If you’ve been trying to keep track of the trade mess between Washington and Beijing lately, you probably feel like you need a law degree and a crystal ball. It’s a lot. Basically, 2024 was a year of "holding the line" until it suddenly wasn't. While most people were looking at the US hiking taxes on Chinese EVs, there was a whole other side to the coin: what China was actually charging American companies to get their stuff across the border.
Honestly, it’s a bit of a cat-and-mouse game.
For most of 2024, China’s average tariff on US goods sat right around 21%. That sounds high—because it is—especially when you realize that before the trade war kicked off years ago, that number was closer to 8%. But the real story isn't just one big number; it's how China used those tariffs as a surgical tool.
The Reality of China’s Tariff on US Goods in 2024
You might think China just slaps a flat fee on everything with a "Made in USA" sticker, but that's not how they play it. They have this tiered system. There’s the "Most-Favored-Nation" (MFN) rate, which is what they charge most countries. Then, there’s the retaliatory layer. That’s the "extra" tax added specifically for US products in response to American Section 301 tariffs.
By mid-2024, about 58% of US exports to China were being hit with these extra retaliatory duties.
Think about that. Over half of what we sent over there—soybeans, cars, chemicals—had a "spite tax" attached to it. According to data from the Peterson Institute for International Economics (PIIE), the weighted average was stuck at that 21% mark for much of the year, while the US average on Chinese goods was hovering around 19.3% before the September spikes.
Why the Midwest felt it the most
If you live in a farming state, you already know this story. China didn't pick its 2024 targets by throwing darts at a map. They went after the heartland.
Agriculture has always been the favorite target. Why? Because it’s politically sensitive. In 2024, US soybeans, pork, and cotton continued to face significant hurdles. Even when China "waived" some tariffs for specific buyers to keep their own food prices stable, the threat of the tax stayed on the books. It’s like a "check engine" light that never quite goes out.
The September Shift and Retaliation
Things got spicy in the fall. In September 2024, the Biden administration finalized massive hikes on Chinese strategic sectors—we're talking 100% on electric vehicles and 25% on lithium-ion batteries.
Naturally, China didn't just sit there.
Their response in late 2024 wasn't always a direct "tit-for-tat" on the same products. Instead, they leaned into export controls on critical minerals and increased scrutiny on US tech firms. For instance, they launched an anti-monopoly probe into Nvidia in December. But in terms of actual import taxes, they kept their retaliatory tranches active on:
- Energy exports: Liquefied natural gas (LNG) and coal.
- Industrial machinery: High-end equipment and medical devices.
- Transportation: Traditional gas-powered cars and trucks (which still faced hefty markups).
It’s worth noting that the "average" tariff is a bit of a trick. If you’re exporting medical equipment, you might only pay a small fee. If you're sending over a Ford Mustang? You’re looking at a total bill that could top 40% once you stack the standard duty and the trade war penalty together.
What Most People Get Wrong About 2024 Trade
A huge misconception is that these tariffs are static. They aren't.
China actually lowered its tariffs for the rest of the world while keeping them high for the US. By 2024, China's average tariff for everyone else dropped to about 6.5%. This was a deliberate move. They wanted to show the world they were "open for business" while specifically freezing out American competitors. It’s a classic "anyone but you" strategy.
Business owners I talk to are often surprised to find out that China uses an exclusion process too. Just like the USTR in Washington, Beijing has a mechanism where Chinese companies can apply for a "pardon" from the retaliatory tax if they can prove they can't get the product anywhere else. This is why you still saw US semiconductors flowing into China despite the rhetoric—their tech giants basically begged the government for a hall pass because they needed the chips to function.
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Looking Ahead: The 2025 Escalation
If you think 2024 was rough, the data for 2025 shows a complete explosion in these numbers. With the change in US administration in early 2025, we saw the "Geneva and Korea meetings" trying to cool things down, but not before average Chinese tariffs on US goods peaked at a staggering 147.6% in mid-April 2025 during a brief, intense escalation.
Compare that to the 21% we saw in 2024. It’s night and day.
Actionable Insights for Businesses
If you're dealing with Chinese imports or exports, you can't just look at the 2024 averages anymore. You need to be proactive.
- Check the HTS Codes: Don't assume a general category covers your product. China’s Ministry of Commerce (MOFCOM) updates specific Harmonized System codes constantly. A small tweak in how your product is classified can move you from a 5% bracket to a 25% bracket overnight.
- Audit Your Supply Chain: Many companies in late 2024 started "near-shoring" or moving assembly to Vietnam or Mexico to dodge the "Made in USA" label that triggers these Chinese retaliatory taxes.
- Watch the Exclusions: Keep a close eye on MOFCOM’s extension announcements. In late 2024 and early 2025, they extended several sets of exclusions for American products that were deemed "necessary" for the Chinese economy. If your product is on that list, you can save a fortune.
The trade landscape is shifting from "globalization" to "fragmentation." In 2024, the tariffs were a wall; now, they’re becoming the foundation of a whole new way of doing business. Keep your data updated and your supply chains flexible.
Next Steps:
To stay ahead of these shifts, you should immediately verify your product's specific HTS code against the latest MOFCOM retaliatory list. Additionally, consider consulting with a customs broker to see if your goods qualify for any of the active "strategic necessity" exclusions that China maintains to protect its own industrial base.