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Trump tariffs latest updates: U.S. and China agree to slash tariffs in three-month reprieve
Kemberley Washington, CPA
25 min read
The U.S. and China agreed to a three-month pause on their triple-digit tariff trade war, the White House announced Monday. As part of an agreement hashed out in Geneva, Switzerland, over the weekend, the U.S. “reciprocal tariffs” on goods from China will drop to 10 percent, from 125 percent.
An existing 20 percent so-called “fentanyl tariff” on Chinese products will remain in effect, meaning a total tariff of 30 percent on incoming items from China, lower than the 80 percent tariff that President Donald Trump said in a recent post on Truth Social “seems right.”
China will slash its tariff on U.S. goods heading into its country, reducing that levy to 10 percent, from 125 percent.
The temporary easing in the heated U.S.-China trade war led to a surge in stocks on Monday. However, these tariff reductions are in place for just 90 days. The two nations will continue to hold discussions to determine what will happen come mid-August.
—Kemberley Washington, May 12, 2025
The news about tariffs fluctuates every day. Stay tuned to Bankrate’s latest updates to keep informed about what it means for you — and your money.
Current U.S. tariffs
All goods imported from China: 30 percent (reflects a temporary pause on some tariffs; previously, the total was 145 percent)
All products from other countries: 10 percent (additional “reciprocal” tariffs, unique to each country, are on pause)
All autos and auto parts coming into the U.S.: 25 percent
All steel and aluminum imports: 25 percent
Any country that imports Venezuelan oil: 25 percent tariff on all goods
Canada: 25 percent on some goods, 10 percent on energy products
Mexico: 25 percent on some imports
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The heated trade war between the U.S. and China may shift over the weekend, as top U.S. officials including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer head to Switzerland to meet with Chinese officials to negotiate tariffs.
Currently, the U.S. imposes a 145 percent tariff on most Chinese goods, and China has responded with a 125 percent levy on U.S. products. Many U.S. companies have said the high tariffs have raised their costs and hurt their businesses.
While it’s unclear what will happen with the current tariffs in the upcoming negotiations, President Donald Trump confirmed he is willing to reduce tariffs against China significantly.
“Eighty percent tariffs on China seem right! Up to Scott B!” Trump said in a recent post on Truth Social, referring to Bessent. According to Trump, Bessent has the capability to further reduce the China tariffs.
Not surprisingly, tariffs were a topic at the press conference after the Federal Open Market Committee meeting on Wednesday. “What looks likely given the scope and scale of the tariffs is that certainly the risks to higher inflation and higher unemployment have increased,” Fed Chair Jerome Powell said. The U.S. central bank announced at the meeting that they would hold interest rates steady.
In other news, on Thursday, Trump announced a “historic” deal with the United Kingdom to reduce barriers to trade, though the final details are still being negotiated. A White House statement said Britain has agreed to reduce its tariffs on U.S. beef, and the U.S. will reduce tariffs on cars and other products from the U.K.
Currently, all products that come into the U.S. from other countries face a minimum 10 percent tariff.
Temu, Shein blame tariffs, trade rules for price hikes coming on Friday
Prices for consumer goods on popular shopping sites Shein and Temu are slated to rise on Friday, though it’s unclear how high prices will go, nor how fast they’ll increase. Both companies blamed tariffs and import rules for the higher costs.
The U.S. has imposed a 145 percent tariff on goods from China, which prompted China to counter with a 125 percent tariff on U.S. imports to China. In the midst of this trade war, President Donald J. Trump revoked a rule that allowed shipments into the U.S. worth $800 or less to avoid import taxes. That rule has been a huge boon to companies that ship small items directly to consumers, as Shein and Temu do. That exemption will end May 2.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025,” Shein said in a statement on its website. Temu’s announcement on its website was almost identical.
Temu and Shein saw sales spike over the past two months, with customers looking to save money before prices are adjusted, according to a report by Bloomberg News.
