• US-China Trade War Escalates: Trump Raises Tariffs to 145 Percent Amid Mounting Economic Tensions

  • Apr 14 2025
  • Length: 3 mins
  • Podcast

US-China Trade War Escalates: Trump Raises Tariffs to 145 Percent Amid Mounting Economic Tensions

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  • Summary

  • Welcome to "China Tariff News and Tracker." Let’s dive into the latest updates on tariffs between the United States and China. The ongoing trade tensions have escalated significantly over the past week, with both nations implementing sweeping tariff changes.

    On April 8, 2025, President Trump issued an executive order modifying U.S. tariffs on Chinese imports under Executive Order 14257. This followed considerable retaliation from China, which recently imposed a 34 percent tariff on all U.S. goods entering their market. In response, the United States increased its tariffs on Chinese imports to 84 percent as of April 9, 2025. The White House stated that these actions were necessary to address threats to U.S. national security and economic stability. The administration emphasized that these measures reflect a broader strategy to combat what is seen as unfair trade practices by China.

    These developments build on a series of policy shifts. Early this month, a blanket 10 percent tariff on imports from all countries took effect on April 5. For China, however, a significantly higher rate applies. The Trump administration raised tariffs on Chinese goods to 125 percent on April 9, 2025, under reciprocal tariff mechanisms. Factor in additional penalties under the International Economic Emergency Powers Act, and the effective rate on most Chinese imports reaches 145 percent, effectively making Chinese goods prohibitively expensive for U.S. buyers. These tariffs have affected sectors far beyond manufacturing, extending their impact to consumers and businesses reliant on imported goods.

    Meanwhile, China's State Council Tariff Commission confirmed new measures in retaliation to the U.S. tariffs. The commissioned actions include higher duties on U.S. exports, signaling continuing tensions without any immediate resolution in sight. Analysts warn that this tit-for-tat tariff escalation will have significant long-term repercussions, including increased costs for goods and strained global supply chains.

    It’s worth noting how this escalating tariff environment fits into the broader trade strategies of the Trump administration. President Trump has consistently emphasized his “America First” trade policy, underscoring tariffs as a key tool to reduce trade deficits and encourage domestic manufacturing. In January, he ended a de minimis exemption for low-value imports, a move aimed at curbing what the administration sees as misuse of trade loopholes by companies exporting from China.

    These actions come as part of a second-term agenda heavily focused on trade disputes with China. Despite the administration signaling interest in revising prior trade agreements, the sharp rise in tariffs and retaliatory measures suggests there’s little room for negotiation at this time.

    Thank you for tuning in to "China Tariff News and Tracker." Don’t forget to subscribe. This has been a Quiet Please production. For more, check out quietplease.ai.

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