China and the US have been engaged in a heated tariff war, with both countries imposing significant tariffs on each other's goods. Here's the latest update:
Current Tariff Rates
China has increased tariffs on US goods to 125%, effective April 12, 2025, in response to the US's recent tariff hikes
The US has elevated levies on Chinese goods to 145%, claiming China had shown "little respect" by hiking its tariffs to 84% previously
Impact on Trade:
US exports to China were valued at $143.5 billion in 2024, while the US imported $440 billion worth of goods from China.
The increased tariffs have led to a significant decline in US-China trade, with China's Finance Ministry stating that the current tariff level has led to "no market acceptance for US goods exported to China".
Affected Industries:
Tech Industry: IT infrastructure is expected to see significant price increases due to high tariff rates. PC prices may jump by up to 68%.
Datacenter Industry: Companies like Schneider Electric