President Donald Trump has amended an executive order to raise tariffs on Chinese goods by an additional 50%, bringing the total rate of new duties against China to a striking 104%.
The move comes in direct response to China’s decision to impose a 34% retaliatory tariff on American products. That response followed Trump’s announcement last week that the U.S. would impose reciprocal tariffs on around 90 countries with significant trade imbalances.
In his amended executive order, Trump stated the tariff hikes are necessary to safeguard the nation’s economic interests and national security. “This modification is necessary and appropriate to effectively address the threat to the national security and economy of the United States,” the order reads.
With the latest increase, Chinese imports now face a layered tariff structure: a previously enforced 20% duty, the recently announced 34% reciprocal tariff, and now a 50% retaliatory measure—adding up to 104%. These tariffs are set to go into effect at 12:01 a.m. Wednesday.
At a Republican fundraising dinner Tuesday night, Trump boasted that the U.S. is already collecting approximately $2 billion per day in revenue from tariffs.
Also Read – Disgraced CEO Keeps Role as Billion-Dollar Firm Stands by Him
In addition to raising general tariffs, the executive order significantly boosts duties on de minimus imports—low-cost goods typically under $800 that often enter the U.S. duty-free. Under Trump’s new directive, the tariff on these items will jump from 30% to 90%, effective May 2.
Postal handling fees on these low-value packages will also rise sharply—from $25 to $75 per shipment starting May 2, with a further hike to $150 set for June 1.
Last week, Trump announced plans to eliminate the de minimus exception for Chinese imports, a move aimed at closing a loophole exploited by online retailers like Temu and Shein. These companies have been using the trade rule—originally intended to allow travelers to bring back small amounts of foreign goods tax-free—to ship a high volume of cheap products into the U.S.
The administration briefly paused the exception in February but restored it to allow the Commerce Department time to formulate a collection plan.
The impact of this change could be significant. According to the Congressional Research Service, Chinese exports of low-cost goods under this provision surged from $5.3 billion in 2018 to $66 billion in 2023, driven largely by fast-fashion and consumer goods companies.
The de minimus rule, dating back to the 1930s, was originally meant to simplify customs processes for tourists—not to fuel mass-scale e-commerce. Now, with Trump’s changes, it could become a powerful tool in the administration’s broader effort to reset trade relations with China.
