President Trump has decided to hold off on enacting retaliatory tariffs on many of the United States’ key trading allies, but duties targeting Chinese imports will still skyrocket — reaching a combined 145% on certain goods, a White House official told The New York Post.
On Wednesday, Trump revealed that his broader tariff plan would be temporarily suspended for a period of 90 days, explaining that multiple countries had approached the U.S. with the intent of striking trade deals. In the interim, the default tariff on most imported goods will be dropped to 10%.
However, China won’t benefit from this temporary suspension. Trump hit Beijing with a steep 125% tariff, citing “a lack of respect” from the Chinese government. When paired with the already established 20% penalty dubbed the “fentanyl tariff,” some Chinese products will now face a combined duty of 145%, according to a report by CNBC.
China remains one of America’s largest sources of imports, second only to Mexico. In 2024, the U.S. imported close to $440 billion in goods from China, including a wide array of consumer products such as clothing, toys, footwear, and electronics like the iPhone.
In response, China fired back with its own hefty tariff — an 84% duty on American exports — which went into effect on Thursday.
Last year, the U.S. shipped more than $143 billion worth of goods to China. Key American exports to the Chinese market included soybeans, airplanes and their components, pharmaceuticals, chips, and automobiles.
Chinese export activity has surged recently, growing 13% in 2023 and jumping another 17% in 2024. The export sector now accounts for roughly one-fifth of China’s total economic output.
In contrast, U.S. exports — once at record highs a decade ago — have been on a downward trend.
Currently, exports make up just 11% of America’s GDP, a notable dip from 13.6% in 2012.
Trade figures from the Office of the United States Trade Representative show that American exports to China dropped by nearly 3% last year, landing at $144 billion.
The trade imbalance between the U.S. and China has also grown, with the deficit expanding to $295 billion.
Trump said his decision to grant the 90-day delay — excluding China — was influenced by recent instability in the bond market and falling U.S. stock indices.
“I thought people were jumping a little bit out of line, they were getting yippy, you know, they were getting a little bit yippy, a little bit afraid, unlike these champions,” he told reporters Wednesday from the White House South Lawn at an event featuring NASCAR Cup Series champions Joey Logano and Ryan Blaney.
Following the announcement, U.S. markets saw their strongest rally since 2001 — but much of that momentum faded when trading reopened on Thursday.
{Matzav.com}