President Trump’s tariff on Chinese goods is now confirmed to be 145%, higher than the 125% rate previously mentioned, according to CNBC. The full number was revealed when the White House released the text of Trump’s new executive order on Thursday. The earlier confusion came from the fact that Trump had already added two separate 10% tariffs earlier this year—one in February for fentanyl-related issues and another in March over illegal immigration for a total of 20%. These stayed in place, and the new order adds a 125% tariff on top, bringing the total to 145%.
While the 125% number was the one Trump and other officials talked about publicly, the order showed that the earlier penalties were never removed. Some Chinese goods could even face higher tariffs in the coming weeks due to extra duties placed on specific sectors during Trump’s first term that were expanded under President Biden. The order also includes carveouts that slightly reduce tariffs on a few categories, but most of those goods already fall under separate tariff rules that Trump had introduced earlier.
This update came just a day after Trump surprised markets by pausing new tariffs for 90 days on over 75 countries—except China—to ease fears on Wall Street. Stocks soared on the news, with the S&P 500 (SPY) jumping more than 9.5% on Wednesday in its biggest rally since 2008. But markets dipped again on Thursday as attention shifted back to the rising tension with China. Trump defended the higher rate by saying China had shown a lack of respect, while Treasury Secretary Scott Bessent called China the “biggest source” of U.S. trade problems and confirmed the 145% tariff rate was now official.
Is SPY a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) based on 412 Buys, 84 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $616.20 per share implies 18.4% upside potential.
