US President Donald Trump has dramatically escalated the US-China trade war, raising tariffs on most Chinese goods to 125% following Beijing’s announcement of retaliatory tariffs of 84% on US imports.

The new measures are part of a broader shift in US trade policy outlined in an executive order issued on 9th April. China is the only country to face this steep penalty, as the US moves to counter what it calls unfair trade practices and excess industrial capacity undermining American manufacturing.

In contrast, more than 75 countries that have shown willingness to align with US trade goals will face a blanket 10% tariff on imports to the US for the next 90 days. This includes key trading partners such as the EU, India, Japan, South Korea, Vietnam, and the UK.

The new tariff structure is outlined in updated headings of the Harmonized Tariff Schedule. The US government says the action is necessary to deal with a “national emergency” caused by long-standing trade deficits and foreign policies that suppress US industry.

The tariffs will apply to all goods entering the US from 10th April, 2025. For low-value Chinese imports, the de minimis tariff rate has also been raised to 120%, with new flat-rate postal charges climbing to $200 from June.

For China, tariffs have jumped from 84% to 125%. EU, India, Japan, South Korea, and others face a flat 10% tariff that applies for 90 days.

The US Trade Representative’s office confirmed that countries seeking “trade reciprocity” will face lower tariffs, while China’s response has triggered maximum penalties. The administration insists the move is aimed at restoring balance and protecting national security.