President Trump imposes new tariff on Chinese goods, raising total to 20%

President Trump is raising tariffs on Chinese imports yet again, pushing the cumulative rate on goods from Beijing to 20%. The move adds a fresh layer of cost pressure to an already strained trade corridor between the world’s two largest economies.

The new levy comes on top of existing duties that had already been climbing throughout 2025, part of a broader strategy to reshape US trade relationships through aggressive tariff policy.

A rollercoaster year for trade policy

At one point earlier in the year, tariffs on Chinese goods spiked to as high as 145% during a particularly heated stretch of trade tensions. A truce reached in November 2025 helped stabilize rates closer to the 20% mark. The average weighted tariff on Chinese goods sat at approximately 23.1% as of mid-2026, with effective paid rates landing around 21.6%.

In February 2026, the Supreme Court struck down broad tariffs that had been imposed under the International Emergency Economic Powers Act (IEEPA). That ruling forced the administration to recalibrate its approach, essentially rebuilding parts of the tariff framework from scratch using different legal authorities.

The evasion problem nobody can solve

Higher tariffs create a predictable incentive: find a way around them. Chinese exporters have been rerouting shipments through countries like Canada and the European Union to dodge US duties. An estimated $19 to $26 billion in annual tariff revenue has been lost to these evasion tactics, according to an August 2026 report. This evasion dynamic also helps explain why effective paid rates (21.6%) lag behind posted rates (23.1%).

Broader tariff expansion

The administration has also imposed tariffs ranging from 10% to 12.5% on goods from 60 additional trading partners. This expansion changes the competitive calculus for importers: when tariffs hit nearly everywhere, sourcing alternatives narrow considerably. The convergence of Chinese tariff rates with those imposed on other nations eliminates the incentive to simply reroute supply chains.

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