The escalation to 245% tariffs on Chinese imports stems from Trump's "reciprocal tariff" formula and China's retaliatory actions. Initially, Trump imposed a 34% tariff on Chinese goods as part of his April 2 "Liberation Day" announcement, which applied a baseline 10% tariff on all imports plus country-specific rates for 57 nations with trade surpluses against the US.12

After China retaliated with its own tariffs, the US rapidly increased the rate—first to 84%, then to 125%, and finally to the current 245% level.34 These tariffs are cumulative with pre-existing duties, meaning Chinese products now face their general duty rate plus Section 301 tariffs, IEEPA tariffs, and the new reciprocal tariff.3 The White House justified this escalation by citing China's export bans on critical materials like gallium, germanium, antimony, and rare earth metals used in high-tech and defense applications.5 While most other countries received a 90-day pause on their higher tariff rates as they entered trade discussions with the US, China remains the primary target in what has become the highest US tariff level in over a century.67

The White House fact sheet released on April 16, 2025, clarified that the 245% figure represents the maximum potential tariff burden on Chinese imports, not a new blanket rate. This total comprises multiple layers: a 125% reciprocal tariff, a 20% tariff related to the fentanyl crisis, and existing Section 301 tariffs ranging from 7.5% to 100% on specific goods.123 The document emphasized that these elevated tariffs were implemented "as a result of China's retaliatory actions," which included restricting exports of rare earth materials critical for high-tech manufacturing and defense technologies.45

The fact sheet also announced an executive order to investigate "national security risks posed by U.S. reliance on imported processed critical minerals," highlighting concerns about America's dependence on "foreign sources, especially from adversarial nations."56 This investigation specifically targets materials like cobalt, lithium, nickel, and rare-earth metals used in manufacturing batteries and other strategic technologies, as China controls approximately 90% of global rare earth metal production.45

The tariff escalation follows a rapid series of retaliatory measures between the two economic giants. Initially, Trump imposed a 10% tariff on all Chinese imports in February 2025, which China countered with its own duties1. By April, the situation had intensified dramatically, with the U.S. raising tariffs to 145% and China responding with 125% levies2. The final jump to 245% came after China suspended exports of critical materials including rare earth metals and halted Boeing jet deliveries34.

China's response to the 245% tariff has been measured, with Foreign Ministry spokesperson Lin Jian stating, "Tariff and trade wars have no winner. China does not want to fight these wars but is not scared of them"3. While computers and smartphones have been exempted from the highest rates3, other products face staggering tariffs – medical syringes and needles at 245%, batteries at 173%, and woolen sweaters at 168.5%4. The White House has indicated that Trump remains open to a trade deal, but insists "the ball is in China's court"45.