U.S. Slaps 245% Tariff on Chinese Imports, Escalating Trade War and Hitting Aviation Sector

Washington, D.C. – The United States has imposed a staggering 245% tariff on Chinese imports, a move that has intensified tensions between the world’s two largest economies. The White House announced the measure late Tuesday, citing China’s retaliatory trade actions as the catalyst. The tariff hike is already sending shockwaves through industries, with the aviation sector facing immediate fallout as China has ordered its airlines to halt new Boeing aircraft purchases.

The new tariff rate, detailed in a White House fact sheet, marks a dramatic increase from the previous 145% levy on Chinese goods. The administration framed the decision as part of President Donald Trump’s “America First Trade Policy,” accusing China of restricting access to critical high-tech materials like gallium, germanium, and antimony, which are vital for aerospace, military, and semiconductor industries. “China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the White House stated, emphasizing the need to protect American industries and secure supply chains.

The tariff is not a blanket rate but reflects the maximum potential duty on certain goods, combining a 125% reciprocal tariff, a 20% fentanyl-related tariff, and existing Section 301 tariffs of up to 100% on items like electric vehicles and syringes. While the exact list of affected products remains undisclosed, analysts warn that the increase could impact a wide range of consumer and industrial goods, driving up costs and disrupting global supply chains.

China’s response has been swift and severe, particularly in aviation. Beijing has directed its airlines to cease accepting deliveries of Boeing jets and suspend purchases of U.S. made aircraft parts and equipment, according to Bloomberg News. This move effectively blocks Boeing from China, the world’s second-largest aviation market, dealing a significant blow to the American aerospace giant. The decision follows China’s earlier retaliatory tariffs of 125% on U.S. goods, which Beijing implemented after the U.S. raised its tariffs to 145%. Chinese Foreign Ministry spokesperson Lin Jian defended the countermeasures, stating, “The tariff war was initiated by the US. China has taken necessary countermeasures to safeguard its legitimate rights and interests”.

The aviation sector is particularly vulnerable due to its reliance on global supply chains. Boeing, already grappling with production challenges, faces heightened costs and reduced market access. “Boeing is likely to absorb these additional material costs, leading to higher production expenses and reduced profit margins per aircraft,” said Wouter Dewulf, an air transport economist at the University of Antwerp. Competitors like Airbus, which assembles planes in Tianjin, China, and has U.S. facilities, may be partially shielded from the tariff’s impact.

The broader economic implications are stark. The Consumer Technology Association estimates that high tariffs could increase smartphone prices by up to 26% and laptops by 46%. Goldman Sachs recently cut its China GDP forecast to 4%, citing the drag from U.S. trade tensions. Global markets have reacted with volatility, with U.S. Treasury yields rising sharply amid fears that China may offload its U.S. bond holdings.

Despite the escalating conflict, both sides have left the door open for dialogue. China has called for negotiations based on “equality, respect, and mutual benefit,” while White House Press Secretary Karoline Leavitt insisted that “the ball is in China’s court” for a potential trade deal. However, with tit-for-tat measures intensifying and no immediate talks scheduled, analysts see little hope for a near-term resolution. “The longer this drags, the harder it becomes for either side to deescalate without losing face,” warned Craig Singleton of the Foundation for Defense of Democracies.

17GEN4.com