Skip to content
The Cost
/Economy & Trade

China tariffs hit 145% in 2025

Initial fentanyl tariffs doubled by March 2025; Liberation Day later drove rates to 145%.

StatusReversedImpactSignificant · 3/5Sources7CorrectedSep 29, 2026

Key facts

  • Combined rate reached 145%
  • US imports from China fell to half 2024 levels by June 2025
  • Customs duties rose from $79B (2024) to $264B (2025)

Summary

Trump imposed an initial 10% tariff on Chinese imports on February 4, 2025, citing China's alleged role in fentanyl trafficking. A further executive order (EO 14228) signed March 3, 2025, doubled this rate to 20%, stating China had not taken adequate steps to address the drug crisis. These "fentanyl tariffs" layered onto existing Section 301 tariffs and at their peak combined with Liberation Day tariffs to produce a 145% combined rate. Following the Trump-Xi deal, executive orders signed November 4, 2025 cut the fentanyl rate back to 10% effective November 10, 2025; the tariffs' IEEPA legal basis was then struck down by the Supreme Court on February 20, 2026, and Executive Order 14389 ended the duties the same day.

What happened

The February 1 executive orders targeted China under IEEPA authority. The March 3 escalation to 20% was the third executive order in the fentanyl series. When combined with the April 2025 Liberation Day reciprocal tariffs of 34% (raised to 84%, then 125%), the all-in rate reached 145%. The fentanyl-specific portion remained even after the May 12, 2025, Geneva partial de-escalation. After the Trump-Xi deal, executive orders signed November 4, 2025 halved the fentanyl tariff from 20% to 10%, effective November 10, 2025. The Supreme Court then struck down the IEEPA basis for these tariffs on February 20, 2026, and Executive Order 14389, signed the same day, ended them, directing that the duties no longer be collected as soon as practicable.

Impact on the United States

U.S. importers of Chinese goods faced dramatically higher costs even before Liberation Day. American retailers, small businesses relying on Chinese supply chains, and consumers faced price increases on electronics, clothing, and a wide range of manufactured goods.

Global ripple effects

China imposed retaliatory tariffs on U.S. agricultural and energy exports in multiple rounds, costing U.S. farmers and energy exporters billions (see china-ag-retaliation entry).

Documented effects

  1. U.S. imports from China fell to $18.9 billion in June 2025, about 55% of the June 2024 level ($34.2 billion) and the lowest monthly total since 2009, while the combined tariff rate on Chinese goods was at its 2025 peak levels.[4]
  2. The overall U.S. effective tariff rate reached 7.7% in 2025, the highest since 1947, with customs duties collected rising from $79 billion in 2024 to $264 billion in 2025.[2]

Why this is rated significant

Added a meaningful tariff layer on Chinese goods raising costs for US importers and consumers, significant but later partly modified.

cut from 20% to 10% effective Nov 10, 2025 after the Trump-Xi deal; IEEPA legal basis struck down by the Supreme Court Feb 20, 2026 and the duties ended by Executive Order 14389

Corrections & updates [4]

Every change to a fact on this page after publication is logged here, newest first.

  1. CorrectedSource

    The import-decline effect was cited to a February 2025 White House fact sheet, which does not contain it, and it stated causation as fact. Census Bureau data show U.S. imports from China of $18.9 billion in June 2025 versus $34.2 billion in June 2024, the lowest monthly total since 2009. The second effect described a China-specific rate record that the cited Tax Foundation tracker does not state; the tracker reports the overall U.S. effective tariff rate reached 7.7% in 2025, the highest since 1947.[4][2]

  2. ClarifiedSource

    Added primary sources for the November 10, 2025 cut (White House fact sheet of Nov 1, 2025) and the Feb 2026 termination (Executive Order 14389); corrected the CNBC headline to the published title.[5][6]

  3. CorrectedSummary

    The summary called the March 3, 2025 order the "second" executive order; it was the third in the series (EO 14195 of Feb 1, EO 14200 of Feb 5, and EO 14228 of March 3, titled "Further Amendment"). It also said the tariffs were "terminated February 24, 2026" / "at midnight on February 24"; Executive Order 14389 of Feb 20, 2026 says the IEEPA duties "shall no longer be in effect and, as soon as practicable, shall no longer be collected" and gives no February 24 time, so the text now says what the order says.[7][6]

  4. CorrectedCost estimate

    The fentanyl-tariff figures were our own share-out of total China tariff revenue, not a published estimate, and the 10- and 15-year federal figures re-counted the refund cost booked under the Supreme Court ruling entry. All are now 0.

    Previously
    $15B so far; $14B/$15B federal 10/15-yr; $30B broader
    Now
    $0 (no published estimate for this tranche)

Sources [7]

Image: Ken Lund, CC BY-SA 2.0 (Wikimedia Commons)

View all