Trump Takes Aim: Executive Order Targets China’s Role in the Fentanyl Epidemic

Frustrated by Beijing’s failure to curb fentanyl precursor production and transshipment, the Trump administration issued a sweeping executive order outlining China’s role in facilitating synthetic opioid supply chains and announcing new trade measures to pressure Beijing into taking decisive action. China sharply criticized the order, with a Chinese Foreign Ministry spokesperson warning it could “harm future counter-narcotics cooperation” between the two countries.

The executive order aligns with a broader administration strategy, including a comprehensive review of China’s non-market practices. Findings from this upcoming review may serve as the foundation for further tariff increases, highlighting Washington’s commitment to countering Beijing’s actions across economic and security dimensions.

Trump Administration Leverages Trade Measures to Address a Non-Trade Challenge

The new executive order sets a universal 10 percent tariff on Chinese imports in response to Beijing’s documented failure to curb the flow of precursor materials — chemicals used to produce fentanyl and other synthetic opioids — to foreign drug cartels in the Western Hemisphere. These new tariffs will compound pre-existing duties implemented during Trump’s first term, many of which were maintained by former President Joe Biden. The order also aims to prevent Beijing from issuing countervailing duties by authorizing higher tariff rates in response to Chinese retaliation.

The proposed tariffs follow the Trump administration’s other recent efforts to curb the illicit drug trade. These include designating Mexican drug cartels as foreign terrorist organizations, declaring a national emergency at the southern border, and threatening to impose tariffs on both Mexico and Canada for their failure to stem the flow of fentanyl into the United States.

Understanding China’s Role in the U.S. Fentanyl Crisis

China dominates the global chemical industry, producing the majority of fentanyl precursors that fuel the U.S. opioid epidemic. Chinese state-linked manufacturers have been identified as key suppliers to transnational criminal organizations, including the Sinaloa cartel, leveraging lax regulatory oversight to ship vast quantities of illicit chemicals to the Americas for the fentanyl trade. Simultaneously, Chinese underground banking networks and currency exchanges have laundered billions in fentanyl proceeds, further entrenching Beijing’s role in this crisis.

In 2023, the U.S. designated China as a major illicit drug transit or drug-producing country, targeted Chinese and Hong Kong traffickers, and indicted several Chinese chemical companies. Washington and Beijing launched a Counternarcotics Working Group in 2024 to combat synthetic drug trafficking; however, fentanyl flows from China persisted. This fueled concerns Beijing was using the group to placate the Biden administration and deflect criticism rather than take meaningful action.

Washington Should Use Its Leverage to Force Beijing to Curb Drug Trafficking

Exports drive roughly one-fifth of China’s GDP, with the U.S. market accounting for 22 percent of China’s consumer electronics and 24 percent of its home appliance exports. By targeting these and other exports with tariffs, the executive order directly threatens China’s economy, exposing vulnerabilities Beijing may struggle to address. The Trump administration should leverage this pressure to end China’s subsidization of precursor production, demand the scheduling of fentanyl-related chemicals as controlled substances, and demand that China dismantle domestic drug trafficking networks.

Along with these efforts, the administration should also task the Treasury Department with aggressively sanctioning individuals and entities linked with China’s underground banking system, placing greater pressure on illicit financial flows connected to the drug trade. These efforts should be combined with outreach to U.S. allies and partners, particularly Canada and Mexico, to institute stricter financial regulations to combat international money laundering.

Jack Burnham is a research analyst at the Foundation for Defense of Democracies (FDD), where Craig Singleton is a senior fellow and senior director of FDD’s China Program. For more analysis from Jack, Craig, and the China Program, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow Craig on X @CraigMSingleton. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focused on national security and foreign policy.