US-China tariffs escalate to 145%

Summary

Following China's retaliation to Liberation Day tariffs, Trump escalated the reciprocal tariff on Chinese goods from 34% to 84% and then to 125%, which when combined with the existing 20% fentanyl tariff produced a total rate of 145%. This represented a near-total tariff barrier, effectively suspending normal US-China trade in most goods.

What happened

On April 9, 2025 (the same day Trump announced the 90-day pause for other countries), he specifically excluded China and raised its rate to 125%. With the pre-existing 20% fentanyl tariff, the combined rate reached 145%. The White House later clarified the 145% figure. US imports from China fell to half of year-ago levels by June 2025, reaching depths not seen since the 2009 financial crisis. A Geneva deal on May 12 temporarily reduced the tariff to 30% for 90 days.

Impact on the United States

American importers of Chinese electronics, clothing, toys, furniture, and industrial components faced costs so high that many simply stopped importing. Retailers reliant on Chinese supply chains faced inventory shortfalls and price spikes. Small businesses dependent on Chinese inputs were particularly hard hit.

Global ripple effects

China's retaliatory tariffs of up to 125% on U.S. goods, combined with near-zero soybean purchases from May-November 2025 and restrictions on rare earth exports, severely damaged U.S. agricultural and industrial exporters.

Documented effects

1. Jun 2025U.S. imports from China fell to $18.9 billion in June 2025, about 55% of the June 2024 level ($34.2 billion).[6]
2. May 2025End of the de minimis exemption for China (effective May 2, 2025) subjected low-value postal packages to duties of 120% of value or $100 per item (rising to $200 on June 1), up from the 30% or $25-$50 set on April 2, affecting US shoppers on platforms such as Temu and Shein.[2]
3. The 145% combined rate constituted a near-total trade barrier in several categories of consumer goods, contributing to the collapse in US imports from China.[1][6]

Why this is rated severe

A near-total tariff barrier on Chinese goods coincided with US imports from China falling to about half of year-earlier levels, with retailers facing inventory shortfalls and price spikes, before it was reduced.

reduced to 30% under the Geneva deal effective May 14, 2025; all IEEPA-based China tariffs, including the reciprocal and fentanyl portions, were struck down by the Supreme Court on Feb 20, 2026 and ended by Executive Order 14389

Corrections & updates [5]

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

1. Sep 29, 2026CorrectedStatus

   The status said only the reciprocal portion was struck down. The Supreme Court's Feb 20, 2026 ruling covered all IEEPA tariffs, and Executive Order 14389 ended both the reciprocal (EO 14257) and fentanyl (EO 14195) duties on China. The Geneva reduction to 30% took effect May 14, 2025 per the May 12 joint statement.[3][4][5]

   + Show previous and current text- Hide previous and current text

   Previously

   partial (reduced to 30% under Geneva deal May 14; country-specific reciprocal portion later struck down by Supreme Court)

   Now

   reversed (reduced to 30% under the Geneva deal effective May 14, 2025; all IEEPA-based China tariffs, including the reciprocal and fentanyl portions, were struck down by the Supreme Court on Feb 20, 2026 and ended by Executive Order 14389)

2. Sep 29, 2026CorrectedFigure

   The de minimis effect gave the April 2 rates (30% or $25-$50 per item). After the China escalation, the postal duty in force when the exemption ended on May 2, 2025 was 120% of value or $100 per item, rising to $200 on June 1 (China Briefing). The import-decline effects were cited to an April 2025 article that could not report June data; Census Bureau data show $18.9 billion in June 2025 imports from China versus $34.2 billion in June 2024.[1][2][6]

3. Sep 29, 2026ClarifiedSeverity rationale

   Replaced 'embargo' with 'tariff barrier', matching the record. Severity unchanged.

   + Show previous and current text- Hide previous and current text

   Previously

   A near-total trade embargo with China caused inventory shortfalls and price spikes for US importers and small businesses before being reduced.

   Now

   A near-total tariff barrier on Chinese goods coincided with US imports from China falling to about half of year-earlier levels, with retailers facing inventory shortfalls and price spikes, before it was reduced.

4. Sep 29, 2026ClarifiedDisplay copy

   The de minimis change was a separate order; the summary line now reflects that, with the import decline stated as in the record.

   Previously

   A near-total tariff barrier halved US imports from China and ended de minimis exemptions.

   Now

   A near-total tariff barrier coincided with US imports from China falling to about half of 2024 levels; the de minimis exemption for China also ended.

5. Sep 29, 2026CorrectedCost estimate

   The 145% China tariff figures were our own share-out, 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

   $35B so far; $36B/$37B federal 10/15-yr; $60B broader

   Now

   $0 (no published estimate for this tranche)

Sources [6]