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US-China Deal Reached With No concessions

Thu 12 Jun 2025 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Geopolitics

In an economic context where every trade tension weighs on global markets, Washington has chosen firmness. On June 11, Howard Lutnick, Secretary of Commerce, ruled out any reduction of tariffs imposed on China. An unambiguous announcement, despite an agreement announced as “concluded” by the two capitals. This tariff status quo increases uncertainty about global supply chains and sends a clear signal: it is not a time for appeasement, even amid diplomatic dialogue.

A showdown between the United States and China.

In Brief

  • The United States does not plan any reductions to tariffs imposed on China, despite an announced agreement between the two countries.
  • The U.S. Secretary of Commerce, Howard Lutnick, confirmed that tariffs will remain at 55 %, consolidating the current status quo.
  • At the same time, China has committed to temporarily lifting certain restrictions on exports of rare earths and magnets.
  • The mentioned agreement thus constitutes a diplomatic pause, but not a true economic de-escalation. Tensions remain high and risks elevated.

Frozen tariffs, maintained tensions : the United States remains firm

Questioned on CNBC, U.S. Secretary of Commerce Howard Lutnick unequivocally stated that tariffs on Chinese products will not be changed.

“We can say it without hesitation,” he declared when asked if tariffs would remain at the same level.

This announcement came shortly after President Donald Trump stated that the trade agreement between the two countries was “done”, though still “subject to final validation” by both heads of state. Thus, the current tariff levels, totaling 55 %, will not change at this stage.

Contrary to some initial interpretations, no tariff increases or decreases were enacted in this agreement. The 55 % figure cited by Trump actually corresponds to a sum of already effective taxes :

  • 30 % general tariffs, broadly applied to Chinese imports ;
  • 25 % targeted tariffs on specific products ;
  • There is no new element in this tariff structure, only confirmation of the status quo ;
  • The maintenance of this tariff pressure fits into an assumed diplomatic strategy, despite an agreement.

Thus, the American message is not one of opening but of consolidation: the London discussions result in a tariff truce, with no real tariff concession from the United States.

Rare earths and critical components : the industrial background of the agreement

Beyond the strictly tariff aspect, the negotiations held in London resulted in a significant commitment from Beijing: lifting restrictions on Chinese exports of rare earths and other strategic industrial components.

As Lutnick summarized in his interview, “they will approve all magnet requests from American companies immediately”. This concession aims to end a policy of “delaying tactics” by China, accused of deliberately slowing supply to the United States.

However, the terms of this commitment remain vague. Export licenses granted by Beijing are valid for only six months, renewable or not.

Such a limitation introduces a factor of instability to supply chains already under pressure, notably in the semiconductor, green technology sectors, and indirectly, blockchain and crypto infrastructures.

For markets, this situation creates a paradox: on one side, apparent normalization of bilateral relations. On the other, persistent uncertainty about the durability of Chinese commitments, especially concerning critical raw materials.

While the impact on cryptos is not immediate, it is not nonexistent, as mining equipment, server batteries, or ASIC components always depend on this global chain.

Any future restrictions or policy reversals could affect infrastructure costs in the Web3 ecosystem, or even accelerate movements of offshoring or strategic diversification, especially toward Southeast Asia.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.