Did US impose 245% tariff on Chinese imports amid escalating trade war?

White House cites retaliation for China’s export curbs on rare earths; move may impact wide range of consumer and industrial goods
US President Donald Trump, left, shakes hands with Chinese President Xi Jinping during a bilateral meeting on the sidelines of the G20 leaders summit in Osaka, Japan, June 29, 2019.
US President Donald Trump, left, shakes hands with Chinese President Xi Jinping during a bilateral meeting on the sidelines of the G20 leaders summit in Osaka, Japan, June 29, 2019.FILE | AP
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In a dramatic escalation of the US-China trade war, the Trump administration has reportedly introduced a new tariff of up to 245% on Chinese imports, according to a fact sheet released by the White House late Tuesday.

The move, reports indicate, comes in response to Beijing’s recent export restrictions on critical high-tech materials and its retaliatory tariff hikes on US goods. The White House fact sheet, as covered in the reports, states, “China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” positioning the decision within President Donald Trump’s broader “America First Trade Policy.”

The US administration has accused China of deliberately restricting access to vital strategic materials — including gallium, germanium, and antimony — that are essential for the aerospace, military, and semiconductor industries. Most recently, China suspended exports of six heavy rare earth metals and rare earth magnets, intensifying supply chain pressures globally.

“A few months ago, China banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications,” the White House said. “Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.”

But the absence of Trump’s usual fanfare around such moves has triggered speculation online. Social media users questioned whether this marks a fresh hike from the earlier 145% rate or if the figure was simply a typographical error. Another possibility being floated is that the 245% duty is not a blanket rate on all Chinese goods, but rather the maximum tariff a product could face when long-standing duties and penalty rates are combined.

The hike also follows China’s decision to raise duties on US goods to 125% last Friday. That retaliation came shortly after Trump had increased tariffs on Chinese imports to 145%, while temporarily pausing additional tariffs on goods from other countries to allow for further negotiations.

“More than 75 countries have already reached out to discuss new trade deals,” the White House said, adding that higher tariffs are currently paused for those nations, except China.

The administration also revealed that a national security investigation has been launched into the import of strategic resources, citing concerns over the United States' dependence on foreign sources for materials crucial to advanced manufacturing and defence.

US President Donald Trump, left, shakes hands with Chinese President Xi Jinping during a bilateral meeting on the sidelines of the G20 leaders summit in Osaka, Japan, June 29, 2019.
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President Trump has made trade reform a cornerstone of his second term, framing the latest move as necessary to protect American industries and reduce reliance on geopolitical rivals. “On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again,” the White House said.

While the full list of affected products has not yet been released, analysts warn that the new tariffs could impact a wide range of both consumer and industrial goods, further fueling tensions between the world’s two largest economies.

China warned Wednesday it was "not afraid" to fight a trade war with the United States and reiterated calls for dialogue, after US President Donald Trump said it was up to Beijing to come to the negotiating table.

"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," foreign ministry spokesman Lin Jian said.

Beijing also said that it was "the US that initiated this tariff war".

"China's position has been very clear. There is no winner in a tariff war or a trade war," Lin said. "China does not want to fight, but it is not afraid to fight."

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