Trump Hits Back: U.S. Imposes 104% Tariffs on China Amid Rising Trade Tensions.
In a bold move that has reignited global trade tensions, President Donald Trump on Tuesday signed an amended executive order officially raising U.S. tariffs on Chinese goods by 50%, bringing the total to a staggering 104%. This significant escalation comes as a direct retaliation to China’s recently imposed 34% duty on U.S. exports.
“In my judgment, this modification is necessary and appropriate to effectively address the threat to the national security and economy of the United States,” — President Donald Trump
🔍 Why the Tariff Hike?
The decision stems from ongoing disputes over trade imbalances and China's retaliatory tariffs. In his executive order, Trump called the move essential to safeguard American interests and economic security.
The U.S. will begin collecting the new duties from 12:01 a.m. Wednesday, as confirmed in Trump’s speech during the National Republican Congressional Committee (NRCC) dinner.
📦 De Minimus Products Targeted
A major highlight of this tariff escalation is the clampdown on de minimus shipments — typically cheap goods valued under $800.
| Previous Duty | New Duty (May 2) | New Duty (June 1) |
|---|---|---|
| 30% | 90% | Up to 150% per item |
Postal fees per item are also being hiked — from $25 to $75 on May 2, and then $150 by June 1.
This is expected to hit Chinese e-commerce giants like Temu and Shein, which have heavily relied on this 1930s-era rule to ship inexpensive products to American consumers without triggering tariffs.
💼 Economic Impact
Trump boasted that the tariffs are already yielding $2 billion per day in revenue. However, businesses and consumers alike are preparing for price hikes, delays, and limited access to affordable imported goods.
According to a Congressional Research Service report, exports of cheap goods from China to the U.S. soared from $5.3 billion in 2018 to $66 billion in 2023 — a leap largely credited to loopholes like the de minimus rule.
🧵 What Is the De Minimus Exception?
Initially introduced to allow tourists to bring souvenirs duty-free, this exemption has been widely used in the e-commerce boom, letting companies bypass high tariffs by sending individual low-cost packages directly to consumers.
Now, Trump has scrapped this rule exclusively for China, effectively closing the door for ultra-low-cost imports from the country.
🗣️ What This Means Going Forward
The tariff war between China and the U.S. is far from over. With both nations implementing stiff trade policies, global markets are experiencing volatility. American small businesses may face higher production costs, while consumers could soon feel the pinch at checkout.
Meanwhile, fashion retailers like Temu and Shein might either pass the costs to consumers or rethink their U.S. strategies altogether.
📌 Key Takeaways
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U.S. raises total import duties on Chinese goods to 104%
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De minimus items now taxed at 90%, rising to 150% by June
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E-commerce giants Temu and Shein face major hurdles
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Revenue expected: $2 billion/day
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Small businesses and consumers brace for impact
News Source: nypost.com
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