US-CHINA TRADE: Tariffs Stay Despite Deal-Eyes on Rare Earths and Deal Commitment

US-CHINA Trade Deal Leaves Tariffs in Effect: What’s Next? Last Week, US President Trump and Commerce Secretary HOWARD LUTNIC DECLARED The US AND CHINA HAD SIGNED A TRADE AGREMENT. However, The Details of the Agreement Were Limited, Raising Conceerns About the Effectiveness of the Deal and Watinger Both Sides Wuldes Wuld be Stick to the Terms.

While the Details of the Agreement Are Sketchy, Beijing Pointed to Easing Trade Restrictions, Stating,

“China Will, in Accordance with The Law, Approve Export Applications for Controlled Items that Meet Relevant Requirements.

Beijing Likely Referred to the Approval of Licenses for Rare Earth Mineral Exports to the Us and The Removal of US Controls on Semiconductor Exports to China. The Removal of Tese Restrictions Could Pave the Way to Lifting Tariffs, Whoth Remain in Effect.

US Treasury Secretary Scott Bessent Cleared Up Any Confusion About the Trade Deal and Tariffs, Stating,

“Now Our Tariffs Are 30% On China, Theirs Are 10%. 20% Fentanyl Tariffs on China Remain in Place.”

Markets Eye Export Trends and Tariff Developments Althugh Market Reaction to the US-CHINA TRADE DEAL WAS MIXED, EASING TRADE TENSIONS BOOSTED DEMAND FOR HONG Kong and Mainland China Stocks. HOPES OF FURTHER STIMULUS MEASURES ALSO BOLSTERED INVESTOR APPETITE FOR MAINLAND CHINA STOKS. However, Concerns About of the Effect of Ongoing Tariffs on External Demand Capped Monthly Gains.

In June, The CSI 300 and Shanghai Composite Index Advanced 2.5%and 2.9%, Respectively, While the Hang Seng Index Ganeded 3.36%. In Contrast, The Nasdaq Composite Index Jumped 6.57% in June on Easing Geopolitical Risks and Rising Bets on Multiple Fed Rate Cuts.

CSI 300 – NASDAQ Composite Index – Daily Chart – 010725 US-CHINA Trade Developments: Will China Drop Tariffs? This Week, US-CHINA Trade Headlines Could Be Crucial for Global Markets. However, Progress Toward Removing Sweeping Tariffs May Hinge on the Us and China Delivering on the Key Components of the New Trade Deal.

The US or China Could Hike Levies If The Other Side Restricts or Delays Exports. The potential of a renewed escalation in the US-CHINA TRADE WAR MAY LEAVE INVESTORS ON A CAUTYUS FOOTING. Tariff Hikes May Also Affect China’s Private Sector, The Labor Market, and Consumer Sentiment, WHICH COURCK

East Asia Econ Remarked on China’s Ongoing Transition to A Consumption-Led Economy, Stating:

“CHINA – STRUCTURE OF GDP Shifting, But Slowly. Recent Data Show Investment Fell In 2024 to Under 40% for the FIRST TIME SINC a rise in welfare spending.

WHAT Are The Numbers to Watch? In May, China’s Rare Earth Magnet Exports Tumbled 74% Year-on-Year, The Largest Fall on Record. Rare Earth Magnet Exports to The US Plunged 93%. With China Mining 69% of Global Rare Earth Minerals and Processing About 90% of the Global Supple, The Next Trade Report Will Be Cruceal.

Althugh Export Trends Will Be vital, China’s Economic Data Will Indicate Wating The Economy Remains on Track for 5% Growth. Consumer Sentiment, Household Spending, Youth Unemployment, Trade Data, and The Housing Market Need Monitoring. For Context, Youth Unemployment Was A WHOping 14.9% in May Compared with A National Unemployment Rate of 5%.

Follow Our Coverage As US-CHINA TECH TENSIONS REHAPE GLOBAL Markets.