U.S. tariffs on China won’t change again, Lutnick says after trade talks

Trade Talks in London Yield No Tariff Changes

Following high-level trade negotiations between the United States and China in London, U.S. Commerce Secretary Howard Lutnick confirmed that American tariff levels on Chinese goods will remain unchanged. Speaking on CNBC’s “Money Movers”, Lutnick emphasized that the current tariffs are now set and will not shift moving forward.

“You can definitely say that,” Lutnick said when asked if tariff levels on Chinese imports were locked in. His statement came just hours after President Donald Trump made a declaration on his social media platform, Truth Social, saying U.S. duties on Chinese goods would total 55%.

Clarification on the 55% Tariff Statement

Despite Trump’s bold announcement, a White House official later clarified that the 55% figure was not a new tariff. Instead, it represented the cumulative effect of existing tariffs: a 30% general tariff on Chinese imports combined with a 25% levy on specific goods already subject to separate duties.

The official added that these rates have been in place for some time and were not the result of the latest round of negotiations.

A Tentative Deal Still Awaits Final Approval

Though President Trump declared that a trade deal was “done,” he acknowledged that it remains “subject to final approval” by both himself and Chinese President Xi Jinping. The agreement, if finalized, will mark a major step following months of trade tensions and retaliatory actions.

China, in return, will keep its tariffs on U.S. goods at 10%, a figure agreed upon last month as part of a 90-day truce. That agreement, first established during earlier talks in Geneva, aimed to de-escalate tensions but left significant issues unresolved.

Rare Earth Minerals Take Center Stage

A key outcome of the London talks involved rare earth materials, particularly magnets essential to technology and defense sectors. In his Truth Social post, Trump declared that “full magnets, and any necessary rare earths, will be supplied, up front, by China” as part of the emerging agreement.

Lutnick echoed this on CNBC, stating that one of the most significant breakthroughs was China’s willingness to immediately approve applications from American companies to import rare earth magnets.

He attributed this breakthrough to a personal phone conversation between Trump and Xi, calling it a “game-changer” in easing hostilities. Prior to this, Beijing had been “slow-rolling” rare earth exports, prompting Washington to retaliate — including tightening visa requirements for Chinese students in the U.S.

“Mutual Assured Annoyance” Fades with Dialogue

“We were at mutual assured annoyance,” Lutnick said, describing the tense backdrop of previous negotiations. However, he credited recent high-level communication with breaking that impasse and leading to more cooperative developments.

One such development included a pledge from China to approve all pending U.S. applications for rare earth imports. “They are going to approve all applications for magnets from United States companies right away,” he said.

Lingering Concerns About Supply Chain Stability

Despite the public optimism, concerns remain among importers and industry analysts. According to a Wall Street Journal report, China will only issue temporary six-month licenses to American companies seeking rare earth materials. This could lead to recurring uncertainty, as Beijing would have the power to revisit and potentially revoke those licenses every six months.

This short licensing window could complicate long-term planning for U.S. businesses reliant on a stable supply chain of rare earth materials—elements crucial to products ranging from electric vehicles to military hardware.

No Additional Details from the White House

As of now, the White House has not provided further details about the specifics of the London agreement. Requests for comment on Lutnick’s remarks and on any potential caveats to the rare earth supply commitments have gone unanswered.

However, Lutnick insisted that the most recent negotiations are part of a broader, stabilizing effort that started in Geneva. “They set up the Geneva truce,” he explained, referring to the temporary halt on retaliatory duties agreed upon last month.

Final Thoughts: Optimism With a Cautious Eye

While the U.S. and China appear to have reached an understanding on tariffs and rare earth supplies, the deal is still not official and carries significant uncertainty. Until the final agreement is signed and operationalized, businesses and analysts remain cautious about the long-term reliability of trade arrangements—especially those involving critical materials like rare earths.

The coming weeks will be crucial as leaders from both nations prepare for final discussions and possible ratification of the trade deal. Until then, Lutnick’s reassurances mark a temporary moment of calm in what has been a turbulent economic relationship between the world’s two largest economies.