NEW DELHI: President Donald Trump's administration has announced a sweeping new tariff of up to 245% on Chinese imports, sharply escalating the trade conflict between the United States and China. The decision, detailed in a fact sheet released late Tuesday by the White House, comes in response to Beijing’s recent export restrictions and retaliatory tariffs.

“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the White House said, emphasizing the move as part of Trump’s ongoing “America First Trade Policy.”

The administration accused China of deliberately restricting vital high-tech materials, including gallium, germanium, and antimony - elements critical for military, aerospace, and semiconductor industries. More recently, China suspended exports of six heavy rare earth metals and rare earth magnets, tightening the grip on components essential to global supply chains.

“A few months ago, China banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications,” the statement said. “Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.”

US-China trade war

In a tit-for-tat escalation, China raised its tariffs on US goods to 125% last Friday. That move came shortly after President Trump increased tariffs on Chinese imports to 145%, while pausing additional tariffs on goods from other countries for 90 days.

Despite the broad reach of the new tariffs, the administration noted that other countries are currently exempt due to ongoing trade negotiations. “More than 75 countries have already reached out to discuss new trade deals,” the White House said. “As a result, the individualized higher tariffs are currently paused amid these discussions, except for China, which retaliated.”