Trump announces unprecedented 145% tariff on Chinese goods

In April 2025, the United States confirmed a substantial increase in tariffs on imports from China, raising many products to 145%. This decision from President Donald Trump was aimed at addressing various trade issues and practices that were deemed unfair by the U.S. The tariffs come at a time of heightened tensions between the two nations, with both countries employing a series of retaliatory measures. As a result, American consumers and businesses are expected to feel the brunt of these tariffs as they raise production costs and consumer prices. The technology and electronics sector is particularly vulnerable, exemplifying how heavily integrated U.S. supply chains are with Chinese manufacturing. Major companies like Apple, Intel, and Nvidia risk facing increased operational costs that could be passed down to consumers through higher retail prices. Predictions indicate that tariffs on Chinese imports could cost U.S. electronics companies upwards of $182 billion annually. Additionally, the apparel industry may experience significant constraints as it relies on over 30% of clothing and footwear sourced from China. While some retailers may find ways to mitigate the impact due to their business models, many will nevertheless confront rising costs. The auto industry, especially electric vehicles depending on crucial Chinese components, also stands to be adversely affected by the new tariffs. Experts suggest that the tariffs could take a heavy toll on China’s economy, potentially shrinking its GDP by about 1.5%, while the U.S. may see a GDP decline of approximately 1%. Businesses both in the U.S. and China are now facing uncertainty, with analysts cautioning that this economic situation could lead to slower growth and elevated prices for consumers as companies reassess their supply chains in light of escalating import costs.