Will China's Tariff from the US Be 245%? A Closer Look at the Latest Trade War Talk

The trade relationship between the United States and China has long been filled with friction, and recent policy proposals are only adding fuel to the fire. There's been a growing buzz around the possibility of U.S. tariffs on Chinese goods climbing as high as 245%—a number that has caught the attention of global markets and sparked widespread concern. From inflation risks to supply chain instability, the ripple effects could be significant. In this article, we break down what’s really happening with the U.S.-China trade war, where that 245% figure comes from, and what it could mean for the global economy.

Where Does the 245% Tariff Number Come From?

You may have seen headlines suggesting the U.S. is planning to slap a 245% tariff on Chinese goods. But it’s important to understand the context behind that number.

According to The Wall Street Journal (April 17, 2025), the figure doesn’t represent a brand-new tariff across the board. Instead, it’s the combined total of existing and proposed duties on select Chinese products.

So, what does it apply to? Only two product categories: electric vehicles (EVs) and syringes. Under the Trump administration, Chinese EVs were first hit with a 25% tariff. That rate jumped to 100% during his second term, and now there’s a proposal for an additional 145%, which gets us to the much-talked-about 245% mark.

The vast majority of Chinese imports, however, are still subject to lower—though elevated—tariff rates compared to previous decades. Other products, like medical rubber gloves, are also expected to see tariff increases in the near future.

What Could Higher Tariffs Mean for the Economy?

While there’s no all-encompassing 245% tariff in place, even targeted tariff hikes could have wide-reaching consequences:

• Higher Inflation: Additional duties often mean higher prices for imported goods, which consumers and businesses end up paying.
  
   
• Rising Business Costs: Companies that depend on Chinese components or raw materials may see increased production costs, hurting competitiveness.
  
   
• Vulnerable Supply Chains: Businesses relying heavily on Chinese suppliers are more exposed to disruptions.
  
   
• Tit-for-Tat Tariffs: China could retaliate by slapping its own tariffs on American products, worsening the trade standoff.
  
   

Bigger Picture: Global Trade and Geopolitical Fallout

The U.S.-China trade dispute isn’t just a bilateral issue—it’s shaping global trade routes and political alliances:

• Supply Chain Shifts: Companies are increasingly looking beyond China to diversify their sourcing and manufacturing.
  
   
• Regional Trade Growth: More countries are focusing on regional trade deals to reduce dependency on global supply chains.
  
   
• Diplomatic Strains: Rising trade tensions can spill over into other areas of foreign policy, increasing geopolitical risk.
  
   

Conclusion

Despite the dramatic headlines, the idea of a blanket 245% tariff on all Chinese goods is largely a misunderstanding. That said, the potential for targeted tariff hikes—and the ongoing strain between the world’s two largest economies—shouldn’t be underestimated. With inflation, supply chains, and global diplomacy all at stake, the next steps in this trade war will be crucial for businesses and investors worldwide.

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FAQ

What are tariffs?
Tariffs are import taxes placed on foreign goods to protect domestic industries or influence trade negotiations.

Why are the U.S. and China imposing tariffs?
Both countries are using tariffs as part of an ongoing trade dispute, leveraging them during negotiations over economic and geopolitical issues.

Is the 245% tariff already in place?
No. This number combines several existing and proposed tariffs on specific items like electric vehicles and syringes—not all goods from China.

How are businesses responding to tariff hikes?
Many are looking to diversify supply chains, source materials from other countries, or pass on increased costs to customers.

Where can I stay updated on the U.S.-China trade situation?
Major outlets like The Wall Street Journal, Bloomberg, and Reuters offer reliable updates. Official U.S. and Chinese government websites also provide statements and policy details.