The United States bought $439bn worth of goods from China in 2024 – more than three times the $143.5bn it sold in return. That $295bn gap, known as the trade deficit, is something US President Donald Trump is determined to shrink.In an effort to close the gap, Trump has raised tariffs on China to 145 percent. This means Chinese goods sold to the US are now taxed at 2.45 times their original price, making them much more expensive and less competitive in the US market.
China has retaliated with 125 percent levies on US goods.
The tit-for-tat escalation of tariffs between the world’s biggest trading powers has led to uncertainty on what it means for the cost and production of everyday items such as smartphones, semiconductors and clothing.
China’s Ministry of Commerce said it is willing to “fight to the end” and has accused the US of violating the rules of the World Trade Organization.
February 1
On February 1, President Trump signed an executive order imposing a 10 percent tariff on China. The order also placed 25 percent tariffs on Canadian and Mexican imports. Advertisement
March 4
The president placed an additional 10 percent tariff on Chinese goods on February 27, which came into effect on March 4.
April 2
A 10 percent tariff was applied to all nations imp …