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Trade war: Now, China faces up to a 245% tariff on some exports to the US

Trade war: Now, China faces up to a 245% tariff on some exports to the US

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Virendra Pandit

 

New Delhi: In their ongoing Game of Chicken, the US has now imposed additional levy, to a total of 245 percent of tariff on some imports from China.

The White House said on Tuesday that this step was taken as a result of China’s retaliatory actions, according to the media reports.

President Donald Trump also signed an executive order launching an investigation into the national security risks associated with US reliance on imported critical minerals.

He directed the Secretary of Commerce to initiate a Section 232 investigation under the Trade Expansion Act of 1962 to evaluate the impact of imports of these materials on America’s security. In his previous term, Trump had used this law to scrutinise imports of copper, lumber, steel, and aluminium. 

While China was not specifically mentioned in the fresh order for investigation, the Asian country is the largest producer of 30 of the 50 minerals considered critical by the US Geological Survey (USGS). 

On April 4, responding to Trump’s escalating tariff hikes on Chinese goods, China’s Ministry of Commerce imposed export restrictions on seven rare earth elements (REEs) and magnets critical to the defense, energy, and automotive industries.

China now faces up to 245 percent tariff on syringes and needles exported to the US, as per the latest order of the Trump administration. This category fell under the ‘Pre-2025 tariffs’ (100 percent levy), ‘Fentanyl’ (20 percent) and ‘reciprocal’ (125 percent) tariff categories. Lithium-ion batteries followed, facing up to 175 percent tariff, squid 170 percent, wool sweaters 169 percent, etc.

The US President, according to his White House Press Secretary Karoline Leavitt, has said that “the ball is in China’s court” on resuming trade dialogue. 

“China needs to make a deal with us, we don’t have to make a deal with them,” Leavitt said. 

In response, China’s Foreign Ministry spokesperson Lin Jian on Wednesday criticised the US’s approach as counterproductive. “If the United States truly wants dialogue, it must first stop exerting maximum pressure,” he said, adding that constructive talks require mutual respect and equality. 

Meanwhile, China’s Defence Ministry rebuked the reports that the US will significantly raise its defence spending in 2026. Defence spokesperson Zhang Xiaogang labelled Washington’s rising military budget a sign of its “bellicose nature” and criticised the reliance on hard power. 

“The sky-high defence budget exposes the US belief in ‘might makes right’,” Zhang said. “Wanton use of force will not make America great again.”

Trade hostilities between the world’s two largest economies escalated sharply in recent days.  President Trump announced a new wave of tariff hikes—raising duties on Chinese goods to as much as 145 percent. In retaliation, Beijing slapped tariffs of up to 125 percent on US imports.

Trump also allowed a 90-day pause in higher tariffs for 75 countries currently negotiating trade deals with Washington, including India, in a bid to ease tensions with select partners.

“At some point, China will realise that the days of ripping off the US and other countries are over,” Trump wrote on his social media platform Truth Social on April 9.

 

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