U.S. Tariff Cuts on China Tied to Fentanyl Progress in Public Health Fight

The U.S. Treasury Secretary, Scott Bessent, has made it clear that any reduction in tariffs on Chinese imports will be contingent on demonstrable progress in curbing the flow of fentanyl from China into the U.S. In an appearance on Fox Business Network’s “Kudlow,” Bessent stated that the administration will need to see “months, if not quarters, if not a year” of sustained improvements before considering any tariff reductions [1]. His remarks reinforce the administration’s emphasis on tying trade policy to tangible outcomes, particularly on issues that impact U.S. public health [2]. Bessent also emphasized that any changes to the tariff regime would depend on China taking “verifiable actions” to address the opioid crisis [3].

These comments come against the backdrop of continued diplomatic engagements between U.S. and Chinese trade officials. According to reports, U.S. trade representatives are set to meet with Chinese counterparts within the next two to three months [1]. At the same time, President Donald Trump has extended the current tariff truce with China for a third time, pushing the current expiration to November 9, 2025 [4]. The extension gives both sides more time to work toward a lasting resolution of their trade disputes.

Bessent’s cautious stance reflects a broader strategic approach by the Trump administration, which seeks to use trade policy as a tool to advance non-economic priorities. Analysts suggest that by linking tariff adjustments to concrete progress on fentanyl flows, the administration is creating a diplomatic lever that could pressure China to cooperate on transnational criminal and public health issues [2]. This approach diverges from the more aggressive rhetoric of past administrations and instead prioritizes measurable outcomes in key areas of concern.

In addition to diplomatic efforts, the administration is also prepared to defend its tariff policies in court. Bessent stated that if legal challenges to the tariffs succeed, he would move quickly to preserve the current framework, demonstrating a readiness to enforce trade measures through legal channels if necessary [3]. Meanwhile, concerns about the economic impact of high tariffs remain. An analyst from UBS has noted that while the risk of a recession is not immediate, high tariffs could contribute to a temporary slowdown in economic growth [5].

As negotiations continue, the U.S. is likely to maintain its focus on fentanyl flows as a central issue in its trade relationship with China. By linking trade policy to public health outcomes, the administration is reinforcing the idea that economic diplomacy is not only about commerce but also about advancing strategic national interests.

---

Source: [1] [U.S. News & World Report](https://www.usnews.com/news/world/articles/2025-08-12/us-trade-team-will-meet-chinese-officials-in-next-2-3-months-bessent-says)

[2] [Investing.com](https://www.investing.com/news/politics-news/bessent-says-will-hold-more-trade-talks-with-china-in-next-twothree-weeks-93CH-4186531)

[3] [FXStreet](https://www.fxstreet.com/news/treasury-secretary-bessent-fed-should-look-at-50-bps-cut-in-september-202508122040)

[4] [AP News](https://apnews.com/article/china-tariffs-trump-explain-deadline-d4384094ecc50c7a838b2d6bd5cc2e21)

[5] [UBS](https://www.ubs.com/us/en/wealth-management/insights/investment-research/potus-47/articles/quick-takes-on-the-second-trump-administration.html)