Trump Raises Reciprocal Tariffs on China to 125%, Administration’s Trade Policy Faces Scrutiny at Greer Hearing

Long story short

President Donald Trump ratcheted up tariffs on China while allowing other trading partners a 90-day reprieve. The increase brings the total punitive US tariffs imposed on Chinese goods to 145%. Read more

US Trade Representative Jamieson Greer shed light on the administration’s trade motivations during a hearing before Congress. Democrats grilled Greer on recent tariffs, while Republicans largely defended the measures. Read more

Trump escalates trade war with China, delays tariffs for others

President Donald Trump on Wednesday declared a 90-day pause on reciprocal tariffs for all countries except China, increasing China’s rate to 125%. Added to the 20% tariffs imposed last month to address fentanyl concerns, these new duties bring the overall punitive US tariff rate imposed on Chinese goods this year to 145%.

Trump cited China’s continued retaliation against US trade measures as the basis for the increase, attributing the 90-day pause for other trading partners to their extensive outreach for negotiation. The president, however, kept in place the global baseline tariff of 10%.

As a part of new reciprocal tariffs on China, the administration also announced that it would triple duties on shipments of low-value Chinese goods imported via the postal service. This effectively eliminates the de minimis exemption, which had allowed such goods to enter the United States duty-free. The administration had previously announced that the de minimis exemption would end on May 2.

China’s swift retaliation

China has yet to retaliate against the most recent tariff increase. However, China’s Ministry of Finance on Wednesday imposed an additional 50% tariff on all goods imported from the United States. The move was a direct response to Trump’s earlier threat on Monday to impose an equivalent 50% additional tariff on Chinese imports. In a statement, the ministry characterized US behavior as a “mistake on top of a mistake” that “seriously infringes on China’s legitimate rights and interests.”

Including the 34% retaliatory tariff China announced last week, the total Chinese tariff rate on all US goods is now 84%.

Alongside the tariff hikes, China’s Ministry of Commerce added 12 US companies to its export control list, prohibiting them from receiving Chinese dual-use exports. It also added six US companies to its separate Unreliable Entity List for involvement in arms sales to or military technology cooperation with Taiwan. Companies on this list are banned from engaging in China-related trade and investment.

Looking ahead

Trump yesterday acknowledged potential disruption from the tariffs but ultimately defended his policies. He also signaled potential flexibility in negotiations with countries during the 90-day pause and reaffirmed his interest in making a deal with China. Meanwhile, Beijing has said it will “fight to the end” in the face of US trade restrictions while leaving the door open for talks based on mutual respect.

Trump has already indicated there will be new “major” tariffs targeting pharmaceutical imports as part of his push to reshore manufacturing. US Trade Representative Jamieson Greer, however, stated in a congressional hearing on Tuesday that an investigation would precede any tariffs on pharmaceuticals.

USCBC will continue to monitor these fast-moving developments and their implications for members, and we encourage impacted members to reach out to us.

Greer congressional hearing puts administration trade policy under microscope

Greer this week testified before the House Ways and Means Committee and Senate Finance Committee on the administration’s trade and tariff agenda. The hearing illuminated motivations behind the Trump administration’s reciprocal tariffs and provided a forum for Democrats and Republicans to express their differing views on the tariffs.

Greer, who learned about the 90-day pause during the ways and means hearing, stated that China, unlike many other US trading partners, had not reached out to his office for negotiations. Greer also pointed to US trade deficits as the primary motivation for reciprocal tariffs and indicated no plans for exclusions.

Democrats seized on the hearing as an opportunity to criticize the administration’s disjointed trade strategy, citing the abrupt pause on the tariffs and related market volatility. Republicans, on the other hand, pledged their support for the tariffs’ stated goal and expressed confidence in Trump’s leadership. Some Senate Republicans, however, urged Greer and the administration to remain cognizant of the effects of Chinese retaliation and ensure negotiations are the end goal of the tariffs.

Non-tariff issues also raised

Greer confirmed that the administration is currently reviewing industry comments on its proposed actions to impose substantial fees on Chinese-linked ships and noted the possibility that not all proposed actions will be implemented.

Greer also stated that the administration will follow up with China on its commitments under the phase one agreement negotiated during Trump’s first term but did not provide any additional details.

Other things we’re tracking

— Trump on Wednesday signed an executive order to tighten enforcement of the Harbor Maintenance Fee for cargo entering the United States via land borders, geared toward countering China’s dominance in the shipbuilding sector. The order also directs the Office of the US Trade Representative to consider tariffs on Chinese port equipment such as cranes and cargo handling equipment.

— Trump on Friday further delayed enforcement of a TikTok ban in the United States for at least 75 days. A deal had begun to take shape last week in which several entities would invest in a company that managed TikTok’s activities in the United States while the app’s Chinese owner, ByteDance, retained a 20% stake. However, Trump’s announcement of an additional 34% tariff on Chinese goods derailed negotiations.

— The National Security Commission on Emerging Biotechnology on Tuesday published a report warning that China is overtaking the United States in biotechnology. Among its recommendations to slow China’s growth in the sector, the report urged the government to allocate $15 billion toward US innovation and defenses against Chinese-state sponsored corporate espionage. USCBC expects the BIOSECURE Act, which would prohibit federal contracts with certain Chinese biotechnology providers, to be reintroduced this year.

— The House Foreign Affairs Committee on Wednesday approved multiple China-related legislation, including the Remote Access Security Act, which aims to control US products with remote access capabilities. The bills will now move to the House for consideration.

— Multiple Republicans this week endorsed the Trade Review Act of 2025 to require congressional approval of tariffs imposed by the president. While the bill has bipartisan support, it is highly unlikely to move this Congress.

— Senators Bill Cassidy (R-LA) and Lindsey Graham (R-SC) on Tuesday introduced legislation to hold China and other countries accountable for exploiting weak environmental standards and enforcement to gain an advantage in global trade.

— The final “bulk data” rule preventing certain entities in countries of concern, including China, from obtaining US persons’ sensitive data took effect on Tuesday.

— Representative Christopher Smith (R-NJ) on Monday reintroduced legislation that could result in the closure of Hong Kong’s representative offices in the United States if the State Department concludes that China has compromised Hong Kong’s autonomy.