US-China Trade Tensions Persist: Tariffs Remain at 30% with New Package Import Rules and Extended Exclusions
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US-China Trade Tensions Persist: Tariffs Remain at 30% with New Package Import Rules and Extended Exclusions
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The current average US tariff rate has soared from 2.5% at the start of the year to roughly 27%, which, according to Wikipedia, makes it the highest US rate in over a century and marks some of the sharpest increases specifically affecting Chinese goods. Notably, US baseline tariffs on Chinese imports previously peaked at an extraordinary 145%, while China's retaliatory tariffs on US goods reached 125%. However, after major trade negotiations, the two sides agreed this May to reduce tariffs for a 90-day period, putting the US rate for Chinese goods at 30% and China’s rate at 10%. Both nations signaled willingness to further negotiate, but China demanded the US remove additional tariffs as a precondition.
This new lower tariff period was due to expire in August, but there’s developing news for listeners: On July 29, both the US and China agreed to continue the pause in higher tariffs for an additional 90 days, effectively maintaining the current 30% US tariff rate on Chinese goods through early November.
Another critical change impacting trade is the recent elimination of the so-called de minimis tariff loophole. Starting August 29, 2025, all packages from China valued under the previous $800 exemption are now subject to tariffs. According to ABC News, this move is expected to generate up to $10 billion in new tariff revenue and reduce flows of illicit or dangerous goods. The White House claims it is a step toward “rebalancing trade” and cracking down on imports like fentanyl. Major shippers including UPS, FedEx, and DHL have said they are prepared for the switch, though for the next six months, importers can pay a temporary flat fee per package instead of the full tariff rate.
According to the Office of the US Trade Representative, certain exclusions on imports from China under the Section 301 tariffs were scheduled to expire at the end of August but have now been extended through November 29, 2025. These exclusions continue to provide relief for select products even as broader tariffs remain historically high.
Trump administration officials argue that these tariffs protect American manufacturing and deter intellectual property theft, though many experts, including from Bloomberg News and Time Magazine, warn that the surge in tariffs is fueling inflation and pushing up costs for both businesses and US consumers. Federal Reserve and World Bank growth projections have already been downgraded due to trade tensions.
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