Source: Peterson Institute for International Economics.
In 2000, the United States granted China most-favored-nation status, implying that tariffs imposed by the United States on Chinese goods would be comparable to those it imposes on the nation with the most favorable tariffs (excluding those accorded to nations part of free trade agreements such as NAFTA/USMCA). This resulted in average tariffs on Chinese goods in the range of 3%, giving a strong impetus for trade and the outsourcing of many manufacturing activities in China. Over time, trade between the United States and China became increasingly contentious, as the United States was perceived as providing a massive subsidy to Chinese firms that were dumping low-cost goods into the American market. The United States accused China of unfair trade practices, including forcing the formation of joint ventures with Chinese firms, cyber hacking, and technological espionage.
In 2018, the United States undertook a massive revision of its trade policy with China, which led to a ‘trade war’. The initial increases in tariffs were reciprocated by China in a series of phases that, by 2020, stabilized at around 19.3% for Chinese exports and 21.2% for American exports. During the same period, as the United States slightly increased the average tariffs imposed on its trade partners, China reduced theirs, changing the competitiveness of industrial sectors. For instance, in 2018, China increased tariffs on U.S. cars to 25% and reduced tariffs on third-country cars, such as those from Japan, Germany, and South Korea, to 15%. This underscores a new phase reminiscent of the period prior to the 1980s economic reforms, when tariffs were high.
In 2025, a new wave of tarrifs were applied under the rationale of reciprocity and correcting trade imbalances. Although higher tariffs were applied to most countries, including closely aligned partners such as the European Union, the tariffs were most substantial and impactful for China. Between 2018, when the trade war began, and late 2025, tariffs were 15 times higher.