U.S. Announces New Section 301 Tariffs at 10%-12.5%, Raising China Tariff Rate from 23.2% to 24.4%

According to China Galaxy Securities, the U.S. trade representative announced new tariffs on July 23 under Section 301, effective July 24, replacing expiring temporary import duties with three-tier tariff rates of 10% to 12.5% on 60 major trading partners, including China. The tariffs replace the 10% temporary tariff that expired on July 24.

China Galaxy Securities estimates that the 12.5% tariff on Chinese goods will raise the U.S.'s weighted average tariff rate on mainland China from approximately 23.2% to 24.4%, an increase of about 1.2 percentage points. The brokerage notes this outcome is slightly better than market expectations of more severe measures, though risks remain from pending tariff investigations and potential duty stacking.