What Tariffs Does China Have Explained (Simply)

What Tariffs Does China Have Explained (Simply)

If you’re trying to move goods into or out of the world’s second-largest economy right now, honestly, you’ve picked a wild time to do it. The trade map is shifting under our feet. One day there’s a headline about "reciprocal" taxes, and the next, Beijing is slashing duties on high-tech robot parts. It’s a lot to keep track of.

So, what tariffs does china have as we move through 2026?

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The short answer: a massive, highly surgical list that is designed to protect local factories while making sure China can still get the raw materials it needs to dominate the green energy race. It’s not just one "China tax." It’s a layered system of Most-Favored-Nation (MFN) rates, provisional cuts for "strategic" items, and a lingering web of retaliatory duties left over from the intense trade spat with the U.S. that peaked back in 2025.

The 2026 Shift: Why 935 Items Just Got Cheaper

Every December, the State Council’s Customs Tariff Commission drops a new "adjustment plan." For 2026, they basically decided to play favorites. Starting January 1st, 2026, China applied provisional import tariff rates—which are lower than the standard MFN rates—to exactly 935 items.

Why? Because China is desperate for "technological self-reliance."

If you’re exporting computer-controlled hydraulic cushions or specific heteromorphic composite contact strips (the kind used in advanced electronics), your path into the Chinese market just got significantly cheaper. They want these parts to build their own tech. They also cut duties on "black mass"—the crushed remains of recycled lithium-ion batteries. Since China wants to lead the world in EVs, they are making it as easy as possible to import the raw materials needed to make those batteries.

They even lowered tariffs on medical gear like artificial blood vessels and certain diagnostic kits. It’s not out of the goodness of their hearts; it’s a strategic play to lower healthcare costs for an aging population.

What Happened to the US-China Trade War?

You probably remember the chaos of 2025. Tariffs were flying back and forth like a high-stakes tennis match. At one point, we were looking at aggregate rates as high as 145%. It was brutal.

But as of early 2026, things have calmed down significantly. Following the "Trump-Xi deal" in late 2025, China suspended a massive chunk of its retaliatory tariffs.

  • Agricultural Goods: Most of the heavy taxes on U.S. soybeans, pork, wheat, and corn are currently suspended.
  • The 30% Baseline: While many of the "extra" retaliatory layers are gone, the effective rate on many U.S. imports still hovers around 30% when you combine the original 2018-era tariffs with the remaining base duties.
  • The 2026 Quotas: Under recent agreements, China has committed to buying at least 25 million metric tons of U.S. soybeans annually through 2028.

It's a "truce," not a peace treaty. The 10% reciprocal tariff on many U.S. goods is still hanging around, and there’s a constant threat of new 25% "secondary" tariffs for any country doing business with Iran—a move that has Beijing’s diplomats very much on edge.

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Export Tariffs: China’s Secret Weapon

Most people focus on what it costs to get stuff into China. But what's really interesting is what it costs to get stuff out.

China currently maintains export tariffs on 107 commodities.

This is where they keep their grip on the global supply chain. By taxing the export of things like ferrochrome (essential for stainless steel) or certain rare earth concentrates, they keep the price high for the rest of the world while keeping domestic prices low for Chinese manufacturers.

The Rare Earth Squeeze

If you’re in the semiconductor or defense industry, this is the part that keeps you awake. In early 2026, China actually tightened its export controls on rare earths.

They aren't just taxing the raw rocks anymore. The 2026 schedule includes new subheadings for "intelligent bionic robots" and "bio-aviation kerosene." By categorizing these as "strategic," they can flip a switch and effectively block exports or hike the price overnight.

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Honestly, it’s a leverage game. If you want the permanent magnets for your EV motor, you basically have to play by their rules.

The "Free Trade" Exception

It's not all barriers and taxes. China has a "Zero-Tariff" policy for 43 of the world's least developed countries (LDCs). If you're exporting from a place like Laos or Ethiopia, you're looking at a 0% rate on almost 100% of tariff lines.

They also have 24 separate free trade agreements (FTAs) with 34 trading partners. The RCEP (Regional Comprehensive Economic Partnership) is the big one here. It’s creating a massive "material sink" where goods flow freely between China and Southeast Asia, making it harder for Western "reshoring" efforts to compete on price.

Actionable Insights for 2026

If you're dealing with Chinese trade this year, "business as usual" is a dangerous mindset. Here is what you actually need to do:

  • Audit your HS Codes: China just optimized its tariff headings again. New subheadings for things like "forest ginseng" and "bionic robots" mean your old paperwork might be wrong. If your code changed, you might be overpaying—or worse, risking a customs hold.
  • Watch the Iran Secondary Tariffs: With the U.S. threatening 25% tariffs on any country trading with Iran, you need to vet your supply chain. If your Chinese supplier has significant Iranian contracts, you might get caught in the crossfire of U.S. customs enforcement.
  • Leverage the Provisional Cuts: If you're in green tech or medical devices, check the "935 item list." You might find that the component you’ve been sourcing elsewhere is now significantly cheaper to bring in from a Chinese FTA partner or under the new lower rates.
  • Track the "Exclusion Process": The market-based tariff exclusion process for U.S. imports is currently valid until December 31, 2026. If you aren't applying for these exclusions, you're leaving money on the table.

The landscape of what tariffs does china have is basically a reflection of their 2026 industrial policy. They want your raw materials and your high-end tech, but they’ll tax your finished consumer goods to protect their own "National Champions."

Keep your eyes on the State Council circulars. In this trade environment, the rules of the game change every few months.