US Weighs Fresh China Tariffs: What New Duties Could Mean for Your Wallet and Global Markets

Washington, D.C. — The escalating dispute over China tariffs entered a new phase this week after the Biden administration formally implemented the tariff hikes it previewed last year, locking in duties on roughly US $18 billion worth of Chinese imports. Effective June 10, 2025, the Office of the United States Trade Representative (USTR) confirmed that: • Electric vehicles (EVs) made in China now face a 100 % import tariff, quadrupling the previous 25 % rate. • Lithium-ion EV batteries jump to a 25 % duty, up from 7.5 % last year. • Solar cells, semiconductors, critical minerals, syringes, needles, steel and aluminum will see phased increases ranging from 25 % to 50 % by 2026. Why the new China tariffs matter The White House argues the measure protects domestic manufacturing capacity in electric mobility, clean energy and advanced chips, sectors it deems vital for national security and climate goals. Officials say China’s “non-market policies” have led to chronic overcapacity that floods global markets with under-priced goods, pressuring U.S. producers. Business impact Auto analysts project the 100 % EV levy will effectively keep most Chinese-brand electric cars—some priced below US$25,000—out of U.S. showrooms. Domestic makers such as Tesla, GM and Ford gain breathing room, but downstream suppliers may see higher battery-grade mineral costs. Semiconductor buyers fear pass-through price increases on printed circuit boards and legacy chips, potentially widening already volatile lead times. Importers racing the clock Customs brokers report a surge of “beat-the-deadline” shipments in late May as companies tried to clear ports before the June 10 cutoff. Some retailers front-loaded holiday-season inventory, but logistical backups at West Coast ports have added storage fees and demurrage costs. Section 301 review and exclusions Congressional pressure is mounting for the USTR to revive expired Section 301 tariff exclusions covering thousands of components—from bicycle parts to industrial machinery—that lapsed in December. An extension for non-Chinese developing countries remains in effect until July 9, 2025, but China-origin goods no longer qualify, resulting in a sudden 30 % to 145 % duty spike for many small importers. Chinese response Beijing has condemned the new tariffs as “protectionism,” hinting at “appropriate counter-measures” targeting U.S. agricultural exports. Any retaliation risks reigniting a broader trade war that rattled financial markets in 2018-19. China also filed a complaint at the World Trade Organization, arguing the levies violate multilateral rules. What’s next 1. 90-day tariff pause talks: Diplomatic channels remain open after Washington and Beijing agreed in mid-May to discuss a temporary 90-day suspension of mutual tariffs, though details are scarce. 2. 2025 election politics: With tariffs polling well in Midwestern swing states, neither major U.S. party is eager to appear “soft on China,” limiting the odds of a full rollback this year. 3. Supply-chain diversification: Importers are accelerating a “China + 1” strategy, shifting assembly lines to Mexico, Vietnam and India to sidestep future tariff shocks. Key takeaway For manufacturers, retailers and investors tracking “China tariffs,” the latest hikes cement a high-duty landscape through at least 2026. Companies should audit their HTS codes, explore duty-drawback programs and reassess sourcing footprints to blunt costs as the U.S.-China trade rivalry deepens.