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The Trump administration gave the tech industry and consumers a collective heart attack this morning with a statement that suggested the US would raise tariffs on China to 245%.
The White House published an official fact sheet that said, "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions."
(Credit: Whitehouse.gov)A 245% tariff rate would be a major increase from the 125% levy that Trump began imposing on Chinese goods last week (plus earlier 20% tariffs). Although the president has exempted computers, phones, and some PC components from the 125% tariff, other Chinese-made products such as video game consoles, computer fans, and power supplies are not exempt.
The news prompted a stock market dip on Wednesday morning. But it turns out the White House wasn’t announcing a new tariff on China. The Trump administration has since clarified that the "up to 245%" figure refers to the maximum rate certain Chinese imports can face under existing tariffs—not a newly imposed duty.
“This includes a 125% reciprocal tariff, a 20% tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5% and 100%,” the updated fact sheet said.
Indeed, the cumulative 245% tariff rate seems to only apply to certain Chinese-made items, such as needles and syringes, according to The New York Times. But given Trump’s escalating trade war against China, it’s no surprise that many people thought the 245% tariff threat was real.
In the meantime, some PC makers fear it’ll only be a matter of time before Trump adds tariffs to currently exempted items such as Chinese-made graphics cards, laptops, and phones. That’s because Trump and his Commerce Secretary have warned they plan on tariffing Chinese-made electronics through a separate category of semiconductor-focused duties in the coming weeks.
“I highly doubt this will be the last of the changes,” says Jon Bach, president of custom PC maker Puget Systems.