President Donald Trump has raised tariffs on Chinese goods to as high as 245%, according to a fact sheet released by the White House, marking a sharp escalation in the ongoing trade conflict between Washington and Beijing. The hike-up from 145%-was described as a direct response to China's retaliation and follows Trump's announcement of a 10% baseline tariff on all countries, with "individualized" penalties for nations with large trade deficits with the U.S.
The move comes amid heightened market volatility, with global equities declining sharply on fears the tit-for-tat measures will increase inflation and disrupt supply chains. "NOBODY is getting 'off the hook' for the unfair Trade Balances," Trump wrote on Truth Social. "Especially not China which, by far, treats us the worst!"
China responded by tightening export controls on rare earth elements essential to high-tech and defense manufacturing. Earlier this week, Beijing appointed Li Chenggang as its new chief trade negotiator. Li replaces Wang Shouwen and brings over four years of experience as China's ambassador to the World Trade Organization, where he helped manage disputes with the U.S.
"There might be another style of negotiations. Li Chenggang is an open-minded person and supports free trade," said Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics. Still, Tu noted that senior Chinese leaders, including President Xi Jinping, will ultimately steer the country's negotiating posture.
The tariff escalation comes just as Xi continues a Southeast Asian diplomatic tour aimed at strengthening economic ties outside the U.S. sphere. During a visit to Malaysia, Xi emphasized China's commitment to multilateralism and free trade. "We must uphold the multilateral trading system, keep global industrial and supply chains stable, and maintain an international environment of openness and cooperation," Xi said in an opinion piece published in The Star.
Chinese Foreign Ministry spokesperson Lin Jian condemned the tariff increase on Wednesday. "This tariff war was initiated by the United States, and China's necessary countermeasures are to safeguard its legitimate rights and interests," Lin said. "If the U.S. truly wants to resolve the issue through dialogue and negotiation, it should stop using maximum pressure and stop threats and blackmail."
Despite soaring duties on Chinese exports and reciprocal 125% tariffs from Beijing, both sides claim they remain open to negotiations. However, communication remains limited. "We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations," Trump wrote, indicating more restrictions may follow.
Meanwhile, U.S. officials have begun trade talks with over 75 countries seeking deals under Trump's "Fair and Reciprocal Plan." The White House has made clear that allies seeking preferential access to the U.S. market must choose between Washington and Beijing.
While China's economy grew 5.4% year-on-year in the first quarter, analysts warn that the long-term impact of tariffs could weigh on growth. "There is no winner in tariff wars and trade wars, and China does not want to fight, but it is by no means afraid to fight," Lin said.
Sun Chenghao, a fellow at the Center for International Security and Strategy at Tsinghua University, described the U.S.-China trade relationship as nearing stalemate. "Both sides are now running out of tariff options," he said.
