US President Donald Trump has said he is considering imposing a 10% tariff on imports of Chinese-made goods as soon as February 1.
Trump said the discussions with his administration were “based on the fact that they are sending fentanyl to Mexico and Canada.”
This followed Trump's threats to imposes import duties of 25% for Mexico and Canada, accusing them of allowing undocumented and drug migrants into the US.
At a news conference in Washington on Tuesday, Trump also promised to hit the European Union with tariffs.
“China is a bully, but the European Union is very, very bad for us,” he said.
“They treat us very, very badly. So tariffs will be imposed. It's the only way to get it back. That's the only way to get justice.''
Shortly after taking the oath of office on Monday, the new president also instructed federal agencies to conduct a review of existing trade agreements and identify unfair practices by US trading partners.
Meanwhile, a senior Chinese official spoke out against protectionism at the World Economic Forum in Davos.
Chinese Vice Premier Ding Xuesian called for win-win solutions to trade disputes without mentioning the US.
During his campaign, Trump promised to impose tariffs of up to 60% on Chinese goods.
Meanwhile, Canadian Prime Minister Justin Trudeau has vowed to fight back.
“If the (U.S.) president decides to go ahead with tariffs, Canada will respond — and everything is on the table,” Trudeau said.
Ottawa is preparing counter-tariffs in response to the threat, reportedly worth billions of dollars.
Canada, China and Mexico are the US's top trading partners.
Tariffs are an important part of Trump's economic plans. The president believes they can spur growth, protect jobs and increase tax revenue.
But many economists say such measures could lead to higher prices for Americans and hurt companies hit by foreign retaliation.