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China will now face a 54% tariff on goods shipped to the US
From CNN's David Goldman
China, already subject to a 20% across-the-board tariff on goods it ships to the United States, will now face a 54% tariff.
That’s because President Donald Trump imposed a 34% reciprocal tariff on all Chinese imports that will come on top of the existing 20% tariff that Trump slapped on China to incentivize it to restrict the flow of fentanyl into the United States, White House Press Secretary Karoline Leavitt confirmed today.
That could raise prices substantially for a number of goods Americans buy from China. The United States imported $439 billion worth of goods from China last year, the second top source of imports behind Mexico.
And starting on May 2, the 54% tariff rate will also be applied to packages worth less than $800 coming to the US from China and Hong Kong, goods that were previously excluded from tariffs because of the so-called de minimis exemption. This means Americans who order goods from Chinese-based companies like AliExpress, Temu and Shein could have to pay 54% more.
If goods that cost less than $800 come through standard postal service, they’ll be charged at a rate of 30% or $25, increasing to $50 per package in June.
To skirt existing tariffs, some Chinese companies have shifted production to other Asian countries. But Trump’s new reciprocal tariffs on other Asian nations announced Wednesday will hurt China, too: Vietnam will face tariffs of 46% and Cambodian goods will be tariffed at a rate of 49%. |
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