President Donald Trump has announced a sweeping new tariff of up to 245% on imports from China, marking one of the most aggressive moves in the ongoing U.S.-China trade war to date.
The decision, revealed in a White House fact sheet late Tuesday, comes in direct response to Beijing’s recent export bans on key strategic materials—including gallium, germanium, antimony, and rare earth magnets—used across critical industries like semiconductors, aerospace, defense, and EVs.
“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the White House said.
Why Now?
The tariff hike follows:
- China’s suspension of exports of six heavy rare earth metals, tightening global supply chains
- China’s decision to raise tariffs on U.S. goods to 125%, in retaliation for Trump’s earlier 145% hike on Chinese imports
- A broader strategic concern in Washington about dependence on foreign-controlled high-tech materials
National Security Lens
The White House confirmed it has launched a national security investigation into U.S. reliance on imported critical resources.
“These materials have military applications,” the statement noted, linking the move to efforts to secure domestic manufacturing and defense tech supply chains.
Global Trade Ripple
Despite the sharp escalation with China, the U.S. emphasized that other countries remain exempt from the new tariffs during ongoing trade talks.
“More than 75 countries have already reached out to discuss new trade deals,” the administration stated.
The announcement underscores Trump’s broader ‘America First Trade Policy’, with the administration portraying the tariffs as a continuation of efforts to “make America’s economy great again” and protect U.S. industries from geopolitical supply risks.
What’s Affected?
A detailed list of products subject to the 245% tariff has not yet been released. However, analysts warn that the scope could be wide, potentially impacting both industrial goods and consumer electronics.
This move significantly raises the stakes in the trade war, putting U.S.-China economic relations under renewed strain—and leaving global markets bracing for the fallout.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related:
China appoints new trade envoy in face of tariff turmoil
Rumoured Iphone Fold could cost over $2,000 at launch
What the Market Isn’t Telling You: Gold, Bonds, Hedge Funds & Fed’s Next Move
Mark Zuckerberg defends Meta in social media monopoly trial
Top 10 Social Media Marketing stories this week
Netflix Aims to Join the $1 Trillion Club
Dark colors make products seem more effective
NATO Taps Palantir to Power AI-Driven Warfare Platform
A Decade Later, Meta Is Back on Trial
China Chokes Rare Earth Exports — US Supply Chains Face Major Shock
Tariffs on Phones and Microchips Will Return — Electronics Exemption Only Temporary
90 Deals in 90 Days?: Experts say good luck with that
China strikes back with 125% tariffs on U.S. goods, starting April 12
