Some Chinese goods face 245% tariffs—Here's the math behind it
What's the story
A recent White House fact sheet has caused confusion over US tariffs on Chinese goods, with some reports suggesting a massive 245% rate.
In reality, the 245% figure isn't a single tariff. Instead, it reflects a combination of existing duties layered on top of one another for certain imports.
For instance, Chinese syringes entering the US face an initial tariff, followed by multiple additional duties, pushing the total rate up to 245%.
Information
What does the White House fact sheet say?
The fact sheet, released on April 15, read that "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions." This led to several misleading media reports online and causing confusion.
Tariff breakdown
Types of tariffs imposed on Chinese goods
According to The New York Times, there are four main types of tariffs on Chinese goods: base tariffs (averaging 3.4%); pre-2025 protectionist tariffs (7.5% to 100%); sector-specific tariffs (25% rate); and fentanyl tariff (20%); and reciprocal duties (125%).
These rates were introduced to dissuade imports from China, such as solar panels and EV batteries, which are often cheaper than their American counterparts.
Tariff application
Application of tariff rates explained
The effective application of tariff rates is more complicated than it sounds. It depends on various factors such as the source of import, materials used, and any exemptions or special rates that may apply.
Some products like syringes do face a 245% tariff. This includes a 100% pre-2025 rate, 20% of fentanyl levy, and a 125% reciprocal tariff.
Other products like lithium-ion batteries (173%), squids (170%), wool sweaters (169%), and electric cars (148%) also face high tariffs.