US President Donald Trump signed an executive order on Tuesday that raises tariffs on imports from China by up to 245%, citing retaliatory actions from China as the reason for this decision.
The order, issued on April 15, represents another escalation in the ongoing trade conflict between the US and China. A factsheet from the White House accompanying the announcement indicates that the increase in tariffs follows what the administration has labelled “Liberation Day”—when the first tariffs were implemented.
Since then, more than 75 countries have reportedly contacted the United States to discuss new trade agreements. The document states that, unlike other nations, China responded with its retaliatory tariffs, leading the administration to take what it characterised as “decisive economic action.”
The White House argues that the increased tariffs fulfil economic and national security goals. “China’s retaliatory actions left us no choice,” the factsheet states, portraying the order as a necessary response to dishonest trade practices.
Economists have repeatedly cautioned that significant tariff hikes could increase consumer prices and disrupt global supply chains. Analysts suggest that China may attempt to contest the measure through the World Trade Organisation or introduce its countermeasures.
The executive order is effective immediately and encompasses many Chinese products entering the United States.
The Office of the United States Trade Representative is expected to provide more information later this week regarding the impacted sectors and product types.
