The United States government officially announced on Thursday (April 10, 2025) that imported products from China now face a minimum tariff of 145%, reinforcing President Donald Trump's tough stance against the US's main trading partner amid escalating trade tensions.

As reported by The New York Times , the explanation came a day after Trump announced that he would raise tariffs on goods from China to 125%, in response to Beijing's retaliatory measures against previous tariff policies.

However, the White House later confirmed that the 125% figure was in addition to the initial 20% tariff that had been imposed previously as punishment for China's role in supplying fentanyl to the United States.

China is currently the second-largest source of imports for the US and plays a dominant role as a global producer of a wide range of consumer goods, including cell phones, toys, computers, and various other household products.

With tariffs this high, the cost of importing these products would skyrocket, significantly impacting distributors, retailers, and consumers in the United States.

The White House also emphasized that the 145% figure is only a floor, not an upper limit. This means that the tariffs could increase as other tariffs previously implemented by Trump take effect, such as 25% on steel, aluminum, cars, and auto parts; tariffs of up to 25 percent on certain products imposed during his first term; and tariffs of varying amounts on certain products deemed to violate US trade rules.

This policy creates layers of tariffs that stack up and complicate import cost calculations for businesses. The rapid changes in the tariff structure have caused significant confusion among importers, both large-scale importers such as national retailers and small businesses that rely heavily on Chinese-made products.

The difference between a 125% and 145% rate could mean thousands of dollars for a single container of product.

Although the policy has been announced, the Trump administration has granted a temporary exemption for goods already en route to the US. This means that goods shipped by air will begin to be subject to tariffs within the next few days, while goods shipped by sea will be subject to the tariffs upon arrival several weeks later.

This gives importers a very short window of time to adjust their logistics strategies. However, many say this time is insufficient to explore alternatives.

Negotiation Door

Meanwhile, Trump and Commerce Secretary Howard Lutnick insisted that countries come to them one by one to make deals to avoid further economic disaster.

"Everybody wants to come in and make a deal, and we're working with a lot of different countries, and things are going to work out very well," Trump said at a cabinet meeting.

Lutnick echoed this sentiment, stating that trading partners began arriving after Trump demanded that these countries treat the US with respect through his policies.

"We have so many countries to talk to. They're coming with offers they would never, never, never make if it weren't for the steps the president has taken demanding that people treat the United States with respect," he said.

However, it remains unclear which countries might reach a deal, and on what basis. For the most part, any deal negotiated by the Trump administration is unlikely to be a comprehensive trade agreement, which would take years to broker and require congressional approval.

A more limited deal might benefit some exporters, but ultimately does little to help the US economy or reduce the US trade deficit, which is Trump's goal.

Source: CNBC Indonesia

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