Trump Era Tariffs Surge to 16 Percent Targeting China Graphite and Tech Sectors with Massive New Trade Restrictions
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Trump Era Tariffs Surge to 16 Percent Targeting China Graphite and Tech Sectors with Massive New Trade Restrictions
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According to Fortune, the average effective tariff rate on U.S. imports has soared to around 16% this year, up sharply from about 3% when President Trump first took office. That increase is not uniform but part of what’s now referred to as a ‘tariff mosaic’—a policy that’s highly sector- and country-specific. China, as the top U.S. trading partner, continues to bear the brunt of Washington’s most aggressive trade measures.
The pivotal move this week came when the U.S. Department of Commerce announced sweeping action against China’s graphite industry. As reported by GlobeNewswire, Commerce is imposing a massive 93.5% antidumping tariff on graphite products imported from China. That single measure brings the effective tariff rate on those Chinese graphite items to a staggering 160%. This step aims to address what American officials call persistent dumping and unfair pricing practices by Chinese exporters, and it’s expected to sharply cut Chinese graphite entering American supply chains.
The sharp rise in tariffs isn’t limited to graphite. Trump administration officials have expanded trade restrictions through a series of new investigations targeting strategic Chinese-linked sectors. The administration this month announced new Section 232 probes into imports of polysilicon and unmanned aircraft systems, sectors regarded as vital to national and industrial security. The Department of Commerce also signaled that tariffs on semiconductors and pharmaceuticals—much of which originate from Chinese-owned factories—may take effect as soon as next month, escalating the trade standoff.
All these moves come as new global reciprocal tariffs and U.S. duties on copper imports are about to kick in on August 1. Fitch Ratings projects that the overall U.S. effective tariff rate will jump again to nearly 19.4% once these new levies are enforced. These tariff hikes have already driven up shipping costs, and freight rates from China are climbing. Maritime analysts like Sal Mercogliano point to falling container numbers out of China and a shift toward other Asia exporters, as importers scramble to avoid the brunt of new U.S. duties.
Morgan Stanley Wealth Management warns that the combined effect of a weaker dollar and high tariffs could mean persistent inflation and thinner corporate profits, unless the costs can be passed to U.S. consumers. With legal challenges still looming and exemptions continually shifting, the landscape remains volatile for anyone involved in trade between the U.S. and China.
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