China firmly rejected responsibility for the U.S. fentanyl crisis on Tuesday, calling Washington’s punitive tariffs unreasonable even as broader trade tensions between the world’s two largest economies show signs of easing.

What Happened: “The responsibility of tackling the fentanyl issue in the United States lies within the U.S. itself,” Chinese foreign ministry spokesperson Lin Jian stated during a regular press briefing, according to Reuters. Lin was responding to questions about whether fentanyl would be discussed in future trade negotiations.

The comments come just days after both nations pledged to significantly reduce tariffs following productive talks in Switzerland. Despite this progress, the U.S. maintained its 20% tariffs specifically tied to fentanyl, claiming Beijing hasn’t done enough to stem the flow of precursor chemicals used to manufacture the deadly opioid.

See Also: Apple May ‘Up Its Numbers’ Amid China Tariff Truce: Trump Talks $500 Billion US Investment After Tim Cook Call

Why It Matters: President Donald Trump‘s Monday executive order decreased general Chinese import tariffs to 10% for a 90-day negotiation period and reduced the de minimis rate on low-value imports from 120% to 54%, effective Tuesday. However, the fentanyl-related tariffs remained intact.

Analysts suggest the fentanyl issue could become a strategic bargaining chip in upcoming negotiations. “Beijing is hoping to use fentanyl cooperation as either a catalyst for U.S.-China trade talks or a bargaining chip in a future round of negotiations,” Jeremy Chan of Eurasia Group said.

Morgan Stanley economists project that continued negotiations could potentially lower overall tariffs on Chinese imports to 34% by the end of 2025, which would indicate the eventual elimination of the 20% fentanyl-specific tariff if sufficient progress is made on addressing U.S. concerns.

Image Via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.