Trump’s new 10 percent tariffs on Chinese goods begin

|Published 10:00 AM ET, Tuesday February 4, 2025|

On February 4, 2025, President Donald Trump’s administration implemented a 10% tariff on all Chinese imports, citing efforts to address the influx of illicit drugs, particularly fentanyl, into the United States. In response, China announced retaliatory measures, including a 15% tariff on U.S. coal and liquefied natural gas, and a 10% tariff on U.S. crude oil, large-displacement vehicles, and agricultural machinery, effective February 10, 2025.

Additionally, the U.S. administration closed the de minimis exemption, a trade loophole that previously allowed packages valued under $800 to enter the country duty-free. This change is expected to significantly impact Chinese e-commerce platforms like Shein and Temu, which have relied on this exemption to ship low-cost goods to U.S. consumers. The removal of this provision may lead to increased shipping times and costs, potentially affecting consumer choices and the business models of these companies.

These developments have introduced volatility into global markets, with analysts predicting potential disruptions in supply chains and economic activities. The situation remains dynamic, with both nations expressing a willingness to negotiate, though significant challenges persist.