April 3, 2025 – In a bold and far-reaching move, former U.S. President Donald Trump has announced plans to impose steep tariffs on Chinese goods, escalating trade tensions between the two economic giants. On April 2, Eastern Time, Trump unveiled a “reciprocal tariff” policy targeting all trading partners, with a proposed 34% tariff specifically aimed at Chinese products. White House officials subsequently confirmed to CNBC that this new tariff would be added on top of the existing 20% tariff, bringing the total tariff rate on Chinese goods to a staggering 54%, set to take effect on April 9.
Prior to this announcement, there was widespread speculation about how the tariffs would be implemented, particularly given the significant differences in the trade structures of China and the U.S. The focus was on achieving “reciprocity,” but the scope and rates of the tariffs have exceeded market expectations, promising to deliver a sustained shock to China’s consumer goods industry.
According to customs data, the U.S. remains China’s largest trading partner. In 2024, China’s exports to the U.S. reached $524.656 billion, accounting for 14.7% of its total exports. Key export categories to the U.S. include machinery, electronic and audio-visual equipment, base metals and their products, as well as labor-intensive goods such as textile materials, plastic products, clothing, toys, and furniture.
It’s noteworthy that since February of this year, the U.S. has imposed two consecutive rounds of tariffs on Chinese goods. As a result, in the first two months of 2025, China has seen varying degrees of decline in export values for items such as clothing, furniture, headgear, footwear, and toys. According to a research report by Zhongchengxin International Credit Rating Co., Ltd., the comprehensive tariff hikes will have a more pronounced negative impact on upstream raw materials and labor-intensive products. Looking ahead, as the Sino-U.S. rivalry intensifies, external demand uncertainties are expected to rise further. U.S. tariff sanctions and the restructuring of the global supply chain may continue to weigh on China’s exports.