China Exporters: Key Updates on US Tariff Changes

April 10, 2025

This update is to inform you of recent significant developments regarding US tariffs that may impact your export business to the United States.

Initially, the US announced a broad set of higher tariffs affecting numerous trading partners. However, in a swift policy adjustment, President Trump has declared a 90-day pause on these increased tariffs for most countries that did not retaliate against the initial levies. This means that the previously announced higher tariff rates for many nations are temporarily suspended as negotiations continue.

Crucially, the trade situation with China has escalated. While many countries are seeing a temporary reprieve, the US has increased tariffs on goods originating from China to 125%. This significant hike follows China’s announcement of retaliatory tariffs of 84% on US imports.

This escalation means that goods exported from China to the US will now face a substantially higher tax upon entry. For example, a product valued at $10 USD will now incur a tariff of $12.50 USD, bringing the total cost up to $22.50 USD for the importing company.

The US President stated that this increased tariff on China is a response to what he perceives as a “lack of respect” and China’s retaliatory measures. He expressed hope that China will eventually recognize the unsustainability of current trade practices.

It’s important to understand that these tariffs are paid by the companies importing the goods into the US when they clear customs. These companies will then likely need to decide how much of this increased cost to pass on to their customers.

Key Takeaways for Chinese Exporters:

• 90-Day Pause for Most: Higher US tariffs are temporarily suspended for most countries that did not retaliate.
• China Tariff Soars to 125%: Goods exported from China to the US now face a significantly increased tariff.
• Retaliation Underway: This increase is a direct response to China’s tariffs on US goods, which are set to rise to 84%.
• Potential Impact on Trade Volume: The escalating trade tensions could lead to a substantial decrease in trade between the two nations.

We encourage you to closely monitor these developments and assess the potential impact on your pricing strategies and business relationships with US buyers. Staying informed is crucial in navigating this evolving trade landscape.