President Trump's decision to raise tariffs on Chinese imports to 145 percent, while pausing reciprocal tariffs on most other countries, is expected to increase prices for American consumers. This is because many consumer goods, including electronics and clothing, originate from China.
The administration argues that these tariffs aim to encourage domestic manufacturing, even if it means temporarily higher prices for consumers. The goal is to restore factory jobs lost to foreign competition, prioritizing job creation over access to cheaper imported goods.
The tariff whiplash continued on Wednesday, with President Trump pausing “reciprocal” tariffs on most countries for 90 days while imposing still higher tariffs on China.
The steep China tariffs could ripple through the U.S. economy: Many of the consumer electronics and much of the discounted clothing that Americans buy are shipped from China, and higher tariffs could result in higher prices for shoppers.
Here’s what you need to know about the latest tariff developments:
Mr. Trump’s reciprocal tariffs went into effect early Wednesday, but hours later, he paused the levies on most countries.
China was the exception: The Trump administration raised tariffs on Chinese imports, bringing the total amount imposed on the country to 145 percent. The president said he made the move because of Beijing’s new round of retaliatory tariffs against the United States.
Mr. Trump has said the goal of the tariffs is to encourage manufacturers to make more products in the United States. While he and his advisers acknowledge that could mean higher prices for Americans in the near term, Treasury Secretary Scott Bessent recently told NBC that American prosperity was about restoring factory jobs lost to foreign competition, not about the ability to buy “cheap baubles from China.”
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