245% China tariff causes market confusion

Published 16/04/2025, 14:24
© Reuters

Investing.com -- The markets were hit with more tariff confusion on Wednesday after the White House posted a fact sheet overnight showing that China now faces a tariff of up to 245% on imports of certain goods to the U.S.

The document reads, "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions."

The 245% figure is higher than the 145% figure markets have been quoting and pricing in.

The White House quickly pointed out the error in people’s assumptions, saying the 245% figure is not new and that any mention that it is a new tariff is “misleading”.

The extra 100% tariff on some goods was already in place, the White House confirmed. So, while it is true that some goods from China will see a 245% tariff, it is not a new development.

The White House said the figure breaks down like this:

  • 125% reciprocal tariff
  • 20% tariff to address fentanyl crisis
  • Section 301 tariffs on specific goods, between 7.5% and 100%

While the market can breathe a sigh of relief that this is not a new tariff, the reaction shows how baffling the latest tariffs on China are. Even veteran market watchers are left with their heads spinning.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.