US–China Tariffs: 145%

The 145% tariff on Chinese goods is the product of three overlapping tariff actions stacked on top of each other. The original Section 301 tariffs — imposed during Trump's first term (2018-2019) and maintained by the Biden administration — added 25% on most Chinese goods. The new Trump administration added a 34% "reciprocal" tariff on China in April 2026 as part of a global tariff announcement. When China retaliated with its own 34% tariff on US goods, Trump imposed an additional 50% penalty — bringing the total to 145%.

At 145%, the tariff effectively functions as an import prohibition for most goods. Normal commercial trade cannot sustain a 145% duty — a Chinese-made product that costs $100 to import now generates $145 in tariff revenue at the border, making it commercially unviable for most goods. The result is a near-complete severing of normal trade flows, forcing importers to scramble for alternative suppliers in Vietnam, Bangladesh, Mexico, India and elsewhere.

The supply chain restructuring is real but slow. Shifting production from Chinese factories — where supply chains, labor, infrastructure and quality control are established — to alternative locations takes years, not months. In the interim, US importers face a choice: pay the tariff and raise prices, find insufficient alternative supply, or reduce product availability. All three are happening simultaneously.

Consumer Electronics: Smartphones, laptops and tablets have received temporary partial exemptions on semiconductors and final assembly. However, the exemptions are narrower than reported — most accessories, peripherals and mid-range consumer electronics not covered by the exemptions have seen 10-15% price increases. Apple has moved some iPhone assembly to India; other manufacturers have fewer options.

Furniture and Home Goods: The highest retail price impact. China manufactures roughly 60% of US furniture imports, and alternative production capacity in Vietnam, Malaysia and Mexico is limited. Furniture prices are up an estimated 15-25% at retail. IKEA, Wayfair and similar retailers have all announced price increases explicitly citing tariffs.

Clothing and Footwear: China's share of US clothing imports has been declining since the original Section 301 tariffs, giving manufacturers more time to shift sourcing. But for many lower-price-point items — basic apparel, children's clothing, athletic footwear — Chinese manufacturing remains dominant. Estimated retail price increases of 10-20% on affected categories.

Appliances: Washing machines, refrigerators, dishwashers and microwaves. Many major brands have US assembly operations (Samsung, LG, Whirlpool) but rely on Chinese components. Price increases of 10-15% estimated for most appliance categories.