This year brought the wave of trade conflicts to a new level between the US and China; with President Donald Trump returning to office, his administration has imposed heavy tariffs on a broad scope of Chinese goods. These tariffs are not mere statistics on paper; they affect businesses, consumers, and the global economy in real terms.
This blog will explain which products are affected, what both countries trade with each other, and how governments and companies are reacting. Let’s do a complete breakdown of everything we know about the products that have a tariff.
Also, if you want to know how China retaliates to the Trump-imposed tariffs, read U.S.-China Trade War Takes Off—But Boeing Jets Don’t on Route shopping!
What Triggered the Tariffs?
New tariffs were imposed on Chinese goods by President Trump with rates of up to 145%. His point was to protect American business and reduce the trade deficit. Nevertheless, the assertive approach bore harsh criticism from both China and American companies.
In retaliation, China imposed tariffs on U.S. exports with a tax rate of 125%. The conflict has created uncertainty and raised costs for businesses in both countries. The International Monetary Fund (IMF) has anointed this a “major negative shock” for the global economy.
Now, let’s take a look at what each country buys from the other and what the respective governments and involved parties have to say about it. You will get all your answers here!
What Does the US Buy from China?
The United States imports a large number of products from China. In 2024, the value of these imports was $439 billion. Some of the key imports include:
- Consumer electronics (smartphones, laptops, etc.)
- Machinery and mechanical parts
- Toys and sports equipment
- Furniture
- Clothing and textiles
- Chemicals and plastics
These are everyday products used in homes and businesses across America. The new tariffs have increased prices for many of these items.
What Does China Buy from US?
While the U.S. imports more from China than it exports, the U.S. still sends a lot of products to China. In 2024, the total value of U.S. exports to China was $143.5 billion. The top exports include:
- Mineral fuels and oil
- Agricultural products (like soybeans and corn)
- Aircraft and airplane parts
- Machinery
- Medical instruments
Soybeans are especially important. China is one of the biggest customers of U.S. soybeans, which are used for food and animal feed.
What Items Have Been Excluded from Tariffs?
Not all products are affected by the tariffs. The Trump administration excluded some items to avoid hurting certain U.S. industries. For example:
- Certain medical supplies
- Selective electronics parts
- Some agricultural goods that are not easily sourced elsewhere
These exclusions help reduce the damage to American businesses that rely on Chinese components.
How Are Businesses Responding?
U.S. businesses have been vocal about the negative effects of the tariffs. Chang Chang, a Sichuan restaurant in Washington, D.C., reported trouble sourcing ingredients like Sichuan peppercorns due to tariffs as high as 145%. Owner Peter Chang said, “We’re trying to maintain authenticity, but it’s becoming harder and more expensive.”
In addition to that, retailers and manufacturers also say prices are going up. Common items like takeout boxes and printer paper now cost more.
Meanwhile, stock markets have reacted to news of possible tariff reductions. The S&P 500 rose by 2.5% after President Trump hinted at easing some tariffs.
What Are Governments Saying?
China has warned other countries not to “appease” the U.S. in trade deals. The Chinese Foreign Ministry accused the U.S. of violating World Trade Organization rules. They said they will “fight to the end” if needed.
The U.S. Treasury Secretary Scott Bessent admitted that the high tariffs were not sustainable long-term. He supported a plan to reduce them, calling the previous tariffs “too blunt a tool.”
What Do the Experts Say?
The IMF revised its global growth forecast down to 2.8% for 2025, down from 3.3% in January. It blamed the trade war for creating uncertainty, reducing investment, and tightening financial conditions worldwide.
Economists say that while tariffs can protect some industries, they often hurt more than they help. Due to that, consumers pay higher prices, and businesses struggle with unpredictable costs.
What You Need to Know?
Let’s summarize it by breaking down the major trade facts:
- The U.S. buys $439 billion worth of goods from China.
- China buys $143.5 billion in U.S. goods.
- Top U.S. imports: electronics, machinery, furniture, clothes.
- Top U.S. exports: oil, soybeans, aircraft, medical devices.
- Some items (like medical gear) are excluded from tariffs.
- Businesses and consumers are feeling the pinch.
- Both governments are standing firm but hinting at a settlement.
To Sum Up
The trade war between the United States and China is far from over. While the U.S. government is interested in protecting its own industries, the tariffs have seemingly impacted the whole world. People are feeling the effects of the changes from Washington restaurants to Beijing factories. With the possibility of lowering tariffs being talked out, some relief may be in sight. But as for now, trade between the two largest economies remains a battleground.
Frequently Asked Questions (FAQs)
What are Trump’s tariffs on China?
Trump escalated the trade battle with China by imposing a significantly high tariff of 145% on imports. He did this to promote businesses in the U.S. by making people invest in US-made goods instead of China. However, China confronted this situation by increasing its taxes on U.S. imports, making this trade war even more aggressive.
What does China get from trading with the US?
Well, China benefits significantly from trading with the U.S. The United States is one of China’s largest export markets. Last year, the US bought around $439 billion worth of goods from China, resulting in a substantial trade surplus with China. These products that are exported to the US include smartphones, computers, clothing, toys, and even furniture. China also benefits by importing mineral fuels, machinery, oilseeds and grains, electrical equipment, and pharmaceutical products to enhance industrial development and fulfill consumer demand.
Did the US put tariffs on China?
Yes, Trump has imposed tariffs on Chinese imports of 145% to promote businesses in the US. It was an important trade policy aimed at addressing the trade deficit, or what the Treasury government sees as unfair trade practices.
What are the effects of tariffs?
After the US imposed tariffs on trade, consumers are sure to face high prices. The tariff will also increase production costs, leading to a corresponding rise in product prices. Moreover, the effect oc the tariff will help businesses make more profit.
What are the products that China & US buy from each other?
Products that China & the US buy from each other include:
– China’s Top Exports To The US:
- Smartphones
- Laptops and Tablets
- Television Sets
- Toys and Games
- Apparel and Footwear
- Furniture
- Household Appliances
- Electrical Machinery and Equipment
– United States Top Exports To China
- Soybeans
- Semiconductors and Integrated Circuits
- Aircraft and Aerospace Components
- Automobiles
- Medical Instruments and Devices
- Crude Oil and Refined Petroleum Products
- Chemical Products
- Industrial Machinery
Will China retaliate against countries that deal with the US?
During this ongoing tension between China and the US, China has clearly stated that it will hit back at other countries that reach trade deals with the US– deals that might harm China’s interests. They further added that Beijing will “resolute countermeasures in a reciprocal manner”.