China trade tariff strategy 2026: Low duties secure resources as US rates hit 11.2%

While the U.S. builds walls, China's tearing them down to win over the global south. As President Donald Trump's aggressive tariff hikes roil global markets, Beijing is leaning into a counter-intuitive strategy: slashing import duties to historic lows to lock in strategic resources.

The China trade tariff strategy 2026: A race to the bottom

China's average effective tariff rate—the actual duties collected relative to import value—has plummeted to an estimated 1.3% in 2025, according to the Economist Intelligence Unit (EIU). This drop comes as Beijing promised to eliminate duties on imports from most African nations, positioning itself as the 'free trade' alternative to Washington's protectionist stance.

In stark contrast, the U.S. effective tariff rate soared to 11.2% last year, marking its highest average since 1943. Data from the Tax Foundation highlights a series of executive actions by Trump that have strained alliances, including recent threats against eight European nations over the Greenland territory dispute.

Securing the industrial backbone

For China, low tariffs aren't just about diplomacy; they're about survival. By applying near-zero rates to crude oil, natural gas, and iron ore, Beijing ensures its industrial machine stays fed. "China applies low or zero tariff rates to commodities, which account for the lion's share of its imports," notes Xu Tianchen of the EIU.