What Are the U.S. Tariffs on China? What Impact Will They Have on Global Trade?

In 2025, the United States significantly escalated its trade measures against China, introducing a new wave of tariffs targeting strategic sectors such as electric vehicles (EVs), semiconductors, critical minerals, and medical supplies. These actions, building upon previous tariffs, have profound implications for global trade dynamics.Cov

U.S. Tariffs on Chinese Goods

The Biden administration announced substantial tariff increases on approximately $18 billion worth of Chinese imports. Key measures include:White & Case+2Kara Finance+2Cov+2

Electric Vehicles (EVs): Tariffs increased from 25% to 100% in 2024, aiming to counteract China’s extensive subsidies and non-market practices in the EV sector.Kara Finance
Semiconductors: Tariffs set to rise from 25% to 50% by 2025, addressing concerns over China’s rapid capacity expansion and its impact on global markets.Kara Finance
Critical Minerals: New 25% tariffs imposed on essential minerals like manganese, cobalt, and tungsten, crucial for various high-tech industries.Global Trade Alert+3Kara Finance+3Cov+3
Medical Supplies: Tariffs increased to 50% on syringes and needles, and from 7.5% to 25% on medical gloves, to bolster domestic production capabilities.Kara Finance+2Global Trade Alert+2Cov+2
Solar Cells: Tariffs doubled to 50% in 2024 to protect against China’s policy-driven overcapacity that depresses global prices.Kara Finance

Additionally, a blanket 10% tariff was imposed on all Chinese-origin goods starting February 4, 2025. This move also affected low-value e-commerce shipments, which previously enjoyed duty-free status under Section 321 of the Tariff Act. Global Trade Alert+3Import and Trade Remedies Blog+3Voice of America+3

China’s Response

In retaliation, China imposed tariffs on various U.S. products, including:

Energy Products: 15% tariffs on U.S. coal and liquefied natural gas, and 10% on crude oil.Voice of America+1Import and Trade Remedies Blog+1
Agricultural Machinery and Automobiles: 10% tariffs aimed at key American exports.

Furthermore, China introduced export controls on critical minerals such as tungsten, tellurium, and molybdenum, which are vital for numerous industries. Import and Trade Remedies Blog

Impact on Global Trade

The escalating tariff war between the U.S. and China has led to significant disruptions in global trade:

Economic Slowdown: The International Monetary Fund (IMF) downgraded its global GDP growth forecast for 2025 to 2.8%, citing the adverse effects of the U.S.-China trade tensions. AP News+1The Guardian+1
Supply Chain Reconfiguration: Companies are reevaluating their supply chains, with many shifting production to countries like Mexico and Vietnam to mitigate tariff impacts. Notably, Mexico surpassed China as the largest exporter to the U.S. in 2023. Eurasia Business News
Market Volatility: Financial markets have experienced increased volatility, with investors seeking safer assets amid the uncertainty. The U.S. dollar reached a three-year low, and gold prices hit record highs. The Guardian
Consumer Impact: Higher tariffs translate to increased costs for consumers, potentially leading to reduced spending and economic contraction.

Outlook

The intensifying trade conflict between the U.S. and China poses significant risks to global economic stability. While the tariffs aim to address concerns over unfair trade practices and protect domestic industries, they also contribute to economic uncertainty and potential recessionary pressures. The IMF warns that continued escalation could trigger broader financial instability, emphasizing the need for global cooperation to navigate these challenges.