US Tariffs on Chinese is 104% Imports and Additional ‘Reciprocal‘ Measures.
Trump Administration Hikes Tariffs on Chinese Goods
On April 8, 2025, President Donald Trump signed an executive order raising tariffs on Chinese imports by 50%, bringing the total tariff rate to 104%. This move was a direct response to China’s retaliatory tariffs of 34% on American products. The new tariffs took effect at 12:01 AM the following day.
Sharp Increase on Low-Value “De Minimis” Shipments
The Trump administration also raised tariffs on low-value shipments from China—commonly referred to as “de minimis”—from 30% to 90%. These shipments are often used by online retailers such as Temu and Shein and have faced criticism for exploiting loopholes in trade regulations. The new tariffs on these items will be rolled out in phases starting May 2.
China Condemns U.S. Tariffs, Promises Retaliation
China responded by condemning the U.S. tariffs and promising unspecified retaliatory measures. The Chinese government urged the United States to withdraw these unilateral actions and resolve the differences through equal-footed dialogue.
Market Reactions to Escalating Trade Tensions
Trade tensions between the U.S. and China are already affecting financial markets. The S&P 500 index fell for the fourth consecutive day, closing below 5,000 points and nearing bear market territory, with a total value loss of $5.8 trillion. Companies like Micron are adding surcharges, while consumers are stockpiling essential goods in anticipation of price increases.
Broader Tariffs on Other Countries
The Trump administration also announced additional “reciprocal” tariffs on several other countries:
- 46% on Vietnam
- 32% on Taiwan
- 25% on South Korea
- 24% on Japan
- 20% on the European Union
These measures are part of a broader effort to address perceived trade imbalances and protect domestic industries.
Economists Warn of Global Impact
Economists warn that these aggressive trade actions may raise consumer prices and escalate global trade tensions. While some nations are seeking negotiations, others—such as China—are vowing firm retaliation. This suggests that trade disputes may persist in the near future.
🟢What the 104% Tariffs Mean for U.S. Consumers and Businesses
The newly imposed 104% Us tariffs on Chinese EVs and solar technology are likely to trigger ripple effects across the American economy. While the primary goal is to protect domestic industries, the immediate result could be higher prices for both electric vehicles and clean energy products.
🔸 Impact on Consumers:
- Limited access to low-cost EVs from Chinese brands like BYD or XPeng
- Potential delay in EV adoption due to higher prices
- Higher costs for home solar installations that rely on Chinese components
🔸 Impact on U.S. Businesses:
- Small and mid-sized solar companies may face supply chain challenges
- U.S. automakers might benefit short-term from reduced competition
- Long-term uncertainty in trade relations could hurt global partnerships
The decision reflects not only US-China trade tensions in 2025 but also a broader shift toward economic nationalism and protectionist policies.
🟢 US tariffs on Chinese | The Global Ripple Effect
Beyond the immediate economic implications for the U.S. and China, the newly imposed US tariffs on Chinese EVs are poised to disrupt global supply chains in significant ways. Many Chinese electric vehicle manufacturers source components from multiple countries, meaning that trade restrictions could have far-reaching consequences beyond just two nations.
The policy may also accelerate the global trend of “de-risking” supply chains — a strategy where Western companies diversify production away from China in favor of countries like Vietnam, Mexico, and India. According to a 2024 report by the World Economic Forum, nearly 30% of multinational firms plan to reduce their dependency on Chinese manufacturing within the next two years.
This suggests that the US tariffs on Chinese EVs are not just a bilateral trade measure, but a catalyst for a broader restructuring of global economic relationships.
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Author: Michael holds an MBA in business management. He worked for 5 years as an investment consultant. He also works as a freelancer for a security company. He is the creator and writer of the finance article moneybyage.com — where he shares practical tips and his experiences. His mission is to make the financial world simpler, more accessible and free of hidden fees.
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