Lutnik: US and China finally agreed tariffs

Howard Lutnik. Photo: Getty Images

US Minister Howard Lutnik said Washington and Beijing had reached the final agreement on duties.

Source: Lutnik on Bloomberg Television

Details: According to the United States Minister, the final agreement governing tariffs between the two countries was signed two days ago. Its content reflects a compromise achieved during two rounds of negotiations – first in Geneva, and later in London.

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“This agreement was signed and certified two days ago,” Lutnik said.

The arrangement provides not only tariff reductions, but also mutual obligations: China will renew the supply of rare earth elements to the United States, but Washington will gradually abolish a number of restrictions on export to China strategically important materials, including ethane (used for the production of plastics in China).

However, these restrictions will not be abolished until magnets start coming from China, Lutnik said.

“They will supply us with rare lands,” and as soon as they do it, “we will cancel our countermeasures,” Lutnik said.

The final approval of the Agreement is expected by US President Donald Trump and the Chairman of the China Si Jinping.

Prehistory:

• According to the agreement, the United States had to temporarily reduce tariffs for Chinese goods from 145% to 30%, and China would reduce duties on US imports from 125% to 10%. The parties also agreed to create a “mechanism to continue discussions on economic and trade relations.”
• Donald Trump raised import tariffs from China to 145%, and Beijing raised the tariffs for US goods to 125%with its measures.
• In April, exports from China to the United States collapsed by 21%, and the business began to be concerned about the threat of a shortage of goods and components. By late April, Trump began to acknowledge that unprecedented duties against China would have to be reduced.