United States Increases Tariffs on More Chinese Products
by Chris Mitchell, IPC vice president, global government relations
Key Summary
• The United States increased tariffs from 10 percent to 25 percent on $200 billion in Chinese products
• New exclusions were added to earlier tariff lists, including items commonly used in manufacturing
• Negotiations had shown progress, but U.S. officials said China backtracked on key commitments
• Additional tariff increases on all Chinese imports remain possible depending on future talks
• China has pledged retaliatory tariffs, keeping trade tensions high
The U.S. Trade Representative (USTR) has published the official Federal Register notice increasing tariffs from 10 percent to 25 percent on another $200 billion worth of Chinese products, effective at 12:01 a.m. on Friday. Meanwhile, the USTR also has added more products to the list of exclusions from the first round of tariffs. The list includes numerous codes for items used in manufacturing, including spools of aluminum and steel and coils; push-button switches; DC electric motors and AC electric motors. U.S. and Chinese officials have met regularly since January to resolve long-standing trade issues with the goal of de-escalating trade tensions and easing the tit-for-tat tariff increases that took effect last year. Officials from both countries have reported progress in negotiations over the past few months, but the U.S. posture changed abruptly last week. U.S. officials, according to news reports, felt that Chinese officials had “backtracked” on key commitments, including IP and technology transfer reforms. In response, President Trump personally decided to increase tariffs this week. Meetings between senior U.S. and Chinese trade officials are scheduled to resume today. We are unlikely to see an agreement this week, as had been the goal. President Trump has suggested that he may also impose new or increased tariffs on all Chinese products imported into the U.S., but a decision that bold would hinge on the President’s estimation of whether a deal can get done and what pressure is necessary to strike it. The Chinese have promised retaliatory tariffs. As always, please contact me if you have concerns, insights or questions.
U.S. officials said Chinese negotiators pulled back from commitments on issues such as intellectual property and technology transfer. In response, President Trump directed the tariff rate to increase as a pressure tactic in the ongoing trade discussions.
The increase applied to $200 billion in Chinese imports, while some exclusions were added for earlier lists, including items like spools, coils, push-button switches, and electric motors that are widely used in manufacturing operations.
Yes. Meetings between senior trade officials were scheduled to resume, but an agreement was not expected immediately. Negotiations have continued since January, though progress stalled due to disagreements over key reform commitments.
President Trump suggested the possibility of imposing tariffs on all Chinese imports if needed to influence negotiations. Whether this occurs depends on the administration’s assessment of progress and strategic pressure required to secure a deal.