top of page
Dark Grey Aha Advisory logo on transparent background
Search

October 2025 U.S. Tariff Update: China’s Effective Rates Exceed 50%, 100% Additional Duties Coming Soon

Introduction


As of October 2025, the U.S. tariff landscape has shifted again. While many headlines still cite a “10% reciprocal tariff,” the reality for importers tells a very different story. According to the latest U.S. Customs and Border Protection (CBP) factsheet, tariffs on imports from China already exceed 50% when all active measures are combined — and new 100% additional tariffs are expected to take effect before the end of the year.


U.S. Customs and Border Protection infographic titled ‘New Tariff Requirements for 2025,’ summarizing IEEPA and Section 232 tariffs. Shows updated rates including 25% on autos and auto parts, 50% on copper, steel, and aluminum, 40% on Brazil, 25% on Russian oil via India, 35% on Canada, 25% on Mexico, 20% on China and Hong Kong plus 10% reciprocal, and 10%–41% reciprocal tariffs for 95 countries as of August 2025.
Source: U.S. CBP, New Tariffs Requirements (Aug 2025)

1. What’s in Effect Right Now (October 2025)


CBP’s Tariff Factsheet (August 2025) outlines the current structure clearly:

IEEPA: 20% tariff on all goods. Additional IEEPA reciprocal rate of 10%.

In plain terms, that means Chinese imports are subject to a 20% base tariff under the International Emergency Economic Powers Act (IEEPA) and an additional 10% reciprocal duty, totaling 30% before any other layers of trade measures apply.


For most Chinese industrial and consumer goods, the 25% Section 301 tariffs from the earlier trade actions remain active. When combined, these rates push total effective duties on Chinese goods to roughly 55–57%, depending on product category.


Example: Auto Parts from China


  • Section 301 tariff: 25%

  • IEEPA tariff: 20%

  • IEEPA reciprocal tariff: 10%

  • Typical MFN base duty: ~2.5%Total effective rate: ~57.5%


This explains why many importers are seeing landed costs rise far beyond the so-called “10% tariff” that circulates in media discussions.


2. Upcoming Tariff Increases: The 100% Additional Duties


The White House has confirmed plans for an additional 100% tariff on specific categories of Chinese imports, including electric vehicles, batteries, solar components, and select consumer electronics. These duties are expected to be implemented on November 1st 2025, potentially pushing total tariffs on affected goods well beyond 120%.


This new round mirrors the trade escalation strategy seen during 2018–2020 but with faster implementation and broader enforcement. The measures are being issued through the same legal framework (IEEPA) and coordinated with CBP enforcement under the Automated Commercial Environment (ACE) and Cargo Systems Messaging Service (CSMS).


3. Why the 10% Figure Keeps Circulating


The confusion comes from the reciprocal tariff policy announced in April 2025. The 10% rate was the baseline applied to all trading partners. However, CBP and the White House later issued country-specific adjustments — raising China’s rate to 20% plus the reciprocal 10%, and applying similar increases to other countries deemed to have “imbalanced” trade practices.


So while 10% is technically correct for neutral trading partners, it no longer applies to China, Russia, India, or others covered under the IEEPA provisions. In practice, importers from these regions face rates far higher than the baseline.


4. How Businesses Should Respond


If your business imports from China or other high-tariff regions, the next three months are critical. Steps to take now:


  • Recalculate landed costs. Many import models still assume a 10–25% tariff load, which is outdated.

  • Review HS codes and classifications. Even small misclassifications can change applicable tariffs.

  • Check supplier origin documentation. Transshipment risks are under scrutiny, and CBP has authority to add a 40% penalty tariff for evasive routing.

  • Prepare for 100% duties. If your products fall within EV, battery, or solar categories, plan for supply diversification or margin adjustments.


5. The Big Picture: From 10% Headlines to 100% Reality


Tariff policy in 2025 is no longer a single number. What began as a 10% reciprocal duty has evolved into a layered system that combines legacy Section 301 tariffs, IEEPA surcharges, and targeted 100% additions.


For businesses, this isn’t just a political story. It’s a cost story. And as the numbers show, the effective duty burden on Chinese imports today is already above 50% — with even higher rates just ahead.


Source References:

  • U.S. Customs and Border Protection, Tariff Factsheet (August 2025)

  • White House Fact Sheet: Additional Tariffs on Select Chinese Imports (September 2025)

  • Federal Register Notices: Implementation of IEEPA Reciprocal Tariffs, April–August 2025

  • USTR Section 301 Tariff Lists (2024–2025)

Comments

bottom of page