed throughout the US, resulting in approximately 70,000 overdose deaths from the drug each year. China has urged the US to take responsibility for its own issues rather than "threatening other countries with arbitrary tariff hikes," according to the Foreign Ministry. They stated: "The United States needs to view and solve its own fentanyl issue in an objective and rational way ... (China is) one of the world’s toughest countries on counternarcotics both in terms of policy and its implementation.".

It's known that China executes an unknown number of people each year for drug smuggling, but domestic drug use is relatively low. The Ministry of Public Security revealed that the US hasn't reported any seizures of fentanyl precursors originating from China since Beijing started taking legal action. Trump's constant complaints target China's massive trade deficit with the US, which nearly hit $1trillion last year.

Tariffs would increase the cost of Chinese goods for U.S. consumers, who will ultimately bear a significant part of the cost of importing everything from toys to clothing. If U.S. consumers decide to "buy American.". China's crucial export market could be affected. The Chinese domestic economy has not responded to various government-backed stimuli, while foreign infrastructure projects and other major government initiatives that add to the country's already high public debt risk further economic stagnation.

Chinese President Xi Jinping's ambition to surpass the US in crucial economic and political indicators is already starting to falter, jeopardising his ultimate goal of claiming Taiwan and establishing Chinese dominance in the Indo-Pacific region. Meanwhile, halting illegal immigration has been a central theme of Trump's political rhetoric, leading to tariff actions against neighbouring countries Mexico and Canada.