President Donald Trump has made a significant decision to increase reciprocal duties on Chinese exports by an additional 50%, just hours before the tariffs were scheduled to take effect. This move comes as a response to Beijing’s announcement that they would implement a matching 34% levy on U.S. products in response to new U.S. tariffs. The president signed an executive order on Tuesday, raising the U.S. duty to 84% ahead of the tariff going into effect.
When combined with the two previous tariff increases, Trump will have imposed additional tariffs totaling 104% on U.S. imports from China since taking office. This is in addition to the tariffs already in place before Trump’s second term, which averaged around 20%, as reported by the Peterson Institute for International Economics.
In addition to the new reciprocal duties, President Trump also decided to increase the duties on low-value shipments worth less than $800 starting from May 2. He announced the end of duty-free treatment for these shipments, with packages previously entering tariff-free under the $800 threshold now subject to either a 30% tariff or a $25 fee. The executive order signed on Tuesday raised these rates to 90% or $75, with the fee set to increase to $150 after June 1.
Ahead of the tariff hike, China’s Commerce and Foreign ministries expressed their determination to “fight to the end” if the U.S. proceeded with the duty increase. Chinese Foreign Ministry spokesperson Lin Jian emphasized during a press conference that China would take strong measures to protect its legitimate rights and interests in response to the U.S.’s actions.
White House Press Secretary Karoline Leavitt warned that China would be making a mistake by retaliating against U.S. reciprocal tariffs, stating that President Trump has a strong resolve and will not back down. The first round of Trump’s reciprocal tariffs, which included a 10% across-the-board tariff on most U.S. imports, went into effect recently. Trump highlighted at a White House event that these duties were generating $2 billion per day for the U.S. Treasury.
Despite the escalating tensions, President Trump remains confident in the effectiveness of these tariffs, stating that the revenue generated from them is substantial. The administration’s stance on trade with China continues to be firm, with a focus on protecting U.S. interests and ensuring fair treatment in international trade.
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