The administration of President Donald Trump has just announced a total tariff rate of 55% applied to goods imported from China, formed from three separate tax groups. This tariff is not a new order, but a combination of existing tariff measures aimed at adjusting the trade balance, controlling risky imports, and protecting domestic production capacity.
20% TAX ON FENTANYL-RELATED PRODUCTS
According to CNBC, part of the 55% tariff is a 20% tax on pharmaceutical and chemical products related to fentanyl. This is a policy response to the synthetic drug abuse situation in the U.S., where part of the supply has been identified as originating from China. The goal is to increase import costs for this sensitive group of goods to limit supply and enhance control.
10% “RECIPROCAL” TARIFF
The second component is a 10% tariff based on the principle of “reciprocal” (reciprocal tariff). This tariff reflects how the U.S. imposes tariffs generally on all countries, including China, and corresponds to the tariff that China will impose on U.S. goods. This is part of a balanced trade strategy aimed at creating pressure for both sides to adjust their corresponding tariff rates.
25% FROM EXISTING MEASURES
The remaining part of the 55% tariff is the 25% that has been in effect since 2018-2019. This tax group affects many items such as metals, electronic components, and technology equipment. The Trump administration believes that maintaining these tariffs preserves negotiation tools in bilateral trade discussions.
