China now faces tariffs as high as 245% on exports to the United States, according to a White House fact sheet. This aggressive move comes in direct response to China’s retaliatory trade measures, including its latest directive ordering domestic airlines to suspend new deliveries of Boeing aircraft—a clear jab at the US aviation sector.

The White House labeled the tariff hike as part of the “America First Trade Policy”, underlining the administration’s effort to counter what it sees as China’s unfair trade practices and strategic resource hoarding.

High-Tech Materials at the Center of Dispute

At the heart of the trade clash lies China’s tightening grip on critical high-tech materials—such as gallium, germanium, and antimony—which are crucial to defense, aerospace, and semiconductor industries. Months ago, China placed a ban on exports of these materials to the US, citing national security reasons.

Adding fuel to the fire, China also halted exports of six heavy rare earth elements and rare earth magnets, further straining global supply chains for advanced manufacturing sectors.

The US administration argues that these restrictions are designed to disrupt global access to essential components, impacting automakers, semiconductor firms, and military contractors worldwide.

Aviation Industry Takes a Hit

In a retaliatory move, Beijing has instructed its carriers to cease purchasing aircraft parts and equipment from US-based suppliers, signaling a serious blow to American aerospace firms, including Boeing.

China Responds to Tariff Hike

When asked about the newly announced 245% tariff figures, Chinese Foreign Ministry spokesperson Lin Jian deflected:

“You can ask the US side for the specific tax rate figures.”

Lin reiterated China’s stance, calling the US the instigator of the trade war.

“China has taken necessary countermeasures to protect its legitimate interests. Tariffs and trade wars benefit no one. While China does not seek conflict, it is also unafraid of one.”

Tit-for-Tat Tariff Escalation

The latest blow in this ongoing economic tug-of-war came last Friday, when China raised tariffs on US goods to 125%, responding to President Trump’s earlier decision to impose 145% tariffs on Chinese imports.

While these elevated tariffs apply specifically to China, the US has temporarily held off on raising tariffs on goods from other nations for a 90-day period—during which negotiations for new trade agreements with over 75 countries are reportedly underway.

Trump’s Strategy: Isolate China Globally?

According to a report by the Wall Street Journal, sources reveal that the Trump administration is considering using these tariff negotiations as leverage—pressuring partner countries to limit China’s influence in the global trade system.

This strategy may involve restricting China’s ability to reroute goods through third-party nations or blocking Chinese companies from setting up operations abroad to dodge US tariffs.

Room for Dialogue?

Despite the rising tensions, China says it remains open to talks—on one condition:

“If the US truly wants dialogue, it must stop pressuring and threatening, and instead engage with China on a foundation of equality, respect, and mutual benefit,” said Lin Jian.