US President Trump holds a cabinet meeting at the White House
Credit: Reuters Photo
The White House on Thursday clarified that China faced a minimum tariff rate of 145% on all imports to the United States.
A day earlier, President Donald Trump had said that he was increasing tariffs on China to 125% after Beijing retaliated against his previous levies.
On Thursday, the White House explained that the 125% is on top of a 20% tariff the president had previously put on goods coming from China for its role in supplying fentanyl to the United States.
That is a drastic increase on a country that supplies much of what Americans buy. China is the second largest source of imports for the United States and the primary global manufacturer of cellphones, toys, computers and other products.
The 145% figure is also just a floor, not a ceiling. That amount is on top of other preexisting levies that Trump already put in place including:
— 25% tariffs on steel, aluminum, cars and car parts
— Tariffs of up to 25% on certain Chinese goods that Trump imposed during his first term
— Tariffs of varying ranges on certain products in response to violating U.S. trade rules
The rapid changes in tariffs have caused significant confusion for importers, many of whom depend on Chinese products, including major retailers as well as small businesses. For an importer bringing in a container of products, the difference between a 125% tariff and a 145% tariff can amount to thousands of dollars.
The Trump administration has exempted goods that were already in transit from the new tariffs, meaning importers have not yet started to incur them. In the case of goods shipped by air, this will happen in the next few days, while goods moving by ship will take several weeks to arrive.