US-China Trade Deal: Tariff Shifts Spark 11.2% Cut by China, 9.2% Hike by US

Quick Summary

• On January 1, 2025, tariffs on U.S.-china trade stood at 20.8%.
• During President Trump’s first term, tariffs were slightly lower: 19.3% against Chinese goods adn Chinese tariffs were higher at 21.2%.
• As of now:

– U.S. tariffs on most China goods are at 30% (a 9.2% increase from earlier levels).
– China’s tariff on American goods has decreased to 10%, marking an 11.2% cut compared to previous rates.

• These changes are part of a 90-day negotiation period between the two nations.

!Trade Tariff Chart
!US-China Tariff Comparison

Indian Opinion Analysis

The adjustments in U.S.-China tariffs reflect ongoing bilateral negotiations to recalibrate trade balances between two of the world’s largest economies-critical developments that may indirectly influence India’s position in global trade dynamics.

For India:

1. A reduction in China’s import tariffs can create opportunities for countries exporting intermediate products or raw materials via the U.S., potentially altering supply chain configurations.
2. Conversely, an increase in U.S.-imposed taxes could make Chinese exports less competitive, encouraging buyers-including India-to explore alternate markets.

the moves signal strategic recalibrations by both nations to manage internal economic pressures and external dependencies amidst their trade war-a situation India must monitor closely for broader implications regarding supply chains and geopolitical partnerships.

Read More