U.S. Raises Tariffs on China Over Synthetic Opioids – China Responds
On March 3, 2025, the White House announced a major tariff hike on all goods from China and Hong Kong, raising the rate from 10% to 20%. This move is part of a broader effort to combat the flow of synthetic opioids from China. In response, China quickly announced its own tariffs—up to 15%—on key U.S. agricultural exports like soybeans, pork, corn, and wheat.
Key Points:
- The new 20% tariff applies to all Chinese and Hong Kong goods imported after March 4, 2025.
- Certain items like humanitarian donations, goods in transit before February 1, and Chapter 98 entries (with some exceptions) are excluded.
- Products in U.S. Foreign Trade Zones (FTZs) must now use “privileged foreign status” and will be taxed accordingly.
- No drawback (refund) will be available for these extra tariffs.
- The small-value import exemption (Section 321 de minimis) still applies.
China’s Retaliation:
Starting March 10, 2025, China will impose new tariffs on U.S. farm goods. Shipments already on the way will be exempt until April 12. China also added restrictions on lumber imports, blocked soybean exporters, expanded export controls, and launched a trade investigation into U.S. fiber optics.
