China faces up to 245% tariff on exports to US: White House

Published: 2025-04-17

INSIGHTS

Chinese exports to the US now face up to 245 per cent tariffs due to China's retaliatory actions and suspension of key rare earth exports to the US, President Trump has said in an Executive Order.
A universal 10 per cent tariff and reinstated 25 per cent steel and aluminium duties form part of Trump's 'America First' agenda.
A Section 232 probe into critical mineral imports is also underway.

China now faces up to 245 per cent tariffs on its exports to the US as a result of its retaliatory actions, President Donald Trump has said in a recent Executive Order. The high tariffs are aimed to counter China’s retaliatory trade measures and reduce US dependence on foreign supply chains. The latest statement has been released by the White House in the wake of China’s decision to suspend exports of several heavy rare earth elements critical to US defence and tech industries.

As part of his ‘America First’ trade policy, Trump reinstated a 25 per cent tariff on steel and aluminium and introduced a universal 10 per cent tariff on all imports—with higher rates targeting countries with which the US has significant trade deficits. While over 75 countries have entered talks to negotiate new trade terms, China remains excluded due to its ongoing retaliations.
Trump has also signed an Executive Order launching a national security investigation into the US’ reliance on imported processed critical minerals, directing the Commerce Secretary to evaluate vulnerabilities under Section 232 of the Trade Expansion Act. The investigation may result in new tariffs replacing existing reciprocal rates if national security risks are confirmed.

Critical minerals such as gallium, germanium, and rare earths are vital for defence systems, semiconductors, and aerospace technologies. Trump’s administration warned that China's export bans on these materials—deemed strategic and high-risk—pose a direct threat to national security and economic stability.

The administration’s ‘Fair and Reciprocal Plan’ also aims to counter digital service taxes and other discriminatory practices levied against US companies abroad, reinforcing Trump's broader effort to close trade loopholes and safeguard American innovation.

Fibre2Fashion News Desk (KD)