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The New 100% Tariff Between the U.S. and China: What It Means for Yiwu Exports

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What’s Happening: The 100% U.S. Tariff on Chinese Goods

In early October 2025, the U.S. government announced plans to impose an additional 100% tariff on imports from China starting November 1, 2025.
This means that many Chinese products entering the U.S. will face double taxation—their existing tariff rate plus an extra 100% on top.

The proposed measure covers a wide range of goods, from electronics and rare earth materials to daily consumer products. The move is part of what analysts call a “full-scale trade pressure strategy” aimed at reshaping supply chains and pushing some production out of China (Reuters, 2025).

Although the plan has been announced, some trade experts note that not all goods may be affected at once, as implementation details are still under discussion (Politico, 2025).

China’s Countermeasures: Strong Words and Strategic Moves

China responded quickly to the U.S. announcement with firm warnings and strategic actions across several areas:

  1. Official Statements and Warnings
    The Chinese Ministry of Commerce declared that if the U.S. enforces such high tariffs, China will “take necessary countermeasures.” (The Guardian, 2025)
  2. Rare Earth Export Controls
    China announced new export licensing rules for rare earth materials and permanent magnets—critical components in electronics, EV motors, and defense technologies. These materials are essential for U.S. manufacturers, so restrictions could raise global costs (Financial Times, 2025).
  3. Port and Shipping Charges
    China is reportedly considering higher port fees for American vessels docking in Chinese ports, increasing U.S. logistics costs (Reuters, 2025).
  4. Targeted Tariffs on U.S. Products
    China has already imposed retaliatory tariffs on American agricultural goods like corn, soybeans, and poultry in previous rounds, signaling a readiness to expand such actions (Trade Compliance Resource Hub, 2025).
  5. Diplomatic Flexibility
    Despite firm rhetoric, China has left space for negotiations, suggesting a pragmatic stance to avoid escalating the conflict beyond control.

How This Could Affect Yiwu’s Export Businesses

Yiwu, known as “the world’s small commodities capital,” exports millions of low-cost consumer goods such as toys, stationery, tools, and home decorations.

During previous trade tensions, Yiwu traders proved resilient. A Reuters report in early 2025 noted that many Yiwu business owners “had already anticipated U.S. tariff risks” and adjusted prices or inventory in advance (Reuters, 2025).

Still, some product categories could face stronger impacts:

Product TypeWhy It May Be AffectedExample
Motors & Magnetic ProductsContain rare earth elements now under stricter export rulesSmall electric fans, DC motors
Electronics & ComponentsSensitive tech categories under U.S. controlSmart home devices, circuit modules
Toys & DecorationsYiwu’s main export items; may face higher costs if classified under taxed categoriesHoliday ornaments, plush toys
Textiles & AccessoriesRising raw material or dye costs due to export controlsBags, scarves, belts

In short, Yiwu exporters who deal with metal-based or electrical components could face more challenges, while low-cost, manual, or craft-based goods might still move steadily.

Can You Avoid the New Tariff by Ordering Before November 1?

Many importers are asking the same question — Can we still place orders before November 1 to avoid the 100% tariff?
The answer is: Yes, possibly — but it depends on timing.

Here’s what matters:

  • If your order is confirmed, shipped, and cleared through customs before November 1, 2025, it will likely follow the current lower tariff rate.
  • If goods are shipped or declared after November 1, they may be taxed under the new rules.
  • Shipping delays or customs backlogs could push some pre-orders past the deadline.

In simple terms: placing orders early gives you a chance to avoid or reduce the impact of new tariffs, especially for bulk or long-distance shipments.

Why Now Is the Right Time to Order

For businesses sourcing from China — especially from Yiwu — October 2025 is the key window.
Suppliers are still offering stable prices, raw material costs haven’t surged yet, and customs clearance is smoother before the tariff date.

It’s a smart move to finalize your order now, while:

  • Prices are still based on old cost structures
  • No new taxes have kicked in
  • Production lines are not overloaded by last-minute orders

Once the U.S. tariff officially starts, the same order could cost 30–80% more after shipping, duties, and currency changes.

So if your company imports from Yiwu or China in general, placing your order before November 1 is a wise step.

Conclusion

The trade situation between the U.S. and China remains tense. The 100% tariff plan could reshape global supply chains and raise costs for many products, from electronics to everyday goods.

China is responding strategically — using rare earths, export control policies, and tariff countermeasures. Yiwu, as a key export hub, will feel some short-term pressure but is expected to adapt quickly as traders adjust prices and logistics.

For now, ordering before November 1 remains the best way to stay ahead of new tariffs and maintain stable costs.

FAQ

1. Which Chinese products will face the new 100% tariff?
Mostly electronics, rare-earth-related goods, industrial parts, and possibly certain consumer products depending on customs classifications.

2. Will all Chinese exports be affected immediately?
Not necessarily. The U.S. may phase in the policy, and some categories could be exempt temporarily.

3. What is China doing in response?
China has issued new rare earth export controls and warned of possible counter-tariffs on American goods.

4. Will Yiwu’s small commodity market be hit hard?
Some categories may see higher costs, but Yiwu’s traders are known for flexibility — many have already prepared alternative pricing or routes.

5. Can I still place an order before November 1 to avoid extra taxes?
Yes. Orders placed and cleared before November 1 will likely follow the old, lower tariff rate. It’s best to confirm early to avoid customs or shipping delays.

References (APA 7th Edition)

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