AsianFin -- U.S. Commerce Secretary Howard Lutnick on Wednesday suggested the government will not change tariffs rates against China after President Donald Trump revealed the total tariff levels that have been set following recent Sino-U.S. trade talks.
Credit：Xinhua News Agency
U.S. tariffs on Chinese imports will not change from their current levels, Lutnick said in a CNBC interview. Asked if the current U.S. tariffs on China are not going to shift again, Lutnick responded: “You can definitely say that.”
Lutnick, one of the U.S. negotiators during the trade talks from Monday to Tuesday in London, said the takeaway from this week’s negotiations was that “they set up the Geneva truce.” China’s slowing-rolling rare earth exports drew U.S. retaliation including a crackdown on visas for Chinese students at U.S. universities, according to Lutnick. But the phone between Trump and Chinese President Xi Jinping last week “changed everything,” said the Secretary. He said Beijing will “approve all applications for magnets from United States companies right away.”
Earlier Wednesday, Trump in a social media post announced that a trade deal with China "is done, subject to final approval", and under the deal, China will supply rare-earth minerals and magnets “up front”, in return, U.S. will “provide to China what was agreed to, including Chinese students using our colleges and universities.” Trump didn’t provide details of terms and just described the relationship between two countries as “excellent.”
China will face a total of 55% tariffs, and impose 10% levies on U.S. products, according to Trump. “We are getting a total of 55% of tariffs, China is getting 10,” Trump posted on his social media platform Truth Social, without explaining further.
In another post, Trump said he and Xi will “work closely together to open up China to American Trade”, touting “a great win” for both sides.
The 55% tariff total appears at first glance to be a hike from the 30% rate agreed in the truce struck through Geneva talks last month when both sides slashed triple-digit rates. But a White House official told NBC News that the 55% figure isn’t new, as it reflects the 30% tariffs Trump added this year in addition to pre-existing duties totaling 25%.
The agreement with China allows the U.S. to charge a 55% tariff on imported Chinese goods, including a 10% baseline "reciprocal" tariff, a 20% tariff for fentanyl trafficking and a 25% tariff reflecting pre-existing tariffs, Reuters cited a White House official following Trump’s posts.China will charge a 10% tariff on U.S. imports, the official said.
U.S. Treasury Secretary Scott Bessent, another representative participated in negotiations in London, remained cautious when he testifies before the House Ways and Means Committee on Wednesday. Asked if he thinks China is a reliable trading partner, Bessent says, “I think we will see.” Bessent also said he told the Chinese delegation that they didn’t make good on their 2020 trade deal to buy more agricultural goods, and he expects that they will.
China and the United States have agreed in principle the framework for implementing consensus between the two heads of state during their phone talks on June 5, as well as those reached at Geneva talks, China’s state news agency Xinhua cited Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce.
Li described the trade talks over the past two days as professional, rational, in-depth and candid exchanges, Xinhua reported on Tuesday, adding that Li made the remarks when briefing the press following the first meeting of the China-U.S. economic and trade consultation mechanism held in London. Li told reporters Chinese and U.S. negotiating teams would take the framework on trade back to their leaders, according to Reuters.
