Speculation erupted on Wednesday regarding an alleged increase in tariffs on Chinese imports, as it was reported that the Trump administration had raised such tariffs to as much as 245%. The White House had caused the confusion by releasing a fact sheet, which outlined the new tariff plan.
But to clarify, the mentioned 245% does not refer to a blanket tariff increase from the existing 145%. Instead, it is the net effect of multiple tariffs on specific Chinese goods. For instance, certain products such as needles and syringes now come under this highest tariff through the cumulative addition of earlier tariffs.
A 100% tariff on Chinese syringes was added by the Biden administration in September 2024 aimed at propping up American manufacturers. The tariff was followed by an extra 20% tariff for fentanyl and a 125% retaliatory tariff from Trump, culminating in the general 245% tariff on these medical devices.
Similarly, sweaters imported from China are also charged an overall tariff of 168.5%. The baseline tariff is 16%, but under Biden it is increased to 7.5%, thus the sudden sharp increase.
The new action should accelerate the current trade war between China and America. While Trump had suspended a tariff for a 90-day period for every country, the singled-out focus is on China.
China responded slowly to the tariffs increase, with Foreign Ministry spokesman Lin Jian stating, “Tariff and trade wars have no winner. China does not want to fight these wars but is not afraid of them.” The Chinese government has also suspended exports of critical high-tech materials like rare earth elements and magnets utilized in various industries like automotive and aerospace.
Besides that, China also suspended deliveries of Boeing aircraft to its carriers and instructed them to suspend purchases of aircraft equipment-related items from the United States. This move goes hand in hand with restrictions imposed on direct importation of American commodities like beef, poultry, and liquefied natural gas.
The White House fact sheet states that the Chinese tariffs are the direct consequence of its retaliatory actions, though little in the way of information regarding these actions. Interestingly enough, computers and smartphones have not been added to the new tariffs, which shows how complex the current trade negotiations have become.
