President Trump amended an executive order on Tuesday to formally hike tariffs on Chinese imports by 50%, raising the overall total of new import duties on China to a massive 104%. The move comes as a response to China's recent announcement of a 34% retaliatory tariff on American goods.
The Chinese government imposed the duty days after Trump announced that 90 countries would face reciprocal tariffs due to their trade imbalances with the US. "I am ordering modification of the Harmonized Tariff Schedule of the United States (HTSUS) and taking other actions to increase the duties imposed on the [People's Republic of China] in response to this retaliation," Trump wrote.
Trade War with China Intensifies
"In my judgment, this modification is necessary and appropriate to effectively address the threat to the national security and economy of the United States," the President added. Trump's newly announced 50% retaliatory tariff on China comes on top of the 34% reciprocal tariff introduced last week and a previously existing 20% duty on Chinese imports, bringing the combined tariff rate to a whopping 104%.
The United States will begin collecting revenue from these increased tariffs starting at 12:01 a.m. on Wednesday.
During a speech at the National Republican Congressional Committee's annual dinner Tuesday night, Trump boasted that the country is already pulling in "$2 billion a day" from the tariffs.
In addition, the revised executive order raises tariffs on de minimis shipments from China — low-cost goods worth under $800. The duty on these products will jump from 30% to 90% under the president's latest trade actions.
This increased tariff on de minimis items is scheduled to take effect at 12:01 a.m. on May 2.
No Mercy from Trump's End
According to the executive order, the fee per postal shipment will rise from $25 to $75, and will further increase to $150 starting June 1. Last week, Trump revealed plans to eliminate the de minimis exemption for goods imported from China.
Chinese e-commerce platforms like Temu and Shein, which have taken advantage of this exemption to sell extremely low-cost products to American shoppers, are expected to face significant impact from the updated tariff measures.
The president temporarily halted the loophole in February but later reinstated the exemption to allow the Commerce Department additional time to create a strategy for collecting the new tariff revenues.
In recent years, Chinese fast-fashion brands have heavily relied on a trade regulation dating back to the 1930s to ramp up their exports of low-cost goods. According to a report from the Congressional Research Service published earlier this year, these low-value exports surged to $66 billion in 2023, a dramatic increase from $5.3 billion in 2018.
The de minimis exemption was originally created to let travelers return home with souvenirs from foreign countries without having to pay duties or go through complicated procedures.
