Trump Slaps 245% Tariffs on China in Escalating Trade War

The trade war between China and the US has elevated to a new high as President Donald Trump commenced a fresh wave of sweeping tariffs on Chinese imports, some climbing as high as 245%. The significant move aligns with Trump’s ongoing ‘America First’ trade agenda and marks the latest in a series of tit-for-tat measures between the two global powers.

A White House factsheet, released on Tuesday night (April 15), framed the tariffs as a direct response to China’s recent export restrictions on critical raw materials and its retaliatory tariffs on American goods.

The Trump administration has accused Beijing of leveraging its control over key supply chains, The White House administration stated that the China is restricting exports of vital minerals like gallium, germanium, antimony, and more recently, rare earth magnets and 6 heavy rare earth elements, which are crucial to industries such as aerospace, defence, and semiconductors.

Factsheet by the White House

As per the factsheet by the White House, “China faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions. This includes a 125% reciprocal tariff, a 20% tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5% and 100%. “

White House Press Secretary Karoline Leavitt commented on the deepening trade conflict, noting that while President Trump remains open to a trade deal, the onus is on Beijing to make the first move. In turn, China has said it would only consider negotiations if treated with respect, appointing a new lead for any potential talks.

Breakdown of New US Tariffs on Chinese Goods

The latest round of tariffs hits a wide array of goods, from electronics to clothing and medical devices. Here’s a snapshot of the updated tariff structure, as reported by The New York Times:

Also Read: How Trump’s 26% Reciprocal Tariffs Could Impact the Indian Stock Market?

Conclusion

The new tariff regime is far from uniform, with rates varying based on product type, material origin, and applicable exemptions. High tariffs on lithium-ion batteries (173%) will hit electric vehicle makers, electronics manufacturers, and energy storage companies especially hard. Similarly, a 70% duty on semiconductors is likely to strain US tech firms already grappling with global chip shortages.

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