US-China trade tensions flare as US raises 245% tax on Chinese goods

The move comes after China ordered its airlines to stop buying new Boeing planes, a direct blow to the US aviation industry, The Times of India reported. Earlier in April, the US raised tariffs to 145% on some Chinese goods, prompting Beijing to respond by raising tariffs on US imports to 125% and tightening export controls on key high-tech minerals.

The new tariffs are part of a comprehensive national security review of critical imports, according to the White House. The move also reflects Washington’s concern over China’s temporary halt to exports of strategic high-tech materials, including heavy rare earth metals and rare earth magnets — critical components in the manufacturing of automobiles, aerospace, semiconductors and defense equipment.

In an official statement, the White House affirmed: “China now faces tariffs of up to 245% on imports into the United States due to its recent retaliatory actions. These measures were taken for national security reasons.”

The statement also listed a series of actions by China – including a ban on the export of gallium, germanium, antimony and many strategic materials with potential military applications.

“Just this week, China suspended exports of six heavy rare earth metals and rare earth magnets, in an effort to limit global supplies,” the White House said.

The White House also reiterated the “America First” trade policy initiated by President Donald Trump on the first day of his term. This policy aims to restore economic strength and national autonomy through tough tariff measures, including imposing a 10% tariff on imports from all countries, and higher for countries with large trade deficits with the US.

“More than 75 countries have expressed interest in negotiating new trade agreements. While these discussions are ongoing, the United States has suspended higher tariffs – except with China, which has retaliated,” the White House statement added.

Although the exact tariffs on individual Chinese goods have not been announced, US officials said the figure could be as high as 245%, marking a sharp escalation in the trade war between the world’s two largest economies.

The White House has not yet confirmed whether it will continue to raise tariffs or impose additional export controls while the national security investigation continues.