The United States bought $439bn worth of goods from China in 2024 – more than three times the $143.5bn it sold in return. That $295bn gap, known as the trade deficit, is something US President Donald Trump is determined to shrink.
In an effort to close the gap, Trump has raised tariffs on China to 145 percent. This means Chinese goods sold to the US are now taxed at 2.45 times their original price, making them much more expensive and less competitive in the US market.
China has retaliated with 125 percent levies on US goods.
The tit-for-tat escalation of tariffs between the world’s biggest trading powers has led to uncertainty on what it means for the cost and production of everyday items such as smartphones, semiconductors and clothing.
China’s Ministry of Commerce said it is willing to “fight to the end” and has accused the US of violating the rules of the World Trade Organization.
February 1
On February 1, President Trump signed an executive order imposing a 10 percent tariff on China. The order also placed 25 percent tariffs on Canadian and Mexican imports.
March 4
The president placed an additional 10 percent tariff on Chinese goods on February 27, which came into effect on March 4.
April 2
A 10 percent tariff was applied to all nations importing goods to the US as well as higher tariffs on select countries, including China that had a 34 percent tariff placed on it.
April 4
China’s Ministry of Finance announced a retaliatory 34 percent tariff on imports from the US.
April 7
President Trump threatened more levies on China’s retaliatory tariffs with an additional 50 percent tariff on Beijing, meaning that China could face 104 percent taxes on all exports.
April 9
China responded with an additional 50 percent tariff on US goods, meaning an additional 84 percent import tax on US goods coming to China.
President Trump later said he would pause reciprocal tariffs for the next 90 days, bringing tariff levels to a baseline 10 percent. However, this did not apply to China; instead, President Trump raised tariffs on exports to 125 percent.
April 10
The White House stated the 125 percent reciprocal tariff on China would be levied in addition to the 20 percent tariff already imposed, bringing the final tariff rate to 145 percent.
What items have been excluded?
On April 11, President Trump said smartphones, laptops and a host of other tech components would be spared from so-called “reciprocal tariffs”.
The US Customs and Border Protection agency listed 20 product categories, including all computers, laptops, disc drives and automatic data processing equipment. It also included semiconductor devices, equipment, memory chips and flat panel displays.
However, on Sunday, Trump threatened new tariffs on Chinese electronic goods, three days after his administration announced exemptions. On Monday, he advanced plans to introduce tariffs on semiconductors and pharmaceutical products.
What does the US sell to China?
In 2024, the US sold $143.5bn worth of goods to China.
China’s biggest purchases from the US were mineral fuels, oil seeds, machinery and aircraft. As a single product, soya beans are the largest US export to China, primarily used as pig feed.
In 2024, the US’s main exports to China included:
- Mineral fuels ($13.4bn) accounting for 10.7 percent of total exports
- Oil seeds and oleaginous fruits ($13.3bn) accounting for 10.6 percent of total exports
- Electrical machinery, equipment and parts ($11.5bn) accounting for 9.1 percent of exports
- Nuclear reactors, boilers, machinery and mechanical appliances ($10.5bn) accounting for 8.3 percent of exports
- Aircraft, spacecraft and parts ($10.2bn) accounting for 8.1 percent of total exports.
What does the US buy from China?
In 2024, the US bought $439bn worth of goods from China.
China is a major supplier of electrical equipment and electronics including chips, laptops and smartphones to the US.
In 2024, the US’s main imports from China were:
- Electrical machinery, equipment and parts ($123.8bn) accounting for 28.2 percent of total imports
- Nuclear reactors, boilers, machinery and mechanical appliances ($82bn) accounting for 18.7 percent of imports
- Toys, games and sport equipment ($30bn) accounting for 6.8 percent of imports
- Plastics ($19.3bn) accounting for 4.4 percent of total imports
- Furniture, bedding and cushions ($18.5bn) accounting for 4.2 percent of imports.
What does each US state buy the most from China?
According to the US International Trade Administration, California buys the most of any other state from China. It bought $122.8bn worth of goods in 2024.
Illinois imported the second-most amount of goods from China at $42.1bn, followed by Texas, which bought $35.9bn worth of goods.
Texas sells the most of any other state to China. In 2024, it sold $22.5bn of goods to China. California sold the second-most of any state at $15.1bn, followed by Washington at $12bn.
Explore the table below to see which states import and export the most to and from China.
What are the main items coming from China by state?
Miscellaneous manufactured commodities are the leading imports for 15 states, including Connecticut, Georgia, Idaho, Kansas, Kentucky, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Vermont, Virginia, Washington and Wyoming.
These include items like jewellery and for silverware manufacturing, sporting and athletic goods manufacturing, doll, toy, and game manufacturing, and all other miscellaneous manufacturing.
Communications equipment ranks second, being the top import for six states: Florida, Illinois, Indiana, Nevada, Pennsylvania and Tennessee.
Which US state sells the most to China?
Animal slaughtering and processing is the leading export from six states to China, including Colorado, Iowa, Kansas, Nebraska, South Dakota and Utah.
Aerospace products and parts rank second, being the top export from five states: Arizona, Connecticut, Florida, Kentucky and Ohio.
