US-China Trade War Escalates: China now faces up to 245% tariffs from US, says White House
In response to the latest developments, China’s retaliatory actions have led to tariffs on imports to the United States soaring to as high as 245 per cent, according to a fact sheet released by the White House. Previously, the tariff on Chinese exports was set at 145 per cent.
This move follows a series of actions taken by President Donald Trump, who imposed reciprocal tariffs on several countries with which the US had a trade deficit. However, in a shift of strategy, Trump decided to temporarily halt the tariffs for 90 days after engaging in talks with those countries seeking to negotiate a trade deal.
Tariff tensions rise as China faces steep 245% US import duties
More than 75 countries have already reached out to the United States to explore new trade agreements, according to a White House fact sheet. As a result, most of the newly announced higher tariffs have been paused for now—except for those targeting China, which has retaliated.
For the time being, a base tariff of 10 per cent will apply to US imports.
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President Trump had originally imposed a blanket 10 per cent tariff on all countries, alongside individually tailored, higher tariffs on nations with which the US has the largest trade deficits. The move was part of a broader effort to level the playing field and safeguard national security.
Under the “Fair and Reciprocal Plan,” Trump aimed to restore fairness in America’s trade relationships and counter what he described as one-sided deals. These reciprocal tariffs have triggered widespread volatility in financial markets, sparking sharp declines across Asia and Europe. Even US markets have felt the impact, with investors worried that escalating trade tensions could fuel inflation and weigh on economic growth.
Since starting his second term, Trump has doubled down on his approach to tariff reciprocity, making it clear that the US will match any duties imposed by other countries—including India—to ensure fair and balanced trade.
China appoints new trade negotiator
Meanwhile, China on Wednesday appointed a new trade negotiator, Li Chenggang, replacing Wang Shouwen, who had played a key role in the 2020 trade agreement with the US.
The trade dispute between the world’s two largest economies has escalated in recent months. China was already facing tariffs of 145 per cent on its exports to the US, which have now been hiked to 245 per cent. Dozens of other nations have been granted a 90-day grace period on most of their duties.
Earlier, China reported that its economy grew by 5.4 per cent annually in the January–March period, fuelled by strong export performance. However, analysts expect growth to slow significantly in the coming months as the latest round of US tariffs begins to bite.
Exports played a key role in China’s 5 per cent growth rate last year, and the official target for 2025 remains at around 5 per cent.
In response, Beijing has imposed 125 per cent tariffs on American exports. Still, it insists that it remains committed to keeping its markets open to global trade and investment.
“These tariffs will put pressure on China’s economy in the short term,” said Sheng Laiyun, a spokesperson for the National Bureau of Statistics, adding that however they won’t derail country’s long-term growth trajectory.
(With inputs from AP)
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