U.S. Trade Secretary Lutnick confirms that existing tariffs on Chinese imports will not be scaled back following any potential trade agreement.
US Commerce Secretary Confirms Stubborn 55% Tariffs On China Post Trade Deal
Looks like you've got some bad news for any light-bulb and smartphone lovers - that 55% tariff we slapped on China's goods ain't budging, according to US Commerce Secretary Howard Lutnick. He boldly declared to CNBC that the tariff rates won't take a dip after the recent trade deal. So, get ready to pay those premiums!
The trade deal's in the bag, according to the big man himself - President Donnie Trump – just a few hours ago. Good ol' Trump stated that the uneasy truce between the States and China has been brought back from the brink thanks to a meeting with the Chinese delegation in London.
So, what's the catch? Well, the deal requires the sealing of signatures from both Trump and his counterpart, Xi Jinping, but it'll supposedly see China removing restrictions on rare earth minerals and other key components in exchange.
Lutnick also pointed out that China's agreed to check out the possibility of ramping up its business with us Yanks. He mentioned that trade agreements with foreign countries are lined up for next week. No worries about that then!
Now, lemme drop some knowledge on you – rare earth minerals are super important for the production of guy stuff like electronics, renewable energy tech, and even some military equipment. China's the world's leading mule in these minerals' production and export.
Here's the kicker – there's no specific US-China trade deal on the table that focuses on removing Chinese export restrictions on rare earth minerals. That's right, it's still a work in progress. There's been some tension between the US and China on the subject, and China didn't impose those restrictions during the trade war in 2018, but we've been trying to secure alternative sources and step up domestic production just in case.
And remember, the phase one trade deal Trump and Xi signed back in January 2020 wasn't centered around rare earth mineral restrictions. Nah, it was all about broader trade issues like intellectual property, technology transfer, agriculture, financial services, and currency.
In short, yes, we may have clawed out a trade deal with China, but that doesn't necessarily mean those tariffs on your electronics are going away anytime soon. Keep those wallets lined for those hefty prices!
The ongoing tariff on various Chinese goods, including electronics, remains steadfast, as confirmed by US Commerce Secretary Howard Lutnick, despite the recent trade deal. The trade deal, which includes China's potential removal of restrictions on rare earth minerals, is yet to explicitly focus on removing Chinese export restrictions on these minerals.
