If you’ve walked through a department store or scrolled through an electronics site lately, you might have noticed the prices feel... different. It’s not just inflation. Honestly, if you're asking are there tariffs on China right now, the short answer is a loud, complicated "yes." But it’s not the same trade war we were talking about five years ago. It’s bigger.
Right now, as of January 2026, we are living through a massive shift in how the U.S. and China do business. Gone are the days of simple 10% taxes on handbags. We’ve entered a period where "reciprocal" is the buzzword of the day, and "national security" is the reason given for almost everything crossing the border.
The reality is that we just saw a flurry of new executive orders. Just yesterday, January 15, 2026, a 25% tariff on high-end AI chips like the Nvidia H200 and AMD MI325X officially took effect. This isn't just about trade; it’s about who owns the future of computing.
The 2026 Reality: A Patchwork of Taxes
You’ve probably heard people say the trade war is over because of a "truce." Don't buy it. While there was a highly publicized "deal" in late 2025 that suspended some of the most aggressive 125% spikes, the baseline is still incredibly high.
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Basically, the U.S. is using a "carrot and stick" approach. For example, President Trump recently suspended some of the 125% "reciprocal" tariffs on China for a year—until November 10, 2026—but that doesn't mean the tax is 0%. Far from it. Most Chinese imports are still hitting a base tariff of 10% to 25% under the long-standing Section 301 rules that have been around since the first Trump term and were kept (and even expanded) by the Biden administration.
What's actually being taxed today?
If you're buying these things, you're likely paying for the tariff:
- Electric Vehicles (EVs): This is the big one. There is a massive 100% tariff on Chinese-made EVs. It’s basically a "stay out" sign for companies like BYD or Xiaomi.
- Medical Supplies: If you're in the healthcare industry, you know the pain. Tariffs on rubber medical gloves just hit 100% on January 1, 2026. Facemasks and respirators are sitting at 50%.
- Steel and Aluminum: These have been high for a while, but they’ve stayed at 25% for most Chinese products to protect domestic mills.
- Semiconductors: This is where the action is. While older "legacy" chips had their tariff hikes delayed until 2027, those high-end AI chips I mentioned earlier just got hit with that 25% tax yesterday.
It’s a moving target. One week, the U.S. Trade Representative (USTR) might extend an exclusion for a specific type of industrial machinery; the next, a new emergency order under the International Emergency Economic Powers Act (IEEPA) might add a 10% surcharge because of geopolitical tensions.
The "Iran Trigger" and Global Surcharges
Here is something most people are missing: the tariffs on China right now aren't just about China anymore.
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A few days ago, on January 12, 2026, a new order went out. Any country doing business with Iran now faces an immediate 25% tariff on all goods sent to the U.S. Since China is one of Iran’s biggest trading partners, this effectively stacks another layer of cost on top of everything else.
It’s messy. If a Chinese company makes a part, sells it to a factory in Vietnam, and that factory sells to the U.S., customs agents are now looking much deeper into where the money and materials actually came from. This is what experts call "decoupling," but honestly, it feels more like a messy divorce where everyone is fighting over the furniture.
Why the "Truce" is Sorta Fragile
You might see headlines about a "historic deal" signed in November 2025. It’s true—Xi and Trump reached an agreement to stop the absolute worst-case scenario. China agreed to buy 25 million metric tons of U.S. soybeans in 2026 and opened up some licenses for rare earth minerals like gallium and germanium.
In exchange, the U.S. dialed back the "fentanyl-related" tariffs by 10% and paused the massive 125% reciprocal rate.
But here’s the kicker: these suspensions are temporary. Most of them expire in November 2026. We are essentially in a one-year cooling-off period where both sides are checking to see if the other keeps their word. If China doesn't buy the beans or if the U.S. feels like the trade deficit isn't shrinking fast enough, those 125% rates could come roaring back with a single social media post.
Is Anything Exempt?
Yes, but the list is shrinking. The USTR recently extended about 178 specific exclusions—mostly for things we can't easily make here, like certain types of specialized manufacturing equipment. These are also set to expire in November 2026.
If you’re a small business owner importing parts, you've probably been glued to the Federal Register. The "Section 301" exclusion process is the only way to get a break, but it’s notoriously difficult to navigate. You basically have to prove that there is no other country on Earth that can make your specific widget at a reasonable price.
Actionable Steps for Navigating 2026 Tariffs
If you're trying to figure out how this affects your wallet or your business, stop looking at "averages." The average tariff rate of roughly 37.4% is a mix of things that are taxed at 0% and things taxed at 100%.
1. Check your HTS codes immediately.
The Harmonized Tariff Schedule (HTS) is the "bible" of trade. If your product’s code was caught in the January 1st medical supply hike or the January 15th semiconductor order, your costs just doubled or jumped by 25%. Don't assume last year's rates still apply.
2. Watch the "Iran Clause."
If your suppliers are part of large conglomerates that trade heavily with sanctioned regions, you might be facing the new 25% "indirect" tariff. Ask your suppliers for "Certificate of Origin" documentation to ensure you aren't getting hit with "stacked" tariffs.
3. Factor in Port Fees.
While some port fees were suspended in the 2025 deal, those suspensions are also on a one-year timer. If you're planning shipments for late 2026, budget for an increase in landing costs.
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4. Diversify, but don't just "move to Mexico."
The U.S. has started cracking down on "transshipment." If you move your production from China to Mexico or Vietnam just to slap a new label on the box, Customs and Border Protection (CBP) will likely catch it and charge you the full China rate anyway. Real diversification requires moving the actual manufacturing process.
The bottom line is that tariffs on China aren't a temporary political tool anymore; they’ve become a permanent fixture of the 2026 economy. Whether it’s for "fairness," "security," or "leverage," the wall of taxes is staying up for the foreseeable future. Keep your supply chains flexible and your eyes on the November 2026 expiration dates.