Tariffs Up to 245% on China: Trump’s Latest Salvo in Ongoing Trade War

Tariffs Up to 245% on China: Trump’s Latest Salvo in Ongoing Trade War

April 16, 2025

In a significant escalation of the ongoing trade conflict between the United States and China, President Donald Trump has announced the imposition of tariffs reaching up to 245% on a range of Chinese imports. This move marks one of the most aggressive trade measures taken by the Trump administration and signals a deepening of tensions between the world’s two largest economies.

Background of the Trade Dispute

The trade war between the U.S. and China has been a defining feature of international economic relations since President Trump’s first term. Initiated in 2018, the conflict began with the U.S. imposing tariffs on Chinese goods to address concerns over trade imbalances, intellectual property theft, and China’s industrial policies. China responded with its own tariffs, leading to a tit-for-tat escalation that has affected global markets and supply chains.

Details of the New Tariffs

The newly announced tariffs are structured as follows:

• 125% Reciprocal Tariff: Aimed at countering what the Trump administration perceives as unfair trade practices by China.

• 20% Fentanyl Tariff: Targeting China’s alleged inaction in curbing the flow of fentanyl into the U.S., a drug contributing to the opioid crisis.

• Section 301 Tariffs: Additional duties ranging from 7.5% to 100% on various goods, citing national security concerns and the need to protect American industries.

These measures are in addition to the existing 145% cumulative tariffs on Chinese imports, bringing the potential total to 245% for certain products.

Rationale Behind the Tariffs

The Trump administration justifies these tariffs on multiple grounds:

1. National Security: Concerns over dependence on China for critical minerals and rare earth elements essential for defense and technology sectors.

2. Public Health: Addressing the opioid crisis by penalizing China’s role in the fentanyl supply chain.

3. Economic Fairness: Seeking to rectify trade imbalances and protect American industries from what are viewed as predatory Chinese trade practices.

China’s Response

China has vehemently opposed the new tariffs, labeling them as irrational and a violation of World Trade Organization (WTO) rules. The Chinese government has announced retaliatory tariffs of its own, including:

• 15% Tariff: On U.S. coal and liquefied natural gas (LNG).

• 10% Tariff: On crude oil, agricultural machinery, and certain automobiles.

Additionally, China has filed a complaint with the WTO and initiated an anti-monopoly investigation into U.S. tech giant Google. These actions underscore China’s intent to counter U.S. measures both legally and economically.

Impact on Global Markets

The escalation has sent ripples through global markets:

• Stock Markets: Volatility has increased, with major indices experiencing fluctuations amid investor uncertainty.

• Supply Chains: Companies reliant on U.S.-China trade are reassessing their supply chains to mitigate risks.

• Consumer Prices: The increased tariffs are expected to lead to higher prices for goods, affecting consumers in both countries.

Domestic Reactions in the U.S.

Within the United States, reactions are mixed:

• Supporters: Advocates argue that the tariffs are necessary to protect American jobs and industries from unfair competition.

• Critics: Opponents, including some business groups and economists, warn of the potential for economic harm, including increased costs for consumers and retaliatory measures that could hurt U.S. exports.

Notably, California Governor Gavin Newsom has announced plans to