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Trump imposed 25% tariffs on China, Mexico, Canada over fentanyl. Here is why

The US has been witnessing what many have called an “opioid epidemic” in recent years. Why has the US govt blamed China and Mexico and how does the issue figure in their larger ties?

trumpPresident Donald Trump speaks as he meets with homeowners affected by Hurricane Helene in Swannanoa, NC, Friday, on Thursday. (AP/PTI)

US President Donald Trump on Friday (January 31) imposed 25 per cent tariffs on Mexico and Canada, and 10 per cent on China, on the grounds of a “high trade deficit”, effective from February 1. On Sunday, China responded by saying the action “seriously violates” international trade rules and urged the US to “engage in frank dialogue and strengthen cooperation”. 

During a press briefing, Trump said, “We have big deficits with all three of them. And in one case, they’re sending massive amounts of fentanyl, killing hundreds of thousands of people a year with fentanyl. And in the other two cases, they’re making it possible for this poison to get in… ”.

Trump has long threatened to impose tariffs on imports from China over its role in the flow of fentanyl into the US. Why is fentanyl an issue in the US and what is the role of China in it? How does it figure in their larger ties? We explain.

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But first, what is fentanyl?

According to the US Drug Enforcement Administration (DEA), “Fentanyl is a potent synthetic opioid drug approved by the Food and Drug Administration for use as an analgesic [for pain relief] and anesthetic. It is approximately 100 times more potent than morphine and 50 times more potent than heroin as an analgesic.” But overdoses can cause “stupor, changes in pupil size, clammy skin, cyanosis [blue skin], coma, and respiratory failure leading to death”.

Opioids are essentially a type of drugs that “derive from, or mimic, natural substances found in the opium poppy plant”, according to the website of US-based Johns Hopkins Medicine. They produce a variety of effects, including pain relief and euphoria, and are highly addictive. Apart from fentanyl, some common opioids include oxycodone, morphine, codeine, and heroin.

What is the scale of the opioid epidemic in the US?

The issue is that consumers of opioids feel their impact immediately, and it wears off quickly — making consumers need it regularly. Often, people who initially start using prescription opioid-based painkillers get addicted.

The US has been witnessing what many have called an “opioid epidemic”. According to the US Centers for Disease Control and Prevention, “the number of people who died from a drug overdose in 2021 was over six times the number in 1999… Over 75% of the nearly 107,000 drug overdose deaths in 2021 involved an opioid”.

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Notably, the country witnessed an increase in synthetic opioid-related deaths after 2013, mainly due to the rapid proliferation of illicitly manufactured fentanyl, and fentanyl analogues such as acetyl fentanyl and carfentanil. A recent US House Committee report found that inexpensive fentanyl is increasingly cut into other drugs, often without the buyers’ knowledge.

How has China played a role in the opioid epidemic?

The US has primarily blamed two countries for the trafficking of fentanyl — Mexico and China. A 2020 DEA intelligence report (‘Fentanyl Flow to the United States’), stated that fentanyl and fentanyl-related substances were trafficked from China through international mail and express consignment operations.

Investigative journalist Ben Westhoff told Vice News about how he found several Chinese companies in Wuhan and Shanghai being involved in the manufacturing of chemicals used to create synthetic opioids (precursors). China-manufactured chemicals would be shipped to Mexico for processing into pills and then sent to the US.

The Chinese Communist Party “directly subsidises” fentanyl production through tax rebates to companies — often engaged in other, legal chemical manufacturing — which are implicated in the production of precursors, according to the aforementioned House Committee report.

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What are the roadblocks to dealing with the fentanyl crisis?

The US understands that dealing with the fentanyl crisis at home needs cooperation with China. Both governments have made occasional progress on the matter. However, the deterioration in diplomatic ties between the two countries has adversely impacted the cooperation required to deal with the issue.

A lot also depends on China’s local governments, according to Westhoff. Fentanyl production is a source of employment for people in many provinces. To evade law enforcement agencies, operations often slightly tweak the formulae of certain chemicals.

China has also deflected blame onto the US, pointing to how even before fentanyl, the opioid crisis was in full swing. US pharmaceutical companies such as Purdue Pharma have been accused of handing out heavy-duty opioid prescriptions to patients, making them opioid addicts who seek ever more potent drugs.

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This is an updated version of an explainer first published in 2024. 

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