China Imposes Sweeping 125% (up from 84%) Tariff on U.S. Imports

Trade Update • April 11, 2025

n Friday, April 11, 2025, China’s Ministry of Finance announced a sharp escalation in its trade retaliation, raising tariffs on all U.S. imports to 125% (effective April 12, 2025), up from the previously imposed 84%. This marks China’s third retaliatory measure in response to U.S. actions.

Just a day earlier, on April 10, China had imposed sweeping tariffs of 84%—a steep jump from the original 34% —as tensions surged. The latest move comes in direct response to the United States’ decision to slap a 125% tariff on all Chinese imports, signaling the most aggressive stage of the trade conflict to date.

U.S.–China Trade Standoff

The U.S. administration’s latest tariffs build on two earlier tranches of 10% duties (totaling 20%) imposed since Trump returned to office in January 2025. Citing the need to curb the flow of illicit fentanyl from China, the White House justified the steep penalties. With these measures combined with existing duties, Chinese goods are now subject to a IEEPA Reciprocal Tariffs of 125%, in addition to IEEPA Fentanyl 20% tariff when entering the U.S.

Beijing’s response this time is more sweeping than in previous rounds. Instead of targeting specific industries, China is applying tariffs uniformly across all American imports, signaling a broader economic pushback. The Chinese government, through its State Council Tariff Commission, condemned the U.S. actions, calling them a “typical unilateral bullying practice” and a violation of international trade norms. “This practice of the U.S. is not in line with international trade rules, seriously undermines China’s legitimate rights and interests,” the commission stated.

U.S. Companies Added to “Unreliable Entity List”

As part of its retaliatory measures, China has added 11 U.S. companies to its “unreliable entity list”, barring them from trade, investment, and cooperation in China. These firms have been accused of engaging in military-related technology cooperation with Taiwan, which China claims undermines its national sovereignty and security.

The companies include:

• Skydio Inc.
• BRINC Drones Inc.
• Red Six Solutions
• SYNEXXUS
• Firestorm Labs
• Kratos Unmanned Aerial Systems
• HavocAI
• Neros Technologies
• Domo Tactical Communications (DTC)
• Rapid Flight
• Insitu

The Ministry of Commerce warned that these entities “pose risks to national security” and emphasized that law-abiding foreign businesses need not worry.

Expanded Export Controls and Investigations

Alongside tariffs and the blacklist, China is taking additional retaliatory steps:

• Export controls were imposed on 16 U.S. companies, restricting access to Chinese dual-use items with both civilian and military applications.

• New export restrictions were placed on seven key rare-earth minerals, including samarium, gadolinium, and terbium—all critical to U.S. high-tech manufacturing and defense.

• Anti-dumping investigations were launched into CT X-ray tubes imported from the U.S. and India.

These developments coincided with China’s Tomb Sweeping Festival, amplifying the symbolic weight of the announcement.

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