U.S. Tariff Actions Summary
Tariffs on Chinese Imports: Up to 245%, including:
• 10% reciprocal tariff – Initially set at 125%, now reduced to 10% during the 90-day pause.
• 20% fentanyl-linked tariff
• 7.5%–100% additional duties on various goods
Key Changes:
- De Minimis ends May 2 – $800 import exemption scrapped (hits Temu, Shein)
- Sector Tariffs Coming – new duties on electronics, semiconductors, pharma
- Legal Pushback – California sues, citing economic harm
- IEEPA Challenge * – U.S. court rules Trump’s “Liberation Day” tariffs exceeded presidential powers under IEEPA
- Pause Extended – July 9: China-specific tariff pause renewed for 90 days under Executive Order 14298
- Broader Tariff Strategy – Trump hints at raising baseline reciprocal tariffs to 15–20% on all countries without new deals
China’s Retaliation Summary
- Tariffs on U.S. goods – down to 10%, reduced from 125%
- Export bans – critical minerals, rare earths
- WTO complaint – against U.S. tariff actions
- No talks – unless based on “mutual respect”
- Export controls remain active. China has kept restrictions on rare earths critical to U.S. electronics and military industries.
- Chinese economy grows 5.2% in Q2 2025, showing resilience despite tariffs.
- U.S. firms scale back in China: 27% now plan to relocate operations due to long-term uncertainty.
- Sector-specific tariffs (semiconductors, EVs, solar) are still on the table, likely after August 12 if no final deal is reached
| Date | Event |
|---|---|
| Apr 2–17 | U.S. tariffs rise to 245% on Chinese goods; China retaliates up to 125% |
| May 2 | U.S. scraps $800 import exemption (de minimis) |
| May 12 | Truce begins – Both sides reduce tariffs to 30% |
| May 28 | Court strikes down Trump’s IEEPA tariff powers |
| July 9 | Tariff pause extended for China only |
| July 31 | Appeal hearing on IEEPA ruling |
| Aug 12 | Deadline: China warns tariffs could return if no deal is made |
July 9, 2025 – Pause Extended for China Only
President Trump issued Executive Order 14298, extending the tariff pause only for China.
Tariffs on other countries (EU, Vietnam, Japan, etc.) remain scheduled to resume August 1, unless separate deals are made.
May 12, 2025 – Tariff Pause Announced
After weeks of rising tariffs, the U.S. and China have agreed to a 90-day pause in the trade war. This deal was reached during talks in Geneva. It aims to ease tensions and create space for further talks.
Key outcomes include:
- The U.S. lowers tariffs on Chinese goods from as high as 145% to 30%.
- China reduces its tariffs on U.S. goods from 125% to 30%.
- Both sides agree to set up a new dialogue mechanism for ongoing trade issues.
Markets responded well. Global stock prices rose, and the U.S. dollar strengthened. Still, this is a temporary pause.
Apr 17, 2025
China — No More Negotiation Games
China says it will “pay no attention” to Trump’s “tariff numbers game.”
WTO complaint filed.
U.S. — 245% Cumulative Tariff Confirmed
Total duties on some Chinese goods now reach 245% (reciprocal + fentanyl + 301 + sector-specific).
Apr 11, 2025
U.S. — Final Tariff Increase to 145%
Adds 20% “fentanyl surcharge,” bringing total to 145%.
Customs enforcement tightened for platforms like Temu and Shein.
China — Hits Back at Full Strength
Raises U.S. import duties to 125%.
Halts exports of rare earth magnets and critical minerals.
Apr 10, 2025
China — Tariffs Raised to 84%
New round targets U.S. electronics, agriculture, and auto parts.
Tariff rate climbs to 84%.
Apr 9, 2025
U.S. — Tariff Jumps to 125%
Sharp increase pushes duties on Chinese goods to 125%.
Also expands sanctions on Chinese tech firms.
Apr 4, 2025
China — 34% Counter-Tariff & TikTok Retaliation
China sets 34% tariff on U.S. goods (effective Apr 10).
Also freezes TikTok sale talks.
Apr 2, 2025
U.S. — “Reciprocal Tariff” of 34%
Trump launches a 34% “Liberation Day” tariff, citing unfair practices.
With past duties, this creates a 54% effective rate.
Legal Challenge: What is IEEPA?
In May 2025, a U.S. federal court ruled that portions of former President Trump’s “Liberation Day” tariffs—particularly those announced on April 2—violated the International Emergency Economic Powers Act (IEEPA).
The IEEPA, enacted in 1977, allows the U.S. president to take action during national emergencies involving foreign threats. However, the court found that using the law to impose broad, peacetime economic measures—such as tariffs targeting China—exceeded its intended scope.
A temporary stay has allowed the tariffs to remain in effect for now. The case is scheduled to move to the appeals court on July 31, and the outcome could significantly limit how IEEPA is used in future trade actions.
Tariff Targets (Beyond China):
- Vietnam – Initially hit with a proposed 46% tariff in April. After negotiations, a deal was reached on July 2:
- 20% tariff on most Vietnamese exports to the U.S.
- 40% tariff on suspected transshipped goods
- In return, Vietnam removed all tariffs on U.S. goods, granting full market access
- Indonesia – Threatened with 32% tariffs. Reached deal on July 15:
- 19% tariff on exports to U.S.
- In exchange: zero U.S. tariffs on American goods and $20B in purchases (Boeing jets, agriculture, energy)
- India, South Korea – Warned of reciprocal tariff reviews by August 1
- European Union – Tariff hike threatened in July if EU doesn’t negotiate a deal similar to Indonesia’s
- Japan – Under pressure to match U.S. trade preferences or face auto and electronics tariffs
