Breaking Down the US-China Trade Tariffs: What's in Effect Now?

The current US-China trade relationship is highly complex, shaped by a tangled web of tariffs that have been imposed, adjusted, revoked, and reinstated since 2018. This ongoing situation, which first began under the first Trump administration and continued throughout the Biden presidency, has seen significant escalation since Trump took office again in January 2025.

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.

US tariffs on China

US tariffs on China date back to the first term of the Trump administration, marking the beginning of one of the most extensive tariff regimes in modern trade history. Many of these tariffs are stacked, meaning multiple duties apply simultaneously on the same goods, significantly increasing the overall cost of imports from China.

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.

Section 232 tariffs

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.

On February 10, 2025, Trump signed a proclamation announcing a 25 percent ad valorem tariff on all steel imports into the US and raising tariffs on aluminum imports from 10 to 25 percent. The tariffs are applicable to imports from all countries and regions “without exception”, and took effect on March 12.

As the prior steel and aluminum tariffs on China were never lifted, the effective tariff rate on Chinese steel products remained unchanged, while the tariff on aluminum products rose by 15 percentage points. Moreover, many steel and aluminum products coming from China have been separately slapped with a 25 percent duty under the Section 301 action.

On March 26, 2025, Trump announced a 25 percent tariff on imports of automobiles and automobile parts from all trade partners into the US, effective April 3, 2025. Many vehicles and vehicle parts coming from China were already subject to tariffs of up to 25 percent under the Section 301 tariffs.

Section 301 tariffs

The Section 301 tariffs, first imposed in 2018 during Trump’s first term, were, until recently, the most sweeping China-specific tariffs, ultimately affecting goods of US$550 billion in value and setting off the first US-China trade war.

The first Section 301 tariffs came into effect on July 6, 2018, when the US began imposing a 25 percent tariff on 818 imported Chinese products included in List 1, valued at US$34 billion. The affected products include various goods under the headings of inorganic and organic chemicals, pharmaceutical products, rubber, iron, steel, aluminum, nuclear reactors, electrical machinery and equipment, vehicles, aircraft, and many others.

The second round of Section 301 tariffs – List 2 – came into force on August 23, 2018, with a 25 percent tariff on 279 goods originating from China worth a total of US$16 billion. Goods targeted include semiconductors, chemicals, plastics, motorbikes, and electric scooters, among many others.

The third round – List 3 – came into effect on September 24, 2018, with an initial rate of 10 percent on US$200 billion worth of Chinese goods. This was later increased to 25 percent, effective May 10, 2019, following stalled trade deal talks.

On September 1, 2019, the US began implementing an initial tariff of 15 percent on more than US$125 billion worth of Chinese imports under List 4A, affecting a range of products from footwear, diapers, and food products to smart watches, dishwashers, and flat-panel televisions.

List 4 was initially set to cover US$300 billion worth of Chinese goods. However, tariffs on the remaining goods under List 4B, originally set to take effect on December 15, 2019, were suspended, as part of the terms of Phase One of the US-China trade deal. Additionally, the 15 percent rate levied on goods under List 4A was halved to 7.5 percent, effective February 14, 2020. 

Tariff increases following four-year review

On September 13, 2024, the Office of the United States Trade Representative (USTR) announced final modifications to the tariff actions under the Section 301 investigation, following a statutory four-year review. The modifications see tariffs ranging from 25 to 100 percent across 14 product groups, primarily in sectors targeted by China for dominance or where the US has recently made significant domestic investments.

Effective September 27, tariff rates on the following goods increased:

• Battery parts (non-lithium-ion batteries) – Increased to 25 percent
• Electric vehicles – Increased to 100 percent
• Facemasks – Increased to no less than 25 percent
• Lithium-ion electrical vehicle batteries – Increased to 25 percent
• Other critical minerals – Increased to 25 percent
• Ship-to-shore cranes – Increased to 25 percent
• Solar cells (whether or not assembled into modules) – Increased to 50 percent
• Steel and aluminum products – Increased to 25 percen
• Syringes and needles – Increased to no less than 50 percent

Meanwhile, the following tariffs came into effect on January 1, 2025:

• Semiconductors – Increased to 50 percent

Finally, the following tariffs will come into effect on January 1, 2026:

• Lithium-ion non-electrical vehicle batteries – Increased to 25 percent
• Medical gloves – Increased to no less than 25 percent
• Natural graphite – Increased to 25 percent
• Permanent magnets – Increased to 25 percent

Exemptions

Both the Trump and Biden administrations issued tariff exclusions for certain products over the years, including broad exemptions during the COVID-19 pandemic for goods deemed essential by the USTR.

