Commerce Secretary Howard Lutnick stated Wednesday that U.S. tariffs on Chinese goods will stay at their current levels despite ongoing trade negotiations. When asked on CNBC’s “Money Movers” if tariffs would shift again, Lutnick responded firmly, “You can definitely say that.”
President Donald Trump posted on Truth Social that U.S. duties on China total 55%, a figure that a White House official clarified merely combines the existing 30% blanket tariffs and 25% tariffs on select products—both already in place. Trump’s post came shortly after high-level trade talks between Washington and Beijing wrapped up in London.
Progress and Remaining Conditions
Trump described the deal as “done,” but added it remains “subject to final approval” between him and Chinese President Xi Jinping. China’s tariffs on U.S. goods remain at 10%, reflecting a temporary truce agreed upon last month that paused retaliatory tariffs for 90 days following negotiations in Geneva.
One key outcome highlighted by Trump is China’s commitment to supply “full magnets, and any necessary rare earths, up front.” Lutnick noted that prior to talks, China had been “slow-rolling” rare earth exports, which led to U.S. countermeasures such as tightening visa access for Chinese students. A recent call between Trump and Xi reportedly changed the dynamic, with China pledging to expedite approvals for U.S. companies importing magnets.
Lingering Uncertainties Remain
Despite Lutnick’s optimism, questions remain about the terms of China’s promises. Reports indicate China will issue only temporary six-month licenses for rare earth and magnet exports, allowing for periodic review and creating ongoing uncertainty for U.S. importers.
The White House has yet to comment on Lutnick’s remarks or provide additional details regarding the specifics of the London agreement.
Author’s Opinion
While maintaining current tariff levels avoids immediate disruption, the temporary nature of China’s export licenses for critical rare earth materials underscores a persistent fragility in U.S.-China trade relations. True resolution will require more durable commitments and transparency. Otherwise, American industries dependent on these materials face ongoing risks, and political tensions are likely to flare again.
Featured image credit: The Ticker
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