- EURASIAREVIEW.COM - A la une - 17/Jul 00:23

US-China Tariff Actions Since 2018 – Analysis

By Karen M. Sutter Since 2018, the U.S. government has imposed a series of tariffs on imports from the People's Republic of China (PRC, or China) with the stated intention of addressing U.S. concerns about PRC trade practices and foreign policies. Since January 2025, the Trump Administration's trade policy and tariff actions have maintained a focus on China among other countries. Some actions explicitly target China; others involve sectors that affect China. The PRC has responded to U.S. tariffs with its own tariffs and market restrictions. Given the trade imbalance (China exports to the United States more than four times what it imports), China has fewer goods on which to raise tariffs. China has focused its tariffs on top U.S. exports and canceled orders, implemented export controls on some production inputs, and imposed market restrictions on some U.S. firms. Both sides have exempted some products from tariffs. Members of Congress may consider whether to support, modify, or oppose the Administration's approach to tariffs; whether to sustain, expand, or pull back trade authorities Congress delegated to the President; and whether to require approval by Congress for trade deals that result in tariff changes. Escalating Tariff Rates By mid-April 2025, U.S. and PRC average tariff rates on the other country's goods were about 164% and 146%, respectively (not accounting for tariff exemptions). Average tariff rates fell to 49% (U.S.) and 31% (PRC) in mid-May 2025 when both sides agreed to reduce "reciprocal tariffs" to 10% for 90 days during tariff negotiations. Most U.S. tariff actions on China are cumulative (Table 1). U.S. tariffs: In 2017, the average U.S. tariff rate on PRC goods was about 2.7%. The rate rose to about 19% by 2023 with tariffs imposed under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §2411 and §1862 as amended). In 2025, the rate rose to about 73% in early April after U.S. tariffs on China increased by 20% and 34%. The rate then rose to about 164% in mid-April in response to China's counter tariffs (with some exemptions for top imports). PRC tariffs: In 2017, China's average tariff rate on U.S. goods was about 8%. The rate rose to about 21% by 2023 and to about 55% on April 2, 2025 and 146% in mid-April as China responded with counter tariffs.  Table 1. U.S.-China Two-Way Average Tariffs (%) 20172023March 2025April 2, 2025April 15, 2025May 14,2025U.S.2.719397316449PRC821215514631Source: CRS with data from multiple sources. Notes: Approximate values; does not account for tariff exemptions. Scope of Trade In 2024, China was the fourth-largest U.S. goods trading partner (total trade was $582.5 billion), the fourth-largest U.S. export market ($143.5 billion), and the third-largest source of U.S. imports ($438.9 billion). In 2024, the U.S. trade deficit with China was $295.4 billion. China is a top U.S. export market for aircraft, agriculture, semiconductor chips/equipment, gas turbines, and medical devices, and a top source of U.S. consumer goods and production inputs. U.S. Tariff Actions and PRC Responses  Section 301 (2018, 2024, 2025) Authority: Section 301 of the Trade Act of 1974 (19 U.S.C. §2411). Addresses unfair trade barriers. Industrial Policies: In 2018, the Office of the U.S. Trade Representative (USTR) found that the PRC engaged in forced technology transfer, cyber-enabled theft of U.S. intellectual property and trade secrets, discriminatory and nonmarket licensing practices, and state-funded strategic acquisitions of U.S. assets. USTR imposed tariffs at rates from 7.5% to 25% on about $370 billion worth of U.S. imports from China. China countered with tariffs on $110 billion worth of U.S. trade. Most tariffs remain in effect. In 2020, the United States and the PRC signed what both sides referred to as a Phase One trade deal. It addressed some but did not resolve many of the issues USTR had raised. The deal also sought to address the U.S. trade deficit with China with a purchasing deal. China agreed to purchase during 2020 and 2021 at least $200 billion of goods above a 2017 baseline amount of U.S. agriculture (+$32 billion), energy (+$52.4 billion), manufactured goods (+$77.7 billion), and services (+$37.9 billion). As of 2021, China fell short of its commitments by 60%, according to U.S. Census Bureau data. At his confirmation hearing in January 2025, Treasury Secretary Scott Bessent said he would push to enforce the PRC's purchase commitments. In May 2024, USTR extended most 2018 tariffs and raised tariffs by an additional 25% to 100% on some goods (e.g., electric vehicles/batteries, medical products, ship-to-shore cranes, semiconductors, solar cells, steel, and aluminum). Semiconductors: In December 2024, USTR initiated an investigation on PRC policies in mature-node chips and their effects on critical industries, and silicon carbide substrates/wafers used in chip production. Shipping/Shipbuilding: In 2025, USTR determined PRC practices to be "actionable" and proposed port equipment tariffs and fees for using PRC-built ships. Section 201: Solar (2018) Authority: Section 201 of the Trade Act of 1974 (19 U.S.C. §2251). Protect U.S. industry against import surges. In 2018, the United States imposed tariff-rate quotas on imports of crystalline solar photovoltaic cells and modules (including from China) to counter import surges and subsidies. Imports above the first 5 gigawatts of cells each year are subject to a 14% tariff until February 2026. Section 232 (2018, 2025) Authority: Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862, as amended). National security effects of U.S. imports. Investigations precede decisionson tariffs. Steel and Aluminum: In 2018, then-President Trump imposed tariffs on most steel (25%) and aluminum (10%) imports, including from China, to address PRC trade practices and excess capacity. China retaliated by raising tariffs on aluminum waste/scrap (49%) and on pork, fruits, and nuts (20%). In March 2025, President Trump raised aluminum tariffs to 25%, expanded the scope of products, and ended country exemptions. In June 2025, he raised steel and aluminum tariffs to 50%. China is the top U.S. source of steel items and the 2nd-largest source of aluminum. Automobiles and Parts: In March 2025, President Trump announced 25% tariffs on imports of cars, light trucks, and parts, with some offsets for parts used for U.S. production of finished vehicles. China is the 3rd largest U.S. supplier. Copper: In July 2025...