What Really Happened With China Tariffs on US: The Breakdown You Haven't Heard

What Really Happened With China Tariffs on US: The Breakdown You Haven't Heard

Honestly, trying to track the back-and-forth of trade wars feels a bit like watching a high-stakes tennis match where the ball is made of lead. If you've been wondering what was china tariffs on us before today’s headlines, you aren't alone. It’s a tangled mess of "Section 301" lists, "retaliatory" measures, and sudden spikes that made everyone from soybean farmers in Iowa to tech CEOs in Silicon Valley lose sleep.

Most people think it all started with a few tweets in 2018. While that was the spark, the actual fire was way bigger and lasted much longer. We’re talking about a multi-year escalation that fundamentally changed how much you pay for a laptop or how much a farmer gets for their crop.

Basically, it was a game of "anything you can do, I can do worse."

The First Salvo: When the 25% Hits Became Normal

Before things got really wild in 2025, the baseline for the trade war was set between 2018 and 2023. Back then, the U.S. government used Section 301 of the Trade Act of 1974 to hammer Chinese imports with tariffs. By the time 2023 rolled around, the average U.S. tariff on Chinese goods had climbed from a measly 2.7% to about 19%.

But what about the other side?

China didn't just sit there. They hit back. Hard. They targeted the stuff that hurt the most politically: agriculture.

In the early days, China slapped 25% tariffs on 128 different American products. Think pork, aluminum, and airplanes. If you were a pig farmer in 2018, your world basically turned upside down overnight because China was your biggest customer. They eventually expanded this to nearly $110 billion worth of U.S. trade.

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The Famous "Phase One" Pause

You might remember the 2020 Phase One deal. It was supposed to be the "big fix." China agreed to buy an extra $200 billion in U.S. goods. In exchange, some tariffs were trimmed—like the ones on List 4A goods being cut from 15% down to 7.5%.

It didn't last. Or rather, it didn't solve the underlying friction. By 2024, the Biden administration wasn't just keeping the old tariffs; they were doubling down on "green tech."

  • Electric Vehicles (EVs): Tariffs jumped to 100%.
  • Solar Cells: Doubled to 50%.
  • Semiconductors: Hiked to 50%.
  • Lithium-ion Batteries: Tripled to 25%.

What Really Happened With China Tariffs on US in 2025?

Things went from "simmering" to "boiling over" in early 2025. This is where the numbers get a little scary. Following the 2024 election, the trade policy shifted toward using the International Emergency Economic Powers Act (IEEPA).

In February 2025, a 10% blanket tariff was slapped on all Chinese imports. A month later? It went to 20%.

By April 2025, we saw the peak of the madness. The U.S. announced a 34% tariff specifically to target the trade deficit. China’s response was immediate and massive. They met the U.S. move with their own hikes, leading to a two-way escalation that saw cumulative tariff rates hit a staggering 125% on certain goods.

Imagine trying to run a business where your raw materials suddenly cost double because of a policy change in a different time zone.

The Specifics of the 2025 Retaliation

China's retaliatory list in 2025 wasn't just a copy-paste of the old one. They went after:

  1. Energy: Coal and Liquefied Natural Gas (LNG).
  2. Tech Components: Rare earth exports were restricted—which is a huge deal because China controls about 90% of global rare earth processing.
  3. Agriculture (Again): Sorghum, cotton, and dairy got hit with new 10-15% levies.

Honestly, it was a mess. By mid-April 2025, the average effective tariff rate China applied to U.S. goods was roughly 146% (if you didn't count specific exemptions). That’s not a trade wall; that’s a trade fortress.


The Sudden Thaw: The November 2025 Truce

If you're looking for the most recent "before" state, you have to look at the deal struck in November 2025. After months of economic pain, both sides realized that a 125% tariff rate was basically a mutual suicide pact for their economies.

On November 10, 2025, the "Trump-Xi Truce" (as some analysts call it) kicked in. They agreed to roll back those massive IEEPA tariffs. Most reciprocal tariffs were dropped back down to a 10% interim rate.

This deal also forced China to commit to massive purchases. We’re talking about 12 million metric tons of soybeans by the end of 2025, and 25 million tons annually through 2028. They also had to stop the flow of certain chemicals related to the fentanyl crisis—a major sticking point that had triggered the 2025 hikes in the first place.

Why This Matters to You Right Now

It’s easy to look at these numbers and think it’s just billionaire math. It’s not.

When you look at what was china tariffs on us before, you're looking at the reason why inflation stayed "sticky" for so long. According to the Federal Reserve Bank of Richmond, by March 2025, the cost of imports from China had risen by approximately 22 cents for every dollar spent.

That 22% "tax" doesn't just vanish. It gets baked into the price of your iPhone, your Nikes, and the steel used to build your local grocery store.

The Hidden Costs: Beyond the Percentage

It wasn't just about the money. It was about the "non-tariff barriers."

  • Unreliable Entity List: China started putting American companies on a blacklist, making it nearly impossible for them to operate in the mainland.
  • Antitrust Investigations: Companies like Nvidia and Google faced sudden "regulatory reviews" in China.
  • De Minimis Treatment: The U.S. ended the $800 tax-free exemption for small packages (those "Temu" and "Shein" boxes), which effectively added a tax to every small consumer purchase.

Navigating the Post-Tariff World

The reality is that we are in a period of "selective decoupling." Even with the November 2025 truce, the "old days" of 2% tariffs are gone forever. We are moving toward a world where trade only happens in "safe" sectors like toys, shoes, and soybeans. Anything with a chip in it is going to stay expensive.

What you should do next:

  • Audit Your Supply Chain: If you run a business, you can't rely on the current 10% rate staying forever. The 2025 "interim rate" is only set to last until November 2026.
  • Watch the Exclusions: Keep a close eye on the USTR (U.S. Trade Representative) portal. They frequently open and close "windows" where you can apply to have specific products exempt from these tariffs if you can prove you can't buy them anywhere else.
  • Diversify Markets: Many companies have moved production to Vietnam or Mexico to avoid the "China origin" stamp. If you're an investor, look at the "ASEAN advantage"—these countries currently enjoy a 12-19% tariff advantage over China in the U.S. market.

The trade war isn't over; it just changed its clothes. Understanding the 125% spikes of early 2025 helps you realize just how fragile the current 10% "peace" actually is.