Trade war escalates as Trump slaps 245 pc tariff on China
List of goods hit by new tariffs not disclosed, but impact will likely be far-reaching and affect both consumer goods and industrial components
The Donald Trump administration has doubled down on retaliatory tariffs against China's 125 per cent tariffs on US goods, increasing the tariffs on Chinese imports to 245 per cent on Tuesday (April 15). This marks a 100 percentage points jump from their earlier 145 per cent tariffs on Chinese goods.
The US government said these were punitive tariffs due to Beijing's retaliation to Trump's tariffs, alleging threats to national security. It accused China of using economic coercion via restrictions on key materials such as gallium, germanium and antimony — that vital to sectors like defence, semiconductors, and aerospace.
Also read: Trump considers pausing auto tariffs as world economy endures whiplash
Defence sector
These tariffs target strategic materials essential to the high-tech and defence industries. The doubling down on tariffs was a part of the US President Trump's broader 'America First Trade Policy', following China's recent export restrictions on vital and rare earth minerals.
The White House released a statement saying: "More than 75 countries have already reached out to discuss new trade deals...As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated.”
Also read: Tariff exemption on electronics temporary, new duties coming soon: US
The specific list of goods that will be affected by the US's 245 per cent tariff has not been disclosed, but analysts suggest its impact will be far-reaching and will affect both consumer goods and industrial components in an era where global supply chains are vulnerable.