White House threatens to raise tariffs on China to 245%
Photo: Donald Trump wants to have the last word (Getty Images)
US and China’s mutual tariffs have already surpassed 100%, but this is not the end of tariff increases from Washington, according to a statement from the White House.
The White House noted that on his first day, President Donald Trump initiated the America First trade policy to make America's economy great again.
"On Liberation Day (April 2 - ed.), President Trump imposed a 10% tariff on all countries and individualized reciprocal higher tariffs on nations with which the US has the largest trade deficits in order to level the playing field and protect America’s national security," the US presidential administration said.
According to their data, more than 75 countries have already reached out to Washington with proposals to discuss new trade agreements.
"As a result, the individualized higher tariffs are currently paused amid these discussions, except for China, which retaliated. China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions," the statement reads.
Trump’s tariffs on China
Donald Trump initially imposed additional tariffs of 20% on China, later raising them by another 34%. The US President increased tariffs each time China announced retaliatory measures.
Last week, Trump raised tariffs on Chinese goods to 145%, while also announcing a 90-day pause on tariffs for goods from other countries.
This move prompted Beijing to raise tariffs on American goods to 125%. However, China stated that it would not increase tariffs further if Washington continues to raise the stakes.
Analysts argue that mutual tariff hikes could make trade between the two largest economies in the world impossible, as import duties exceeding 35% destroy profits for Chinese exporters and make American goods overly expensive in China.
