China Is Raising Tariffs on the United States and Lowering Them for Everybody Else

Chad P. Bown (PIIE), Euijin Jung (PIIE) and Eva (Yiwen) Zhang (PIIE)

June 24, 2019

China Is Raising Tariffs on the United  States and Lowering Them for Everybody Else

Since the start of President Trump's trade war, China has retaliated against US tariffs by raising tariffs on US goods. Less well known is that China has also been lowering rates for everyone else, putting US companies at an even greater disadvantage when trying to sell to China's 1.4 billion consumers. Companies in the United States and elsewhere used to be on a level playing field, facing an average Chinese tariff of 8.0 percent. Now, there is a 14 percentage point difference between the average Chinese tariff US exporters face versus all other exporters. Some US goods are facing even wider differences in duties, like soybeans, farm and fish products, and certain manufacturing products.

This PIIE Chart is adapted from Chad P. Bown, Euijin Jung, Eva (Yiwen) Zhang's blog, "Trump Has Gotten China to Lower Its Tariffs. Just Toward Everyone Else."