Meanwhile, Trump said this week that U.S. tariffs against China will “come down substantially,” but won’t be eliminated completely.
—Kemberley Washington, April 24, 2025
20% tariff on electronics from China rallies stock market
If you’re wondering what the U.S. tariff rate on smartphones, laptops and other electronics from China is right now, it’s no wonder. And, it’s 20 percent, for now. Here’s a quick breakdown of what’s happened since Friday:
On Friday, a notice published by U.S. Customs and Border Protection suggested that a wide range of electronics brought into the U.S. wouldn’t be subject to the steep “reciprocal” tariffs announced by President Donald Trump earlier this month, including the 125 percent tariff on all goods from China, on top of a pre-existing so-called “fentanyl tariff” of 20 percent. (The “reciprocal” tariffs on countries other than China are paused until early July, though a 10 percent baseline tariff on all products from other countries is in effect.)
On Sunday, Trump used his social media site Truth Social to say that: “Nobody is getting off the hook,” for what he calls unfair trade practices. The 20 percent “fentanyl tariff” still applies to all goods from China, including electronics, he said.
Also on Sunday, Commerce Secretary Howard Lutnick said on ABC News that the pause on the steep “reciprocal” electronics tariffs is only temporary and the administration plans to implement “semiconductor sectoral tariffs,” which would include items such as laptops and phones, that are likely to come within the next month or two.
On Monday, the Trump administration started investigating the importing of microchips and pharmaceuticals from a national security angle, which could lead to new tariffs on those products, according to reporting in the New York Times.
Despite the uncertainty and the whiplash of news, the stock market reacted positively to the recent tariff updates, with the Dow, S&P 500 and Nasdaq all rallying for a second day.
China said Friday that it will raise tariffs on U.S. imports to 125 percent, up from 84 percent, in response to President Donald Trump’s decision earlier in the week to hit Chinese goods coming into the U.S. with a new 125 percent tariff, even as he paused reciprocal tariffs on other countries.
“The U.S.’s repeated imposition of abnormally high tariffs on China has become a numbers game, which has no practical economic significance,” a spokesperson from China’s Ministry of Commerce said in a statement. U.S. tariff policy has “become a joke,” the spokesperson said.
On Thursday, the White House clarified that the total tariffs imposed by the U.S. on China now stand at 145 percent, which includes the newly announced 125 percent tariff and a previously imposed 20 percent tariff tied to fentanyl production. The financial burden of these tariffs will fall on importers in both countries.
The tariffs enacted by the Chinese government will be paid by the entity importing the goods into China. The tariffs the U.S. government has applied to Chinese goods imported into the U.S. will ultimately be paid by U.S. consumers and businesses.
The Yale Budget Lab on Thursday updated its latest forecast, saying current tariffs policy will cost each U.S. household $4,700 on average. (The new estimate includes in its calculation the 145 percent tariff on goods from China.)
—Kemberley Washington, April 11, 2025
Most ‘reciprocal’ tariffs on pause for now but levies against China jump an added 125%
President Donald Trump said Wednesday that he plans to pause his higher “reciprocal” tariffs for the next 90 days on all countries except China — which will now face a 125 percent tariff on its exports to the U.S. “effective immediately.”
[Update: The White House clarified on Thursday that U.S. tariffs against imports from China currently total 145 percent: The new 125 percent tariff plus a 20 percent tariff enacted previously.]
The news comes hours after Beijing announced an additional 50 percent tariff on U.S. exports, raising its total levies on U.S. products to 84 percent. Trump announced the higher levies in a post on Truth Social, while simultaneously citing that “more than 75 countries” have now come to “negotiate a solution” as a reason for lowering other tariff rates.
“Do not retaliate, and you will be rewarded,” said Treasury Secretary Scott Bessent from the Rose Garden, in an address after the announcement. “This was his strategy all along.”
