The confusion that has appeared after the release of the fact sheet is alarming. Numerous media outlets have reported that the US has imposed a new 245 percent tariff on Chinese imports. This is incorrect information. Further analysis shows that the ban on imports is still not created as a solitary mandate.
What the White House Actually Said
Below the section focusing on ‘America’s Industry as a Strength,’ the fact sheet noted:
“Due to China’s retaliatory policies, they are now confronted with tariffs as high as 245 percent on shipping goods to America.”
The White House cites this specific number, but it is strategically vague because the value represents the addition of diverse tariffs already placed on certain Chinese products and does not showcase any newly imposed tariffs on decisions made by the Chinese government.
How The 245% Tariff Number Was Calculated
That number comes from the aggregation of different types of tariffs rather than being a policy on its own.
Base tariffs: ~3.4%
Pre-2025 protectionist tariffs: 7.5% to 100%
Sector specific duties (steel, auto, aluminum): 25%
Fentanyl related and reciprocal tariffs: Up to 125%
As an example, products like syringes can face:
100% (pre-2025 tariffs)
20% (fentanyl levy)
125% (reciprocal tariff)
Total: 245%
Other examples include:
Lithium-ion batteries: 173%
Squid: 170%
Wool Sweaters: 169%
Electric vehicles: 148%
Trump’s Announcement and Exemptions
Former President Donalt Trump has come up with an extra 125% reciprocal tariff, along with exisitng ones, this past week. This was interpreted as a total new rate which is not the case. In the same breath, Trump claimed there will be exemptions for phones and electronics only to state afterwards on Truth Social that “no one is exempted.” This did not help clear the confusion at all.
Complex Tariff System Explained
The effective tariff rate uses many different factors to set:
Product category
Country of origin
Material composition
Applicable exemptions
Due to these mand many more reasons, one could argue that even US policymakers and the media find difficult to make sense of aredailing this system.
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