Welcome to China Tariff News and Tracker, your essential update on the escalating US-China trade tensions under President Trump's second term. As of early 2026, the average effective US tariff rate stands at 16.8%, with tariff revenue hitting a record $287 billion in 2025, up 192% from the prior year, according to Wikipedia's comprehensive timeline of Trump's tariff policies.
China remains the prime target. After peaking at 145% amid the 2025 stock market crash and retaliatory spiral—where Chinese tariffs on US goods hit 125%—rates have moderated through negotiations. Following Trump's October 2025 meeting with Xi Jinping in South Korea, the US slashed its fentanyl-related tariff on Chinese goods from 20% to 10%, dropping the overall rate to around 30% including the 10% baseline, per the same Wikipedia analysis. This deal secured Chinese purchases of US soybeans and rare earth access, though new threats loom, like a potential 100% hike on semiconductors under Section 232 review.
Recent revenue dips raise eyebrows: Collections fell 11% since October's peak annualized pace of $376 billion to $335 billion by January, partly due to the China tariff cut, UBS economist Arend Kapteyn notes via Investing.com. Port activity softened amid higher barriers, stalling innovation—US firms like Suvie halted R&D to build factories in Vietnam and Mexico, as China Daily reports, wasting millions on unfeasible reshoring.
Trump's moves ripple globally: He eased India tariffs to 18% on February 2 for curbing Russian oil buys, per Dow Jones via Eurasia Review, boosting India's edge over Vietnam's 45% transshipment penalties on Chinese reroutes. Yet allies like the UK ink China deals despite threats, Cyrus Janssen's Substack highlights, with Starmer securing 50% whiskey tariff cuts worth £250 million.
These shifts signal fragile détente, but experts warn of persistent disruptions, higher prices, and supply chain chaos.
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