A 10 percent baseline tariff on U.S. imports will remain, Bessent added. The announcement caps another whirlwind day for investors. For the fifth straight day, the S&P 500 has had a trading range greater than 5 percent. The S&P 500 soared more than 7 percent on the news.
This afternoon's announcement of a pause and reduction in reciprocal tariffs to the 10 percent baseline is major news and was obviously received with much relief by the market. This gives businesses confidence that there is 90 days or more of further stability, which is 90 days more than we had this morning.
— Stephen Kates, CFP®, financial analyst at Bankrate
—Sarah Foster, April 9, 2025
104% tariffs on China, plus ‘Liberation Day’ tariffs set to go into effect
Intense volatility whipsawed Wall Street investors for a fourth day on Tuesday as 104 percent tariffs against China are set to go into effect, along with President Donald Trump’s full suite of “Liberation Day” tariffs, on Wednesday.
Trump’s “reciprocal tariffs” — unique tariffs for each country, against almost every nation worldwide — are set to go into effect at midnight. Trump’s 10 percent global baseline tariff — that is, a 10 percent tax on just about all products imported into the U.S. — went into effect April 5.
After China threatened to hit all U.S. imports with a 34 percent baseline tariff, the chief executive threatened to tack another 50 percent duty on all of China’s imports, bringing the total effective tariff rate to 104 percent (initial 10 percent tariff from Feb. 2, plus additional 10 percent tariff from March 2, plus 34 percent “reciprocal” tariffs, plus new 50 percent threat). White House Press Secretary Karoline Leavitt said Tuesday that the 104 percent tariff will go into effect on Wednesday. China’s Commerce Ministry gave no indication that it plans to stand down, saying in a Tuesday statement that Beijing plans to “fight to the end.”
The Trump administration has said that 70 countries have reached out to start trade negotiations.
After rallying more than 3 percent to start the day, the S&P 500 closed 1.6 percent lower, extending its losses and coming close to what financial experts refer to as a bear market. The Nasdaq closed 2 percent lower.
Economists across the country continued to warn that tariffs could cause inflation to creep as high as 4.5 percent. That number, from the economics team at accounting firm KPMG, is the highest inflation forecast so far for 2025. The Yale Budget Lab also updated its latest forecast, saying the total hit to consumers could amount to $3,800 per household this year.
—Sarah Foster, April 8, 2025
China hits back with 34% tariffs, stock market in free fall as recession risks rise
China threatened to retaliate with its own tariffs. Stocks fell across multiple indexes by the most in five years. Economists upped their bets that the U.S. economy may soon face a recession, and the Federal Reserve chair said the U.S. central bank is in no rush to cut interest rates.
That caps off one of the most volatile and brutal weeks for the U.S. economy since the onset of the coronavirus pandemic, as consumers, investors, policymakers and economists alike all scramble to process the fallout of President Donald Trump’s massive new reciprocal tariffs announced Wednesday.
Here’s the latest to close out the week:
China says it will hit all U.S. imports with a 34 percent baseline tariff starting next Thursday, if Trump’s full 54 percent duty on goods from the nation goes into effect as planned on April 9.
The European Union also said it was prepared to respond with its own measures, but in a “calm, carefully phased, and above all, unified way.” In a statement released Thursday, European Trade Commissioner Maros Sefcovic said he’ll be exploring countermeasures over the next week.
Fed Chair Jerome Powell said Friday that tariffs are “significantly larger than expected,” and their impact on the economy will be, too, bringing even higher inflation and weaker growth. Fed officials are prepared to keep rates at a decade-plus high in the meantime. “It is too soon to say what will be the appropriate path for monetary policy,” he said.
The S&P 500 slid more than 11 percent over the past two days. The Nasdaq plunged more than 11 percent, while the Dow Jones Industrial Average fell 9 percent. The selloff that’s ensnarled markets since Wednesday has wiped out a record $6.6 trillion in wealth, according to data from Dow Jones.
