President Donald Trump’s tariffs on Chinese imports are now at least 145%, far above the level many economists said could decimate US-China trade.
Trump is imposing a 125% charge designed to both counter America’s trade deficit with China and punish Beijing for retaliating against US import taxes.
The number, published in a White House memo Thursday, comes in addition to a 20% levy put into place earlier this year over China’s role in fentanyl trafficking.
The staggering US tariffs on the world’s second largest economy have triggered a tit-for-tat trade war that has unnerved global financial markets.
Stocks fell on Thursday one day after the biggest buying spree in years, as investors braced for more trade hostility. The S&P 500 Index fell about 3.5% on the news, as euphoria again gave way to unease.
rump’s tariff rollout has been marked by confusion, as Trump has repeatedly shifted course. The president on Wednesday put off plans to impose higher levies on dozens of nations hours after they went into place, even as he escalated his trade fight with Beijing.
The US’s other trading partners will face a 10% blanket import tax to allow for a 90-day period to negotiate individual trade agreements. If that doesn’t succeed, the higher duties are set to go into place on July 9.
The president’s order published Thursday raised taxes even further on small packages from China that were previously not taxed, which could hit American shoppers purchasing goods from retailers like Temu and SheIn Group Ltd.
The US will tax imports of items priced up to $800 at a rate of 120% of their value, up from a prior plan to levy a 90% ad valorem tax.
The per postal item fee on goods entering after May 2 and before June 1 will rise to $100 from the planned $75. Parcels entering after June 1 will face a charge of $200 per item instead of $150 announced previously.
Source: bloomberg.com
