U.S. Tariffs on China Will Stay the Same, Says Commerce Secretary Lutnick

No More Changes to Tariff Levels, Confirms Lutnick

U.S. Commerce Secretary Howard Lutnick announced that American tariffs on Chinese goods will remain unchanged, signaling stability after months of trade tensions. Speaking during a CNBC interview on “Money Movers,” Lutnick confirmed that no further adjustments would be made to current tariff levels.

“You can definitely say that,” Lutnick replied when asked whether tariff levels would stay as they are. His comments followed closely after President Donald Trump made headlines with a social media post declaring that U.S. tariffs on Chinese goods would total 55%.

Trump’s Tariff Post Not a New Policy

Although Trump’s statement raised eyebrows, a White House official quickly clarified that the 55% tariff figure was not a new development. Instead, it reflects existing tariffs: a 30% general tariff combined with another 25% on certain targeted imports. These duties have been in place for some time and were not altered during the most recent negotiations.

Trade Talks in London Show Progress

The announcements came shortly after a new round of high-level trade talks concluded in London between the United States and China. The discussions brought together top negotiators in an effort to iron out ongoing trade issues.

Following the talks, Trump claimed a trade deal was “done,” but noted that it still required final approval from both himself and Chinese President Xi Jinping.

China’s Tariffs to Stay at 10%

According to the current agreement, China will keep its tariffs on U.S. goods at 10%, a level that has remained unchanged since a temporary truce was established last month. That truce came after earlier negotiations in Geneva, where both countries agreed to ease retaliatory tariffs while continuing to work on broader issues.

The Geneva meeting produced a 90-day pause in new tariff hikes, giving both sides time to focus on unresolved trade challenges. While that agreement reduced tensions, it did not offer long-term clarity — something the recent London talks aimed to improve.

Rare Earth Minerals Take the Spotlight

One of the key outcomes from the London discussions focused on rare earth minerals, which are essential in industries like defense, electronics, and clean energy. Trump stated in his post that China will provide full access to magnets and rare earth materials for U.S. companies.

Lutnick emphasized this development on CNBC, noting that China has agreed to approve applications for U.S. rare earth imports without delay. He said this agreement was made possible after a direct phone call between Trump and Xi, which helped break through earlier tensions.

“Mutual Annoyance” Gives Way to Cooperation

Before this progress, Lutnick said the two countries were locked in a state of “mutual assured annoyance.” Beijing had been slowing down the export of rare earths, which led Washington to respond by restricting student visas for Chinese nationals studying in the U.S.

But according to Lutnick, the tone changed significantly after the leaders of both nations spoke directly. “They are going to approve all applications for magnets from United States companies right away,” he said, expressing optimism about smoother trade going forward.

Industry Still Faces Uncertainty

Despite these positive signals, some concerns remain. A Wall Street Journal report revealed that China plans to issue only temporary six-month licenses to U.S. companies importing rare earth materials. These licenses can be reviewed and revoked every six months, creating ongoing uncertainty for American manufacturers who rely on steady access to these critical components.

This licensing structure makes long-term planning difficult, especially for companies in industries such as aerospace, automotive, and renewable energy. The short time frame also gives Beijing continued leverage over American supply chains.

White House Silent on Further Details

The White House has not yet responded to requests for clarification on the specifics of the London trade agreement or provided details on Lutnick’s statements. Despite the high-profile announcements, the full terms of the deal remain largely unknown to the public and business community.

Lutnick described the London negotiations as a continuation of the “Geneva truce,” which aimed to ease tensions without fully resolving deeper structural issues in U.S.–China trade.

Looking Ahead

While the recent developments suggest a step toward stability in U.S.–China trade relations, many questions remain. The current tariff levels are locked in, but the full impact of the rare earth agreement—and the uncertainties around licensing—have yet to be seen.

Until the final version of the trade deal is signed and ratified by both leaders, U.S. companies and importers will likely continue to proceed with caution. The hope is that improved cooperation, clearer terms, and longer-lasting agreements will emerge in the near future.