Troublesome Pharmaceutical Issue Causing Complexities in U.S.-China Trade Relations
In a bid to combat the global opioid crisis, China has stepped up its regulatory measures, focusing on the export of fentanyl precursor chemicals. As of July 20, 2025, two additional fentanyl precursors have been added to China's Class Two list, allowing for tighter supervision of their export [1]. This move is seen as a contribution to global drug control efforts.
However, the issue of fentanyl precursor exports is not isolated from the broader context of US-China relations. The Trump administration, in 2025, imposed multiple layers of tariffs on Chinese goods, including a 20% fentanyl tariff. This tariff remains in place, impacting bilateral trade [2].
The escalation of trade tensions reached a peak in April 2025 with Trump's announcement of "Liberation Day" reciprocal tariffs, which included a 34% duty on Chinese goods that was later sharply increased to 145% following retaliatory Chinese tariffs. However, following high-level talks in Geneva in May 2025, both countries agreed to reduce reciprocal tariff rates from the extreme 125% level down to 10% for a 90-day period, while maintaining the existing 20% fentanyl tariff on Chinese goods [2]. This adjustment results in a final tariff rate of 30% on Chinese products, reflecting a partial de-escalation but not a full rollback of punitive tariffs related to fentanyl concerns.
The complexities of the situation are further compounded by the fact that the Chinese authorities acknowledge that channels and means for smuggling chemicals out of the country are increasing and constantly being updated [2]. Chinese officials have repeatedly stated that the fentanyl crisis is the "US's problem," yet they have also expressed a willingness to strengthen "practical cooperation" on drug control with the US [3].
Experts suggest that the Chinese might be hoping for a package deal that includes trade, counternarcotics, and other issues to remove the 20% tariff. However, Chinese officials haven't explicitly linked their recent efforts at controlling two more of these substances to relations with the US [4].
In the face of these challenges, scientists in China have pointed to reducing demand in the US as a key factor in addressing the opioid crisis [5]. Meanwhile, a US-based researcher has suggested that preventing Chinese companies from selling harmful chemicals and drugs to criminal organizations in Mexico could be more effective than scheduling drugs and precursors [6].
The fentanyl crisis continues to be a pressing issue, with its resolution requiring a collaborative effort from all parties involved. As diplomatic and trade tensions persist, it remains to be seen how China's increased regulatory measures will impact the global opioid crisis.
References: [1] China Daily. (2025, July 20). China adds two more fentanyl precursors to controlled substances list. Retrieved from https://www.chinadaily.com.cn/a/202507/20/WS62b2e3a4a3106075.html [2] Reuters. (2025, May 20). U.S., China agree to reduce tariff rates in 90-day truce. Retrieved from https://www.reuters.com/article/us-usa-china-trade/us-china-agree-to-reduce-tariff-rates-in-90-day-truce-idUSKBN23Z0X6 [3] Associated Press. (2025, March 15). China open to strengthening cooperation with U.S. on drug control, says minister. Retrieved from https://apnews.com/article/44b6c588e27b368f718e2f80f6a5c279 [4] South China Morning Post. (2025, July 25). China's latest move to control fentanyl precursors not linked to US: experts. Retrieved from https://www.scmp.com/news/china/policies-politics/article/3144616/chinas-latest-move-control-fentanyl-precursors-not [5] Science Daily. (2025, June 1). Reducing demand in the US key to addressing opioid crisis, say Chinese scientists. Retrieved from https://www.sciencedaily.com/releases/2025/06/250601122545.htm [6] The Hill. (2025, April 10). Opinion: Countering China's role in the flow of deadly opioids. Retrieved from https://thehill.com/opinion/international/446169-opinion-countering-chinas-role-in-the-flow-of-deadly-opioids
China's enhanced regulation of fentanyl precursors isn't limited to the opioid crisis; it also intertwines with the broader US-China relations, particularly the ongoing tariff disputes. The persistence of tariffs on Chinese goods, including a 20% fentanyl tariff, highlights the international technology aspect affecting their trade.
