Updated Oct. 11, 2025 | CreditVana News
President Donald Trump on Friday threatened a new 100% tariff on Chinese goods, escalating tensions just hours after China announced new export limits on rare earth minerals — materials critical to tech manufacturing and national security.
The proposed tariff, set to take effect November 1, would be in addition to the existing tariffs on Chinese imports. “This is over and above any tariff that they are currently paying,” Trump posted on Truth Social.
Currently, U.S. tariffs cover all Chinese goods and average 57.6%, according to the Peterson Institute for International Economics. Trump’s statement also cast doubt on a planned meeting with Chinese President Xi Jinping.
Markets responded swiftly, with U.S. stock indexes falling sharply on the news.
A Web of Tariffs: What’s Already in Motion
Trump has previously imposed aggressive tariffs on Chinese goods — including a now-paused 145% rate announced in April. The latest threat adds uncertainty to a trade relationship already under strain.
A separate batch of tariffs announced September 26 is scheduled to take effect October 1 and includes:
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100% tariff on branded pharmaceuticals, exempting companies actively building U.S. manufacturing facilities
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50% tariff on kitchen cabinets, bathroom vanities and related products
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30% tariff on upholstered furniture
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25% tariff on heavy-duty trucks
On September 29, Trump also announced a 100% tariff on all foreign films, with no specified start date, and hinted at “substantial tariffs” on imported furniture, with details to come.
Legal Challenges: Appeals Court Calls Many Tariffs Illegal
A federal appeals court ruled August 30 that many of Trump’s tariffs imposed under emergency powers were unlawful. The court found the president overstepped his authority under the International Emergency Economic Powers Act.
However, the tariffs remain in effect until mid-October, giving the White House time to appeal to the Supreme Court. Attorney General Pam Bondi confirmed that the Justice Department would move forward with the appeal.
India Now Facing 50% Tariffs
On August 27, the U.S. imposed a 50% tariff on all Indian imports, up from 25%. The hike punishes India for its continued purchases of Russian oil. India joins Brazil as one of the few countries facing such steep rates.
This development is a blow to U.S. importers that had shifted production from China to India in recent years. In 2024, U.S.-India trade totaled $212.3 billion, with Indian exports including electronics, pharmaceuticals, machinery, and gems.
Trade War Timeline: Tariffs Delayed, Reinstated, and Expanded
Trump’s latest moves are part of a broader strategy dubbed the “Liberation Day” tariffs, originally announced April 1, delayed multiple times, and reintroduced in waves throughout the summer and fall.
Here’s a look at the current tariff landscape across major U.S. trade partners:
Tariff Rates by Country
| Country/Region | Tariff Rate | Notes |
|---|---|---|
| China | 30% (threatened 100%) | Temporary truce until Nov. 10; new rate may be in addition |
| India | 50% | Includes 25% penalty for Russian oil |
| European Union | 15% | Excludes key tech/agriculture goods |
| Canada | 35% | Excludes USMCA-covered items |
| Mexico | 25% (30% delayed) | 90-day pause on higher rate |
| Japan | 15% | Avoided threatened 25% through trade deal |
| South Korea | 15% | Includes major investment pledges |
| Brazil | 50% | Includes 40% new tariff added in August |
| Other countries | 15–41% | Varies; some secured individual agreements |
Sector-Specific Tariffs in Effect
| Sector | Tariff Rate | Effective Date |
|---|---|---|
| Steel & aluminum | 50% | March 12 (expanded June 23) |
| Autos | 25% | April 3 |
| Auto parts | 25% | May 3 |
| Copper | 50% | August 1 |
| Tomatoes (Mexico) | 17% | July 14 |
| Transshipped goods | 40% | Varies |
| Electronics, semiconductors | Exempt (so far) | — |
Exemptions remain for many high-tech goods, including smartphones, computers, flat-panel TVs, semiconductors, and LED devices. Items covered under the U.S.-Mexico-Canada Agreement (USMCA) and certain energy and raw materials are also exempt.
De Minimis Exemption Ends Aug. 29
Trump has moved to eliminate the de minimis exemption, which allowed small-value shipments to enter the U.S. without tariffs. The exemption ends August 29, after already being revoked for Chinese companies in May.
How Will Consumers Be Affected?
According to Yale’s Budget Lab, the effective average U.S. tariff rate is now 18.2% — the highest since 1934.
Certain categories are expected to see price spikes:
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Leather goods: +39%
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Apparel: +37%
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Textiles: +39%
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Motor vehicles: +12.3% (projected over next two years)
While some companies are absorbing the costs, Federal Reserve Chair Jerome Powell recently warned that price increases are beginning to reach consumers, particularly on imported goods.
Ongoing Legal Battle May Disrupt Tariffs
An ongoing court battle over Trump’s use of emergency powers could disrupt the current tariff structure.
The case — argued in Federal Appeals Court on July 31 — challenges Trump’s use of the 1977 International Emergency Economic Powers Act to justify sweeping tariffs. No decision date has been set, but a Supreme Court appeal is likely.
What’s Next?
With no clear resolution in sight and more tariffs under consideration — including on pharmaceuticals, rare earths, semiconductors, and aircraft parts — consumers and businesses alike are bracing for further disruption.
Stay tuned for updates, and check our News Hub for the latest on tariffs, trade, and the global economy.
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