Many of those exclusions have since expired. However, on May 30, 2024, the USTR extended Section 301 tariff exclusions for 164 Chinese products for one year, through May 31, 2025. It has not indicated whether these will be extended further.

Following its four-year review, the USTR also granted 14 new exclusions for solar manufacturing equipment, effective retroactively from January 1, 2024, and set to expire on May 31, 2025.

Additionally, on October 15, 2024, the USTR launched an electronic portal for requesting tariff exclusions for machinery under HTS headings 84 and 85, covering items like manufacturing equipment and electrical machinery. Companies and trade groups can apply if they demonstrate that the equipment is essential and not reasonably available from domestic sources.

Fentanyl tariffs

On February 1, 2025, Trump signed an executive order imposing an additional 10 percent tariff on all Chinese goods entering the country, ostensibly “to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations”, per a White House Fact Sheet.

On March 3, 2025, through another executive order, Trump raised this tariff rate to 20 percent, with the stated reason that China “has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions”. The 20 percent tariff rate took effect on March 4, 2025.

Exemptions

Per an executive order signed on April 29, 2025, addressing the issue of tariff tacking, the following goods will not be subject to the additional 20 percent fentanyl tariffs:

• Automobiles and automotive parts subject to Section 232 tariffs
• Steel and aluminum products subject to Section 232 tariffs

In addition, articles subject to 50 USC 1702(b), such as personal transfers of goods without value, donations, information or informational materials, and personal items transported during personal travel, are not subject to the fentanyl tariffs.

“Liberation Day” tariffs

On April 2, 2025, Trump announced his so-called “Liberation Day” tariffs, also known as the “reciprocal tariffs”, on around 90 trade partners. On China, he imposed a 34 percent duty to be levied on top of the 20 percent fentanyl tariffs. 

In addition to the reciprocal tariff rates on individual countries, Trump also imposed a 10 percent minimum baseline tariff to be levied on all countries.

The universal 10 percent import tariff took effect on April 5, 2025, while the reciprocal tariffs targeting specific countries commenced on April 9, 2025. 

Following retaliatory tariffs by China on American goods, on April 8, Trump signed an executive order raising the reciprocal tariff from 34 percent to 84 percent, and a day later announced the rate would rise further to 125 percent, bringing the final tariff rate on China to 145 percent, effective immediately. 

On Monday, May 12, 2025, following a meeting between Chinese Vice Premier He Lifeng, the US Secretary of the Treasury Scott Bessent, and US Trade Representative Ambassador Jamieson Greer, in Geneva, China and the US released agreed to lower reciprocal tariff rates from 125 percent to just 10 percent for a period of 90 days. The existing 20 percent fentanyl tariff on Chinese goods will remain in place, meaning the final tariff rate on Chinese goods will be 30 percent.

Under the agreement, both sides committed to entirely cancel the higher reciprocal tariff rates imposed in succession from April 9, while the 34 percent rate initially imposed by the US on April 2 was amended to 10 percent for an initial period of 90 days. This means that, should no further deal be reached in the next 90 days and this period is not extended, the tariff rate will return to 34 percent, not 125 percent.

Exemptions

In an executive order signed on April 11, 2025, Trump exempted a range of electronic products and components from the reciprocal tariffs, including computers (including parts and accessories for their assembly), smartphones, flat panel displays, SSDs, computer monitors, various types of semiconductors, and integrated circuits. The exemptions are effective retroactively from April 5.

Trump has warned that the exemption will not be permanent, stating that semiconductors and the electronics supply chain will be looked at in the upcoming National Security Tariff Investigations.

The 20 percent fentanyl tariffs still apply to these exempted goods.

In addition, the following goods are not subject to the reciprocal tariffs:

• Articles subject to 50 USC 1702(b), such as personal transfers of goods without value, donations, information or informational materials, and personal items transported during personal travel;
• Steel and aluminum articles and autos/auto parts that are already subject to the 25 percent Section 232 tariffs;
• Copper, pharmaceuticals, semiconductors, and lumber articles;
• All articles that may become subject to future Section 232 tariffs;
• Bullion; and
• Energy and certain other minerals that are not available in the US.

China’s counter-tariffs on American goods

Retaliatory action against Section 301 tariffs

China began its tariff retaliation on April 2, 2018, following the US’s Section 301 tariffs. The first wave imposed duties of 15 percent to 25 percent on 128 US products, worth about US$3 billion. These included agricultural goods such as fruits, nuts, pork, and wine, aiming to target politically sensitive sectors in the US.

