The White House announced China could face tariffs up to 245 percent on imports to the U.S. “as a result of its retaliatory actions,” marking another escalation in the trade war between the world’s two largest economies.
This potential tariff rate exceeds the previously stated 145 percent and was disclosed in a White House fact sheet released late Tuesday.
The announcement accompanied an executive order signed by President Donald Trump initiating an investigation into “national security risks posed by U.S. reliance on imported processed critical minerals and their derivative products.”
Newsweek has contacted the White House press office by email outside normal business hours for comment.
Why it Matters
The U.S.-China trade war is unsettling global markets concerned about economic fallout from this conflict and others Trump has initiated with America’s trading partners.
Restricting Chinese imports disrupts American supply chains, raising costs and forcing businesses to find alternative sources. Consumers ultimately face higher prices. Trump’s strategy aims to leverage tariffs to attract manufacturing investment to the U.S.
Chinese exporters face devastating losses from reduced U.S. market access and must expand in other markets like the European Union to compensate. China’s export-dependent economy was already experiencing a slowdown.
The Trump Administration continues intensifying pressure on China while pushing trading partners to choose between Beijing and Washington.
When asked about the 245 percent rate at a Wednesday press briefing, Chinese foreign ministry spokesperson Lin Jian deflected, saying, “You can ask the U.S. side for the specific tax rate figures,” according to China News Network.
“China has repeatedly stated its solemn position on the tariff issue.
“This tariff war was initiated by the United States, and China’s necessary countermeasures are to safeguard its legitimate rights and interests and international fairness and justice, which are completely reasonable and lawful.”
Trump imposed a 10 percent baseline tariff on imports from all countries but temporarily paused additional “reciprocal” rates tailored to each country’s trade barriers to allow time for negotiations.
China remains the exception to this pause, facing progressively higher U.S. tariffs while responding with its own countermeasures.
This week, China implemented additional export controls on rare earths—materials crucial for high-tech products, aerospace manufacturing, and defense applications.
The Trump Administration had previously warned countries against retaliating to its tariffs, suggesting benefits for compliance.
China Appoints New Trade Negotiator
China appointed Li Chenggang as its new trade negotiator Wednesday amid the escalating tariff dispute, potentially signaling a strategic shift from Beijing.
Before this appointment, Li served approximately four and a half years as China’s ambassador to the World Trade Organization, the global commerce governing body to which Beijing has appealed in its tariff dispute with the U.S.
His previous roles included deputy permanent representative to the Chinese delegation at the U.N. office in Geneva and other international organizations in Switzerland.
Li’s experience includes participating in negotiations for China’s WTO accession more than two decades ago.
“There might be another style of negotiations. Li Chenggang is an open-minded person and supports free trade,” noted Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics.
What People Are Saying
Chinese foreign ministry spokesperson Lin Jian stated: “There is no winner in tariff wars and trade wars, and China does not want to fight, but it is by no means afraid to fight.”
On April 13, President Trump wrote on his Truth Social platform: “NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”
“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.
“What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People.”
What’s Next
Despite the substantial tariffs and harsh rhetoric, both the U.S. and China have expressed openness to trade discussions, though further retaliatory measures remain likely in this conflict between the global powers.
Meanwhile, the Trump Administration is engaged in trade negotiations with at least 15 countries that have approached it. These talks could be leveraged against China by presenting America’s partners with a choice: secure better terms with Washington or risk being shut out from relations with Beijing.undefined