On Tuesday 4th January, 2025, President Donald Trump implemented 10 percent tariffs on all goods imported from China, prompting Beijing to respond with counter-tariffs on the same day.
These new levies on Chinese goods are in addition to previous tariffs imposed by Trump during his first term, which range from 10 percent to 25 percent on various products.
China’s Ministry of Commerce announced on Tuesday that it would introduce counter-tariffs on multiple U.S. products and also initiate an investigation into Google regarding potential antitrust violations.
The Chinese government stated it would impose a 15 percent tariff on coal and liquefied natural gas, in addition to a 10 percent tariff on crude oil, agricultural machinery, and large-displacement cars.
Shortly after Trump’s 10 percent tariffs took effect, China’s State Administration for Market Regulation announced its investigation into Google.
Tariff Guidance
U.S. Customs and Border Protection issued guidance on Monday to clarify the new tariffs, which now apply to packages coming to the United States from China, including products from Hong Kong. Previously, items valued under $800 were exempt from these tariffs under “de minimis” rules; however, this exemption has been revoked.
The tariffs do not apply to items intended for humanitarian donations or to certain media products, including films, publications, and other informational materials.
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All other products—including electronics, consumer goods, automotive items, health and medicine, food and agriculture, and energy—are subject to the new fees.
Trump signed an executive order on Saturday that imposed these tariffs as a response to the production and distribution of chemicals that can be transformed into fentanyl by criminal networks.
The executive order states, “[The] Chinese Communist Party (CCP), which exerts ultimate control over the government and enterprises of the [People’s Republic of China], has subsidized and incentivized [Chinese] chemical companies to export fentanyl and related precursor chemicals used to produce synthetic opioids sold illegally in the United States.”
Trump has accused the Chinese regime of providing support and a “safe haven” for criminal networks that launder profits from the sale of fentanyl products. According to the order, nearly 550,000 pounds of fentanyl—enough lethal doses for nearly 111 billion people, as estimated by the Drug Enforcement Administration—were seized by law enforcement at the U.S. borders over the past three years.
“The influx of these drugs into our nation threatens the fabric of our society,” Trump wrote in the executive order. “The [Chinese Communist Party] plays a central role in this challenge, not merely by failing to stem the ultimate source of many illicit drugs distributed in the United States, but by actively sustaining and expanding the business of poisoning our citizens.”
After demanding that China take action to curb the flow of fentanyl during his first term and being dissatisfied with their response, Trump is now adopting a tougher stance.
“China will be dealt with,” Donald Trump stated. “We hope China will stop sending us fentanyl, and if they don’t, the tariffs will increase substantially.”
When Trump first imposed tariffs on China during his first term, Chinese officials responded with retaliatory measures, including tariffs on pork, beef, and other agricultural products.
Chinese representatives have also challenged U.S. trade policies at World Trade Organization hearings and have indicated their intention to do so again regarding this latest round of tariffs, suggesting in an announcement that the United States should address its own issues.
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