The U.S. has announced a new tariff rate on goods imported from China, increasing the total to 54%, according to Treasury Secretary Scott Bessent. This includes a new 34% tariff on top of the existing 20% rate that was implemented during the early months of the Trump administration.
Bessent confirmed the tariff increase during an appearance on Bloomberg Television, adding that while there may be future discussions, the current stance is likely to remain unchanged for the time being. “It’s going to be up to President Trump to see what he wants to do,” Bessent said. “I think the mindset might be to let things settle for a while.”
The new tariff rates bring the total to 54%, which is in line with the 60% rate President Trump had suggested during his 2024 presidential campaign. In some cases, the combined tariff rates could reach up to 76%, including additional tariffs related to issues such as fentanyl.
In response, China’s Ministry of Commerce criticized the U.S. move, calling the new tariffs a violation of international trade rules and a form of unilateral action. “The so-called ‘reciprocal tariffs,’ based on the U.S.’s own subjective and unilateral assessments, severely harm the legitimate rights and interests of other parties,” the ministry stated, warning of potential countermeasures.
The U.S. imports nearly $500 billion worth of goods from China annually, making it one of the largest sources of foreign imports. The new tariffs are expected to impact a range of industries, particularly big-box retailers, many of which rely on low-cost sourcing from China. After the announcement, stocks in companies like Target and Walmart saw declines in after-hours trading, with Target dropping as much as 5.5% and Walmart falling 4.7%.
In addition to the economic impact on U.S. retailers, international responses have also been significant. Australia’s Prime Minister Anthony Albanese expressed concern over the tariffs, stating that the decision could harm both U.S. trade partners and American consumers. “The administration’s tariffs have no basis in logic, and they go against the basis of our two nations’ partnership,” Albanese said. “This decision will add to uncertainty in the global economy, and it will push up costs for American households.”
The new tariffs are set to take effect next week, continuing the ongoing escalation in the U.S.-China trade relationship.
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