Washington DC: he United States has sharply escalated its trade standoff with China, with the White House confirming late Tuesday that tariffs on Chinese imports could reach as high as 245%. The move comes in direct response to what officials described as “China’s retaliatory actions” in the ongoing trade conflict.
“The tariff increase is a direct result of China’s recent trade moves,” the White House said in a statement, marking a significant escalation between the world’s two largest economies.
Targeted Strategy Under ‘America First’
The announcement forms part of a broader strategy under President Donald Trump’s “America First” trade doctrine, which has emphasized reciprocal tariffs and national self-reliance in critical sectors. The new administrative order includes a national security review into the U.S.’s dependence on foreign imports—particularly vital minerals and raw materials used in defense and advanced technology.
“On Liberation Day, President Trump imposed a 10% tariff on all countries and individualized reciprocal higher tariffs on nations with which the U.S. has the largest trade deficits in order to level the playing field,” the statement added.
While most countries have been granted a 90-day pause on individualized higher tariffs amid ongoing trade negotiations, China remains the exception. The administration cited Beijing’s refusal to engage and its escalation of countermeasures, including a 125% tariff on U.S. goods and export bans on key strategic materials.
China’s Export Restrictions Fuel US Response
The White House noted China’s recent export bans on gallium, germanium, antimony and other rare earths—critical to sectors ranging from electric vehicles and semiconductors to aerospace and defense.
“Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies, and military contractors around the world,” the White House said.
Those actions, officials argue, not only threaten global supply chains but also raise national security concerns for the U.S. and its allies.
A China-Centric Crackdown
While over 75 countries are in active discussions with Washington on new trade agreements, the administration confirmed that China’s case stands apart due to its aggressive retaliation. The White House did not formally confirm the 245% figure but said the increase “could reach up to 245%” as talks remain stalled.
President Trump’s initial round of tariffs in his second term raised Chinese import duties to 145%. The latest countermeasures from Beijing triggered the U.S.’s decision to consider an even steeper increase.
Despite global market jitters and investor concerns over a deepening trade war, the administration has doubled down on its position.
“On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again,” the White House reiterated.
Analysts say the intensified focus on China signals Washington’s intent to draw a hard line in the sand on issues of trade imbalance and supply chain security — even as other nations continue working toward compromise.
Markets and Allies Watch Closely
Financial markets have responded with volatility, and allies are watching closely as the U.S. carves out a trade path rooted in national interest and reciprocal enforcement. With tariffs paused for most other trading partners, the global spotlight now rests squarely on Washington and Beijing — and whether either side will blink.