Introduction
This article drew widespread attention after CNN reported that China would impose 34% retaliatory tariffs on U.S. imports in response to tariffs announced by the Trump administration. Many readers, like the one who submitted this article for review, are asking a vital question: who truly bears the cost of these tariffs—the countries imposing them or everyday consumers in stores like Walmart? To help clarify the complex relationship between tariffs and their real-world consequences, we’ve conducted a detailed fact-check of the key claims made.
Historical Context
The U.S.-China trade war began escalating during Trump’s first term in office, especially starting in 2018 when the U.S. began placing tariffs on Chinese imports in response to allegations of unfair trade practices, intellectual property theft, and attempts by China to dominate global tech industries. China responded with tariffs of its own. This tit-for-tat tariff war disrupted global markets and supply chains, affecting consumers and companies worldwide. After a relative pause under the Biden administration, escalations resumed in early 2025 with Trump returning to power and introducing sweeping new tariffs targeting a broad range of Chinese products.
Claim #1: “Trump unveiled an additional 34% tariff on all Chinese goods imported into the US.”
This claim is accurate. On April 2, 2025, the Trump administration announced a new 34% tariff on all imported goods from China, citing national security concerns and the illicit flow of synthetic opioids as justification. According to statements from the U.S. Trade Representative and official executive orders, this levy is in addition to existing tariff rates, some of which had never been lifted since the first round of trade wars in 2018 and 2019. The result is that some products now carry combined tariffs upwards of 60%. Source: USTR.gov
Claim #2: “Since returning to power, Trump raised total tariffs on Chinese goods to over 54%.”
This claim is mostly true, but requires clarification. Tariff levels varied by product category. The article references a statement from economist Larry Hu suggesting the average rate is near 69%, which includes prior tariffs and the latest 34% hike. To verify, the Peterson Institute for International Economics confirms that before this 2025 escalation, average tariffs on Chinese goods were already around 19%. Adding a flat 34% across all Chinese products aligns with a blended tariff rate estimated between 50-70%, consistent with global trade data. While not every imported item carries a 69% levy, the range is accurate when averaged. Source: Peterson Institute
Claim #3: “China’s retaliatory tariffs mean they are paying too, right?”
This touches directly on the user’s question—and it’s a misconception. Although tariffs are government-imposed taxes on imports, they are paid by the importing side, not the exporting nation. So, when the U.S. levies tariffs on Chinese goods, American importers—often retailers like Walmart—pay the extra cost, which is then generally passed on to U.S. consumers through higher prices. Similarly, Chinese businesses or consumers bear the cost of tariffs China imposes on U.S. goods. Multiple economic studies, including those published by the Congressional Budget Office and the Federal Reserve Bank of New York, show clearly that American consumers end up shouldering most of the burden with higher retail prices—not China. Source: Congressional Budget Office | Source: NY Fed
Claim #4: “Markets are crashing due to tariff escalation, dropping more than 3% in key indexes.”
This claim is accurate and supported by market data. After China’s reciprocal tariff announcement, the Dow Jones fell by over 1,000 points, or nearly 2.7%, on April 4, 2025. The S&P 500 and Nasdaq both declined over 3%, reflecting market fears of a prolonged trade war and possible recession. Historical chart data provided by Nasdaq and Bloomberg confirms these numbers, showing steep single-day losses echoing movements seen during major past global shocks. Source: Bloomberg
Conclusion
The claims presented in CNN’s article about the 2025 U.S.-China tariff escalation are largely accurate, with most statements supported by verifiable data from U.S. trade agencies, economic think tanks, and global market indicators. However, the article could have more explicitly clarified one significant misconception—the idea that foreign countries “pay” tariffs. In reality, importers and end consumers in the tariff-imposing country carry the financial burden. This distinction matters immensely for understanding economic consequences. There was limited bias or framing in the article, which presented China’s viewpoint alongside U.S. actions. Overall, the facts and estimates cited align with what’s currently known and measurable.
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Link to Original Article
https://www.cnn.com/2025/04/04/business/china-us-tariffs-retaliation-hnk-intl/index.html
