US-China Trade War Escalates: Massive 145% Tariffs Shock Global Markets and Reshape International Commerce
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US-China Trade War Escalates: Massive 145% Tariffs Shock Global Markets and Reshape International Commerce
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In a significant escalation, President Trump's administration has dramatically increased tariffs on Chinese imports to unprecedented levels. As of May 2025, U.S. goods imported from China are now subject to a staggering 145% tariff rate, up from the initial 54% announced in early April.
This sharp increase came after a series of rapid developments. On April 2, the White House declared a "national emergency" due to trade imbalances, implementing a baseline 10% tariff on all imports. For China specifically, an additional 34% tariff was added on top of the existing 20%, bringing the total to 54%.
Just days later, on April 9, the Trump administration raised the reciprocal tariff rate on China from 34% to 84%, bringing the total to 104%. This increase was implemented after China failed to repeal a 34% duty it had placed on U.S. goods.
In retaliation, China's Ministry of Finance immediately raised tariffs on U.S. goods to 84%, effective April 10. By April 11, China's State Council Tariff Commission further increased duties on U.S. imports to 125%.
The trade war has extended beyond traditional imports. The Trump administration has also targeted small shipments with a new de minimis duty rate. Parcels valued under $800 arriving from mainland China and Hong Kong now face a 90% tariff, with a per-item fee of $75 that rose to $150 on June 1.
Economists at Yale's Budget Lab report that these measures have pushed the U.S. average effective tariff rate to 28%, the highest since 1901. They predict a substantial shift in China's share of U.S. imports, potentially dropping from 14% to just 3% as American businesses seek alternatives.
Notably, certain goods remain exempt from these tariffs. Books and other "informational materials" are not subject to additional duties because the tariffs were imposed under the International Economic Emergency Powers Act.
The impact of these tariffs on consumer prices and supply chains continues to evolve as businesses adapt to this new trade landscape.
Thank you for tuning in to China Tariff News and Tracker. Make sure to subscribe for regular updates on this developing situation. This has been a quiet please production, for more check out quiet please dot ai.
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