China Now Faces Up To 245% Tariff As Result Of Its Retaliatory Actions: White House

The United States has announced a significant escalation in its trade conflict with China, now facing a new tariff of up to 245% on imports to the U.S. This decision follows China’s retaliatory actions in the ongoing trade dispute between the two nations.

According to a statement issued by the White House on late Tuesday, "the tariff increase is a direct result of China’s recent trade moves."

"America First" Policy

The White House also revealed that the latest administrative order includes a national security inquiry into critical resource imports, particularly focusing on the U.S.'s reliance on foreign minerals and materials that are vital to the country’s defence and technological sectors.

"On Liberation Day, President Trump imposed a 10% tariff on all countries and individualized reciprocal higher tariffs on nations with which the U.S. has the largest trade deficits in order to level the playing field."

The White House statement did not specify the exact tariff rate China now faces but strongly implied that it could reach up to 245%.

These tariffs are currently paused for most countries, except for China, which retaliated by imposing tariffs on U.S. goods, leading to "up to a 245% tariff on imports to the United States," the White House stated, marking a significant shift in the ongoing trade tensions between the two economic giants.

Also Read: Trump Launches Probe On Critical Minerals Tariffs Amid Global Trade Tensions - Report

The announcement also referenced previous trade actions under President Trump’s "America First" policy. "On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again," the White House explained.

China’s Retaliatory Actions

The U.S. has also paused the individualized higher tariffs currently in effect while engaging in discussions with over 75 countries regarding new trade deals. However, the White House pointed out that these discussions do not apply to China, whose retaliatory actions have led to a dramatic increase in tariffs.

"A few months ago, China banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications," the statement continued.

"Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies, and military contractors around the world."

Focused Action on China

This tariff increase follows China’s recent move to impose a 125% tariff on U.S. imports, a retaliatory step to President Trump’s decision to raise tariffs on Chinese goods to 145%.

Despite these actions, the U.S. has placed a 90-day pause on planned levies for other countries' goods, signalling that the intensified measures are specifically targeted at China.