Economists across Wall Street downgraded their growth forecasts in response to Trump’s higher-than-expected tariffs, many warning of a higher possibility of a recession. The odds of a recession surged by the most since 2022 in Bankrate’s latest survey of economists.
There are always abundant reasons to sell or panic, but volatility is the price we pay for inflation-beating returns in the stock market. Days like this are one of the reasons a robust emergency fund is so important. Invested money should never be at risk of needing to be withdrawn in the short-term. Investors with ample time to stay invested should remember how lucrative patience has been over the last 15 years.
— Stephen Kates, CFP®, Bankrate financial analyst
—Sarah Foster, April 4, 2025
Trump slaps minimum 10% tariff on all global imports
President Donald Trump announced on Wednesday his broadest tariffs yet, a move that promises to raise the average U.S. tariff rate to the highest in more than a century.
The Trump administration will soon begin imposing a 10 percent baseline tariff on U.S. imports from all other countries, and will slap even higher duties on countries that have trade imbalances with the U.S. The White House has referred to those countries as “repeat offenders,” ones that impose higher tariffs than the U.S. and export more goods than they import.
“For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense,” Trump said from a White House address from the Rose Garden. “But now it’s our turn to prosper.”
Here’s a sampling of the new tariffs set to be applied:
China: 34 percent
European Union: 20 percent
Japan: 24 percent
Taiwan: 32 percent
India: 26 percent
Vietnam: 46 percent
Thailand: 36 percent
“As long as you don’t retaliate, this is the high end of the number,” Treasury Secretary Scott Bessent said in an interview on Bloomberg Television after Trump’s address. “So we’ve got a ceiling. And then we can see if there’s a different floor.”
For now, Canada and Mexico appear to be exempt from higher duties, with their tariff rates remaining at 25 percent. Steel and aluminum duties will also stay at 25 percent. The new tariff on goods from China, meanwhile, will be in addition to the 20 percent duties that have already been imposed, bringing its total tariff rate to 54 percent, Bessent said.
The Trump administration appears ready to keep all duties in place until other countries address the trade practices that Trump has criticized as being unfair to the U.S.
—Sarah Foster, April 2, 2025
25% tariffs on imported cars and car parts
President Donald Trump said Wednesday that he plans to impose 25 percent tariffs on all cars and auto parts imports into the U.S., a move he sees as bringing auto manufacturing jobs back to the U.S. — despite experts’ warnings that it could make car prices more expensive.
The new duties will go into effect April 3, according to an executive order.
“I think our automobile business will flourish like it’s never flourished before,” Trump said from the Oval Office following the announcement.
Americans purchased 16 million cars in 2024, and only 1 in 4 (25 percent) are what the White House categorizes as “made in America.” The Trump administration estimates that half of the cars that consumers purchased last year were imported, as were 60 percent of the parts used to assemble them, a White House fact sheet said.
More than 1 in 3 vehicles and vehicle parts that the U.S. imported in 2024 came from Mexico, according to a Bankrate analysis of Census Bureau data. Another 13 percent each came from Canada and Japan, while South Korea composes 12 percent of all imports.
United Auto Workers Union President Shawn Fain celebrated the news in a statement, calling it a “major step in the right direction” for both autoworkers and blue-collar communities in the U.S.
Economists, however, estimate that the tariff hike could amount to massive price hikes. New vehicle prices might rise by about $5,000, on average, over the next 12 months, according to one estimate from Moody’s. A separate report from analysts at Goldman Sachs estimated that the price of imported cars could jump from anywhere between $5,000 to $15,000 if the 25 percent levy is kept in place.
Those price hikes could add further insult to injury as Americans already grapple with the double whammy of soaring interest rates and pricey car costs post-pandemic. Since February 2020, new vehicle prices have climbed 20.5 percent, a Bankrate analysis of the latest consumer price index (CPI) shows.
The average price of a new car hit almost $50,000 at the end of December, according to Kelley Blue Book.
