US-China trade war heats up as Trump hits Chinese goods with 145% tariff

US China trade war

US President Donald Trump has ramped up the trade war with China, with tariffs on Chinese imports now soaring to 145%, a White House official confirmed to CNBC, as also reported by Bloomberg.

President Trump’s latest executive order raised tariffs from 84% to 125%, adding to a separate 20% levy linked to China’s alleged role in fentanyl trafficking. The move signals a deepening rift in the ongoing U.S.-China trade standoff reports CNBC.

This sharp escalation in duties on the world’s second-largest economy comes amid a tit-for-tat trade war that has rattled global financial markets and introduced mounting uncertainty for businesses.

The administration’s tariff rollout has been marred by confusion, with varying rates applied to different countries. On Wednesday, Trump delayed broader hikes on other U.S. trading partners—providing some relief to global markets—while doubling down on China with the highest tariff rates yet.

Earlier, US President Donald Trump announced a 90-day pause on his sweeping “reciprocal tariff” plan, offering brief relief to rattled markets. But the move came with a twist — tariffs on Chinese goods were raised from 104% to 125%, signaling a sharp escalation in the ongoing trade showdown with Beijing.