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Understanding Current US-China Trade Tariffs: What’s in Place Today? Understanding Current US-China Trade Tariffs: What’s in Place Today?

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Understanding Current US-China Trade Tariffs: What’s in Place Today?

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The U.S.-China trade landscape features multiple overlapping tariffs, including Section 301 and 232 tariffs, with an average U.S. tariff of 51.1% on Chinese goods. Recently, both countries reduced reciprocal tariffs to 10%, yet effective rates remain above 30%.


The complexity arises from multiple overlapping tariffs, including the Section 301 tariffs that seek to tackle what the US deems are China’s unfair trade practices, Section 232 tariffs related to national security concerns (mainly on steel, aluminum, and automobiles), fentanyl-related tariffs addressing illicit drug trade, reciprocal tariffs imposed in response to other countries’ duties, and most-favored-nation (MFN) tariffs that apply broadly. 

Recently, the US and China reached an agreement to lower their reciprocal tariff rates to 10 percent, a major reduction from previous peaks that reached as high as 145 percent. However, due to other existing duties, the effective tariff rate on most Chinese goods remains above 30 percent. This article breaks down the history, the latest developments, and what these tariffs mean today. 

According to the Peterson Institute for International Economics (PIIE), as of now, the US’s average tariff on Chinese goods stands at 51.1 percent, covering all imports. In comparison, China’s average tariff on American goods is 32.6 percent, also applied broadly. PIIE notes that current US tariffs are about 1.5 times higher than when Trump began his second term in January 2025. 

 

May 2018: US imposes 10% tariff on aluminum imports and 25% tariff on steel imports on all countries.
March 12, 2025: US raises 10% tariff on aluminum to 25% for all countries.
April 3, 2025: US imposes 25% tariff on automobiles and automobile parts on all countries. 

 

While the Section 301 garnered the most attention during Trump’s first term in office, the Section 232 tariffs preceded the trade war with China. Section 232 of the Trade Expansion Act of 1962 authorizes the US president to impose trade restrictions on goods that “threaten to impair” US national security.

On March 18, 2018, the Trump administration imposed a 10 percent tariff on all aluminum imports and a 25 percent tariff on all steel imports to the US. The administration later negotiated exemptions for a range of countries, however, the tariffs on China remained in place throughout the remainder of Trump’s first term and Biden’s term in office. 


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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