“Consumers are paying close attention to the current administration’s policies,” said Oren Klachkin, financial market economist at Nationwide. “They are fearful another leg up in prices will put more strain on their wallets.”
—Sarah Foster, March 27, 2025
25% tariffs on all goods from countries that import Venezuelan oil
On March 24, President Donald Trump signed an executive order lobbing 25 percent tariffs on all goods from any country that imports oil from Venezuela.
Meanwhile, new U.S. tariffs seem all but guaranteed to roll out on April 2. But the specifics — in terms of which countries, which products and how high the tariffs will be — are murky. With tariffs, the only thing certain these days is the uncertainty.
Last week, Trump seemed intent on rolling out steep tariffs in April against any country that had instituted retaliatory tariffs against the U.S., in addition to levying new tariffs on cars, aluminum and steel.
But on Monday, Trump softened his tone. “I may give a lot of countries breaks,” he said. “It’s reciprocal, but we might be even nicer than that.”
Still, he repeated his nickname for April 2, calling it “Liberation Day,” which refers to his belief that tariffs will free the U.S. from trade imbalances with global partners.
April 2 is also the day when the reprieve on certain goods from Canada and Mexico is slated to end, and 25 percent tariffs on many more products from those countries are scheduled to go into effect. Currently, any products covered by the U.S.-Canada-Mexico agreement are exempt from tariffs.
In other news, consumers’ outlook for the future dropped to a 12-year low in March, according to the latest monthly consumer survey, fielded through March 19, from the Conference Board, a nonprofit, nonpartisan research organization.
Specifically, Americans’ short-term outlook for income, business, and labor market conditions tumbled lower.
“Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” said Stephanie Guichard, senior economist, global indicators at the Conference Board, in a statement.
Overall, consumer confidence “declined for a fourth consecutive month in March,” she said, “falling below the relatively narrow range that had prevailed since 2022.”
—Andrea Coombes, March 25, 2025
Tariffs ‘tend to bring inflation up,’ Fed Chair says
Tariffs “tend to bring growth down; they tend to bring inflation up,” Powell said.
As a result of the Federal Open Market Committee’s (FOMC) decision today, its benchmark borrowing rate will stay in a target range of 4.25 to 4.5 percent.
Powell also said Trump’s latest tariffs are already driving some price increases: “We now have inflation coming in from an exogenous source,” Powell said, meaning an external source.
Uncertainty over Trump’s policies isn’t just rattling financial markets, businesses and consumers. It’s also impacting the U.S. central bank. With fears rising of an economic slowdown, the risk is that the next time the Fed cuts interest rates, it might be for more ‘bad’ reasons than ‘good.’
— Sarah Foster, Bankrate Principal U.S. Economy and Federal Reserve Reporter
In a statement, the FOMC said the economy has expanded and the labor market seems to be “solid,” but added that “uncertainty around the economic outlook has increased.”
In a time of economic uncertainty, consumers should consider focusing on what they can control, says Sarah Foster, Bankrate’s principal U.S. economy and Federal Reserve reporter. Pay down high-interest credit card debt and do what you can to build up your emergency fund, Foster says.
The Fed would much rather cut interest rates because inflation pressures are subsiding than because the economy is weakening. Depending on the path of economic data in the next few months, they may not have a choice.
Reciprocal tariffs, and more, coming April 2, Trump says
President Donald Trump isn’t backing down from an all-out trade war, saying he’ll launch new tariffs come April 2.
“April 2 is a liberating day for our country, because we’re going to be getting back a lot of the wealth that we so foolishly gave up to other countries,” Trump said to reporters on Air Force One on Sunday.
Some of the new tariffs planned for April 2 will focus on specific sectors while others will be reciprocal, meaning the U.S. will impose the same tariff that a country has imposed on the U.S., Trump said.
“If they’re charging us, we’re charging them,” he said.
On top of reciprocal tariffs, Trump said he plans to levy new tariffs on cars, steel and aluminum. “We’re going to have some additional tariffs” on those products, he said.
