US-China Trade Agreement
The director of the National Economic Council, Kevin Hassett, said on Sunday that he was "very comfortable" with a trade agreement between the United States and China after the two sides met in London on Monday. Hassett’s comments on CBS "Face the Nation" come after President Donald Trump said last week that he had a "very good" conversation with the Chinese leader Xi Jinping and that conversations with China are "very advanced".
Trade Talks and Tariffs
Hassett said the United States wants to restore the flow of "Decisive" minerals for rare earth, that are used for the production of electronics at the same level before the beginning of April, when the US China trade war escalated. "These exports of critical minerals were released with a higher rate that is higher than it, but not as high as we believe that we have agreed in Geneva," said Hassett.
US Delegation
Minister of Commerce Howard Lutnick will lead the negotiations in London together with the finance minister Scott Bessent and the US sales representative Jamieson Greer, who was headed by a weekend in May the trade talks in Geneva. The tensions between the nations, however, escalated weeks later after Trump had posted the truth about the social that China had "completely rejected" his 90-day trade agreement, which had re-pushed the Tit-for-Tat Trade War.
Trade Agreement Details
As part of the agreement, the United States temporarily reduced its total tariffs for Chinese goods from 145% to 30%, while China lowered its taxes for American imports from 125% to 10%. As part of the Agreement, China would have its non-tariff countermeasures that the United States had imposed, suspended or canceled the United States since April 2. Part of the retaliation measures of Beijing included export restrictions for some rare earth minerals used in products such as iPhones, electric vehicles and fighter aircraft.
Tariffs and Inflation
On April 2, the Trump administration imposed dozens of “mutual” tariffs from trading partners before pausing for 90 days and lowering them on a 10% baseline. Hassett declined on Sunday to say which basic tariffs could be there, since the Trump administration continues the negotiations with trading partners before the deadline on July 9th. "You could be sure that there will be some tariffs," said Hassett.
Economic Impact
The Trump government has announced that other countries, especially China, will bear customs load. Otherwise, companies and economists have warned and encouraged uncertainty about consumer expenses and fears of a potential recession. In these concerns, the US inflation slowed down to the lowest rate in April for more than four years. The annual inflation rate fell from an increase of 2.4% in March to 2.3%, since consumer prices rose 0.2% according to the consumer price index.
Government Revenue
The finance department reported that a record of 16.3 billion US dollars in gross tasks was raised in April in April, a strong leap from the 8.75 billion dollars collected in March. Since the beginning of the 2025 fiscal year, which began in October 2024, the United States has collected gross tunes of around 63.3 billion US dollars -an increase in the increase by more than $ 15 billion in the last financial year.
Deficit Reduction
The household office of the congress estimates that this increased tariff income without taking into account the effects on the US economy could reduce the total deficits in the next decade by 3 trillion dollars. The deficit of the US government was around 2 trillion US in 2024. In the meantime, the comprehensive law template of the Republicans to issue Trump’s political agenda would stack to 36 trillion dollars of $ 36 trillion.
