The administration of US President Donald Trump has sharply escalated pressure on China amid the ongoing trade conflict. According to a new White House briefing released Tuesday evening, the maximum rate of US tariffs on Chinese goods now stands at 245%.
According to the White House, this move is a response to “China’s retaliatory actions.” In particular, the hike targets critical mineral resources and related products, which are now subject to additional tariffs “to protect US defense capabilities, infrastructure development, and technological innovation.”
Tariff Rate Increase Timeline
After his inauguration, Trump launched a trade campaign starting with a base tariff of 20%. On April 2, the rate rose to 34%, then jumped another 50%, bringing the total burden to 104%. Following China’s countermeasures, tariffs were increased to 125%, and then to 145% last week.
Beijing, in turn, also raised its tariffs on US goods to 125%, intensifying tensions between the world’s two largest economies. In the latest update to US tariff policy, a record-setting 245% was imposed — the highest level for several categories of Chinese imports.
Punitive Tariffs
As previously reported by the New York Times, the items most affected by the new tariffs include:
- Chinese syringes and needles (245%).
- Lithium-ion batteries (173%).
- Squid (170%).
- Wool sweaters (169%).
- Plastic plates (159%).
Meanwhile, children’s books, for example, remain fully exempt from tariffs.
According to Reuters, China remains the largest exporter of goods to the US, with an annual export volume to the American economy exceeding $400 billion. No other country comes close to these figures.
Market Reaction
Amid the escalating trade tensions, China’s CSI 300 index had fallen by 0,70% at the time of publication. US futures also reacted with declines: the Dow Jones was down 0,15%, the S&P 500 fell 0,76%, and the Nasdaq 100 dropped 1,44%.
Despite this, US stock indexes ended Tuesday with slightly positive performance. The SPDR S&P 500 ETF Trust (ARCA: SPY) rose by 0,28% to $537.61. The Invesco QQQ Trust ETF (NASDAQ: QQQ) gained 0,11% to $457.99, according to Benzinga Pro.
Pause for Other Countries, but Not for China
Amid rising global tensions, the US has granted other countries a 90-day pause to negotiate lower tariffs. However, no such exemptions have been extended to China. The White House stated that the current policy reflects the need to “restore fairness in global trade.”
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