(Yahoo!Finance) - President Trump's trade war for now is now clearly all about one country: China.
That came into focus over the last 24 hours as the president paused his additional "reciprocal" tariff plans — except those applying to the world's second-largest economy.
Then today, the White House confirmed the total base tariff on China is actually 145%, an amount higher than the 125% previously reported and which Trump himself had seemed to imply on social media.
The new top-line number was made clear when the text of Trump’s executive order "modifying reciprocal tariff rates" was released Thursday morning to the media.
The confusion about the exact number stemmed from separate 20% duties on China over issues of fentanyl and illegal migration that Trump had imposed in February and March.
What the text of the order outlined is that the Harmonized Tariff Schedule of the United States had been amended to raise the reciprocal tariff rate to 125% — while leaving those other 20% duties unchanged.
Those combine for a total rate of at least 145% facing Chinese imports.
CNBC was the first to notice the discrepancy, and a White House official confirmed the math to Yahoo Finance.
Meanwhile, 10% baseline duties on nearly every other country in the world that went into effect last weekend will remain in place.
A central focus from Trump on China
The clarification of the overall rate on China — after nearly a day of reports focused markets on a 125% rate — was a further underlining of the White House focus on China that has intensified in recent weeks after early trade actions from Trump often appeared more focused on neighbors like Canada and Mexico.
The world's second-largest economy is clearly top of mind now for the president as it often was in his first term.
“China: That's the big one,” Trump said Wednesday afternoon in a message that has been echoed by his team, with Treasury Secretary Scott Bessent also calling China "the biggest source of the US trade problems."
In his comments, Bessent also used the initial 125% number when he noted that “China will be raised to 125% due to their insistence on escalation.”
During his campaign, then-candidate Trump often discussed 10% blanket tariffs on the world and 60% tariffs on China. This week, the president fulfilled that former promise almost to the letter but has more than doubled his promise on China with these base duties of 145%.
The focus on China is being echoed in strategy as well, with Trump’s trade team moving an array of China’s neighbors and rivals — from South Korea to Japan to India to Vietnam — to the front of the line for White House talks in an apparent attempt to isolate the country further.
Thursday’s latest twist came after Trump stunned markets Wednesday by announcing he would authorize a 90-day pause on his reciprocal tariff plans for all countries except China, telling reporters he did so because people were getting "yippy" and "afraid."
The benchmark S&P 500 (^GSPC) roared up over 9.5% in the biggest increase since 2008 but has fallen Thursday as the focus has turned to these ever-escalating tensions with China.
It was a move that Trump said came together early Wednesday morning after he had been considering it in recent days, saying he was raising rates on China because of "the lack of respect that China has shown."
A historic week of tariff ups and downs
Meanwhile, other goods from China will have even higher rates in the weeks ahead if the action is left in place because of sector-focused actions on different areas of the Chinese economy put in place during Trump’s first term — and then maintained and augmented in the Biden years.
Those duties led to an average US tariff on China of 20.8%, according to a Peterson Institute estimate, which was in place when Trump took office early this year (and which he hasn't modified).
The reciprocal order formalized this week does have some sectoral carveouts that will lower other rates but are largely on areas that Trump has announced or promised different tariffs on.
The order released Thursday also confirmed that the new rate went into effect on Thursday and that the 90-day pause will last "until 12:01 a.m. eastern daylight time on July 9, 2025."
As for what will happen between now and then, Terry Haines of Pangaea Policy appeared in a live interview on Yahoo Finance Thursday and underlined that Trump's recent actions are partly to “get China to the table," but he was less optimistic about what to expect when (or perhaps if) those high-stakes talks commence.
"Realistically, the next 90 days looks like continued negotiations," he said, predicting "continued jawing with China, maybe without results."
By Ben Werschkul · Washington Correspondent
