The U.S. and China have agreed on a trade deal that would reduce tariffs and expedite shipments of rare-earth metals.
United States Treasury Secretary Scott Bessent said on Friday that U.S. tariffs on Chinese imports will now start at 30%, while China’s duty rate on goods from the U.S. will be at 10%. The 20% fentanyl levy on China will also stay in place.
In April, the Trump administration hit Chinese imports with a 145% tariff rate. China retaliated by slapping a 125% tariff on goods imported from the U.S.
“Now our tariffs are at 30% on them, we’re at 10%,” Bessent said on Fox Business. “We’re collecting a substantial tariff income.”
Related: Imports from China now face tariffs of up to 245%, White House says
President Donald Trump announced the agreement with China on Thursday during a news conference that “We just signed with China yesterday,” without further explanation.
China’s Commerce Ministry confirmed that both nations have reached a framework for a deal in a statement on Friday.
“China will review and approve export applications for controlled items that meet the required criteria, while the United States will lift a series of restrictive measures previously imposed on China,” the country’s Ministry of Commerce said in a statement to China Daily News.
U.S. levies on Chinese goods stood at an average of 51.1% for most imports before Thursday’s trade deal was announced, while China’s duties on American products were at 32.6%, according to the Peterson Institute for International Economics.
Bessent also said China has agreed to remove its restrictions on exports of rare-earth metals.
On April 4, China began restricting exports of rare-earth magnets to the U.S., which are used in high-tech products such as computer chips and electric vehicle batteries.
“We have an agreement with them that will make magnets flow to everyone who had received them before on a regular basis,” Bessent said.
