The tariff roller coaster appears ready to roll again.
Late last week, China announced renewed restrictions on rare earth mineral exports. In response, President Donald Trump said he would implement new 100% tariffs on imports from China starting Nov. 1.
Both announcements come with just weeks remaining in the latest pause in the back-and-forth between the two countries.
ICYMI: Trump Extends China Tariff Deadline
In April, when the tariff war between the world’s largest trading nations was at its peak, Trump had cranked up blanket tariffs on Chinese imports to 145%, and China had retaliated with 125% duties on U.S. goods. However, an Aug. 11 executive order set the rate on Chinese imports entering the U.S. at 30% until Nov. 10.
- As of Sept. 25, reports The Guardian, average U.S. tariffs on Chinese imports had reached 58%, while Chinese tariffs were at 33%.
In the Truth Social post announcing the new rate for China, Trump said the duties would be “over and above any Tariff that they are currently paying.” Earlier that day he had also hinted at canceling a planned meeting with Chinese President Xi Jinping.
Stocks tumbled on the announcement Friday, but markets rallied Monday morning after Trump appeared to walk back some of his earlier comments on Sunday with a post that reads, in part: “Don’t worry about China, it will all be fine!”
Meanwhile, U.S. port fees on Chinese-built ships beginning Oct. 14 are expected to raise shipping costs and disrupt supply chains, despite industry pushback warning the move could do more harm than offer help to domestic shipbuilding.
ICYMI: Importers Face Added Costs As US Targets China Shipbuilding With Port Fees
The latest developments add to the ongoing uncertainty that promo leaders have been struggling with since the first tariff announcements and pauses in April.
The persistent back-and-forth has shifted business from growth to “wait and see,” which is stagnating to companies and the economy overall, says Chris Anderson, CEO of HPG, PPAI 100’s No. 4 supplier.
“We need clear communication from Washington as to what is the endgame,” he adds, “because the whipsaw effect of back-and-forth tariff announcements, and the posture toward China in particular, makes it difficult to invest in business.”