Trump ratcheted up his economic threats against the United States’ trading partners last week, and Canada and the European Union quickly hit back with their own retaliatory levies.
Tariffs have been a key part of Trump’s bigger goal of shifting the burden of funding the U.S. government from American taxpayers to foreign sources. As part of that broader effort, he proposed creating an External Revenue Service, focused on collecting tariffs and other revenue from other countries. Here’s what the External Revenue Service could mean for you.
—Andrea Coombes, March 18, 2025
Canada and Mexico economies to be hit hard by tariffs
Trump’s relentless trade war is expected to hit Canada and Mexico especially hard, but the U.S. economy will suffer too, according to the latest economic forecast, published Monday, by the OECD, or Organization for Economic Cooperation and Development, a global policy group of 38 member countries.
Mexico’s economy will likely shrink 1.3 percent this year and contract 0.6 percent in 2026, a sharp drop from an expected growth rate of 1.2 percent this year and 1.6 percent in 2026, from the OECD’s forecast in December.
Canada’s economy is expected to grow 0.7 percent this year and next, down from an expected 2 percent growth rate each of those years in the OECD’s previous forecast.
The U.S. economy will grow 2.2 percent this year and just 1.6 percent next year, down from a predicted 2.4 percent growth rate in 2025 and 2.1 percent in 2026, according to the OECD.
The current U.S. tariffs on Canada and Mexico generally are 25 percent, though products that fall under the United States-Mexico-Canada Agreement (USMCA) are exempt for now. Tariffs on goods from China are 20 percent, on top of an already existing 10 percent tariff.
In response to the U.S.’s tariffs, Canada slammed 25 percent tariffs on a variety of U.S. products, including candles, garden umbrellas and fishing rods on March 13. Here’s the complete list of U.S. products upon which Canada imposed a 25 percent tariff.
Trump threatens 200% tariff on European alcohol
March has been a particularly volatile month in the burgeoning trade war. On March 13, Trump said on his social media site Truth Social that he’d hit all champagne, wine and alcohol coming from the European Union with a 200 percent tariff, in response to the EU’s planned 50 percent tariff on U.S. whiskey.
On March 11, in response to the U.S. imposing 25 percent tariffs on steel and aluminum products from the European Union, the EU said it would impose counter tariffs on almost $30 billion worth of U.S. goods, starting next month.
EU tariffs will hit products “ranging from boats to bourbon to motorbikes,” the EU statement says.
Other targeted products include steel and aluminum items, textiles, home appliances, house tools, plastics and wood products. Agricultural products include poultry, beef, certain seafood, nuts, eggs, dairy, sugar and vegetables.
The EU announcement said its tariffs would start April 1 and be fully in place by April 13.
What are tariffs?
A tariff is essentially a tax on imported goods. Governments choose to levy tariffs for a variety of reasons, including protecting domestic industries and punishing other countries for their trade practices.
Trump has talked about tariffs as creating a protective “ring around the U.S. economy” that could bring jobs back. He’s also mentioned national security as a reason to institute tariffs — for example, to push other countries to better guard against drug trafficking.
Tariffs can be levied in different ways, but often they are a simple flat percentage cost that applies to the goods being imported.
Tariffs are paid by the company that imports the product. For example, U.S. tariffs on goods from Canada are paid by U.S. companies that import those goods. However, the company importing the product often passes the cost of tariffs along to the consumers who ultimately buy the product.
How much is passed along, though, depends on a variety of factors, such as competition in a specific industry, demand for the specific product and consumers’ preferences.
U.S. households will lose an estimated $2,700 to $3,400, on average, as a result of retaliatory tariffs, according to a recent analysis by the Yale Budget Lab. Before Trump announced plans for retaliatory tariffs scheduled for April 2, the Yale Budget Lab estimated that tariffs would cost U.S. households an average of $1,600 to $2,000.
