FX.co ★ Market on edge as Trump floats record tariff levels on Chinese imports

The United States appears ready to dramatically escalate its trade war with China. President Donald Trump is reportedly preparing to raise tariffs on Chinese goods to a staggering 245%, a move that has stunned analysts and investors alike.

According to market experts, China’s resistance to Trump’s protectionist campaign could trigger yet another escalation in the trade conflict. Many observers now fear a jump in tariff levels from the current 145% to 245%, a figure mentioned in a recent White House statement concerning a new executive order. The order calls for a review of how mineral imports impact US national security.

Until now, Washington has not signaled any plans for such a drastic hike. If the figure proves accurate, it will represent an unprecedented leap. Previously, the administration increased tariffs by 34%, 50%, and 41% in separate rounds, but never anything approaching 100 percentage points at once.

China, however, remains defiant. Beijing argues that any further increase in tariffs must have limits, noting that the existing 125% Chinese tariff on US goods is already high enough to effectively block normal market access.

The White House statement mentioning the 245% rate also included a threat to impose new tariffs on certain raw materials, including rare earth minerals and uranium. President Trump is reportedly pushing to boost domestic production of these resources and reduce US dependence on imports.