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Trump now raises China tariffs to 245% over rare earth restrictions | Scoop
A White House fact sheet dated April 15 states China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions. - Bernama file pic, April 16, 2025
Corporate

Trump now raises China tariffs to 245% over rare earth restrictions

White House fact sheet notes China’s ban on exports to the US of key minerals with potential military applications, and restrictions on other metals

Scoop Reporters
Updated
5:01 PM MYT

 

KUALA LUMPUR — China can now face up to 245% tariff on its goods shipped to the United States (US), according to a fact sheet released by the White House late Tuesday.

The new tariff is the result of its retaliatory measures, states the fact sheet on a national security inquiry President Donald Trump has launched into vital resource imports.

“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the White House said.

“More than 75 countries have already reached out to discuss new trade deals. As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated,” it added.

“A few months ago, China banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications.

“Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world,” the fact sheet said.

It did not clarify the exact tariff rate China faces but it implied that the tariff rate could go up to 245%.

This comes after China on April 4 imposed export restrictions on seven types of rare earth minerals, which American industries depend on. Beijing’s move was in retaliation for Trump’s initial 34% reciprocal tariff.

China has a 61% share of global rare earth production and 92% control over processing of total global output.

Trade tensions have escalated since the initial reciprocal tariff, with China raising its tariffs on imports of US goods to 125% last Friday in a tit-for-tat move to Trump, who effectively raised US tariffs on Chinese goods to 145%, while putting a 90-day pause on planned levies for other countries’ goods. 

Trump has also reacted scornfully to Chinese President Xi Jinping’s ongoing tour of southeast Asian countries, including Vietnam and Malaysia, saying Xi was looking to get countries in the region to “screw the US”. – April 16, 2025

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