White House confirms 245% tariff on some Chinese imports not a typo
- Reference: 1744844035
- News link: https://www.theregister.co.uk/2025/04/16/white_house_china_tariff/
- Source link:
Last week, as widely reported, the Trump administration hiked fees on various Chinese goods coming into America to [1]145 percent . Tuesday this week, the White House shared a [2]fact sheet to clarify some items have a total tariff of 245 percent.
Officials have informed The Register there is no fat-fingered error on their part: For some types of goods, 245 percent is the figure. One might argue it's effectively a trade embargo as either the levies eat away any profit margin, or the cost is pushed to buyers who may feel inclined to order less stuff.
[3]
We're told that, when accounting for the [4]fentanyl-justified tariffs and prior tariffs implemented under Section 301 of the 1974 US Trade Act (which gives the President the right to impose tariffs due to unfair trade practices), tariffs on some products are in fact reaching that eye-watering level.
[5]
[6]
"China faces up to a 245 percent tariff on imports to the United States as a result of its retaliatory actions," the fact sheet reads. "This includes a 125 percent reciprocal tariff, a 20 percent tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5 percent and 100 percent."
Undeterred, funnily enough, by President Trump taxing his fellow citizens on Chinese imports and inflating their purchasing costs, Beijing upped its own tariffs on US imports [7]to 125 percent – a self-imposed ceiling as Chinese officials said levies any higher would have "no practical economic significance" and essentially function as embargoes. China has also placed [8]export restrictions on rare earths critically needed by US tech companies and the US defense industry, with exports being frozen globally over the weekend.
[9]
The Hong Kong postal service today announced plans to suspend deliveries to the United States due to the Trump administration eliminating [10]de minimis import exemptions that allow small parcels valued at less than $800 to skip the tariff line.
"The US is unreasonable, bullying, and imposing tariffs abusively," Hong Kong's government said.
A reminder that the US imported about $440 billion of stuff from China in 2024, and America sold about $140 billion the other way into China.
Ready for rare earth tariffs?
An [11]executive order accompanying the fact sheet instructs the Commerce Department to investigate whether relying on foreign countries – cough, cough China – for rare earth minerals was a national security concern.
The order, which tells Commerce Secretary Howard Lutnick to investigate the matter under the President's Section 232 authority derived from the Trade Expansion Act of 1962, describes rare earth processing countries (which is pretty much China at this point) as having engaged in "widespread price manipulation, overcapacity, arbitrary export restrictions, and the exploitation of their supply chain dominance," and tells Secretary Lutnick to figure out how to stabilize the supply chain in America's favor.
[12]Tech tariff turmoil continues as Trump admin exempts some electronics, then promises to bring taxes back
[13]Trump's tariff turmoil leaves IT projects in deep freeze
[14]South Korea to build mini-fabs as part of $25 billion plan to prop up tariff-targeted industries
[15]Trump derails Chinese H20 GPU sales, forcing Nvidia to eat $5.5B this quarter
[16]First Nvidia, now AMD: Trump trade turmoil threatens $800M in China chip sales
As was the case with a [17]similar investigation ordered by Trump into the national security threat of relying on foreign-made critical semiconductors, the possible imposition of tariffs on rare earth imports was mentioned in the latest executive order.
As we noted [18]Tuesday , the US is already on the back foot when it comes to its need for rare earths and China's dominance of their extraction and processing, and threatening tariffs on the import of such critical minerals is unlikely to help the situation.
[19]
Then again, the investigation could serve to justify Team Trump's designs on Greenland, which has a [20]considerable bounty of rare earths buried beneath its glaciers. After all, the EO does order the Commerce Secretary to recommend "any additional measures that may be warranted to mitigate United States national security risks," and the need for domestic supply chains.
Given the criticality of rare earths, the expanding rift between China and the US, and likely even more tariffs on the horizon, the list of paths out of this sticky situation is growing shorter by the minute. ®
Get our [21]Tech Resources
[1] https://www.theregister.com/2025/04/14/tech_tariff_update/
[2] https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-ensures-national-security-and-economic-resilience-through-section-232-actions-on-processed-critical-minerals-and-derivative-products/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aAB87Wpvd-6awguK-FZpFgAAAlU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2024/11/26/trump_tariffs_mexico_canada/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aAB87Wpvd-6awguK-FZpFgAAAlU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aAB87Wpvd-6awguK-FZpFgAAAlU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2025/04/11/china_tariffs_latest/
[8] https://www.theregister.com/2025/04/04/china_hits_back_at_trump/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aAB87Wpvd-6awguK-FZpFgAAAlU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2025/04/02/us_tariffs_liberation_day_announcement/
[11] https://www.whitehouse.gov/presidential-actions/2025/04/ensuring-national-security-and-economic-resilience-through-section-232-actions-on-processed-critical-minerals-and-derivative-products-a08a/
[12] https://www.theregister.com/2025/04/14/tech_tariff_update/
[13] https://www.theregister.com/2025/04/14/trump_trade_war_jefferies/
[14] https://www.theregister.com/2025/04/16/south_korea_tariff_support/
[15] https://www.theregister.com/2025/04/16/trump_responds_to_nvidias_us/
[16] https://www.theregister.com/2025/04/16/amd_instinct_mi308_china/
[17] https://www.theregister.com/2025/04/15/commerce_dept_chips_tariffs/
[18] https://www.theregister.com/2025/04/15/china_rare_earth_elements_restrictions/
[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aAB87Wpvd-6awguK-FZpFgAAAlU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[20] https://www.nytimes.com/2025/04/10/us/politics/trump-greenland-denmark.html
[21] https://whitepapers.theregister.com/
The Point?
