Trump Slaps 145% Tariffs On China As Trade War Deepens

The tariffs imposed by President Donald Trump on Chinese goods have now risen to at least 145 percent, far exceeding the thresholds that many economists cautioned could seriously impair trade between the US and China.

The administration has imposed an additional 125 percent tariff to address the US trade deficit with China and to penalize Beijing for retaliating against previous U.S. tariffs, according to a White House memo issued Thursday. This rise comes after a 20 percent tax was imposed earlier this year in response to China's alleged involvement in the trafficking of fentanyl.

These high tariffs on the second-biggest economy in the world have intensified a trade war that is still causing financial markets around the world to tremble. As investors responded to fresh trade tensions, the S&P 500 Index dropped roughly 3.5 percent on Thursday, reversing gains from the previous day's rally.

Decisions have changed as Trump's tariff policy has been implemented. Even as he stepped up his trade offensive against China, he postponed higher tariffs on dozens of nations on Wednesday, just hours after they went into effect.

In addition to a 90-day window for negotiating specific trade agreements, other trading partners will now be subject to a blanket import tax of 10%. Higher duties will take effect on July 9 if no agreements are reached.

Small Chinese packages that were previously exempt from tariffs are also the focus of the new order. The previous tax rate of 90 percent will now be increased to 120 percent of the value of items up to $800.