Are tariffs increased to 245% again?
In fact, tariffs are more complicated than you might think.
Due to unstable and continuously changing trade rules, tariffs have not gradually shifted product demand from taxed countries to other untaxed countries; in some cases, they have indeed reduced costs and sometimes even offset new taxes.
Base tax rate
The standard tax rate applicable to globally imported goods varies by product, with most rates being very low. An average of 3.4%
Introduced during the first term of the Trump administration and gradually expanded by former President Biden, aimed at protecting American industries.
The 125% tax rate implemented by President Trump adds to many long-standing tariffs. Currently, there are four main categories of tariffs imposed on Chinese goods.
+25% on steel and some iron-containing products
+25% on aluminum and some aluminum-containing products
+25% on automobiles and auto parts
+20% "Fentanyl" and "reciprocal" tariffs that Trump has imposed and increased on Chinese goods multiple times this year.
Imposing punitive rates on most goods to curb the influx of fentanyl into the U.S.
+125%
Note: The tariff on auto parts will take effect in early May. The average value of the base tax rate is calculated by the World Trade Organization, covering the average of all rates. Most imported goods in the U.S. are designated with a 0% tax rate, but there are also some very high rates in the tariff schedule.
The actual tax rate ultimately depends on the imported goods, the raw materials used (and their origin), applicable special rates, and which product categories are exempt.
================================
The following is the cumulative situation of import tariffs on some goods from China:
1) Smartphones
In 2024, the U.S. imported smartphones worth nearly $52 billion, over 80% of which came from China.
Smartphones made in China originally faced tariffs of up to 145%, but the customs guidelines released later last Friday excluded laptops and smartphones from the 125% reciprocal tariffs imposed on most Chinese goods. These devices are still subject to the new import taxes introduced earlier this year.
2) Wool Sweater
Many goods have specific categories of tariffs that apply regardless of the country of origin. The tariff on wool sweaters is 16%. They were also included in the additional tariff list introduced during Trump's first term. The wool sweaters imported from China last year, valued at $170 million, had a tariff rate of about 24%—which was considered relatively high at the time.
3) Syringes and needles
Syringes and needles are subject to some of the highest tariff rates. These products were initially designated as targets for tariff increases against China by the Trump administration and were further increased during Biden's term. In September last year, the Biden administration imposed a 100% tariff on syringes and needles as part of protecting American factories and demonstrating a tough stance against China.
* These tariffs on Chinese goods range from 7.5% to 100% and apply to products such as clothing, solar panels, and electric vehicles. China is accused of selling these products at prices far below those of many American companies.
With the tariffs this week, U.S. importers now need to pay a 245% tariff—about 2.5 times the cost of the product itself.
4) Children's Books
On the other end of the cost spectrum are books. Of the nearly $600 million worth of children's books imported by the U.S. each year, 93% come from China. Children's books typically enter the U.S. duty-free.
"Information materials" is one of the very few categories of goods exempted from new tariffs imposed on Chinese goods this year.
In summary, tariffs are not simply a matter of how much is added, but require reference to multiple policies, and cover various product categories; under this policy context, domestic manufacturers of related products are the first to be affected.