This article has been updated. It was originally published on 25 March 2025
UPDATE: Following the announcement by US President Trump on 2 April 2025 that an additional 34% duty will be levied on China, the Chinese Ministry of Finance announced various countermeasures on 4 April. In a tit for tat response, duties of 34% will be levied on all U.S. goods starting 10 April and China will impose export restrictions on certain rare earths used in high-tech products effective immediately. China also added 27 U.S. firms to its list of companies subject to trade sanctions or export controls. On 11 April, China upped the tariff to 125% after the U.S. hiked the tariffs on Chinese goods to 145%. Both sets of additional tariffs are now in effect. The IEEPA tariffs of 25% on non-USMCA-qualifying products from Canada and Mexico are excluded from the 90-day pause.
The Chinese government announced retaliatory tariffs on goods originating from the US—particularly agricultural products—on 4 March 2025 after US President Trump doubled levies on most Chinese products (for prior coverage, see the trade alert dated 28 February 2025). Citing the need to stem the flow of fentanyl in the US, Trump imposed a 10% tariff on imported Chinese goods beginning 4 February and added another 10% starting 4 March, both of which apply on top of pre-existing tariffs (and no exemption options). In response, China’s State Council Tariff Commission issued Announcement [2025] No. 2 on 4 March that imposes reciprocal tariffs on specific US products starting on 10 March. It should be noted that, in conjunction with the tariff measures, China filed a formal complaint at the World Trade Organisation against the Trump tariffs and announced tightened export controls to the US on critical minerals.
The Chinese tariffs include the following:
In the first three months of his administration, President Trump has announced, imposed, paused and re-imposed tariffs on Canada, Mexico and China, and indicated the administration would be considering the imposition of “reciprocal” tariffs against other countries/regions, creating a volatile trade environment and igniting fears of a trade war. The unilateral imposition of additional tariffs by the US undermines the multilateral trading system, increases the burden on US enterprises and consumers, and undercuts the basis for economic and trade cooperation between countries.
Affected enterprises should assess supply chain risks for industries targeted by Chinese tariffs based on their actual situations and proactively monitor updates of tariff policies between China and the US to reduce trade risks caused by tariff policy changes.
Gordon Gao
Jack Shen
BDO in China
UPDATE: Following the announcement by US President Trump on 2 April 2025 that an additional 34% duty will be levied on China, the Chinese Ministry of Finance announced various countermeasures on 4 April. In a tit for tat response, duties of 34% will be levied on all U.S. goods starting 10 April and China will impose export restrictions on certain rare earths used in high-tech products effective immediately. China also added 27 U.S. firms to its list of companies subject to trade sanctions or export controls. On 11 April, China upped the tariff to 125% after the U.S. hiked the tariffs on Chinese goods to 145%. Both sets of additional tariffs are now in effect. The IEEPA tariffs of 25% on non-USMCA-qualifying products from Canada and Mexico are excluded from the 90-day pause.
The Chinese government announced retaliatory tariffs on goods originating from the US—particularly agricultural products—on 4 March 2025 after US President Trump doubled levies on most Chinese products (for prior coverage, see the trade alert dated 28 February 2025). Citing the need to stem the flow of fentanyl in the US, Trump imposed a 10% tariff on imported Chinese goods beginning 4 February and added another 10% starting 4 March, both of which apply on top of pre-existing tariffs (and no exemption options). In response, China’s State Council Tariff Commission issued Announcement [2025] No. 2 on 4 March that imposes reciprocal tariffs on specific US products starting on 10 March. It should be noted that, in conjunction with the tariff measures, China filed a formal complaint at the World Trade Organisation against the Trump tariffs and announced tightened export controls to the US on critical minerals.
The Chinese tariffs include the following:
- An additional levy of 15% on chicken, wheat, corn and cotton.
- An additional levy of 10% on sorghum, soybeans, pork, beef, aquatic products, fruit and vegetables, and dairy products.
- Corresponding tariffs on specified imported goods in addition to existing applicable tariffs. The bonded and tax relief policies remain unchanged and the additional tariffs may not be reduced or exempted.
BDO Insight
In the first three months of his administration, President Trump has announced, imposed, paused and re-imposed tariffs on Canada, Mexico and China, and indicated the administration would be considering the imposition of “reciprocal” tariffs against other countries/regions, creating a volatile trade environment and igniting fears of a trade war. The unilateral imposition of additional tariffs by the US undermines the multilateral trading system, increases the burden on US enterprises and consumers, and undercuts the basis for economic and trade cooperation between countries.Affected enterprises should assess supply chain risks for industries targeted by Chinese tariffs based on their actual situations and proactively monitor updates of tariff policies between China and the US to reduce trade risks caused by tariff policy changes.
Gordon Gao
Jack Shen
BDO in China