US slaps up to 245% tariffs on Chinese imports amid trade tensions

China's retaliatory actions have resulted in up to a 245 per cent tariff on imports to the United States, according to a fact sheet released by the White House. Prior to the latest revision, a 145 per cent tariff was being levied on Chinese exports to the United States.

Also Read: US-China tariff war: Beijing calls upon Trump admin to ‘completely cancel’ reciprocal tariffs, says ‘Correct mistakes’

US President Donald Trump has imposed reciprocal tariffs on dozens of countries with which the country has a trade deficit. Later, President Trump decided to pause the tariffs for 90 days after many countries initiated talks with the US administration for a trade deal.

White House says..

"More than 75 countries have already reached out to discuss new trade deals," the White House fact sheet said.

“As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated,” the fact sheet added.

For the time being, a baseline tariff of 10 per cent would be applicable on US imports.

President Trump imposed a 10 per cent tariff on all countries and individualised reciprocal higher tariffs on nations with which the US has the largest trade deficits to level the playing field and protect America's national security.

President Trump unveiled the “Fair and Reciprocal Plan” on trade to restore fairness in US trade relationships and counter non-reciprocal trade agreements.

Also Read: US-China tariff war: Beijing calls upon Trump admin to ‘completely cancel’ reciprocal tariffs, says ‘Correct mistakes’

Trump's push for reciprocal tariffs has caused widespread declines in financial markets across the globe, with sharp plunges seen in Asia and Europe. The US has not been immune to the sell-off, as investors express concern that escalating global trade tensions could fuel inflation and slow economic growth, ANI reported.

Since beginning his second term, Trump has doubled down on his tariff reciprocity policy, vowing to match tariffs imposed by other countries—including India—as part of his agenda to ensure fair and balanced trade.

What did Moody's Ratings say?

Meanwhile, Moody's Ratings on Wednesday said US tariffs will weaken credit conditions and raise defaults risks especially for low-rated and speculative grade corporates.

Also Read: ‘The sky won’t fall’: China shrugs off Donald Trump’s tariffs as exports surge

It said that an unpredictable US trade policy will lead to a deterioration in global credit conditions and macroeconomic impact will slow growth with a growing possibility of recession, PTI reported.

“Non-financial corporate sectors are most at risk from tariffs. Low-rated, speculative-grade companies will be affected by their reliance on debt markets. Risks for most banks and sovereigns are indirect through economic weakness,” Moody's Ratings said in a report on US tariffs.

Also Read: China halts Boeing jet deliveries in retaliation against 145% US tariffs

On China, Moody's said the export sector and overall economy face severe challenges from the escalating trade tensions with the US and a slowing global economy, PTI reported.

“Even if the current escalation eases, US-China relations will remain contentious. This will weigh on business and consumer sentiment, posing a significant setback to the Chinese government's ongoing efforts to boost consumption and encourage the private sector,” it said.

(With inputs from agencies)