President Donald Trump on Wednesday took to Truth Social to tout a new tentative trade agreement with China, albeit one that leaves the tariff rate against Beijing at historically high levels.
“WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%,” Trump’s post to Truth Social read, with a later post adding, “”President Xi [Jinping] and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!”
Under this new arrangement, if it stands, the US tariff rate against China will be set at 55%, which is actually an increase from the 30% rate set when the two countries declared a truce in May at the start of their negotiations. This came after multiple rounds of escalation that saw the import taxes against China hiked all the way to a rate of 145%. In addition, Trump said that the US will get access to rare earth minerals from China — including ones vital to the production of technology like smartphones — while in return Chinese students will be allowed to attend American colleges and universities.
During his first term, Trump’s trade war with China saw the average tariff rate against China increased to around 20%, which went largely unchanged during the presidency of Joe Biden. Given how much the US has traditionally imported from China, increased tariffs on goods from there will have a much greater impact on the cost of goods than tariffs against other countries.
It is unclear at this point when this 55% rate would take effect. The earlier 30% rate was supposed to remain in effect until August while negotiations continued. It is also unclear if this rate will effect all imports from China the same, or if some will be spared.
