Tariff Rates
Trade disagreement between US and China temporarily ceased amidst ongoing negotiations
The ongoing trade dispute between the USA and China has significantly impacted tariff rates on goods exchanged between the two nations.
- US Tariffs on Chinese Goods: As of the current situation, the average US tariffs on Chinese exports stand at 51.1%, covering 100% of all goods. Since the beginning of 2025, these tariffs have more than doubled, increasing by 30.4 percentage points.[1]
- Chinese Tariffs on US Goods: China's average tariffs on US exports are at 32.6%, also covering 100% of all goods. These tariffs have risen by 11.4 percentage points since the start of 2025.[1]
Ongoing Trade Issues
The trade war between the USA and China has escalated throughout 2025, with the US increasing tariffs on imports from China through several actions. These included a series of increases in February, March, April, and May, with some sectoral carveouts.[1][2]
One area of contention that extends beyond tariffs involves export controls for semiconductors and AI chips. While specific discussions about these topics are not detailed in the recent tariffs or executive orders, the sector is often central in broader trade tensions due to its strategic importance. The US has been actively engaged in restricting Chinese access to advanced semiconductor technology and AI-related components, which is part of a broader strategic competition between the two nations.
Recent Developments and Discussions
Recent executive orders have modified reciprocal tariff rates, reflecting ongoing discussions and retaliations with China. For instance, Executive Order 14257 and subsequent orders have adjusted duties on Chinese imports in response to Chinese retaliations.[5]
The recent modifications to tariff rates and ongoing discussions suggest that trade relations remain tense, with both countries adjusting policies in response to each other's actions. However, specific negotiations or agreements related to semiconductors or AI chips are not clearly outlined in the available information.
Impact on Trade and Economy
The tariffs have led to significant economic impacts, including higher prices for consumers and losses in household income. The Yale Budget Lab estimates that the tariffs result in an average per household income loss of $2,400 in 2025.[3][4]
The tariffs disproportionately affect certain sectors, such as clothing and textiles, leading to substantial price increases for shoes and apparel.[3][4]
In summary, while specific discussions about semiconductors and AI chips are not explicitly detailed in the context of recent tariffs, the ongoing trade tensions and strategic competition between the US and China continue to shape the broader landscape of trade relations, including critical technology sectors.
Further Developments
- China has shown openness to progress and is ready to achieve substantial progress with Washington.[6]
- The Chinese Ministry of Commerce confirmed the new deadline shortly after Trump's decree.[7]
- Delegations from the two sides met in Stockholm for new talks in late July, but without result.[8]
- A commentary in the state-run "People's Daily" advocates for a constructive dialogue between the two countries.[9]
- Washington accuses China of deliberately withholding certain raw materials.[10]
- US President Donald Trump signed a decree for this postponement.[11]
- On Monday, Trump confirmed that the US government takes a 15% share of sales of AI chips from American companies Nvidia and AMD to China.[12]
- China responds with retaliatory tariffs of up to 125 percent and imposes export controls on strategically important raw materials.[13]
- China refrains from unilateral concessions and instead consistently pursues corresponding countermeasures.[14]
- Both sides left open whether the suspension would be extended again after the two days of trade talks in July.[15]
- Both sides agreed in Geneva on a 90-day suspension of the new tariffs in May.[16]
- All other elements of the agreement remain unchanged, as stated in Trump's decree.[17]
- The tariffs in the trade between the USA and China, which were originally scheduled to increase, are currently suspended until November 10 at 00:01 (Washington time).[18]
- Unlike other countries, China immediately retaliated with countermeasures when tariffs were imposed by the USA.[19]
- Trump initially demanded 20% from Nvidia CEO Jensen Huang "for the country."[20]
- The US intends to continue talks with China to address imbalances in trade.[21]
- China continues to advocate for a constructive dialogue with the USA.[22]
In light of the ongoing trade tensions, it would be interesting to explore the potential impact of these disputes on the sports industry, given the high value of sports equipment imports from China. For instance, the US imports a significant portion of sports equipment such as tennis rackets, basketballs, and soccer balls from China, which could be affected by these tariff rates.
Moreover, it's worth noting that the increased tariffs on Chinese goods have led to higher costs for various consumer goods, and the sports equipment sector could potentially face similar price increases. Therefore, it's crucial to monitor how these trade altercations may influence the affordability and accessibility of sports equipment for individuals and organizations.
