As part of the London deal, China will supply the U.S. with rare earth resources and magnets, while Chinese students will be allowed to access colleges and universities in the United States.
U.S. Commerce Secretary Howard Lutnick on Wednesday said the United States’ tariffs on China will not change again, even though the two countries have yet to strike a trade deal.
When asked if China tariffs will remain at the current levels in an interview with CNBC, Lutnick remarked, “You can definitely say that.”
This comes as Lutnick, Treasury Secretary Scott Bessent, and other Trump administration officials concluded two-day trade talks with their Chinese counterparts.
China will supply the U.S. with rare earth resources and magnets as part of the London deal.
“They are going to approve all applications for magnets from United States companies right away,” Lutnick said.
Chinese students will be allowed to access colleges and universities in the United States, according to a post by President Donald Trump on his social media platform, Truth Social.
The President has not yet revealed if China had other demands, but reports suggested export controls on semiconductor chips were a bone of contention for the Xi Jinping administration.
Trump, however, revealed that U.S. tariffs on China will remain at 55% – this is after a blanket 30% levy on all imports from the country, and a 25% charge on specific goods.
Following Trump’s post, Bessent remarked in a House hearing that he believed China would honor their end of the bargain, but stopped short of divulging exactly what the framework entails.
“If China will course-correct by upholding its end of the initial trade agreement we outlined in Geneva last month, then a big, beautiful rebalancing of the world’s two largest economies is possible,” he said.
Meanwhile, U.S. equity markets edged up due to positive news on the trade deal front as well as favorable inflation print.
The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.12% at the time of writing.
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