In February 2025, as part of the ‘Liberation Day’ campaign, the Trump administration implemented a 10% tariff on all Chinese imports as a measure to address the fentanyl crisis in the US. This move also triggered a trade war between the two countries. Since then the recent trade talks—at the APEC summit in Busan, South Korea, on October 30, 2025—have once again placed fentanyl at the centre of discussions, with the Trump administration accusing China of enabling the flow of fentanyl to the US.
During the meeting, both sides reached a consensus: the US agreed to lower the existing tariffs on Chinese goods from 20% to 10%, effective November 10, 2025. China, in turn, agreed to halt the flow of chemical components used to make fentanyl, reduce restrictions on the export of rare earth elements, and further open its markets to US soybeans and other agricultural products. According to U.S. Treasury Secretary Scott Bessent, the two countries will lay down concrete measures in the coming weeks to curb the flow of fentanyl, which causes thousands of overdose-related deaths in the US each year.
What is fentanyl?
The US Drug Enforcement Administration (DEA) describes fentanyl as a synthetic opioid that is 50 times more potent than heroin and 100 times stronger than morphine, produced entirely in laboratories without any natural ingredients. It has been used since the 1960s as a medication and is approved by the Food and Drug Administration for pain relief and anaesthesia. It is extremely addictive, and just 2 milligrams (an amount that fits on the tip of a pencil) can cause a fatal overdose, leading to cyanosis, coma, and respiratory failure.
Drug dealers have used fentanyl as an adulterant in illicit drug markets since 1979. It is sold alone or mixed with other drugs (such as heroin, counterfeit pills, and cocaine) to make them cheaper and more potent. When mixed with other drugs, fentanyl cannot be seen, smelled, or tasted and can only detected using tools such as fentanyl test strips. On the market it appears in pill, powder, or liquid form, making it harder to detect. A recent trend is “rainbow fentanyl”—fentanyl mixed with dyes. Although not more dangerous than other illicit forms, its candy-like appearance makes it especially hazardous for children and teenagers, increasing the risk of accidental overdose.
The fentanyl crisis and public policy response
As part of the third wave of the opioid epidemic, as described by the Centers for Disease Control and Prevention (CDC), fentanyl-related deaths in the US began rising sharply in 2013 onward. Since 2016, fentanyl has caused more deaths than heroin and prescription opioids combined, peaking at more than 73,000 deaths in 2022.
In 2023, the US House Judiciary Subcommittee held a hearing titled “The Fentanyl Crisis in America: Inaction is No Longer an Option”, calling for bipartisan cooperation and noting that fentanyl has become the leading cause of death in the country for those aged between 18 to 45.
In February 2025, the US passed the HALT Fentanyl Act (H.R. 27), placing all fentanyl-related substances under Schedule I of the Controlled Substances Act and strengthening penalties for traffickers. On September 2, 2025, the Stop Chinese Fentanyl Act of 2025 was passed in the 119th Congress.
China’s connection to the crisis?
A significant portion of the fentanyl supply, also called “China White”, and its chemical precursors come from China, accounting for nearly half of global production; a point of contention with the US. These chemicals are transported through transnational criminal organizations in Mexico and Canada, where cartels and criminal organizations synthesise the drug and traffic it into the US.
This has prompted the US to sanction Chinese companies and individuals allegedly involved in fentanyl trafficking, conduct cyber operations against Mexican cartels, and adopt a more aggressive posture on US-Mexico border enforcement.
This hostility also resulted in claims that Beijing uses fentanyl to strategically weaken the US, although the Chinese Embassy has repeatedly dismissed such accusations. In May 2019, China began to tighten control on many fentanyl-related substances, but it remains a major producer of key precursor substances like 4-AP, 1-boc-4-AP, and norfentanyl.
The Chinese Ambassador to Qatar, Cao Xiaolin, in an Al Jazeera article, blamed the crisis on the US pharmaceutical industry and inadequate social governance while highlighting Beijing’s zero-tolerance drug policies and harsh penalties for drug related crimes. China has also argued that, since its rigid control policies in 2019, the US has not seized any fentanyl originating from China and that this crisis has roots in the US itself.
But cooperation has also taken place between the US and China: the launching of the Counternarcotics Working Group, joint handling of drug related cases, technology exchange and multilateral cooperation. Although drug overdoses remain high, some recent data show there has been a decline in fentanyl related deaths in the US. Still, fentanyl continues to shape US domestic politics and remains a major obstacle in US-China relations.
The APEC summit and the way forward
At the APEC summit, following a meeting with Xi, Trump agreed to remove the restrictions on fentanyl-related tariffs and pursue a more meaningful way forward. This lowered the combined tariff on China from 57% to 47%. Both sides also agreed to form a new bilateral working group.
On October 29, 2025, a day before the summit, the Select Committee on the CCP published a report urging the US to take stronger measures to restrict precursor chemicals used in fentanyl production and establish clear accountability mechanisms with China.
On November 7, 2025, US FBI director Kash Patel arrived in Beijing to discuss fentanyl and law enforcement issues. On November 10, 2025, China announced a new export control list and a crackdown on 13 chemical compounds used to manufacture fentanyl, restricting exports to the US, Mexico, and Canada. The China National Narcotics Control Commission also instructed businesses to adhere strictly to tax codes, customs regulations, internet laws, and foreign currency rules; steps aimed at improving drug control enforcement.
While significant challenges remain, the Busan truce has created space for both countries to strengthen cooperation and pursue more effective solutions to the crisis.