US-China Trade Tensions Escalate: New Tariffs Reach 245%

Heightened Trade Disputes Between the US and China

Washington: On Tuesday evening, the United States declared that China will now incur tariffs as high as 245% on its exports to the U.S., a move prompted by China's recent retaliatory trade actions.

According to the White House, these tariffs are part of a comprehensive national security assessment concerning vital resource imports, which include rare earth elements and advanced technological materials. The administrative order issued on Tuesday also elaborated on reciprocal tariffs that were initially announced on April 2.

The White House stated, "As a consequence of its retaliatory measures, China now faces tariffs of up to 245% on its imports to the United States."

The announcement highlighted that President Donald Trump's 'America First' trade strategy had led to negotiations with over 75 nations to revisit trade agreements. While higher tariffs for these countries have been temporarily halted during discussions, China has proceeded with its own trade limitations.

Earlier this year, China prohibited the export of gallium, germanium, antimony, and other high-tech minerals, citing national security concerns. Recently, it expanded these restrictions to encompass six heavy rare earth metals and rare earth magnets, which are essential for sectors like automotive, aerospace, semiconductors, and defense.

In a reciprocal action last Friday, China increased tariffs on U.S. products to 125%, responding to the Trump administration's earlier tariff hike that raised U.S. tariffs on Chinese goods to 145%. A 90-day suspension of tariffs affecting other nations remains in effect.

While the White House did not specify if the 245% tariff would be uniformly applied, it indicated that this figure represents the maximum potential increase amid the ongoing trade conflict.