🔺 1. Baseline reciprocal tariff 10%
This is a tax that is applied evenly to all Chinese goods as a form of “standard reciprocal tax”.
Reason: Explained as to rebalance the trade imbalance between the two countries.
This is the “framework tax” in the new policy, which will remain in place long term unless there is a negotiated change.
🔺 2. Additional 20% tax – related to fentanyl
Apply an additional 20% to Chinese goods groups such as:
Pharmaceuticals, chemical precursors, biological materials, medical devices
Reason: In response to China's alleged failure to properly control fentanyl exports to the US (which fueled the opioid crisis).
🔺 3. 25% tax – is the tax previously imposed during the trade war (2018–2020)
Including previously imposed tariffs on groups such as: electronic components, steel, aluminum, automobiles, and consumer goods.
These rates remain in effect and are cumulative in the total 55%.
✅ Total:
10% + 20% + 25% = 55% import tax on Chinese goods
⚠️ Important Note:
This is the total sum of different tax policies, not all products are taxed at 55%.
Some items are only 25% or 35%, depending on the product type.
US CPI remains around 2.3-2.4%
There is a FED meeting next week, so interest rates will definitely not be lowered. Just waiting for the FED's comment on what the direction will be.
Regarding the tariff situation: According to Mr. Trump's announcement, he and China have reached many good agreements, especially regarding rare earths.
Trump also shared that the total US tariff will be 55% on Chinese goods, while China will charge the US 10%.