U.S. President Donald Trump is planning to impose new tariffs on China, with an additional 10% starting this Tuesday. 

Trump has already agreed to pause for a month the increase of tariffs to Mexico and Canada, under certain conditions.

New tariffs on China

On February 1, 2025, President Donald Trump signed three executive orders imposing new tariffs on products from Mexico, Canada and China. These measures seek to reduce the trade deficit and strengthen domestic production, according to the White House.

For Mexico, the order establishes a 25% tariff on all its exports to the United States. In the case of Canada, the tariff will be 25%, except for energy goods, which will face a 10% levy. Chinese exports will be subject to a 10% tariff, as part of a broader strategy to counter what Washington considers unfair trade practices.

Trade War

In 2018, as part of an investigation under Section 301 of the Trade Act of 1974, the Office of the United States Trade Representative (USTR) concluded that China engaged in forced technology transfer, cyber theft of intellectual property and trade secrets, discriminatory licensing practices, and state-backed strategic acquisitions of U.S. assets. 

In response, the U.S. imposed tariffs on an estimated $370 billion in Chinese imports. Beijing countered with levies on $110 billion in U.S. goods.

The “Phase One” trade agreement, signed in 2020, left many of USTR’s concerns unresolved. That same year, President Donald Trump invoked Section 232 of the Trade Expansion Act of 1962 to slap tariffs of 25% on Chinese steel and 10% on Chinese aluminum, citing national security risks from state subsidies. To date, most of these tariffs remain in place.

Congress has evaluated the impact of these tariffs on China’s economy and trade practices. In May 2024, USTR concluded its Section 301 tariff review. It maintained most existing tariffs and proposed new ones, ranging from 25% to 100%, on Chinese goods such as electric vehicles, batteries, semiconductors, medical products, port cranes, solar cells, and steel and aluminum items. 

In April, USTR opened a new Section 301 investigation to examine China’s practices in shipping and shipbuilding, sectors where Beijing has been accused of distorting the market with subsidies and artificially low prices.