What are tariffs? | China vs America trade war?

Category: general

United States 245% tariffs on Chinese imports

China to raise tariffs on all American imports to 125%.

US impose 125% tariffs on China.

The United States of America has just imposed 125% tariffs on China just now, this mean that every good and service coming from China that enters the US would be 125% more expensive than it was earlier.

Why the tariff bad?

For example, if a toy manufacturer in the United States, used to buy toy parts from China for a $1 for each part, now with the 125% tariffs he/she would have to pay extra $1.25 for the same part.

The cost would go up for the part to $2.25 this would negatively impact the overall costing to manufacture in US. if row material is imported from China.

Which in return hurt the consumer the most, with increased prices in almost every sector.

Trade war China vs America

The US and China have been engaged in a counter tariff tit-for-tat for a few days now, and many call it “a trade war”, in which both countries are trying to inflict more damage on the exports of the other country.

Trump first announced the tariffs on countries worldwide on April 2, 2025, he signed an Executive Order, imposing a 10% tariff on all imports into the United States, with higher rates for specific countries, like China, India, Pakistan, and many others.

China counter the move by imposing its own tariffs on US. China introduced 34% tariffs on US, which was equal to what US imposed initially.

This is to begin on April 10, 2025.

Reacting to this, US increased the tariffs by 125% which followed by the Chinese counter of 84% as increase.

On April 9, 2025, Country-specific tariffs were implemented.

Trump has announced a 90-day pause in all the “reciprocal” tariffs that were announced last week on Wednesday.

China however was not on the pause list, instead Trump pushed up tariffs from 104% to 125% in the latest development in the tit-for-tat tariff stand-off between China and US.

What are tariffs

Tariffs are basically taxes on goods and services imported from another country.

Taxes on imports from other countries are a source of revenue stream for the governments and also help maintain and support the local industries against powerful foreign companies, manufactures, industries.

With proper implementation of the foreign goods taxes, countries, manufacturers, and common people all can benefit highly without harming other entity.

With consistent pricing of both local and foreign goods, people can have multiple options, cheap and quality products and services, as well as fair prices.

But with current tariff wars between countries, all entities are set to lose. With increased prices, fewer options and difficult access to broader goods and services essential for every aspect of life.

Tariff effects on Chinese markets

Consumer to be effected most from these high taxes. These items would either become unavailable or would be extremely expensive to buy.

Effects on goods that US markets would experience from 125% tariff on China

Technology related items such as Electronics, semiconductors, parts.

Consumer day to day products like Apparel, footwear, and household items.

Industrial Equipment like Machinery and tools.

Automotive industry in US would hit quite bad with cheap vehicle parts such as car parts, tools, would be expensive or unavailable.

Effects on Chinese markets after it implements 84% tariffs on US.

Oilseeds, grains, Meat products, Fruits and tree nuts, Marine products are imported by China from US.

Energy Resources like gas and crude oil.

Automobile, engines, Large vehicles, trailers, and agricultural machinery are imported from US.

Technology, consumer electronics, parts, Electrical equipment, industry machinery, Computer equipment.

China imports $11.3 billion worth of Pharmaceuticals and medicines from the US according to a report online.

Aerospace products and parts.

Semiconductors and component.

While many other imports would be effected by the reciprocal Tariffs from China on US.

The trade war is no good for people in general from both the countries. Prices would rise, alongside economic slowdown and volatility in markets would make investors lose the trust in markets, which would be devastating for jobs, industries related, and overall economy.

Category: general