The US 90-day reciprocal tariff pause remains, while the 10% baseline rate is still intact. However, the time to ship products with long supply chains may have already passed, some sources say. So, while some market participants rush to trade goods, others are still taking a cautious, “hand-to-mouth" approach.
The tariff rate on China went up (again) as much as 245% on some products after the Chinese government suspended exports of rare earth metals and other materials to the US, according to a White House fact sheet. China has also banned domestic airlines from accepting deliveries of new Boeing jets.
The US Trade Representative (USTR) has also proposed additional port fees for all Chinese vessels in a move to counteract China's shipping dominance.
Breaking down the "up to" 245% tariff on Chinese goods: What started with a 20% fentanyl-related tariff on China compounded with the higher reciprocal rate of 125%. Then, US Section 301 tariffs—a set of tariffs that allow for penalties due to unfair trade practices—were added which can vary from 7. 5% -100% on certain products. So, the highest potential amount is 245% on select Chinese imports to the US.
Just as US government officials are doing now, Chinese leaders are also meeting with Southeast Asian economies to secure trade relations.
The Trump administration is investigating imports of commodities like copper, timber, lumber, pharmaceuticals, and technology like semiconductors for potential industry specific tariffs.
And US 25% tariffs still exist for steel and aluminum imports, for automobiles, and for countries buying oil from Venezuela.