What is the point here? a 145% rate will effectively stop almost all trade from China to the US anyway. Going higher just seems to be pointless symbolism. The Chinese have already said they won't go higher as its pointless, so are using other trade weapons like the rare earths ban.
The only people this will effect are those who must have critical imports from China that you can't get anywhere else. They will just have to bite the bullet & pay more. Or shut down.
Re: The Point?
The point is to destroy the US economy.
Re: The Point?
The plan is (apparently) to use tariffs to 'persuade' other countries to scale back their trade with China. This might be effective -- although the US really doesn't have a lot of stuff other people want they may be coerced into toeing the line just to trade with us.
Of course, it might just backfire spectacularly. Either way its "We, the People" who are going to get screwed.
Re: The Point?
37% of all Australian exports go to China. 5.4% go to the US.
The US has just ripped up a free trade agreement with Australia that allowed US goods to enter tariff tree and slapped on a 10%* tariff, so why would anyone believe that any future agreement would be honoured?
If it comes to a choice between Australia & the US do we choose the country that takes over a 3rd of our exports, or the country that takes about a 20th & just shafted us? Hmmm. Tough choice.
* 10% on MOST of Australia, but not all.
The 'tariff' calculations were based on US trade deficits, not tariffs and on internet TLDs, not countries. So Australian territories like the uninhabited Heard & McDonald islands that have their own TLDs all get their own rate. Most are the same as the rest of Australia at 10%, but Norfolk Island copped a whopping 29%. This seemed crazy, so I did some digging. There was zero trade between the US & Norfolk Island this year and almost none last year. However, in 2023 Norfolk Island sold a 'massive' $655k worth of stuff to the US. Mostly leather shoes & seeds. However, the 2100 people who live there only bought $116k. So there was a US trade deficit of $539k with Norfolk Island. Because of this absolutely minuscule deficit, the spreadsheet of doom landed them with a 29% tariff rate.
Yes, it is THAT stupid.
Re: The Point?
The point is to crash the stock market, buy loads of shares, then remove the tarrifs, watch the stocks rebound, sell shares.
But its for the poor working US citizens. Well that's what they'll be telling themselves to their (pauper) graves.
Re: The Point?
What is the point here?
The point, apparently, is to bring down America's massive $36 trillion Federal debt.
And slapping nnn% tariff on imports from is the "easiest" way to tax low- and middle income Americans without raising personal income tax .
[1]Trump wants to make a deal with China. Here’s how he’s trying to make that happen
Interesting reading.
* " We want to appear to be going towards free trade but we also love the revenue from tariffs "
* Two different people close to the White House said Trump, not a deputy, is leading the administration’s strategy on China, which has in some cases left people outside the White House without a point person to go to.
* Asked who is leading the White House’s negotiations on China, a third person close to the White House quipped: “A junior staffer named Donald Trump.”
And the most interesting part is this: Beijing has punched back with both a 125 percent retaliatory tariff and a suite of non-tariff import curbs calculated to inflict pain across a swathe of economic sectors. They include bureaucratic obstacles to [2]agricultural and energy imports , a travel advisory aimed at kneecapping Chinese tourist arrivals to the U.S. and [3]halting delivery of Boeing aircraft .
However, Donald is reluctant to tax the rich. For example, Apple Australia in 2024:
Australia's corporate tax rate is 30 per cent.
Apple brought in $9.33 billion in income from its Australian business in the 2021-22 financial year, according to the ATO.
But it was able to reduce that figure to $459 million for its taxable income, meaning it paid just $137.3 million in taxes.
(Source: [4]Apple owes $21b to Ireland in taxes after a sweetheart deal was deemed illegal. Would this happen in Australia? )
AU$137.3 taxes paid for AU$9.33 billion equates to about <01.5% tax rate.
Australia is a very tiny market for FAANG. If Apple was able to book a profit of AU$9.3 billion then the US income would be exponentially higher. How much income taxes did FAANG pay in 2024? How much did the Trump group of companies pay in 2024?
[1] https://www.politico.com/news/2025/04/16/trump-china-trade-strategy-00291979?cid=apn
[2] https://www.politico.com/news/2025/04/12/china-trade-war-exports-00287123
[3] https://www.bloomberg.com/news/articles/2025-04-15/china-tells-airlines-stop-taking-boeing-jets-as-trump-tariffs-expand-trade-war?embedded-checkout=true
[4] https://www.abc.net.au/news/2024-09-11/apple-to-backpay-13b-euros-to-ireland-in-corporate-tax/104336492
Trojan Horse
It’s an inside job!
14 reasons why Trump’s tariffs won’t bring manufacturing back
[1]14 reasons why Trump’s tariffs won’t bring manufacturing back
[1] https://arstechnica.com/tech-policy/2025/04/14-reasons-why-trumps-tariffs-wont-bring-manufacturing-back/
Today I bought cheese from the supermarket for $10
Now I have a $10 trade deficit with the supermarket, so I tariff the supermarket. Now I have to pay $34.50 for the same cheese. Winning!
What can you expect ?
I'm not even going to expand on how having a criminal as a President is a bad thing, just think about the fact that Trump still thinks that [1]TIVO is still a thing.
I'm guessing he thinks that streaming is either a euphemism for diarrhea, or a very kinky thing he should ask Stormy Daniels about.
In any case, I think [2]this is one of the best summaries of the situation you can expect to find (well, not on Fox & Friends, obviously).
[1] https://en.wikipedia.org/wiki/TiVo
[2] https://www.youtube.com/watch?v=5zQ0WewZY50