Trade War Deepens: Trump Additional Tariff on China Triggers 145% Duties

In a bold move that has sent ripples across global markets, former President Donald Trump, now back in office for a second term, has reintroduced and significantly intensified his signature trade policies. At the heart of this renewed economic confrontation is a sweeping escalation in tariffs on Chinese imports, with rates now surging as high as 145%. Framed as a response to China’s own high import barriers, this aggressive policy shift marks a new phase in the ongoing U.S. China trade war has sparked concern among economists, supply chain analysts, and multinational corporations alike. There is even more concern regarding President Trump additional tariff on China.

Timeline of US-China Tariffs Under Trump’s Second Term and Trump Additional Tariff on China

The second term of President Donald Trump has reawakened one of the most defining economic rivalries of the 21st century: the U.S./China trade war. After a brief period of reduced tensions and limited tariff adjustments during early 2020s, Trump’s return to office in 2024 brought a renewed focus on trade imbalances, especially with China. 

By April 2025, the administration implemented a series of tariff hikes that now stand among the highest in modern trade history. The escalation began in early 2025 when Trump cited China’s own trade barriers, including an 83% effective tariff rate on some U.S. imports, as justification for a new round of aggressive policies. 

These included revoking de minimis exemptions, reinstating blanket tariffs on steel and aluminium, and drastically increasing duties on electronics, automotive parts, and ecommerce parcels.  

Trump Additional Tariff on China: 145% Tariffs on Chinese Goods

The most significant development is the imposition of a 145% tariff on Chinese goods, an enormous jump from the prior baseline of approximately 20%. This Trump additional tariff on China policy targets a broad range of industries, including electronics, machinery, consumer products, and textiles.

The administration defended the increase by framing it as a necessary response to China’s protectionist policies and state subsidies. In effect, the Trump China tariff strategy now prices many Chinese goods from the U.S. consumer market, driving importers to source alternatives from Southeast Asia, Latin America, or domestic manufacturers. 

Trump Additional Tariff on China: China’s Retaliatory Actions

Unsurprisingly, China impose tariffs on U.S. goods in direct response. Targeted sectors include U.S. agriculture, automotive, and aerospace. The Chinese government has announced plans to restrict access to critical raw materials such as rare earth elements, deepening the standoff. 

This tit for tat retaliation further complicates already tense negotiations and raises questions about whether China import tariffs will further escalate. In many sectors, businesses are now reevaluating reliance on Chinese and U.S. supply chains due to this mounting unpredictability. 

Trump Additional Tariff on China: Impact on China Trade

The 145% tariff already reshaping imports tariffs US China dynamics. For many American companies, especially those manufacturing, retail, and ecommerce, sourcing from China is no longer economically viable. 

The tariff on Chinese goods has triggered a supply chain reorientation, pushing many firms to pursue nearshoring or expand supplier networks in non tariffed regions. 

Small and medium sized enterprises (SMEs) that previously depended on Chinese made goods now face narrow margins, and the surge in landed costs is threatening business viability in price sensitive categories. 

The question many are now asking is: Is Trump increasing tariffs even further? If trade negotiations stall, this is entirely possible. 

End to De Minimis Exemption and Imposition of 90% Tariff on Chinese Parcels

Another game changing policy is the termination of the de minimis exemption on low value parcels from China. Previously, items valued under 800$ were exempt from tariffs. Now, these parcels face a 90% blanket tariff, dramatically impacting Chinese e-commerce exports to U.S. consumers. 

This change has severe implications for platforms like AliExpress, Temu, and  Shein, which had flourished under the de minimis loophole. With the Trump pause tariffs debate largely sidelined, and no tariff pause in sight, these changes signal a structural shift in how low cost imports are handled.

Impact on China Trade 

The end of the de minimis exemption essentially places all Chinese parcels under tariff scrutiny. U.S. Customs and Border Protection (CBP) is expected to ramp up enforcement, requiring more robust documentation and possibly slowing delivery times. 

The administration has shown no signs of reversal, and speculation over a Trump pause on enforcement has not materialized. 

25% Steel and Aluminum Tariffs

Steel and aluminum tariffs, originally introduced during Trump’s first term, have now been expanded. In 2025, a 25% tariff applies not only to imports from China but also to any metal products that contain Chinese origin steel or aluminium, regardless of their country of final manufacture. 

Impact on China Trade 

The reintroduction of these duties has had a flow effect. Industrial sectors in both countries are recalculating sourcing strategies. In the U.S., manufacturers are passing costs down the supply chain, raising prices for everything from automotive parts to construction materials. 

Meanwhile, China is ramping up domestic demand and seeking new export markets. 

25% Tariff on Global Auto Imports

In a broader protectionist move, the Trump administration has also placed a 25% tariff on all global auto imports, including vehicles from Germany, Japan, and Korea. However, Chinese automotive exports especially electric vehicles (EVs) are now effectively blocked due to both the global tariff and the 145% penalty rate specific to China. 

Impact on China Trade 

Chinese automakers who had hoped to gain a foothold in the U.S. The EV market now faces major setbacks. The combination of the Trump tariffs China 2025 policy and the new EV specific taxes has effectively halted expansion plans into the American market, while boosting opportunities for U.S. domestic manufacturers. 

US-China Dialogue and Possible Trade Negotiations

Despite rising tensions, both countries have left open the door to US China dialogue. Backchannel discussions are reportedly ongoing, though no formal negotiation rounds have been confirmed. 

Many observers hoped for a Trump tariff pause or suspension similar to the temporary  delays seen in the 2018/2019 trade standoff. However, officials have indicated that the Trump pauses tariffs concept is not currently under consideration. 

The U.S. Trade Representative (USTR) has instead suggested that any future adjustments would be based solely on reciprocity and demonstrable market access reforms from China.