The ongoing trade war between the US and China has introduced significant uncertainty for American companies relying on Chinese suppliers. The recent escalations have resulted in huge average tax rates on imports, with tariffs often exceeding the price of the goods themselves.
However, not every product is subject to astronomical tariffs. Trade lawyers, customs brokers, and importers say that the patchwork of trade rules can result in varying tariff rates depending on several factors, including the type of product, materials used, and special exemptions.
There are four main categories of tariffs imposed on Chinese goods:
1. Base rate
2. Pre-2025 tariffs
3. “Fentanyl” and “reciprocal”
4. Category-specific tariffs
Tariff rates vary widely across these categories, ranging from 7.5% to 100%. Some products, like syringes and needles, are subject to extremely high tariff rates, while others, such as wool sweaters, have a category-specific tariff of 16%.
New tariffs imposed by President Trump include:
* A 25% tariff on all imported cars
* An expanded tariff on steel and aluminum parts, including products with metal components
* A “reciprocal” round targeting select Chinese goods
However, some products are exempt from these tariffs, including laptops, smartphones, and certain categories of goods like informational materials.
To navigate the complex web of tariffs, American importers must carefully assess which tariffs will apply to their purchases. This can significantly impact their costs, pricing strategies, and ultimately, customer prices.
Source: https://www.nytimes.com/interactive/2025/04/12/business/economy/china-tariff-product-costs.html