On Wednesday, June 11, US Commerce Secretary Howard Lutnick stated that the United States will not adjust the tariff levels on Chinese imported products, even though a final trade agreement has not yet been reached between the US and China. In other words, the US tariff policy towards China remains stable for now, unaffected by the progress of the bilateral trade negotiations.
In an interview with CNBC’s “Money Movers” program, Lutnick answered a question about whether the US would adjust tariffs on Chinese products by saying, “I can say with certainty, no.”
Recently, US negotiating representatives, including Lutnick, held trade talks with Chinese representatives in London.
Lutnick mentioned that the focus of this week’s negotiations was to “achieve a Geneva ceasefire.”
He pointed out that Washington was displeased with Beijing for not adhering to the Geneva Agreement and for slowing down the export of rare earth minerals, which led to restrictions on Chinese students’ visas at American universities.
“We are both frustrated,” the Commerce Secretary said, but Lutnick noted that President Trump’s conversation with Chinese leader Xi Jinping last week “changed everything.”
“They (referring to China) will immediately approve all magnetic applications from US companies,” he said.
However, several US media outlets, such as The Wall Street Journal, reported that Beijing agreed to grant temporary permits valid for six months only to US companies seeking to import rare earth minerals and magnets from China.
Beijing would review the decision to issue specific permits every six months, creating uncertainty for US companies’ supply chains.
The White House did not immediately respond to CNBC’s request for comment on Lutnick’s statements or for further details on the terms of the London agreement.
President Trump posted on his social media platform “Truth Social” on Wednesday morning, announcing that the total tariff rate on Chinese goods would reach 55%. A White House official told CNBC that this figure is not new data.
The official explained that it includes the existing 30% overall tariff on Chinese goods and the 25% tariff already imposed on specific products.
On “Truth Social,” Trump mentioned that a preliminary agreement had been reached between the US and China, pending final approval from him and Chinese leader Xi Jinping.
He also revealed details of the agreement, stating, “All magnets and necessary rare earth minerals will be supplied in advance by China; similarly, we will provide China with what we agree to, including allowing Chinese students to use our colleges and universities (I had no problem with this).”
Trump seemed to imply that China may need to resume rare earth exports for the US to agree to ease export controls on critical technology.
After concluding the trade talks in London on Tuesday, Lutnick stated that “we have reached a framework agreement to implement the Geneva consensus and the contents of the two leaders’ conversation.”
He mentioned, “Our idea is that we will go back to communicate with President Trump to ensure his approval of the agreement; they (the Chinese side) will also go back to communicate with Chinese leader Xi Jinping to ensure his approval of the agreement.”
“Once the two leaders approve, we will start to implement (the agreement),” he added.
Lutnick told The Wall Street Journal on Wednesday that he expects Trump to approve the agreement as early as Wednesday or Thursday.
US Treasury Secretary Scott Bessent, who was involved in the negotiations, attended the House of Representatives’ annual budget hearing on Wednesday, where members requested details of the ongoing US-China “agreement.”
Bessent replied that he flew back to testify at 4 am, and both sides are “building” the agreement.
“Reaching a trade agreement with China will be a lengthier process,” added Bessent.
When asked if he thought China was a reliable trade partner, Bessent answered, “I think we’ll wait and see.”
Commerce Secretary Lutnick also informed CNBC that China’s request for the US to stop tariff measures on fentanyl was not on the agenda. In addition, the US will not export the most advanced chips to China, and negotiating items also include second-hand aircraft parts and ethane.
“We are focusing on other trade agreements,” Lutnick added.