The total base tariff imposed by President Trump on China stands at 145%, which is greater than the previously reported 125% and what Trump himself had hinted at.
This updated figure came to light following the release of the text of Trump’s executive order on “modifying reciprocal tariff rates” to the media on Thursday morning.
The misunderstanding arose from the additional 20% duties on China related to fentanyl and illegal immigration that Trump enacted in February and March.
According to the order’s text, the Harmonized Tariff Schedule of the United States was modified to increase the reciprocal tariff rate specifically to 125%, while the other 20% duties remained unchanged.
Consequently, these rates have now been aggregated, resulting in a total tariff rate of at least 145% on imports from China.
CNBC was the first to highlight this discrepancy, and a White House official confirmed the calculations to Yahoo Finance.
· ASSOCIATED PRESS
In the coming weeks, other products from China could incur even steeper tariff rates if current actions persist, owing to sector-specific initiatives targeting various segments of the Chinese economy that were instituted during Trump’s initial term and further amplified under Biden.
The reciprocal order approved this week includes some sector-specific exemptions intended to lower other rates but largely pertains to areas where Trump has previously announced or promised different tariff rates.
The initial mention of 125% as a primary rate originated from Trump’s first statement when he declared, “I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.” This figure was reiterated by other officials on Wednesday throughout the day.
The executive order disclosed on Thursday verified that the new tariff rate took effect immediately.
On Thursday, the latest development followed Trump’s unexpected announcement on Wednesday that he would implement a 90-day halt on his reciprocal tariff plans for all countries, except China, explaining to reporters that he made this decision because people were becoming “yippy” and “afraid.”
Consequently, the benchmark S&P 500 (^GSPC) surged over 9.5%, marking its largest single-day increase since 2008, but it experienced a decline on Thursday as attention shifted back to the escalating tensions with China.
Trump noted that this decision materialized early Wednesday morning, following days of contemplation, stating he was increasing rates on China due to “the lack of respect that China has shown.”
In related remarks, Treasury Secretary Bessent noted, “China will be raised to 125% due to their insistence on escalation.”