On July 6, 2018, in direct response to the US imposing 25 percent tariffs on US$34 billion of Chinese imports (List 1), China levied its own 25 percent tariffs on an equal value of US goods. These included soybeans, automobiles, seafood, and other commodities.

In response to the US introducing a second batch of 25 percent tariffs on US$16 billion worth of Chinese goods (List 2) on August 23, 2018, China imposed a similar 25 percent tariff on 333 US products, which covered chemicals, medical devices, and petroleum-based products.

Following the List 3 tariffs imposed on September 24, 2018, China responded by imposing 10 percent tariff on about US$60 billion of US goods. This wide-ranging list targeted thousands of products, including meat, LNG, and chemical goods.

In June 2019, after the US raised List 3 tariffs to 25 percent, China increased its retaliatory tariffs on those US$60 billion in US goods, with rates ranging from 5 percent to 25 percent. 

On September 1, 2019, China retaliated against new US tariffs (List 4A) by imposing additional 5 percent tariffs on US$75 billion of US exports. These included crude oil, aircraft parts, soybeans, and cars, expanding the scope of the trade conflict to cover nearly all US-China trade.

In January 2020, as part of the Phase One trade deal, China’s Finance Ministry announced that it would halve tariffs on 1,717 US goods, lowering the tariff on some items from 10 percent to 5 percent, and others from 5 percent to 2.5 percent, effective February 14, 2020.

Exemptions

Since 2019, China has granted exemptions to the retaliatory tariffs for certain American goods. The first two tariff exemption lists were released in September 2019, exempting 16 products in total, including many agriculture and fishery goods, such as shrimp and prawn seedlings, alfalfa meal, and whey for fodder. A further six products were added to this first batch of exemptions in December 2019.

In February 2020, China released a second batch of exemptions under two more lists covering 65 products, including timber, presswork, hydraulic motor, diaphragm pump, aircraft parts, and medical equipment like non-invasive ventilators and temperature sensors.

In the years since, China has continued to grant extensions to these exemption lists, usually one year in length. However, the last extension, granted in November 2024, expired on February 28, 2025, and has not been extended again, meaning all exemptions have now expired.Retaliatory action against fentanyl and Liberation Day tariffs

On February 10, 2024, China retaliated against the US’s 10 percent tariff by imposing 15 percent tariffs on coal and LNG, and 10 percent tariffs on crude oil, machinery, and vehicles, along with export controls on rare earth metals.

After the US raised fentanyl-related tariffs to 20 percent on March 4, 2025, China responded on March 10 with tariffs of 15 percent on some agricultural goods and 10 percent on others.

On April 10, 2025, China imposed a 34 percent tariff on all US goods, matching the US tariff on China.

Following the US raising tariffs to 104 percent on April 9, China increased its tariffs to 84 percent on April 10, then to 125 percent on April 12, and announced it would not raise tariffs further.

On May 12, 2025, after diplomatic talks, China and the US agreed to reduce reciprocal tariffs to 10 percent for 90 days, with the US fentanyl tariff of 20 percent remaining, making the effective tariff 30 percent. If no deal is reached after 90 days, tariffs revert to 34 percent.

Anti-dumping duties (POM copolymers)

On May 18, 2025, China’s Ministry of Commerce (MOFCOM) announced a 74.9 percent anti-dumping tariff on US companies exporting polyformaldehyde copolymer (POM copolymer) to China, following the conclusion of a year-long investigation. MOFCOM determined that US, EU, Taiwanese, and Japanese producers were dumping POM copolymers into the Chinese market at unfairly low prices, causing material injury to China’s domestic industry. The tariffs took effect on May 19, 2025, and remain in place for five years.

The tariffs apply specifically to products classified under Chinese customs codes 39071010 and 39071090, but other polymer variants like homopolymers or modified polyoxymethylene were not included in the investigation.

Importers must pay the anti-dumping duties based on the customs-assessed value of the goods, with import VAT levied on the total value, including tariffs and duties. Deposits collected during the preliminary period from January 24 to May 18, 2025, will be converted into final anti-dumping duties.

Assessing final tariff rates

Due to the different tariff lines in effect for different products, the final tariff rate on goods entering the US from China, or vice versa, will vary considerably. Below are some example tariff rates for Chinese products subject to varying tariff rates when entering the US.

To find the current applicable Section 301 tariffs, search the USTR’s database. Current MFN rates can be found on the US International Trade Commission’s website.