How Much Are Tariffs
on Chinese Goods? It’s Trickier Than You Think.
[ABS News Service/14.04.2025]
The escalating trade war between the
United States and China has created deep uncertainty for U.S. companies that rely
on Chinese suppliers. Retaliations in recent days by the two countries have resulted
in huge average tax rates on their each other’s imports, with tariffs often costing
more than the price of the goods themselves.
But because of an ever-changing patchwork
of trade rules, not every product will be charged an astronomical tariff, trade
lawyers, customs brokers and importers say. In some cases, tariffs will pile on
other tariffs. In other instances, they can reduce costs, while other times they
can cancel out new ones.
The new 125 percent rate that President
Trump imposed will in many cases be added on top of long-existing duties. There
are four main categories of tariffs that are imposed on goods from China.
Rates ultimately depend on what is
imported, what materials are used (from where), which special rates are applied
and what sorts of products are exempt.
Understanding which tariffs will apply
and which ones won’t will ultimately determine what businesses choose to buy, how
they’ll factor in the new costs — if they can even afford them — and what they may
ultimately pass on to their customers.
“Companies are scrambling to mitigate
their tariff exposure, particularly those with supply chains involving China,” said
Richard A. Mojica, a customs lawyer at Miller & Chevalier. “But there are only
a few levers they can pull.”
Here is how
the import duties on certain goods from China add up:
The United States
imported nearly $52 billion worth of smartphones in 2024 — more than 80 percent
of it from China. Smartphones from the country were originally subject to a duty
of up to 145 percent, but customs guidance issued late Friday exempted laptops and
smartphones from the 125 percent reciprocal tariff on most Chinese goods. The devices
are still subject to new import taxes introduced earlier this year.v Syringes and needles are charged some of the highest tariff rates.
These items are among the Chinese goods targeted initially by the first Trump administration
and then subject to increases under Mr. Biden. His administration levied a 100 percent
tariff on syringes and needles last September as a part of an effort to protect
American factories and show a tough-on-China stance.
These types of tariffs on Chinese
goods can range from 7.5 percent up to 100 percent and apply to clothing, solar
panels, electric vehicles and other goods that China has been accused of selling
at far lower prices than many American businesses do.
With this week’s tariffs included,
American importers will now have to pay a 245 percent tariff — or roughly 2˝ times
the cost of the product itself.
Over three-quarters of toys imported
into the United States come from China, making it America’s biggest supplier. Previously,
things like tricycles, stuffed animals, dolls and puzzles could enter the country
duty free. Now, all these items are charged a 145 percent import tax. Retail prices
for these items are expected to rise significantly.
Many goods have a category-specific
tariff that applies regardless of the country of origin. For wool sweaters, that
is 16 percent. They are also on the list of goods subject to an additional tariff
introduced during Mr. Trump’s first term. For the $170 million worth of wool sweaters
that came into the United States from China last year, the tariff rate was roughly
24 percent — which at the time was considered relatively high.
Now, with tariffs from February intended
to punish China over the flow of fentanyl into the United States and with this week’s
“reciprocal” round, the import tax for sweaters has significantly jumped.
Before Mr. Trump imposed a 25 percent
tariff on all foreign steel and aluminum parts in March,
there was already a levy on some Chinese metal imports — all part of a protectionist
effort to bolster domestic manufacturing. But Mr. Trump’s new tariffs significantly
expanded what will be taxed: Not just steel beams or aluminum
rods, but a wide range of products that contain aluminum
and steel components.
While most U.S. imports of these metals
are from other countries, including Canada, China supplies many products that have
metal components.
Aluminum and steel products are exempted from this week’s “reciprocal” tariffs,
which reduces the effective tax rate of Chinese steel and aluminum
products to lower than that of many other goods.
New tariffs of 25 percent also apply
to all imported cars, and starting in May, car parts. Some car parts, like door
hinges, fall under both the car parts tariff and the aluminum
tariff. In this case, an importer would not only have to pay a duty on the value
of the aluminum in the part, but also an additional tariff
on the value of the entire product.
Because this item is subject to the
aluminum and car parts tariffs, it is exempted from the
China-specific reciprocal tariff.
On the other end of the cost spectrum
are books. Ninety-three percent of the nearly $600 million in children’s books that
the United States imports each year comes from China. Children’s books typically
enter the United States duty free.
“Informational materials” are one
of the very few classes of goods that are exempt from new tariffs on China this
year.