Trump just hit China with huge new taxes on their products up to 245% after China made similar moves against US. This was announced by the White House on Tuesday night.

The White House is doing this because China recently stopped sending vital materials that US needs for cars, planes, computer chips, and military equipment. These materials include special metals that are hard to find elsewhere. 

"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 in a statement. They're calling it a national security issue. China stopped shipping six types of rare metals and special magnets that US really needs.

“Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets… to choke off supplies,” the administration said.

Tariffs align with ‘America First’ approach

President Trump's "America First" approach, which he started on day one back in office, aims to make the country’s economy stronger and less dependent on other countries. The White House says that 75+ countries have reached out to talk about better trade deals. The US has put higher taxes on hold for these countries - but not for China since they retaliated against us. 

While the White House didn't say exactly how high the new taxes on Chinese goods will be, they could go up to 245%. Moreover, it cranks up the tension between the two countries.

Last Friday, China raised its taxes on US products to 125% after Trump had earlier increased taxes on Chinese goods to 145% (while pausing new taxes on other countries).

The White House hasn't said if more tax increases or export restrictions are coming as they continue looking into these national security concerns.

 

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