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U.S. Hits China With Up to 245% Tariff Amid Escalating Trade War : Washington and Beijing Lock Horns Over Tariffs and Rare Earths:
The U.S.-China trade war is heating up again after the Biden administration announced tariffs of up to 245% on Chinese goods. The White House says this is a direct response to China’s retaliatory trade actions and continued dominance over the supply of rare earth minerals—materials critical to U.S. national security and key industries.
Why the U.S. Is Targeting Rare Earths and Other Critical Minerals
The tariff announcement follows a presidential order to investigate national security risks tied to America’s reliance on imported minerals like cobalt, lithium, and nickel—many of which are processed in China. These elements are essential for making electric vehicle batteries, military systems, and clean energy tech.
The U.S. believes this dependency puts it at risk of long-term supply chain shocks, making it vulnerable during international conflicts or political tensions. Currently, China controls over 90% of the global rare earth processing market.
A Sharp Hike in Tariffs to Counter China’s Policies
Until recently, the U.S. imposed a 145% tax on some Chinese goods. That has now jumped to as much as 245% in response to what the White House called China’s “unfair trade practices” and aggressive countermeasures. President Trump also added a 20% tariff on Chinese goods tied to fentanyl production, alongside a 125% duty related to broader trade concerns.
China Pushes Back, Warns of Global Impact
Beijing criticized the U.S. for what it called “blackmail” and warned the new tariffs will harm both economies. While China's economy grew 5.4% in Q1 2025, Chinese officials said global economic conditions are becoming more “complex and severe.”
China responded by suspending imports of key U.S. agricultural goods, restricting trade with 27 American firms, and filing a complaint with the World Trade Organization (WTO). The WTO has warned that this ongoing trade war could sharply reduce global trade growth in 2025.
Trump’s Stand: ‘Ball Is in China’s Court’
Former President Donald Trump, who is leading the charge on tariff policy, has made it clear that the U.S. will not back down unless China makes the first move. He insists that reciprocal tariffs are necessary to level the playing field and rebuild America’s manufacturing strength.
Global Ramifications and Diplomatic Outreach
In response to U.S. pressure, China is strengthening its global alliances. It has reached out to India and the European Union, urging them to stand against what it calls U.S. “hegemonism.” Chinese officials are calling for more cooperation to defend international trade fairness.
