CHINA TARIFFS AT 104%: Rates Raised On Most Goods
On Tuesday, April 8, 2025, the White House signed off on a 50% increase to the Reciprocal Tariff on China, bringing the total of general tariffs on Chinese imports to 104%. This escalation comes as China retaliated against the 34% Reciprocal Tariff with its own tariff of 34%.
Background: Tariffs on Chinese Goods
Starting on February 1, 2025, President Trump imposed a 10% tariff on Chinese imports in response to the importation of the synthetic opioid fentanyl into the United States (the “Fentanyl Tariff”). On March 4, 2025, the Fentanyl Tariff was increased from 10% to 20%. Then on Wednesday, April 2, 2025, President Trump signed an executive order imposing “reciprocal” tariffs on goods from China, with an initial tariff rate of 10% due to increase to 34% on April 9, 2025 (the “Reciprocal Tariff”).
Escalation
On April 8, 2025 China responded by placing an additional 34% tariff of its own on U.S. goods. This is what prompted the Trump Administration to order a 50% increase to the rate of the China-specific Reciprocal Tariff, bringing the total of the Reciprocal Tariff to 84%. As of today, Wednesday, April 9, 2025, China has responded in kind, raising its own tariff rate to 84%. Therefore, we can expect to see additional escalation from the United States coming soon.
104% Tariff
Based on the most recent executive order, the elevated Reciprocal Tariff rate came into effect at 12:01 a.m. this morning, April 9, 2025. This means a tariff rate of 104% imposed on Chinese imports across the board. 20% comes from the Fentanyl Tariff, while the remaining 84% is the product of the Reciprocal Tariff. This tariff rate applies to most goods imported from China, barring a few exceptions.
This 104% does not take into account duties that have been imposed under select goods under Sections 301 and 201, which apply in addition to the Reciprocal and Fentanyl Tariffs. Goods that have been targeted by Section 232 are exempt from the 84% Reciprocal Tariff, but not the 20% Fentanyl Tariff. Goods that were previously entitled to de minimis treatment are treated under different rules.
Conclusion
Any further escalation by the United States is sure to be announced soon. Based on this most recent escalation, we can expect an announcement from the White House, followed closely by an executive order. We will continue to monitor for updates.
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into which tariffs apply to your operations, we invite you to contact us to schedule a consultation.